This website uses cookies to ensure you have the best experience. Learn more

A New Approach To Innovation Essay

2176 words - 9 pages

Written by Larry Huston (vice-president for innovation and knowledge) and Nabil Sakkab (senior vice-president for corporate R&D) in 2006
Procter & Gamble launched a new line of Pringles potato crisps in 2004 with pictures and words—trivia questions, animal facts, jokes—printed on each crisp. They were an immediate hit. In the old days, it might have taken us two years to bring this product to market, and we would have shouldered all of the investment and risk internally. But by applying a fundamentally new approach to innovation, we were able to accelerate Pringles Prints from concept to ...view middle of the document...

It was through our European network that we discovered a small bakery in Bologna, Italy, run by a university professor who also manufactured baking equipment. He had invented an ink-jet method for printing edible images on cakes and cookies that we rapidly adapted to solve our problem. This innovation has helped the North America Pringles business achieve double-digit growth over the past two years.
We knew that most of P&G’s best innovations had come from connecting ideas across internal businesses. And after studying the performance of a small number of products we’d acquired beyond our own labs, we knew that external connections could produce highly profitable innovations, too. Betting that these connections were the key to future growth, Lafley made it our goal to acquire 50% of our innovations outside the company. The strategy wasn’t to replace the capabilities of our 7,500 researchers and support staff, but to better leverage them. Half of our new products, Lafley said, would come from our own labs, and half would come through them. It was, and still is, a radical idea. As we studied outside sources of innovation, we estimated that for every P&G researcher there were 200 scientists or engineers elsewhere in the world who were just as good—a total of perhaps 1.5 million people whose talents we could potentially use. But tapping into the creative thinking of inventors and others on the outside would require massive operational changes. We needed to move the company’s attitude from resistance to innovations “not invented here” to enthusiasm for those “proudly found elsewhere.” And we needed to change how we defined, and perceived, our R&D organization—from 7,500 people inside to 7,500 plus 1.5 million outside, with a permeable boundary between them. It was against this backdrop that we created.
our connect and develop innovation model. With a clear sense of consumers’ needs, we could identify promising ideas throughout the world and apply our own R&D, manufacturing, marketing, and purchasing capabilities to them to create better and cheaper products, faster. The model works. Today, more than 35% of our new products in market have elements that originated from outside P&G, up from about 15% in 2000. And 45% of the initiatives in our product development portfolio have key elements that were discovered externally. Through connect and develop—along with improvements in other aspects of innovation related to product cost, design, and marketing—our R&D productivity has increased by nearly 60%. Our innovation success rate has more than doubled, while the cost of innovation has fallen. R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% today. And, in the last two years, we’ve launched more than 100 new products for which some aspect of execution came from outside the company. Five years after the company’s stock collapse in 2000, we have doubled our share price and...

Other Papers Like A New Approach to Innovation

An Approach to Incremental Innovation Theories and Its Methods in Industrial Product Development

4626 words - 19 pages INTERNATIONAL CONFERENCE ON ENGINEERING DESIGN, ICED’07 28 - 31 AUGUST 2007, CITÉ DES SCIENCES ET DE L'INDUSTRIE, PARIS, FRANCE AN APPROACH TO INCREMENTAL INNOVATION THEORIES AND ITS METHODS IN INDUSTRIAL PRODUCT DEVELOPMENT Hannu Oja Tampere University of Technology ABSTRACT A quest for powerful tools to support creation of innovative solutions exists in industry. Majority of development efforts aims for incremental development of products

A Hybrid Approach to Ethics Is the Best Approach?

768 words - 4 pages A Hybrid approach to ethics is the best approach? Virtue ethics is an agent-centred theory thus focuses on the person performing the action themselves rather than then the action they perform. Virtue Ethics was developed by Aristotle, however, is originally based on Plato’s four cardinal virtues; courage, temperance, prudence and justice. A follower of virtue ethics would believe that the goodness of something should not be decided on by an

The Progressive Path: a New Approach for the Modern Student

3806 words - 16 pages The Progressive Path: A New Approach for the Modern Student Mitchell M Rodgers Western Governors University The Progressive Path: A New Approach for the Modern Student Recent college graduate…in debt. Early to mid-twenties…in debt. No retirement or emergency savings…in debt. Minimal work experience…in debt. Too many Americans are subject to this common denominator…in debt. For far too long we have become accustomed to the monotony and

The Scope of Sustainable Agriculture in the District of Allahabad: an Approach to Food Security, Innovation & Greening the Economy

2043 words - 9 pages Research Proposal for the Ph. D. Admissions: 2015-16 A Geographical Study of Natural Disasters and their Management in Uttarakhand Submitted By SANJAY KUMAR M. A. (GEOGRAPHY) Introduction: Disasters are not new to mankind. They have been the constant, though inconvenient, companions of the human beings since time immemorial. Disasters continue to occur without warning and are perceived to be on an increase in their magnitude, complexity

