"Open Innovation" Drives P&G's Product Development Success

"Open innovation" has been the key to Procter & Gamble's growth over 175 years from a candle- and soap-making operation to a $24 billion, 300-brand multinational business. Open innovation involves extensive use of partnering to complement internal technology development. The concept was formalized a decade ago into a cultural component known as "Connect+Develop" (C+D). CEO A. G. Lafley urged P&G to source half of its innovation from non-P&G firms with a view toward mutual interest and benefit. The partnerships that evolved developed many successful P&G products, including Swiffer, Tide and Mr. Clean eraser. Writing in Blogging Innovation, Deborah Mills-Scofield lists eight key lessons P&G has learned about innovation in its long history. At the top of the list? "Drive from the top:" commitment from top management is essential.