Open Innovation at Procter & Gamble

March 26, 2006

Yesterday I received my copy of the Working Knowledge series from Harvard Business School. Larry Huston and Nabil Sakkab, both executives for P&G., wrote one of the articles, “P&G’s New Innovation Model.” The authors note that, by the year 2000, the challenge for P&G of growing organically by 4 to 6 percent each year meant the equivalent of building a $4+ billion business annually. They note that P&G was able to meet those top-line growth challenges in the past by building global research facilities and retaining the world’s best talent. Yet, the authors indicate that by the year 2000 P&G recognized it could not support the necessary growth using the “invent-it-ourselves” model, what I’ve previously termed self-oriented innovation. Read the rest of this entry »