Open Innovation Essays

Open Innovation Essays Open Innovation Essay Open Innovation Essay UNIVERSITY OF BATH, MSC IN INNOVATION AND TECHNOLOGY MANAGEMENT Connect and Develop PGs big stake in open innovation Limali Panduwawala Suvidha Venkatesh Pedro Parraguez Xiajing Zhang 27/11/2009 Abstract: This report explores Ps Connect and Develop open innovation initiative. Its focus is to analyse this innovation strategy in the context of the formal academic theory, other PGs programmes and the company situation. Its objective is to understand the impacts, challenges and problems of implementing a large open innovation initiative inside a corporate giant such as P. Keywords: Procter Gamble, P, Open Innovation, Connect and Develop, Innovation Networks Connect and Develop, Ps big stake in open innovation 1 Introduction Innovation is the main driver for economic growth and progress of companies. In the age of the internet, it assumes even greater importance as maintaining competitive advantage becomes tougher with technology that brings the world closer and collapses the concept of time and space. Procter Gamble is a company that has been a pioneer in this field of innovation. They are global manufacturers and marketers of consumer products with complex operational networks. PG have been able to maintain their position in the market by adopting various innovation techniques and strategies. This report looks at the innovation strategies adopted by PG, particularly with a focus on Open Innovation. The report describes the theoretical framework of the innovation model the company has used along with its Innovation strategy and its management, followed by an analysis of the PG Open Innovation model, its problems and challenges and our conclusions. 2 2. 1 Theoretical Framework Innovation networks One assumes that innovation is a stand-alone concept which works well independently. In reality this is not true. To convert a good idea into a profitable product/service a lot more input from different people and different perspectives is required. Making innovation happen is about bring people or teams together in a creative and productive manner. In the era of globalisation with access to high-speed infrastructure and with teams on the move all the time, building, maintaining and developing networks becomes the key issue in the process of innovation. Usually innovation is seen as core process with a defined architecture with external influences acting on it. However, in reality it is not such a simplified structure. It is far more complex than that. The path of knowledge around an innovation project is more complex and interactive, appearing like some kind of ‘social spaghetti’ where different people talk at different times about different issues. (Tidd and Bessant, 2008) A network can be defined as a complex interconnected system or structure, which is used to get work done. A network consists of nodes or points of action which are occupied by 2 Connect and Develop, PGs big stake in open innovation individuals, companies, research institutions, universities, governments, customers and so on. These networks are greatly affected by how economic activities are influenced by the social setup and the position that the nodes or points occupy in the network. Therefore, a network can be influenced in two ways, i. e. by the interaction within the network and through the differences in position of the nodal players, which can cause power and control imbalance. Networks work best when the advantages of Co-specialisation, sharing infrastructure and standards and other benefits outweigh the costs of network governance and maintenance. (Tidd and Bessant, 2008) The above mentioned innovation networks, are the conceptual grounds where the Open Innovation (OI) model emerges, thus they are a critical structure to understand Ps Connect and Develop model. 2. 2 Open innovation In the traditional model of innovation, the focus was mainly on research and development laboratories, where invention of new concepts and technologies were carried out using internal and external sources of information. These RD labs usually concentrated on bringing out new technologies for self-commercialisation. This process can be viewed in the form of a funnel, where a large number of varied ideas and concepts can be trimmed down to few of those concepts and ideas that best meet the requirements of the company. (OECD, 2008) In recent times, companies have become more open with their innovation process, leading to revolution described as â€Å"Open Innovation† by Chesbrough (2003). This ‘open innovation’ model is a more dynamic model when compared the traditional model as there is much more interaction between knowledge assets outside the company as well as inside. Henry Chesbrough (2003) in his book â€Å"Open Innovation: New Imperative for creating and profiting from technology† defines open innovation as a concept in which companies must use ideas from inside as well as outside sources and find internal and external ways to reach the market in order to advance their technological capabilities. Open innovation combines these 3 Connect and Develop, PGs big stake in open innovation concepts of inside and outside ideas into systems and structures so that there is some order in the chaos. In another book â€Å"Open Business Models: How to Thrive in the New Innovative Landscape† he defines open innovation as the flow of knowledge internally and externally such that it moves the process of innovation at a much faster pace and so that new markets can be found for the use of this innovation. Open innovation means that firms should start using ideas and technologies from external sources and knowledge assets to create new and improved products/services. In the process, they should let others use their unused ideas which in turn can become a profitable venture by itself. This process would require an open business model to be in place. 