Innovation Snack 4: P&G Connect + Develop

13 Mar

Connect and Develop

It’s P&G´s version of open innovation: the practice of tapping externally developed intellectual property to accelerate internal innovation and sharing its internally developed assets and know-how to help others outside the Company.

Historically, P&G relied on internal capabilities and those of a network of trusted suppliers to invent, develop and deliver new products and services to the market. They did not actively seek to connect with potential external partners. Similarly, the P&G products, technologies and know-how we developed were used almost solely for the manufacture and sale of P&G’s own products. Beyond this, we seldom licensed them to other companies.

Times have changed, and the world is more connected. In the areas in which they do business, there are millions of scientists, engineers and other companies globally. Why not collaborate with them? We now embrace open innovation, and we call our approach “Connect + Develop.”

Today, open innovation at P&G works both ways — inbound and outbound — and encompasses everything from trademarks to packaging, marketing models to engineering, and business services to design. It’s so much more than technology.

How Does It Work?

Connect+Develop is a P&G innovation strategy. The idea of partnering externally to accelerate innovation is applied across the Company and around the world in all our work and with all of their brands.

Within P&G, they have a global team dedicated to empowering C+D, searching for innovations, working with prospective partners and shepherding breakthrough innovations through the Company and into market. That dedicated team is called Global Business Development.

What is P&G leadership saying about C+D?

Bob McDonald

“P&G’s strategy includes unrelenting focus on innovation. We want to partner with the best innovators everywhere… Connect + Develop is at the heart of how P&G innovates.”

Bob McDonald
Chairman of the Board,
President & Chief Executive Officer

Bruce Brown

“Connect + Develop has helped deliver some of P&G’s leading innovations, and is critical in helping us deliver on our renewed growth strategy moving forward. Connect + Develop has proven to be a winning strategy, with still more room for growth.”

Bruce Brown
Chief Technology Officer

 

Laura Becker“We want Connect + Develop to help deliver a dozen more Swiffer Dusters – really breakthrough innovations that change the marketplace, grow a category, and have consumers saying: ‘I need this product’.”

Laura Becker
General Manager Global Business Development and C+D

Implementing Ideas: Baby Steps

13 Mar

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Written by 

Big, crazy, breakthrough ideas seem wonderful when you are dreaming them up, but frightening when it comes time to implement them. Fortunately, the field personal development has a technique that you can apply: personal development planning (PDP). Jeffrey Baumgartner explains how to implement this approach to your innovation process.

Read more>>>>

Favorite Books: The Innovator´s Dllemma

24 Nov

In this revolutionary bestseller, innovation expert Clayton M. Christensen says outstanding companies can do everything right and still lose their market leadership—or worse, disappear altogether. And not only does he prove what he says, but he tells others how to avoid a similar fate.

Focusing on “disruptive technology,” Christensen shows why most companies miss out on new waves of innovation. Whether in electronics or retailing, a successful company with established products will get pushed aside unless managers know when to abandon traditional business practices. Using the lessons of successes and failures from leading companies, The Innovator’s Dilemmapresents a set of rules for capitalizing on the phenomenon of disruptive innovation.Image

Where Good Ideas Come From by Steven Johnson

15 Aug

Innovation Balanced Scorecard (Step2/5): Defining the Innovation Metrics & Goals

15 Aug

In the previous post of this series I discussed how to design strategic objectives in a strategy map canvas, in this post I want to talk about the criteria that we need to consider when defining our metrics and goals.

Indicators are intended to measure whether we are on the right track towards our strategic objectives. Therefore its composition must assure that we receive the right information at the right time, this is critical because it will help us to identify deviations from our strategic route and make the decisions needed to correct them.

The first step is to understand that there are different type of metrics, according to Jimmy Feldborg, who is R&D Manager at Grundfos in China pointed out that according to their timing there are three type of indicators:

• Lag indicator. The results are lagged with weeks, months or years and cannot be changed. Some examples are rewards and the number of patents.

• Current indicator. The results happen right now giving you some possibilities to act and change and thus affect the future results. Some examples are the number of ideas generated and ongoing projects.

• Lead indicator. The results are predictive for the future. You can make radical change in your approach and thus affect the results. Examples are pretty hard to give here.

Once we understand the type of indicators that we can use, the next step is to analyze the objectives of each perspective in order to translate them in metrics that best support its definition.

In the financial perspective we need to use indicators that let everyone clear the growth we are looking for in innovation. The tricky part comes when we have to decide our efficiency indicators, if we intend to pursue radical innovation the cost is not that relevant because first we need to make sure that we strength the value proposal first. When we pursue an incremental innovation, cost will be relevant because the value gap is minor than in the radical innovation.

In the market perspective we need to create a combination of metrics that show our source of incomes: income from new products to current customers, income from new products to new customers, income from new segments, income from new geographical markets, etc.

According to Jeff Murphy , an Executive Director at Johnson & Johnson, suggests that innovation metrics (internal processes) need to be dynamic by design. He continues:

1) Initially, metrics should focus on engagement, training and participation of individuals.

2) Then, as you begin to build a critical mass of capable individuals, the focus of your metrics shifts to your innovation pipeline (active projects by stage, flow of projects through concept, development, launch or kill…) and early wins. This is in addition to item 1 metrics above.

3) Finally, as your organization’s initiative begins to mature, your focus shifts to the end goals – return on investment, successful new products or services launched, revenue from new launches, etc. as well as optimizing your development and commercialization process. This is in addition to the item 2 metrics.

If an organization gets ahead of itself in the metrics area, it can lead to unrealistic expectations during the early stages. On the other hand, if it gets behind on implementing the appropriate metrics it leads to under performance, and activity without business results.

The learning and growth perspective should measure the competences we look in the people in order to generate ideas, creativity and carry out the innovation processes.

A good practice is to broken goals down from a range of years to yearly and monthly goals so we can keep track of them. Some companies build a financial map using all the indicators of the BSC and project them to represent the vision of the company.

Innovation Lab: Meet the Googlers

2 Aug

Special episode about Google: Get to know some of the secrets behind this innovation machine. Their thoughts, values, and strategies behind the challenge of winning the technology battle.

Design’s Role in Innovation

26 Jul

 

Design-led innovation is coming to be seen as one of the faster, more reliable and less risky ways of generating new ideas. Watch IDEO’s Paul Bennett, Professor Roberto Verganti and Design Council member Bonnie Dean explain design’s role in innovation