P&G to boost innovation through partnerships

Procter & Gamble wants to work with more of “the best minds in the world” to drive product innovation and growth.


The owner of Ariel and Gillette has outlined new goals to triple the impact of its “Connect + Develop” open innovation platform.

P&G claims that by increasing the number of partnerships it develops with external innovators it can deliver $3bn (£1.9bn) in additional annual sales.

P&G chairman, president and CEO Bob McDonald, says: “Connect + Develop has created a culture of open innovation that has already generated sustainable growth; but we know we can do more. We want the best minds in the world to work with us to create big ideas.”

P&G launched Connect + Develop in 2001 to develop inbound and outbound partnerships with companies working in technology, packaging, design, marketing models, engineering and business services.

Innovations that have come out of the Connect + Develop programme include Olay Regenerist, Clairol Perfect 10 and the Oral B Pulsonic Toothbrush.

The company has already achieved the initial goal to deliver 50% of the company’s innovation through external collaboration.

The new goals are part of P&G’s overarching global strategy to “touch and improve the lives of more consumers, in more parts of the world, more completely”.

Chief technology officer Bruce Brown says: “Connect + Develop opened our minds and doors to external collaboration. It changed our culture from ’invented here’ to ’partnering for greater value’.”

“We are looking to ensure that we’re not just delivering more partnerships, but greater value through our partnerships. We want collaboration that creates innovation across all our business operations from product development to logistics.”

The FMCG firm reported 4% sales growth in the three months to 30 September boosted by increased marketing spend. Despite market share and volume gains, net profit slipped to $3.08bn (£1.69bn) in the quarter.

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