3 Innovation Strategy at P One of the core strengths of the company is its Innovation strategy. Its CEO A. G Lafley believes that innovation is at the heart of P business model. The company uses innovation to create value with retail partners, satisfy customers and to create new business models to maintain sustainable growth (Datamonitor, 2009). The company boasts of a range of industry firsts (Appendixes 7. 1 and 7. 2). P uses a unique design for innovation comprising of five major categories (Datamonitor, 2009): ? ? ? ? ? Defining innovation broadly Investing in innovation at industry levels Managing innovation with discipline Delivering innovation that builds consumer trust and loyalty over time Using global brands and an outstanding team of innovation leaders to lead innovation One unique feature in P strategy is that innovation is involved in every area of the product which makes contact with the customer, such as the packaging, the shopping experience, the in-home product usage experience as well as the product itself (Datamonitor, 2009). A good example is the company’s family care business where the innovations are customer focused rather than technology focused. This means that each product offers customized benefits to meet different consumer needs. The company also involves its customers in the innovation process on a daily basis. 4 Connect and Develop, Ps big stake in open innovation The company supports sustainable innovation, investing heavily in RD to bring better quality products to the market. PGs budget for RD amounts to nearly $2 billion an year: twice the amount spent by Unilever, PGs biggest competitor. This proves the company’s dedication towards sustainable innovation (Datamonitor, 2009). 3. 1 Managing Innovation at PG Historically PGs innovation strategy was focused on its internal capabilities. The company had minimal experience externally and was not involved with its competitors. The model used by the company was a traditional stage gate model (Heimberg, 2008). This model (See appendix 7. 5) helped PG until 2000 when the company faced major financial difficulties. With the increase in the pace of innovation, costs, fast followers, constrained resources and more consumer demands the traditional model was unable to deliver the required results (Heimberg, 2008). The company required a growth rate which exceeded the industry growth rate†. This Figure 2, Open Innovation Model (Heimberg, 2008) Figure 1, Stage gate Model (Heimberg, 2008) equired collaboration with external sources (Lafley, 2008); commonly known as Open Innovation. This initiative was named connect and develop where the company collaborates with external sources for innovative ideas and technologies. When the process began the 10-15% of the innovations at PG included ideas from external sources and today this has increased to 50%, resulting in the company achieving a 6% organic growth in an ind ustry, which is growing at 2-3 %. ( Lafley, 2008) 5 Connect and Develop, PGs big stake in open innovation The company today works on a ‘proudly found elsewhere’ culture which has opened the door for many innovations. Although Connect and Develop is now considered the major Innovation initiative taken up by the company, there are several other strategies which drive the success at P. 3. 2 Complementary P Innovation Strategies 3. 2. 1 User driven innovation: User driven innovation mainly focuses on developing products based on customer needs. P carries out user driven innovation by engaging their customers as co-designers (Datamonitor, 2009). 3. 2. The Corporate Innovation Fund: This can simply be described as an in-house venture capital firm which hands over successful innovations to the relevant business units in the company. The firm carries out the initial concept, design, engineering and qualifications work prior to handing over the ideas; and specializes in high-risk, high reward ideas (Datamonitor, 2009). 3. 2. 3 Innovation Net: A knowledge sharing solution at P, Innova tion net provides access to 18,000 knowledge workers at P from the R to the Patent/Legal and Business Information systems (AskMe, 2001). The main function of innovation net is to allow users to catalogue, locate and maintain employee knowledge. This provides employees with the ability to take immediate action when required. (Haimila, 2002) 3. 2. 4 Enterprise 2. 0: This is P version of web 2. 0 which is a set of web based software service that helps increase the involvement of employees in establishing and managing data. In addition to this, the company is also allowing its employees to personalize its web portal by adding RSS feeds of news and business information (Hines, 2007). This web-based service includes the customer and the suppliers web portals, online hubs for all the interactions with supermarkets, suppliers and technology providers around the world Recent research has shown that innovation within the business can only occur if the structure of the business and the internal talent of the organization are structured to encourage collaboration between the employees and knowledge sharing (O’Hara, 2009). 6 Connect and Develop, Ps big stake in open innovation Therefore, the above initiatives indicate the efforts taken by PG to promote successful innovation within the company. . 