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« The “Local Brain” and the “Global Brain” | Main | Knowledge@Wharton Interview »

November 12, 2007

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Christine Flanagan

Hello Satish - I would add that in addition to context, constraints also matter. I had the fortunate opportunity of interviewing Larry Huston who is the former VP of Innovation at P&G and the father of the Connect + Develop business model. Under Larry's tutelage, P&G now sources 50% of its innovation externally. (Feel free to email me and I can send you the link to the article.)

According to Huston, it's rare for a consumer to come up with a product idea that P&G's research and development team haven't already considered. So the value of the external network is not in coming up with a new idea—it's about solving important consumer problems. The onus is on P&G to be exceedingly clear about the conditions and parameters of a particular problem so their network of problem solvers can get to work. To do that, the company collaborates with organizations and individuals around the world, systematically searching for proven technologies, packages and products they can improve, scale up, and get to market fast. The company is very clear on what they're looking for and how value gets created. Without proof of concept, they don't move forward.

Here at the Business Innovation Factory we're developing the language, case studies and metrics around what it means to deliver value in a network-centric environment. (Larry Huston is actually one of our research advisors.) We believe that championing collaborative innovation through experimentation leads to an understanding of the practices involved in institutionalizing network-centric innovation.

P.S. I'm really looking forward to digging into your book - it reflects so much of what we're doing.

Satish Nambisan

Hi Chris: Yes, I agree. In the network-centric innovation framework in my book, one dimension relates to how constrained the innovation space is - i.e. whether it is well defined or emergent. The innovation context of individual companies may fall anywhere within such a continuum. And, their network partnership strategies would depend on that.


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