The role of technology in the shift towards open innovation: the case of Procter & Gamble

TLDR

Open Innovation requires extensive empirical investigation, testing and development, and is enabled by information and communications technologies that facilitate the exchange of distributed information. The study analyzes P&G’s “Connect and Develop” strategy to examine the organizational and technological changes of open innovation, argues that more analysis is needed on how technology facilitates these strategies—especially in new product development—and proposes a research agenda to deepen understanding of technology’s role and consequences. The case study demonstrates that a suite of innovation technologies—data mining, simulation, prototyping, and visual representation—support open innovation at Procter & Gamble.

Abstract

As with all new ideas, the concept of Open Innovation requires extensive empirical investigation, testing and development. This paper analyzes Procter and Gamble's ‘Connect and Develop’ strategy as a case study of the major organizational and technological changes associated with open innovation. It argues that although some of the organizational changes accompanying open innovation are beginning to be described in the literature, more analysis is warranted into the ways technological changes have facilitated open innovation strategies, particularly related to new product development. Information and communications technologies enable the exchange of distributed sources of information in the open innovation process. The case study shows that furthermore a suite of new technologies for data mining, simulation, prototyping and visual representation, what we call ‘innovation technology’, help to support open innovation in Procter and Gamble. The paper concludes with a suggested research agenda for furthering understanding of the role played by and consequences of this technology.