3 PG’s Connect and Develop Model Explained From RD to CD Besides all the innovations above, PG has given great attention to product innovation. At first, like every other company, they had an RD group which is good for exploiting knowledge and doing research inside the firm itself. However, the drawbacks are also obvious. There is no guarantee that all these blue-sk y researches will be a success and it has high risk and cost associated (Bessant and Tidd, Table 12. 2, 2007). Besides, only by getting out of the lab can researchers find and listen to customer wants and needs. Initially, less than 10% of PG technologies were being used in products. Which meant that many unused technologies were being kept hidden, much like antiques-valuable but useless. What’s more, with knowledge increasing and refreshing at an exponential rate and much important innovations being carried out in small entrepreneurial firms (Bessant and Tidd, 2007), PG realized it is impossible for them to complete everything alone while at the same time create satisfactory operating results for their shareholders. Things had to be changed. Therefore, PG decided to introduce a new business model to cope with both the desire for external ideas coming in and own ideas going out. Instead of the traditional inhouse research model â€Å"Research and Development†, they formed a department called â€Å"Connect and Development† which is based on â€Å"Open Innovation†. The idea was to bring together external research institutions, customers, suppliers, individuals and even competitors to develop the market for new products. They established a web site (www. pgconnectdevelop. com) to communicate with the resources outside. The mechanism works like this: they simply put all their needs on this website in classified categories, and then anyone who is interested or has the solution could propose their ideas and get assessed by a specialized team. Payments can range from US$10,000 to US$100,000 (Bessant and Tidd, 2008). After this model has been applied, PG is able to drive new innovation through collaboration with external partners in at least 50% of the cases (Sakkab 2002, cited by Dodgson, Gann, Salter 2006, P. 6). Furthermore, this model seems to work 7 Connect and Develop, PGs big stake in open innovation well: in 2004, P reported a 17% increase in volume, a 19% increase in sales, a 25% rise in earnings and a total shareholders return of 24% (ANOY 2005). Thanks to the invention of the internet, another way for P to gain more external resources is to find solutions in other technology brokers such as Innocentive, Yet2 and NineSigma. 4 Discussion: Connect and Develop problems and challenges Mixing elements from open innovation models, articulating multiple innovation networks and investing heavily in knowledge management tools, (i. . Innovation Net) P has created its own novel way to deal with the new challenges of generating growth in mature markets through innovation. Nevertheless, they are not exempt from problems and challenges. Below are briefly described some of the most critical issues identified, that if not addressed properly might put in risk P long term success. 4. 1 The dangers of â€Å"outsourcing† innovation Bein g able to access external knowledge and leveraging in this way, innovation sounds like a very reasonable strategy. Nevertheless, important risks lie behind it; Firstly Lean innovation might become fragile innovation and lead to a progressive loss of internal capabilities to develop their own innovations. This might damage in the long term their most important competitive advantage, their expertise to innovate. One example of this risk is in the aeronautical industry, were Boeing and Airbus are distributing their manufacturing and R capabilities so widely, that experts believe they might lose an important part of their critical knowledge over time. (Aron, Singh, 2005) 4. Managing the intellectual property and its negotiations in an open environment Although P believes that connect and development will become the dominant innovation model in the twenty-first century (Huston, Sakkab, 2006), the drawback is obviously about how to protect its intellectual property. Case becomes much more complicated after the open innovation model is applied. In the past, all the innovations were kept inside of the co mpany, and P only needed to decide whether to apply for the patent for a certain 8 Connect and Develop, Ps big stake in open innovation innovation or not, fairly simple. However, in this model, there are many in-licensing and outlicensing of innovation and technology, which makes the protection of the intellectual property a big problem. The company needs to consider the most appropriate way to protect their new inventions. For example if the inventor does not have good protection, they are creating something that others can have for free (Docherty, 2008). Therefore, patents should be looked at closely. Another problem that arises from this issue is how to manage hundreds or thousands of relationships with small technology providers (individual inventors, university departments, private RD labs, etc. that have no formal relationship in the long term with PG and do not share the same incentives. Internal success cases (shown in appendix 7. 3), like the Magic Eraser shows clearly the complexity of the Connect Develop programme and how it must deal in an ad-hoc way to handle every case. Thus to innovate systematically in an open environment, huge trans actional costs are usually incurred; cost that are not present when the innovation occurs in a closed fashion. 4. 