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Proctor and gamble inside innovation
1. Connect and Develop
Inside Proctor and Gamble: new model for
innovation
Submitted by:-
Section D, Group 4
2. “Marketing and Innovation produce results;
all the rest are costs.” – Peter Drucker
R & D
C & D
The innovation model change in P& G
3. The benefits of C&D(open innovation)
Saves a lot of time – New Pringles launch from
concept with this new approach was accelerated
tremendously (within 1 year)
Saves a lot of money – decrease in R&D investment
Utilizes collaborative intellect of various entities –
small and mid size entrepreneurial
companies, university labs, and even government
Will keep up with the ever increasing pace of new
technologies within budget – improve the R&D
productivity
4. Challenges in C&D model
Internal resistance – “not invented here” to “proudly
found elsewhere”
Requirement of massive operational changes
Testing and validation of the products, technologies
and packages and then scaling them up and making
them in line with brand image
Identifying the ideas that can be translated into real
value adding business.
Fear of job loss
6. C&D organization Structure
Director
Business Unit
Director
Business Unit
NineSigm
a
Manager
Supplier
Manage
r
Technology
entrepreneu
r
Hub
network
VP
Virtual R&D network
Legal Training
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7. Technology entrepreneur does the initial
screening based on methodology described
above
Log the detail as how it is meeting the current
need and its complete assessment
Director notices it, and assess its suitability
with business goals and evaluate the
practicability of the product
Promising product are evaluated based on
consumer response
Positively responded products are developed
and Deal is made with the product’s
manufacturer by negotiating various models
like collaborating, licensing etc.
How it was
done?
8. Insights
P&G’s innovation model is successful because it was
top down approach
To avoid any internal dissatisfaction and
inefficiencies top level management must have to
decide what should be the composition of internal
research and innovation externally
Any successful external ideas are never full proof
concept to be launched directly in the market – it has
to be evaluated thoroughly to be in line with the
business goals and the organization’s mission and
vision
Internal resources will always be required for new
product development
For any organization to be successful in today’s competing environment, it has to rely on innovations in its offerings. The case presented talks about P&G and the change in itsinnovation model. In 2004, when P & G decided to innovate its crisps product ‘Pringles’ they used C&D instead of their vast R&D.
Need Lists: What consumer need in each product category and try to fulfill which contribute to brand growthAdjacency Map: new products that help existing brand equity like Crest brand with toothpaste, flosses, whitening strips, power toothbrush etc.Technology board game: Which technology to develop, acquire, license, sell or co develop etc.
