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Critical Lessons, Facts On Open Innovation

June 2, 2010 Open Innovation 2 Comments

In early May, I moderated a great panel discussion at The Front End of Innovation conference in Boston working with Chris Thoen, Managing Director of Open Innovation at P&G and Jeff Bellairs, Sr. Director Connected Innovation at General Mills.

C. Engdahl did a nice recap of the session, which you can read at this link: Critical Lessons on Open Innovation, A Panel Discussion

The recap included these insightful quotes made by Chris and Jeff:

“The new competition is not about internal knowledge and focus, but rather about an organization’s ability to reach out, partner, and develop outside relationships and subsequent products based on these relationships.” – Chris Thoen

“Open Innovation requires you to be a ‘Clydesdale’, not necessarily a ‘Thoroughbred’. It takes tenacity and a focus on early wins to be successful.” – Jeff Bellairs

With the permission of Chris Thoen, I would also like to share some facts on P&G’s open innovation efforts.

• P&G works proactively with more than 85 network and 120+ universities. 75% of their searches within these networks result in viable leads.

• P&G’s “open door” for unsolicited innovation submissions – Connect+Develop – generated nearly 4,000 leads last year. The site is now available in 5 languages (English, Chinese, Japanese, Portuguese, Spanish).

• P&G invests in relationships over time to become the preferred partner for open innovation. 40% of their relationships results in repeat deals.

• More than 50% innovation is sourced externally (up from < 10% in 2001).

• P&G is externally recognized as one of leaders in open innovation space. Today, $3 billion in other companies’ sales are powered by P&G assets.

• P&G has 1,000 contracts under management.

Interesting and impressive facts…

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Currently there are "2 comments" on this Article:

  1. Cesar Castro says:

    Great statistics from P&G indeed. I look forward to the day when P&G is no longer alone at the top on the podium, but instead has many other companies present as well. It makes me wonder if there are equivalent examples in the software (and high tech) industries. These industries, in my opinion, are the closest to joining the ranks of P&G. If you take a look at companies like Nokia, British Telecom, or IBM, you can see many elements of a successful open innovation effort. Yet it doesn't get a lot of mention because it's software, and therefore tends to get lumped into open source. But open source sure looks a lot like open innovation to me. I think open source was the inspiration for open innovation. One big difference is managing the IP, of course. But many similarities exist: engaging with external experts, changing the corporate culture, letting others 'remix' your products, consumer-led innovation, new 'open' business models.

  2. [...] should also check my recent post, Critical Lessons, Facts on Open Innovation in which Chris Thoen shared some interesting facts on P&G’s open innovation [...]

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