3 Issues about how to select and filter really innovative ideas To cope with the complexity found in the CD model, PG tries to select technologies as mature and proven as possible (Huston, Sakkab, 2006). This is good to reduce implementation and technological risks, but it reduces the chances to customize and produce radical innovations because PGs R department intervenes only in the final stages. This filter certainly limits the potential of the open innovation model, adding a cap on it, and also generates a problem because internal R capabilities are less exercised, aggravating the issue expressed in point 4. 1. . 4 Identifying the Serial Innovators† According to the Pareto Principle (80-20 rule) we should expect that most of the valuable innovations come from a very reduced group of bright individuals. This is particularly important when the challenge is to identify the serial innovators in an open innovation environment. This is because of the high number of individuals involved and the fact that they are not inside the company. For PG identifying and nurturing this valuable group will became a key issue and an interesting potential competitive advantage. 9 Connect and Develop, PGs big stake in open innovation 4. 5 Connect Develop financial results In spite of the fact that sales and profits increased over time after the implementation of CD and some of its notorious success cases (Appendix 7. 4), it is still not clear if this strategy has given PG a significant advantage compared with their traditional model of innovation before the year 2000. Stock market trends indicate that PG has followed a very similar stock price trajectory compared with its industry (Figure YYY) and so the real effect of CD is difficult to calculate in financial terms. Regardless of all the original hype, CD does not seem to be a real game changer in this business arena, or at least not yet. Figure 3, PG stock price evolution, Yahoo! Finance 10 Connect and Develop, PGs big stake in open innovation 4. 6 The complexity of the system and its interactions Connect and Develop and all the other innovation initiatives inside PG, have created a complex set of structures and interactions, transforming the management of this system into a challenge by itself. At the heart of these interactions and the management of innovation, PG have two critical positions; The Technology Entrepreneurs and the Research Fellows, the first are the scouts, hunting new innovations outside of the company and later lobbying inside to bring them in. The second are in charge of the conceptual development and continuous refinement of CD, acting as the back office of this intricate system. To understand better this sort of spaghetti model of innovation and the challenges of its management a simplified overall view of the system is provided below in figure 3. PG’s Innovation Ecosystem User Driven Innovation Corporate Innovation Funds Innovation Technologies Connect Development Suppliers Networks Proprietary Innovation Net Technology entrepreneurs Research Fellows Open NineSigma (Multidisciplinary) Suppliers Portal Customers Portal YourEncore (senior RD talent) Selection usually restricted to mature technologies Enterprise 2. 0 Idea search focus: ? ? ? Top ten consumer needs Adjacencies Tech Game Boards Yet2. com (IP broker) InnoCentive (Specific problems) Figure 4, PGs ecosystem 11 Connect and Develop, PGs big stake in open innovation Conclusions PG’s Connect and Development programme has become a clear business case when it comes to implementing an open innovation initiative inside a large company. They have created a completely new set of complex tools, networks inside and outside their company and invested strategically in this specific option to drive a major part of their innovation in new products. Thus, Connect and D evelop represents a big stake and compromise in the long term, with a new business paradigm that has not fully been tested yet, and involves an intricate network of activities and concepts. On the Backstage of CD, we find several interconnected innovation networks with customers, suppliers, internal staff and external innovation agents. Knowledge management tools are also embedded deeply in the structure, supported by innovation technologies based on information and communication technologies (ICT) such as web platforms like â€Å"Innovation Net† and other special software that help the work of the research fellows and technology entrepreneurs, who are the vital links in the Open Innovation implementation of PG. All this involves great complexity, new risks and challenges. So far, in terms of financial growth (Appendix 7. ) it seems that Lafley (PG’s CEO) has chosen the right path. Nevertheless, this is clearly just the beginning of a long journey that depends greatly on the skills to manage a heterogeneous and worldwide network of innovators without losing the vital internal capabilities and competitive advantages in this process, something that is yet to be proved. 12 Connect and Develop, PGs big stake in open innovation 6 References ? Annon, 2005. Procter Gamble’s innovation success- new research, new products, new markets. strategic direction, VOL. 21 NO. 7 ,p. 13. Annon, 2009. Yahoo! Finance Website. [Accessed 26 november 2009]. Available from: http://uk. finance. yahoo. com/q? s=PGm=USd=. Aron, R. , Singh, J. (2005). Getting Offshoring Right. Harvard Business Review, 83(12), 135143. Retrieved from Business Source Premier database. AskMe, 2001. Procter and Gamble enhances innovation by purchasing another instalment of AskMe enterprise [Online]. Available from: realcominc. com/pdf/PGPressRelease. pdf [Accessed last on 16 November 2009] Bessant, J. and Tidd, J. , 2007. Innovation and Entrepreneurship. England: John Wiley Sons Ltd. Bessant, J. and Tidd, J. , 2008. Managing Innovation. 