An Example of Open Innovation: P&G

Abstract

Open innovation, also known as crowdsourcing or co-creation, is a way for companies to utilize the ideas and strength of the people outside their organization to make improvements in the internal processes or products. Many companies seek input from those people outside their organization for solving some of their trickiest problems. Open innovation help them to drive employee productivity, customer loyalty and better innovation. Open innovation process consists of three main steps. These are concept phase, development phase and implementation phase. In the concept phase, research activities are carried out. In the development phase, skills are defined and projects are developed. In the implementation phase projects are implemented and exchange of information is accelerated.