Connect and Develop: Inside Procter & Gamble’s New Model for Innovation

(Larry Hurston & Nabil Sakkab)

 

Procter & Gamble has operated one of the greatest research and development operations in corporate history. But as the company grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was not up to the task. CEO A. G. Lafley decided to broaden the horizon by looking at external sources for innovation. P&G’s new strategy, connect and develop, uses technology and networks to seek out new ideas for future products. “Connect and develop will become the dominant innovation model in the twenty-first century,” according to the authors, both P&G executives. “For most companies, the alternative invent-it-ourselves model is a sure path to diminishing returns.”