4th ed. England: John Wiley Sons Ltd. Carvin,N. 2009. PG: Look ahead to September 2009 quarterly results. [Online]. Available from financial-gauges. com/2009/09/pg-look-ahead-to-september-2009. html [Accessed last on 17 November 2009] Chesbrough, H. 2006. Open Business Models: How to Thrive in the New Innovative Landscape. Harvard business School press, Boston, Massachusetts Chesbrough, H. 2006. Open Innovation, The New Imperative for Creating and Profiting from Technology. Harvard Business School Press, Boston, Massachusetts Cooper, R. G and Mills, M. S. , 2005. Succeeding at new products the PG way: Work the Innovation Diamond[Online]. Available from proddev. com/pdf/Succeeding_at_New_Products_the_PG_Way. pdf [Accessed last on 15 November 2009] Datamonitor, 2009. Procter and Gamble Company, The. [Online]. Available from http://web. ebscohost. com/ehost/pdf? vid=9hid=4sid=6810e15d-3545-4d7b -9b0440b0f06408d8%40sessionmgr4 [Accessed last on 14 November 2009] Docherty, M. , 2008. Protection beyond patent[Online]. Available from: http://venture2. typepad. com/innovationnet/intellectual_property/ [Accessed last on 25 November 2009]. ? ? ? ? ? ? ? ? ? ? ? 13 Connect and Develop, PGs big stake in open innovation ? Dodgson, M. , Gann, D. , AND Salter, A. 2006, RD Management. The role of technology in the shift towards open innovation: the case of Procter Gamble, pp. 333-346. Friscia,T. ,2008. A Conversation With Procter Gamble CEO A. G. Lafley. [Online]. Available from amrresearch. com/Content/View. aspx? compURI=tcm:7-37226 [Accessed last on 15 November 2009] Haimila, S. , 2002. Procter Gamble pampers RD. [Online]. A vailable from kmworld. com/Articles/News/KM-In-Practice/ProcterGamble-pampers-RD8498. aspx [Accessed last on 17 November 2009] Heimberg, J. 2008. Open Innovation at PG from Research Develop to Connect Develop. Online]. Available from gdch. de/strukturen/fg/wirtschaft/vcw_va/heimburg. pdf [Accessed last on 20 November 2009 ] Hines, A. , 2007. Web 2. 0 inside Procter and Gamble. [Online]. Available from http://blogs. bnet. com/intercom/? p=394 [Accessed last on 24 November 2009] ? ? ? ? ? Huston, L. , Sakkab, N. (2006). Connect and develop –inside PG’s new model for innovation. (cover story). Harvard Business Review, 84(3), 58-66. Retrieved from Business Source Premier database. Learning Markets, 2009. Procter Gamble down but not out; PG, KMB, CL . [Online]. Available from earningmarkets. com/index. php/200908053510/News-Feed/NewsFeed/procter-a-gamble-down-but-not-out-pg-kmb-cl. html [Accessed last on 22 November 2009] O’Hara, J. , 2009. Sustainable Innovat ion. [Online]. Available from realinnovation. com/offsite. asp? A=FrUrl= busmanagement. com/p astissue/article. asp? art=26868issue=165 [Accessed last on 22 November 2009] Organisation for Economic Co-operation and Development, 2008. Open Innovation in Global Networks [Online] Available from:http://lysander. sourceoecd. org. ezp1. bath. ac. uk/vl=2368171/cl=13/nw=1/rps v/cgibin/fulltextew. l? prpsv=/ij/oecdthemes/9998010x/v2008n14/s6/p64. idx [Accessed last on 24 November 2009] Reuters, 2009. Warner Chilcott Ltd. To Buy Procter Gamble Co. Unit For $3 Billion. [Online]. Available from reuters. com/finance/stocks/keyDevelopments? symbol=PGpn=2 [Accessed last on 19 November 2009] ? ? ? ? 14 Connect and Develop, PGs big stake in open innovation 7 7. 1 Appendixes General Company Profile Procter and Gamble commonly known as PG started as a soap and candle company in Cincinnati, Ohio in the year 1837. Today it is a global manufacturer and marketer of consumer products. There are three main Global Business Units (GBU), the company focuses on: Beauty, health and well being, and household care (Datamonitor, 2009). The role of each GBU is to recognize common consumer needs, develop new product innovations. By successful innovations and marketing strategies GBUs also helps build the PG brands. The other main sector of the business is the Global operations group which is subdivided into Market Development Organization and Global Business Services. Being the world’s largest consumer goods company, PG markets more than 300 brands in over 180 countries and functions in Europe, Asia and he Americas (Datamonitor, 2009). Some of the company’s major products include Tide, Pampers, Pantene, Pringle, Gillette and Ariel (Carvin, 2009). The major strengths of the company include its focus on Innovation, Leading market position, strong brands portfolio and a diversified range of products. One of the major weaknesses of the company is its dependence on Wal-Mart. This can lead to a weakness in the bargaining power of the company especially considering that fact that 15% of PGs revenue since 2006 is through sales to Wall-mart (Datamonitor, 2009). An increase in PG product recalls were also noticed in the past couple of years and this can tarnish the brand image of the relevant products. The company should also expect to face difficulties due to Global economic changes, counterfeit goods and increasing regulations on products (Datamonitor, 2009). In the fourth quarter of the Fiscal year 2009 PG faced one of the most difficult financial periods in decades (Learning Markets, 2009). The company has sold off its Folgers coffee business and in August 2009, signed a deal to sell its Global Pharmaceutical business. (Reuters, 2009). 15 Connect and Develop, PGs big stake in open innovation PGs Major Competitors (DataMonitor, 2009) ? ? ? ? ? ? ? ? Unilever Avon Products, Inc. Colgate-Palmolive Company Henkel KGaA Kimberly-Clark Corporation Reckitt Benckiser PLC Energizer Holdings LOreal S. A. 7. 