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Review of the Article How P&G Tripled Its Innovation Success Rate by Bruce Brown and Scott D. Anthony

HARVARD BUSINESS REVIEW, JUNE 2011

their innovation is not only growth based but it also has a emotional value because each innovation improves people lives. just doubled the revenues gained from the brand. which are : 1. P&G conducted workshops to formulate creative ways of solving the business problems and came up with innovative solutions. . Transformational-Sustaining Innovations.It talks about the required changes in the existing products and making them better. After 2004. The company’s CEO’s belief that promotions may win quarters. It also talks about the Connect + Develop strategy used by P&G and how its helping them in their remarkable growth. it talks about the previous record of Tide. innovation wins decades is the key to success. the detergent brand of P&G. Initially. When P&G thought that only this program is not sufficient. they took inspiration from the Disruptive Innovation theory and started producing new lines and new extensions of their products by making them simpler. It delivers the knowledge about the four innovation techniques used by the company. Sustaining Innovations.It comprises of the packaging and the promotional aspect of the products.REVIEW Whole article revolves around the innovation techniques used by P&G in last decade and its effect on the profit of the company and what are the learnings for the emerging leaders in the industry.It means the reframing the existing product lines. Company spends 50% more on R&D than its competitor. The articles discusses that how innovation and growth complements each other. 2. They understood that these new innovation techniques needed a dedicated team and they provided them the full process manual. It also talks about the ‘New-growth Factory’ concept used by Edison and Ford and how it helped P&G to strengthen its core business and its ability to capture the innovative new-growth opportunities. 3. convenient. did a lot of changes in the factory’s foundation to change the mind sets of the managers and tech management members with its new training. Commercial Innovations. They provided them the guides which talked about the new innovation systems and how they succeeded or failed. They typically bring order-of-magnitude improvements and fundamental changes to a business and often lead to breakthroughs in market share. Example – Olay Pro-X wrinkles reducing cream. It also shows how P&D invests a huge chunk of money to do research about the consumer behavior and needs to nourish its innovation techniques. easier in use and more affordable. According to the CEO. the scope of the growth in the category was very limited and how innovation and increased investment in R&D. when due to lack in innovation techniques. even in the nascent stage. Articles also talks about the innovation techniques used by P&G in short.

but the factory was there to manage these challenges. As the article goes further. Tide Dry Cleaners represents an entirely new business model. Then they targeted laundry services and came up with Tide Stain Release. Relations play an important role in success. it takes its own time. Initially Tide was an ordinary detergent brand.Swiffer and Febreze. According to author. leaders feel free to think about more –expansive growth initiatives. The whole new-growth factory concept has nourished gradually. 4. It started when a team began exploring ways to disrupt the dry-cleaning market. Summary of the learnings for the leaders are following: 1. So they came up with Tide Naturals. Article talks about the time to time innovation in the product according to the demand of consumers. which used to come in regular bottles and boxes. proper organizational structure. hey launched Tide with Acti-Lift. According to author. especially disruptive and transformational-sustaining innovation techniques. These changes have high degree of uncertainty. Then the article talks about the learnings for the leaders. If the core business model is healthy. a toothpaste brand of P&G. They also priced it around 30% below the competitors in that range. using proprietary technologies and a unique store design grounded in insights about consumers’ frustrations with existing options. How teams like Future-Works and Learning-Works helped P&G in its growth is commendable.When company thinks to launch a new product line or enters entirely new business. enough time for experimentation and provision of resources. Articles also throws light on the importance of the ethnographic research in the innovation and talks about the Indian tendency to wash clothes by their hands. which was soft on hands and hard on stains. Innovations not only appeal to current users but also attract new ones too. Portfolio approach is also one of the factors of the high rate of growth of P&G. . and it’s a process of various stages. Example. Most of these innovations were transformationalsustaining innovations. Article also delivers the concept of required dedicated teams for the innovation purpose. core business should always coordinate with the innovations. 3. This is the basic fundamental strategized by P&G and to examine this article gives the example of Crest. Within a year. 2. Core business is always capable to support the new growth techniques. it started with a two day workshop. then small scale pilots and then it became companywide initiative. They did experimentation time to time and came up with Swash which helped Tide to move out from the laundry room. This new-growth factory concept may not change the fortune of company overnight. plays an important role in the success of new-growth factory. Disruptive Innovations.4. it again takes the example of tide to explain the mechanism of the factory. 5.

some more strategies were also used by P&G like they swapped employees with noncompeting companies for learning new innovative techniques. I am sure that their marketing strategy would also be more innovative and interesting. Swiffer. . Article talks about the all the innovation techniques being used by P&G in very simplistic manner. 7. 8.5 on the scale of 5. even a person not knowing much about the management jargons can also understand the reason behind the success of the company in last decade. Dedicated teams are most important. 3. Pampers or Febreze. It’s very important to analyse the market regularly. creativity of a team can also be managed and the factory process can create sustainable resources of growth. and the reasons behind my rating are: 1. Also you can easily understand the thought process of the company easily behind every move. always make sure that right people are doing the right jobs. P&G conducts Transaction Learning Experiments. I have cut the 1. in the article very less information has been provided about the marketing and promotion techniques of P&G.no matter how big a company becomes. also seems very encouraging. for that you need new tools to gauge new businesses. The whole point of the article is to understand the overall process of the new-growth factory of P&G and how it helped the company to increase the innovation and target meeting from 15% to 50%. Ratings from my sideI will rate the article 3.5 point because of the fact that innovation should always be supported by the promotion. Predictions about the growth of P&G. Gillette. or the insights about the research done on the ethnography of Indians. Author has quoted relevant examples about the innovations and the research done for that innovation be it Tide. in which a team make new products in a lesser quantity and then they try to sell it.6. It also brings in outside talent and gives them exposure. According to the author. Not only this. 2. Crest.

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