In this essay I will elaborate on the Open Innovation model in the context of an article which highlights the difficulties Procter & Gamble currently faces with delivering innovation through internal R&D in contrast to line extension of existing products. We will see that the open innovation model is an important contribution on how to exploit and to explore knowledge and technology, but that it has its limitations and threats when this R&D strategy is not combined with processes and organizational competencies that ensure that the external knowledge is leveraged to create innovations also internally. We will see that Procter & Gamble seemed to rely too much on simply the acquisition of external technology rather than absorb the gained knowledge to significantly invent internally.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Summary of the article
- Critical analysis
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the Open Innovation model in the context of Procter & Gamble's (P&G) innovation strategy. It analyzes the challenges P&G faces in delivering innovation through internal research and development (R&D) compared to line extensions of existing products. The essay evaluates the effectiveness of the Open Innovation model in exploiting and exploring knowledge and technology, considering its limitations and threats when not combined with organizational competencies.
- The Open Innovation model and its application in P&G's Connect and Develop program.
- The role of absorptive capacity and organizational processes in leveraging external knowledge for internal innovation.
- The impact of P&G's reliance on external technology acquisition on its internal R&D capabilities.
- The importance of internal R&D in generating disruptive innovations and building new product categories.
- The challenges of managing innovation in a fast-paced and competitive environment.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: Introduces the topic of Open Innovation and its relevance to P&G's innovation challenges.
- Summary of the article: Provides an overview of P&G's history, its shift towards the Open Innovation model, and the resulting impact on internal R&D and product innovation.
- Critical analysis: Examines the limitations of the Open Innovation model in the context of P&G's case, highlighting the importance of absorptive capacity and internal R&D capabilities.
Schlüsselwörter (Keywords)
Open Innovation, Procter & Gamble, R&D, Absorptive Capacity, Innovation Management, Knowledge Management, Core Competencies, Disruptive Innovation, Line Extension, Connect and Develop Program.
- Quote paper
- Kai Wright (Author), 2014, Procter and Gamble and the Open Innovation Model, Munich, GRIN Verlag, https://www.grin.com/document/295655
