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How Procter & Gamble Got Employees to Use Social Networking at Work
The Situation: With more than 138,000 employees in 160-plus countries, there are countless opportunities—and as many hurdles—for P&G to connect ideas and expertise. Through its Global Business Services group, P&G is deploying an intranet that allows users to create value beyond their usual circles.
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. Once their use of wikis, blogs and similar tools solidified, P&G selected Telligent's online community application as an enterprise Web 2.0 platform.
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Nearly 12,000 users opted in before there was any formal marketing of the platform.
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Open Innovation Lessons From P & G
As you start the evolutionary process of adopting open innovation to your organization, always remember that open innovation is just a tool, not a goal. The goal is to grow your company and make a profit. Some companies might also have the goal of changing the world to a better place.
Understand that open innovation is only a piece of an overall innovation strategy. To begin, look for opportunities to develop overall open innovation capabilities out of the pockets of open innovation you may already have in your company in areas such as key partnerships, supply/value chain, and selected employees with the right mindset and toolbox.
P&G's New Innovation Model
The model works. Today, more than 35 percent of our new products in market have elements that originated from outside P&G, up from about 15 percent in 2000. And 45 percent 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 percent. 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 percent in 2000 to 3.4 percent 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 have a portfolio of twenty-two billion-dollar brands.
Innovation Advice from Procter & Gamble CEO A.G. Lafley - Harvard Business Online's Scott Anthony
The CEO has to be the "Chief External Officer" to manage external pressure and the "Chief Innovation Officer" to push the innovation agenda forward.
frogpond » Cultural change and developing collaboration capabilities
Scott Anthony - president of Innosight compiles some of the drivers needed for organizational change, based on a panel discussion he moderated with CEOs from Dow Corning, Eastman Kodak, Procter & Gamble etc.:
Social Software`s Culture Clash
Procter & Gamble and other mainstream companies aim to overcome their hierarchical, individualistic ways to make room for flexible, open and unstructured technologies.
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