How P&G Tripled Its Innovation Success Rate

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Strategic Innovation Management Innovation at Procter and Gamble How P&G Tripled Its Innovation Success Rate In recent years, innovation is the significant topic that many companies have to concern because they create and develop new ideas of innovation to improve their performance and compete with competitors. P&G is one of the company that depend on innovation both in organizations and products. That results P&G to be the most successful company and famous innovator in the business world. This essays will analyze and explore the details of “How P&G tripled its innovation success rate” and draw out helpful lessons for others. The structure of the essay is as follows. First, it briefly summarizes key points of this paper on the role of innovation. Second, determining strengths and weaknesses in the organization’s approach to innovation. In addition, theory and research ,which used by P&G; Connect and Development program, Disruptive-innovation theory, six lessons for leaders to build new-growth factories, will be described in this essay. After that, the essay concludes with advising for the company about dealing with strengths and weaknesses and give advice to a practicing innovation manager. From reading the case study, the main point is that P&G is a well-known company in innovation aspects, however only 15 percent of its innovations were meeting their revenue, profit targets in the early 2000s. Therefore the company systematize their innovation by building organizational structures that related to them. In addition, P&G take an innovation to be a backbone of P&G’s growth and combined innovation and strategy assessments together now. Those lead the company’s revenue to nearly double in the 2010s. The source of inspiration of the company began in the 1870s when Thomas Edison created the world’s first industrial research lab which called Menlo Park. It generated many new technologies and ideas for P&G. Furthermore, company’s leaders not only take into account about financial goal of innovation, but also they thinks about an emotional components that are the source of inspiration and motivate people. One reason of their successful is that P&G has divided formulations for emerging markets and are interested in need of them. This causes of the greater benefit at lower cost. Regarding innovation, P&G focuses has fewer factories but bigger initiatives to sharply increase innovation outputs. They set the team to drive three critical improvements: increased its emphasis on an intermediate category, strengthened organizational supports for the formulation of transformational-sustaining and disruptive businesses, and revamped its strategy development and review process by linking company business and innovation strategies. On the one hand, P&G has many strengths in the approach of innovation. Firstly, the company created new-growth factory that combined the creativity of Edison’s lab with the speed and reliability. This results P&G to capture innovative opportunities by using their ability. Secondly, the company invest a lot in R&D to research about innovations and bring them to develop their company. Besides, P&G launched a new program that called Connect and Develop,

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