2 List of PG Innovations (DataMonitor, 2009) ? ? ? ? ? ? ? ? ? ? Tide: the first heavy-duty laundry detergent Crest: the first fluoride toothpaste clinically proven to prevent tooth decay Downy: the first ultra-concentrated rinse-add fabric softener Pert Plus: the first 2-in-1 shampoo and conditioner Head Shoulders: the first pleasant-to-use hampoo effective against dandruff Pampers: the first affordable, mass-marketed disposable diaper Bounty: the first three-dimensional paper towel Always: the first feminine protection pad with an innovative, dry-weave top sheet Febreze: the first fabric and air care products that actually remove odours from fabrics and the air Crest White Strips: the first patented in-home teeth whitening technology â€Å"PG continues to be one of the few companies in the consumer product industry that create new categories and brands, new performance standards, and new definitions of consumer value. Swiffer and Febreze created entirely new product categories. Crest ProHealth, Olay Regenerist and Definity, Pampers Baby Stages of Development, and Tide with Bleach redefined high performance in their categories. Olay innovation has created new 16 Connect and Develop, PGs big stake in open innovation consumer experiences that are as good as/ or better than several-hundred-dollar department and specialty store brands† (DataMonitor, 2009). PG has formed a unique design for innovation which has helped them maintain consistent innovations across the wide range of products the company manufactures. 7. 3 Successful cases Pringles potato crisps In order to make the potato crisps more fun and attracting, PG is thinking of putting animals, jokes on each crisp. One researcher suggested ink-jetting pictures onto the potato, nonetheless, it was very difficult because this need a very fast-processing printer and also provided different images and colours. For PG, they also have to negotiate with an ink-jet printer company which will take at least two years. However, they discover a professor from Bologna, Italy, has already invented an ink-jet method for printing pictures on cakes through their European network. It only takes less than a year for PG achieve double-digit growth from technology provided to market penetration. Pampers diaper Pampers diapers, with annual sales of more than 8 billion U. S. dollars, is the worlds first disposable diaper brand. Nonetheless, the none-leaking underlying coating technology was actually not first invented by Pampers. It is transferred from a U. S Navy department which researches in the submarine technology. Mr Clean Magic Eraser (The Osaka case) This interesting case shows how scattered the product development process can be. Everything starts with a PGs technology entrepreneur looking for new products in Osaka, Japan when he finds in the shelves and interesting new cleaning solution based on a novel sponge. After tracking the sponge providers, he ends up in BASF (German Chemicals manufacturer) who developed originally this solution as effective insulation for buildings. After negotiating directly with them PG starts commercializing an 17 Connect and Develop, PGs big stake in open innovation innovative new set of household cleaning sponges developed in close alliance with BASF. 7. 4 Financials All numbers in thousands PERIOD ENDING 30-Jun-09 79,029,000 38,898,000 40,131,000 30-Jun-08 83,503,000 40,695,000 42,808,000 30-Jun-07 76,476,000 36,686,000 39,790,000 Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Figure 5, Income Statements 07-09, Yahoo! Finance 24,008,000 16,123,000 25,725,000 17,083,000 24,340,000 15,450,000 560,000 16,683,000 1,358,000 15,325,000 4,032,000 11,293,000 462,000 17,545,000 1,467,000 16,078,000 4,003,000 12,075,000 564,000 16,014,000 1,304,000 14,710,000 4,370,000 10,340,000 2,143,000 13,436,000 $13,436,000 12,075,000 $12,075,000 10,340,000 $10,340,000 All numbers in thousands 8 Connect and Develop, PGs big stake in open innovation PERIOD ENDING 30-Jun-09 13,436,000 30-Jun-08 12,075,000 30-Jun-07 10,340,000 Net Income Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cashflows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents Figure 6, PG Cash Flow 07-09, Yahoo! Finance ,082,000 (1,265,000) 415,000 (742,000) 721,000 (728,000) 14,919,000 3,166,000 1,769,000 432,000 134,000 (1,050,000) (712,000) 15,814,000 3,130,000 921,000 (729,000) (273,000) (389,000) 435,000 13,435,000 (3,238,000) 166,000 719,000 (2,353,000) (3,046,000) (50,000) 547,000 (2,549,000) (2,945,000) 673,000 (211,000) (2,483,000) (5,044,000) (5,689,000) (81,000) (10,814,000) (284,000) $1,468,000 (4,655,000) (8,180,000) (2,815,000) (15,650,000) 344,000 ($2,041,000) (4,209,000 ) (4,079,000) (4,190,000) (12,478,000) 187,000 ($1,339,000) 9 Connect and Develop, PGs big stake in open innovation Last Trade: Trade Time: Change: Prev Close: Open: Bid: Ask: 62. 87 $ Nov 25 0. 07 (0. 11%) 62. 80 62. 94 N/A N/A Days Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E: EPS : 62. 70 63. 48 43. 93 64. 55 8,244,877 12,486,000 $183. 25 B 14. 65 x 4. 29$ 1. 72$ Dividend: 1y Target Est: 66. 25$ Figure 7, PG Long Term Stock price, Yahoo! Finance 7. 5 PGs Innovation or Initiatives Diamond Figure 8, PGS Innovation Diamond. Cooper Mills, 2005) The initiatives diamond is used by PG to guide their new product efforts and focuses the management’s attention on the criteria important for success. The diamond can be divided into two sections where the top half involves strategic aspects which identifies the product innovation strategy such as goals, the mix of new products required to meet the goals and the essential resources(Cooper Millsa,2005). The bottom half fo cuses on delivering specific new projects/initiatives. It is more operational and helps identify how the methods to manage projects successfully using PGs idea-to-launch SIMPL method (Cooper Mills, 2005). 20 Connect and Develop, PGs big stake in open innovation SIMPL: Successful Initiative Management and Product Launch Model This is PGs version of a stage-gate model and is a method used to impel products from the idea phase to the launch and post launch phases. Figure 9, PGs SIMPL Process (Cooper Mills, 2005) As can be seen from the diagram the SIMPL model has four main stages. These

