P&G's innovation culture
The heart of a company’s business model should be game-changing innovation. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business. Procter & Gamble’s success rate runs between 50 and 60 percent.
As they lead to repeat purchases, these offerings reshape the market, so that the company is playing an entirely new (and profitable) game to which others must adapt. A number of game-changing innovators are operating today, including such household-name enterprises as Procter & Gamble, Nokia, the Lego Group, Apple, Hewlett-Packard, Honeywell, DuPont, and General Electric.
Consider the case of Procter & Gamble Company. P&G has worked hard to make innovation part of the daily routine and to establish an innovation culture. They sought to create a system that would harness the skills and insights of people throughout the company and give them one common focus: the consumer. Without that kind of culture of innovation, a strategy of sustainable organic growth is far more difficult to achieve.
In 2000 P&G introduced new brands and products with a commercial success rate of 15 to 20 percent. In other words, for every six new product introductions, one would return our investment. This had been the prevailing ratio in our industry, consumer packaged goods, for a long time.
Today, P&G’s success rate runs between 50 and 60 percent. About half of its new products succeed.
read more >>
As they lead to repeat purchases, these offerings reshape the market, so that the company is playing an entirely new (and profitable) game to which others must adapt. A number of game-changing innovators are operating today, including such household-name enterprises as Procter & Gamble, Nokia, the Lego Group, Apple, Hewlett-Packard, Honeywell, DuPont, and General Electric.
Consider the case of Procter & Gamble Company. P&G has worked hard to make innovation part of the daily routine and to establish an innovation culture. They sought to create a system that would harness the skills and insights of people throughout the company and give them one common focus: the consumer. Without that kind of culture of innovation, a strategy of sustainable organic growth is far more difficult to achieve.
In 2000 P&G introduced new brands and products with a commercial success rate of 15 to 20 percent. In other words, for every six new product introductions, one would return our investment. This had been the prevailing ratio in our industry, consumer packaged goods, for a long time.
Today, P&G’s success rate runs between 50 and 60 percent. About half of its new products succeed.
read more >>
