Creating innovation for competitive advantage
A Procter & Gamble case study

Page 1: Introduction

Companies must innovate in order to keep ahead of their competitors. If an organisation wants to create a business strategy that keeps it at the forefront of innovation, it must develop ways of making that strategy work. Being innovative does not just involve using the expertise of market researchers, scientists and product developers to create new products. It also involves using the capabilities...
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Page 2: Setting goals

Globalisation and the explosion of technology make it more important than ever for Procter & Gamble to ‘embrace its future’. It has recently been re-structured in order to accelerate the creation of new products, speed up decision-making, set goals and stretch targets for developing the business and provide rewards for those who do so. A key element in building an organisation that...
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Page 3: Innovation, culture and people

One simple definition of organisational culture is ‘the way we do things around here’. It helps to show what an organisation stands for and is reflected through the organisation’s actions, rituals, beliefs, meanings, values, norms and language. The ‘human resource’ focus within Procter & Gamble is linked to organisational vitality driven by every department. In...
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Page 4: How organisation structure supports innovation

Organisations that are designed for innovation have three characteristics: They make it easy for innovation to flow throughout the enterprise. They make it possible to learn quickly from consumers. They make it possible to develop ideas profitably time and time again. For Procter & Gamble the key to faster business growth, transforming existing markets, making inroads into new markets and...
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Page 5: Examples of innovative product development

Osteoscan Research undertaken by Dr David Francis within Procter & Gamble focusing upon releasing calcium ions laid the groundwork for many other product opportunities, including improvements to a toothpaste called Crest. It was his vision in making the leap from one area of chemistry to another which led to the discovery of a new class of compounds - bisphosphonates! The first medical product...
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Page 6: Conclusion

Procter & Gamble has built an organisation with an innovative culture. Everybody can contribute to new product development either through research and development or through their focus, energy and commitment to their role. This approach to innovation is not new. For example, Procter & Gamble’s dedication to innovation led to the development of Flash, a revolutionary brand for its...
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