2.3 CASE: The role of technology in the shift towards open innovation: the case of Procter & Gamble.
THE ISSUES OF THE CASE
In 1990, Procter & Gamble (P & G) faced some difficulties in selling their products globally. This is due the inability to produce new products and response to the consumer’s changing needs. The company’s products in market sold less than expected sales and getting reduced for several years. Most of the products are unnoticed by customers. The company practice dictated a multi brand strategy. P & G offer a new brand for every product in each category. This method looks like working well in laundry detergents and other categories but not at all. Moreover, new designation of product would bring higher operating costs and …show more content…
The ‘connect and develop’ strategy could help P&G systematically search for new ideas which company can use from around the world. It is mainly use to connect between internal and external resources of the company. The strategy also allows P & G to do innovation by transferring data between innovators across the globe to make new valuable connection and collaborate with co-workers in a variety of specialized fields. Moreover, the “connect and develop” strategy also easy way to communicates with external business partners. Proctor and Gamble’s externally focused open networks supplement it internally focused proprietary R & D networks. These open networks are primarily focused on technological developments that can contribute to product innovations. For example, Technology Entrepreneurs are scientist and specialist in technology field which is crucial for P&G global …show more content…
Create Innovate bring innovation to P &G’s products in the marketing and packaging through use of visualization suite in order to test representations of package design with consumer. It means that no need to create a physical product first and just create digitally. Once the product had been virtually, customer might give their opinion based on their taste and preference. Usage of this technology assisted them to get representation of new valuable idea and fastest feedback from users. Different style of packaging is vital for product in consumer market. It might help P & G to establish strong brand and lead the in the market. There are more chances to win customer loyalty too. Focusing on brand equity required constantly enhancing existing products and developing new ones that protected and extended
THE ISSUES OF THE CASE
In 1990, Procter & Gamble (P & G) faced some difficulties in selling their products globally. This is due the inability to produce new products and response to the consumer’s changing needs. The company’s products in market sold less than expected sales and getting reduced for several years. Most of the products are unnoticed by customers. The company practice dictated a multi brand strategy. P & G offer a new brand for every product in each category. This method looks like working well in laundry detergents and other categories but not at all. Moreover, new designation of product would bring higher operating costs and …show more content…
The ‘connect and develop’ strategy could help P&G systematically search for new ideas which company can use from around the world. It is mainly use to connect between internal and external resources of the company. The strategy also allows P & G to do innovation by transferring data between innovators across the globe to make new valuable connection and collaborate with co-workers in a variety of specialized fields. Moreover, the “connect and develop” strategy also easy way to communicates with external business partners. Proctor and Gamble’s externally focused open networks supplement it internally focused proprietary R & D networks. These open networks are primarily focused on technological developments that can contribute to product innovations. For example, Technology Entrepreneurs are scientist and specialist in technology field which is crucial for P&G global …show more content…
Create Innovate bring innovation to P &G’s products in the marketing and packaging through use of visualization suite in order to test representations of package design with consumer. It means that no need to create a physical product first and just create digitally. Once the product had been virtually, customer might give their opinion based on their taste and preference. Usage of this technology assisted them to get representation of new valuable idea and fastest feedback from users. Different style of packaging is vital for product in consumer market. It might help P & G to establish strong brand and lead the in the market. There are more chances to win customer loyalty too. Focusing on brand equity required constantly enhancing existing products and developing new ones that protected and extended