Open innovation by Procter & Gamble, Netflix, Kraft, BMW and Airbus/EADS
Which companies understand open innovation and have initiatives on this? In this post, I look at five companies that embrace key external partners in their innovation processes and/or involve external partners and customers in the early stage idea generation phases.
Procter & Gamble:
Why… They are the pioneers and you can learn a lot by reading about their initiatives.
Corporate websites:
- www.pg.com
- www.pgconnectdevelop.com
Articles and blog posts:
- P&G’s new innovation model by HBR
- Connect & Develop with P&G by Idea Connection
- Open innovation with Procter & Gamble by The Innovation Diaries
- Procter & Gamble re-ignites growth – XBD and open innovation make it happen by Federici Business Group
Number of current Procter & Gamble employees on LinkedIn with open innovation as key words in their profile: 15
Netflix:
Why…This red-hot company not only continues to grow in times like this. They also use open innovation elements for developing code for their website and when they partner with electronic giants such as LG.
Corporate websites:
- www.netflix.com
- www.netflixprize.com
Articles and blog posts:
- Open innovation in collaborative filtering by Ross Dawson
- Open innovation output from Netflix and LG Electronics by Stefan Lindegaard
- LG, Netflix to launch TV’s with instant movie viewing by Reuters
- A deeper look at the Netflix innovation contest by Wikinomics
Number of current Netflix employees on LinkedIn with open innovation as key words in their profile: 0
Kraft:
Why…Besides using open innovation to sell more cheese – kind of cheesy – they are also a good example on how to be inspired from P&G and develop your own initiatives.
Corporate websites:
- www.kraft.com
- www.kraftfoods.com/innovatewithkraft
Articles and blog posts:
- Fostering innovation at Kraft by Idea Connection
- Open innovation at Kraft Foods? by Manage to Change
- Father, Son, Cheese and Kraft´s Open Innovation by Really Simple Sidi (RSS)
- Open innovation at Kraft by KillerInnovations
Number of current Kraft employees on LinkedIn with open innovation as key words in their profile: 15
BMW:
Why…Truth told, it is a bit hard to find much about BMW and open innovation, but I really like their R&D outpost in Silicon Valley where they establish lots of interesting partnerships. A great pocket of open innovation that can be developed in the coming years. Perhaps through their Virtual Innovation Agency.
Corporate websites:
- www.bmw.com
- www.bmwgroup.com/via
- www.pioneering-innovation.de/via/bin/index.html
Articles and blog posts:
- The BMW Group’s skunkworks in Silicon Valley
Number of current BMW employees on LinkedIn with open innovation as key words in their profile: 2
Airbus / EADS:
Why…In our global economy, suppliers will not only be suppliers but also become partners on innovation. Airbus learned this when they created the A380 and they as well as their entire industry can turn this into a big advantage in the future – if they get it right.
Corporate websites:
- www.airbus.com
- www.airbus-fyi.com
- www.airbus.com/en/corporate/innovation/
- Innovation at EADS
Articles and blog posts:
- Blaming Open Innovation for Boeing’s Woes by Open Innovation
- Catastrophic innovation at Airbus by Biz Architect
- Innovation through global collaboration by HBS
Number of current Airbus / EADS employees on LinkedIn with open innovation as key words in their profile: 1
I will get back with other short profiles soon. In the meantime, let me know if you have more info to add about these companies – and if you know of others that are leading the way in open innovation.
I have worked in companies that have tried to embrace open innovation, specifically working with smaller, entrapreneurial companies whose technology could be leveraged by larger companies to develop and sell new products. Some of the obstacles we've faced include:
- smaller companies sometimes overvalue their technology and undervalue the resources that larger companies can bring to the table
- the speed with which these two partners move is very different and sometimes the smaller company cannot afford the long development cycle time inherent in a larger company's operations
- larger companiestend to take IP issues a lot more seriously and their due diligence process can take a long time
- an entrepreneur's buisness model necessarily changes as they learn more about the marketplace. This can be seen by their larger partner as loss of focus which causes credibility issues
- lack of fit between the business models of the two partners can be a real deal breaker.
- the list goes on
However, these relationships can result in a win-win for both companies. One needs good planning, due diligence and patience to make these deals work.