Consumer Protection- Discussion post 5 Assignment

Consumer Protection- Discussion post 5 - Assignment Example On the other hand, a mortgage has two parties, which include the borrower and the lender. In an instance where the borrower is unable to pay, in mortgage the foreclosure and sale of the property have to use the judicial process (Vobeckà ¡, Kosteleckà ½, & Lux, 2014). The lender files the lawsuit. In a deed of trust, however, in case the borrower fails to pay, the home can be auctioned. This method does not use the courts, and the trustee is the one who auctions the home (Super, 2013). The deed of trust is more efficient and faster since it does not involve a judicial process. Different states have different laws on deeds of trust, and thus one may need to review such rules before deciding on which to use. Epstein, R. A. (2014). Public accommodations under the civil rights act of 1964: why freedom of association counts as a human right. Stanford Law Review, 66(6), 1241-1291. Retrieved from http://search.proquest.com/docview/1548675357?accountid=45049 Vobeckà ¡, J., Kosteleckà ½, T., & Lux, M. (2014). Rental housing for young households in the Czech Republic: Perceptions, priorities and possible solutions*. Sociologicky Casopis, 50(3), 365-390. Retrieved from

Compairing between Islam religion and Liberalism Essay

Compairing between Islam religion and Liberalism - Essay Example The principal beliefs of Muslims fall into six chief categories (primarily referred to as â€Å"articles of faith†), namely: faith in unity of God, angles, afterlife, prophets, destiny/divine decree, and books of revelation (Ridgeon, 2003). The religious concepts and practices of Islam encompass five pillars of Islam, which are considered mandatory for all believers as the core concepts and obligatory acts of worship. The five basic acts in Islam touch on virtually every aspect of life and society and encompass aspects such as creed, daily prayers, almsgiving, fasting at the time of Ramadan, and pilgrimage to Mecca at least once in a person’s lifetime. Muslims advocate Sharia law, which is an Islamic law shaped by traditional Islamic scholarship. According to Islam, Sharia law is an expression of the divine will and comprises of a system of duties endowed upon all Muslims by virtue of their religious belief (Hashemi, 2009). Liberal religion represents a religious tradition that accommodates the theological diversity of a congregation instead of a single creed, authority or writing. Liberal religion draws resources from a diverse range of traditions, which makes it impossible to delineate the religion as either Christian, Jewish, or any certain religious faith. Liberal theology covers diverse philosophically and biblically inspired religious movement, which developed as a consequence of the enlightenment (Ridgeon, 2003). Liberalism is a method of biblical hermeneutics representing an undogmatic means of understanding God via the application of scripture. Liberals hold that human beings are not necessarily altruistic, although they are capable of reasonable decision making. Liberalism advocate for a free and responsible pursuit of truth and meaning, freedom of conscience, and application of the democratic process within the society. According to Liberalism, the ultimate objective

MATLAB Dynamics & Control Assignment Example | Topics and Well Written Essays - 4500 words

MATLAB Dynamics & Control - Assignment Example Furthermore, both the time constant and dead time vary with the size of the step-change. The process gain is affected but it is affected only in half of the cases (see Concentration A, see below). †¢ Select a set of dynamic process constants resulting from one of the step-changes that you have tested, and use these to calculate initial values for the constants in each of the three different controller equations (P, PI & PID). Proportional control: It is simple, provides rapid adjustment of the manipulated variable (MV). Does not provide zero offset, although the error is reduced (E>0). It increase speeds in the dynamic response. It can cause instability if improperly tuned. Integral control: It is simple, achieves zero offset (E=0). It provides adjusts the manipulated variable (MV) in a slower manner than the proportional mode –this can lead to poor dynamic performance. It can cause instability if improperly tuned. Derivative control: It is simple. It does not influence the final steady-state value of the error (E). It provides rapid correction based on the rate of change of the controlled variable (CV). It can cause undesirable high-frequency variation in the manipulated variable (MV). †¢ Once you have chosen your optimal control scheme, justify why you have selected it. You can use various methods of assessing controller performance in order to reach your decision: rise time, peak overshoot ratio, decay ratio, settling time, IAE, ISE, ITAE. You are not expected to use all of these, but at least two should be used and compared with each other in relation to optimizing your controller constants. †¢ Test your control loop for its ability to cope with a disturbance (e.g. in the concentration of feed chemical, or the temperature of the cooling water), and also for its ability to move the process to a new operating region by making a step-change to the set-point (i.e.

