In a 2006 article, P&G’s New Innovation Model, P&G stated that their open innovation program – along with improvements in other aspects of innovation related to product cost, design, and marketing – made their R&D productivity increase by nearly 60 percent since 2001.
When I listen to P&G talks on innovation today, the innovation productivity has nearly doubled and open innovation is a key reason for this.
Every company would like to increase their innovation productivity significantly so I am looking into how companies can do this. I am still researching and it would be great to have a discussion here on my blog. A few conversation starters:
What does innovation productivity mean?
In this video, P&G gives us some insight on innovation productivity including this quote from A.G Lafley: “…the other obvious way we measure innovation productivity is how much innovation do we generate per person and how much innovation do we generate per dollar invested in innovation.” You can read a transcript at the link.
Which other metrics can we use to track innovation productivity?
Maximizing Innovation Productivity
In this article, PRTM focuses on four areas of opportunity that offer high potential for productivity and innovation leverage but are often overlooked or underutilized by development organizations: platforms and architectures, resource management, information automation, and cross-functional teams.
To which extent does your company apply this? Does it deliver results? What else do you do?
I look forward to hearing your thoughts and input on this.
Stefan Lindegaard is a speaker, network facilitator and strategic advisor who focus on the topics of open innovation, intrapreneurship and how to identify and develop the people who drive innovation.