A Comprehensive Approach To Improving Literacy In America

2574 words - 11 pages a mission to create and sustain social value, recognizing and pursuing new opportunities to serve that mission, and engaging in the process of continuous innovation, adaptation and learning” (Lyons, 2013). Previous Actions and the Solution Previously, stakeholders in areas with conditions similar to that of the United States have attempted to influence the outcome of literacy scores through the creation of programs like Books on Wheels, PRINTS

Board Meeting Or Movie Party? A New Approach In Understanding The Culture

733 words - 3 pages creative and think out of the box to come up with a new approach that allows companies to be effective in understanding a new culture and its market Board meeting or movie party? A new approach in understanding the culture When it comes to target a new market in a new country, no matter it is local or international, a company needs to train its employees and select the most suitable candidates to accomplish the goals. There are lots of purposes of

Acculturate/Adapt to a New Culture/Society

813 words - 4 pages Can Kim's (2005) model explain how forced migrants (refugees难民 and asylum seekers避难者) can acculturate/adapt to a new culture/society 适应新文化 (see Witteborn, 2011 on forced migrants)? Why? Why not? To answer the question, Kim’s model can explain how forced migrants can adapt to a new culture. In Kim’s (2005) theory, cross-cultural adaptation refers to a dynamic process of human evolution that tend to struggle for an internal equilibrium in

Genre Approach To Writing: Explain How You Would Use A Genre Approach To Teach Writing In The Primary Classroom. Make Specific References To Strategies, Tasks And Resources Employed

1197 words - 5 pages The genre approach, "involves the direct teaching of a range of genres through a cycle that includes modelling, joint construction and independent construction". (Green and Campbell 2003, 209). This approach to teaching writing stemmed from a specific criticism of process writing- that students were producing a surplus of narrative genre to the detriment of developing writing competency in other genres. Critics in the 1980s and 90s claimed that

Does Lincoln Electric Inc. Follow A Hierarchical Or Decentralized Approach To Management

1343 words - 6 pages Does Lincoln follow a hierarchical or decentralized approach to management? Lincoln Electric, Inc. follows a decentralized approach to management. At foremost a decentralized approach to management according to Daft, “culture, values, traditions, shared beliefs, and trust are used to foster organizational goals” (Daft, 2012, pg.553). This approach emphases a unifying goal which is shared and is worked upon in a unifying effort for success by

A Stochastic Approach To Indian Banking Sector : Technical Analysis Of Private Sector Banks

5458 words - 22 pages A Stochastic Approach to Indian Banking Sector : Technical Analysis of Private Sector Banks Dr. Rahul Rajan Abhilasha Srivastava Abstract The objective of this paper is to present a method for estimating the cost efficiency of Indian banks in order to study the degree of technical and cost performance of the Indian banking sector and to analyze how the banking sector has been affected by technical efficiency and cost efficiency. Initially

The Human Side to Introducing New Technology; a Historical Perspective

5852 words - 24 pages influenced by the non-technical factors associated with Personnel Policies. It was shown that the Scientific Management approach to operator job specification was not the best approach to the new technology as its focus is on individual jobs with a view to optimizing management control and worker efficiency. Job enlargement, job enrichment and job rotation should be applied to every job specification. This may include maintenance, basic machine

Related Essays

Ajax: A New Approach To Web Applications

1064 words - 5 pages Ajax: A New Approach to Web Applications If anything about current interaction design can be called "glamorous," it's creating Web applications. After all, when was the last time you heard someone rave about the interaction design of a product that wasn't on the Web? (Okay, besides the iPod.) All the cool, innovative new projects are online. Despite this, Web interaction designers can't help but feel a little envious of our colleagues who

New Belgium Brewery A New Approach

4595 words - 19 pages from a dream in a man’s basement to currently utilizing over 200 employee owners and boasts sales of over 32 million dollars in 2009 (JUICEBOX, 2010). NBB (New Belgium Brewery) took a different approach to every aspect of business; they have made employees owners and have allowed and continue to allow employees help to run the company and make decisions. This employee empowerment only took a short time to implement and before long the employee

Targeted Therapy: A New Generation Of Health Care Innovation

1364 words - 6 pages Targeted Therapy: A New Generation of Health Care Innovation Michael A. Kline University of Phoenix HCA/210 Introduction to Health Care Jon Lasell February 9, 2014 Targeted Therapy: A New Generation of Health Care Innovation Could targeted therapy be the “new” trend in fighting degenerative cancer genes that are affect nearly 13,000,000 people in the world? Scientific and technological advances and in the health care system

Disruptive Innovation: A New Era Of Crowdsourced Data Analytics!

1591 words - 7 pages Disruptive Innovation: A new era of Crowdsourced Data Analytics! Abstract: The existing business paradigm of data analytics is set for a transformation. Today, companies are experimenting to replicate the “Outsourced data analytics” model to “Crowdsourced data analytics”. Companies like Kaggle, Crowdanalytix and others are hitting the headlines of top analytics blogs across the globe. The reason is that the new business model promises a