The Establishment of the Electoral College Essay -- essays research pa

The Electoral College is the system established by the Founding Fathers to select the President of the United States. It is important that Americans have a fundamental knowledge of this system, and the obstacles overcame in its development. There were many obstacles faced by the Founding Fathers while constructing the government. America was comprised of 13 states that wanted to protect their individual rights and leery of a strong centralized government. The nation’s population lay across a vast area with limited communication capabilities. In addition, the Founders believed that a true gentleman should not campaign for office. â€Å"The office should seek the man, the man should not seek the office† was the saying. They challenged themselves with overcoming these and other obstacles in order to produce a system that would provide a stable and powerful executive branch of government.   Ã‚  Ã‚  Ã‚  Ã‚  The Constitutional Congress set out to develop a way to select the president. One idea proposed was to have Congress elect the president. Some felt that this procedure would invite political bargaining and corruption. They felt the president might feel obligated to aid Congress in passing legislation by not vetoing. Others felt this system would upset the balance of power between the executive and legislative branches of government. In spite of its drawbacks, this system was brought to a vote on four separate occasions(Peirce 39). A second idea was to have the president elected by a direct vote system. Many people did not believe in this type of system, however three very prominent figures did: James Wilson, Gouverneur Morris, and James Madison(Peirce 41). They believed that the duty of the president was to protect the people from the legislature, and that the people should be allowed to their protector. However, most of the Founders believed that the average citi zen would not have enough knowledge of the candidates to make an educated choice. They believed that the people were generally misinformed and easily misled(Peirce 41). The direct vote system also favored the larger more populated states with little regard for the people of the smaller ones. This system was voted down twice, but aided in recognizing the drawbacks of the Congress electing the president(Peirce 41). A third idea was to have the state legislatures select the president. This idea w... ...tate is allowed to cast only one vote collectively. This applies to the election of vice president also. In addition, either the presidential or the vice presidential candidate voted for by the elector has to be from outside that elector’s own state.   Ã‚  Ã‚  Ã‚  Ã‚  The Electoral College has been used as the system to select the President of the United States for over two hundred years. The system was devised by the Founding Fathers to ensure that the selected president would receive the support of all the states. The system helped to maintain a strong centralized government and union. The Electoral College has been used to maintain a fair presidential selection system with little room for corruption or favoritism. It has been a part of our system of checks and balances by maintaining a clearly defined separation of the legislative and executive branches. There have been some bumps along the way, however the Electoral College is still an essential part of our elections system. Works Cited Glennon, Michael J. When No Majority Rules. Washington: Congressional Quarterly Inc, 1992. Peirce, Neal R. The People’s President. New York: Simon and Schuster, 1968.

Compare and Contrast of Short Stories Essay

In â€Å"The Ones That Walk Away From Omelas† and â€Å"The Lottery†, Ursula Le Guin and Shirley Jackson portray a supposedly perfect society built on clandestine secrets. In the short story â€Å"The Ones Who Walk Away From Omelas†, Omelas’ inhabitants are smart and cultured, and it seems like a utopian city of happiness and delight. Everything about Omelas is your every desire, disregarding the secret of the city: the good fortune of Omelas requires that a single unfortunate child be kept in never-ending filth, darkness and misery, and that all its citizens should be told of this when they come of age. After the truth is told to the people of Omelas most are initially shocked and disgusted and somehow manage to live there life and make it worth it for the child’s existence; others just walk away from the city of Omelas. In the short story, â€Å"The Lottery†, a small village of about 300 have an annual lottery; women, men, and children participate, to see who will be the chosen one to guarantee enough rain for the corn crops. The winner is to be stoned to death. The way the authors use irony to depict the story societies as wonderful and perfect then towards the end the dark secret is discovered is very intriguing and captivating, which makes you want to keep reading. In the story, â€Å"The Ones Who Walk Away From Omelas†, Omelas seems to be this beautiful and cheerful place. The story takes place during a festival and there are children running around laughing and there is music. It talks about a race and how the horses are excited, â€Å"(the horses) flared their nostrils and pranced and boasted to one another â€Å" with silver, gold, and green braided into their manes. The story has and air of excitement and celebration that is soon questioned when the author begins to talk about the child.

The Effects Of Sex Education On Schools - 2753 Words

Nearly one million teen girls become pregnant each year, with four out of 10 young women becoming pregnant at least once before they turn 20. The federal government spends about $40 billion to help families that began with a teenage birth. The overall U.S. teenage pregnancy rate declined 19 percent between 1991 and 1997 , from 117 pregnancies per 1,000 women aged 15-19 to 94.3 per 1,000.3 The national teen birth rate declined 5 percent between 1998 and 2000, reaching a rate of 48.5 births per 1,000 women ages 15-19 - the lowest rate ever recorded. Since 20011, the teen birth rate has declined 22 percent. These numbers, though declining, show that we are in dire need of a change. Providing Sex Education in schools provides the necessary tools to decrease these numbers and change the thoughts and actions of children who act impulsively with little or no knowledge of the consequences of their actions. In the 1940’s, The Public Health Service strongly supported Sex Education in public school, calling it â€Å"an urgent need†. During the 60’s, 70’s and 80’s, groups such as the Christian Crusade and the Eagle Forman launched campaigns to have Sex Education banned in schools. For many years school districts were hesitant to take part in these programs due to the controversy it stirred up with parents and political leaders. By the late 80’s, with the increase in STD’s, teen pregnancy and the HIV/AIDS epidemic, many groups began to call for the implementation of theseShow MoreRelatedSingle Sex Education Essay1416 Words   |  6 Pagessingle-sex education gained interest over coeducation, and by the early 2000s, it had gained support from congress and the Bush administration. Since then single-sex education has benefitted many students, teachers, and parents. 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