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Innovation. Research and development department. A model for innovating for a big company

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What is Innovation? - Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually «bringing it to market», putting into practice and expoiting it in manner that leads to new products, services or systems that add value ot improve quality. It possibly involves technological transformation and management restructuring. Innovation also means exploiting new technology and employing out-of-the-box thinking to generate new value and to bring about significant changes in society.

All inovations come from research and development department. R&D departments are teams of people who are constantly innovating and perfecting designs. Perhaps they begin with a concept and then build a prototype, or working model. Sometimes during testing there is a setback when it becomes clear the design has a fault. At this point maybe it is time to start again, or go back to the drawing board. More work is done and there is a breakthrough- a solution is found. The product can be retested and then, manufactured. The company will apply for a patent fo the design so that others cannot copy it and steal the ideas.

Talking about a model for innovating for a big company, I'd like to show it on the Procter and Gamble's case.

1.One-on-one consumer research. Marketers should spend lots of time with consumers in their homes, watching the ways they wear their clothes, clean their floors, and asking them about their habits and frustrations.

2.Get employees to exchange ideas. It's very difficult to collect feedback over vast area, employees can post problems on an internal website of company. The CEO of Procter and Gamble evaluates the ideas that have been shared between employees. Each year findings can be presented in half-day innovation reviews for each business unit.

3.Reach outside for ideas. Inventors are evenly dictributed in the population, and you are as likely to find invention in a garage as in yours labs.

4.Stop testing so much. Consumer testing takes time- a luxury that P&G executives increasingly don't have.. Business is trend-based and fashion-based. You have to be intuitive.

5.Give designers more power. P&G needs to market the consumer's experience of the product- how it looks, smells and feels. Designers used to labour in anonymity on logos and packaging. But they are now deeply involved in all aspects of product development.

6.Know what not to do. The CEO of P&G does motivate the rank and file by giving out modest rewards, such as giving 50 stock options, for creative ideas and by celebrating innovators on P&G's internal website.

All in all, I'd like to summarise by saying that Innovation is a continuing process. All success from innovation is fleeting (quick). Your marketplace isn’t waiting, your competition isn’t waiting, your investors aren’t waiting - so create your action plan and start carrying it out in a practice now!

 


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