Open Innovation: Not a Panacea for P&G

Procter and Gamble (P&G) is the company that comes to mind first when you talk about open innovation. Its successful Connect & Develop strategy has been widely written about and analyzed and has been successful in enhancing the diversity of innovation at the consumer products giant. But mounting evidence now suggests that C&D may be delivering a diminishing rate of return. This article explains the reasons why and the implications for other companies.

A recent article in Businessweek suggests that P&G’s ability to come up with blockbuster new products has actually declined over time. Ironically, the article attributes this to the weakening of the core R&D function within P&G, and a business focus on short-term results (which usually drives incremental rather than breakthrough innovation).

Other reports suggest that P&G’s challenge to growth is not only on the innovation front, but speeding up decision-making and action on all fronts. As often happens to large companies, P&G has created multiple layers of management that stand in the way of the company moving fast enough to contend with more agile competitors.

Read full article » jugaadtoinnovation.blogspot…

 

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