Spurring innovation through global knowledge management at P & G
Download as PPTX, PDF2 likes1,996 views
P&G established a global knowledge management system to spur innovation. The system aimed to tap into external knowledge and ideas to supplement internal R&D. It created CONNECT+DEVELOP hubs with entrepreneurs and used online communities to share knowledge globally across business units. The changes helped cure a "Not Invented Here" attitude by respecting knowledge from outside the company and improving links between problem identification, external learning, internal sharing, and globalizing innovations.
Spurring innovation through global knowledge management at P & G
- 1. Spurring Innovation through Global Knowledge Management at Procter & Gamble
- 2. Introduction In 1837 William Procter and James Gamble two Brother-in-laws started their business as partners. As a result an innovative company Procter & Gamble was initiated. Organization StructureCore Strengths
- 3. History 1879 first branded product, Ivory Soap. 1946 Tide introduced to the US market. 1955 Cavity preventive toothpaste Crest is introduced, 1961 P&G introduces Pampers, in Germany 1966 Colgate- Palmolive France
- 5. 1930 first overseas business in UK Expand further 1946 Till 1980 R&D center on US Till 2000 Research hubs in US, Europe, Japan and Latin America Beginning of the century US operations dominating+ Knowledge and innovations from it’s subsidiaries and outside of the firm
- 6. By CEO A.G.Lafley to change the attitude from it’s resistance to innovative ideas acquired from outside. Not invented here Proudly found elsewhere 7500 : 7500+1.5million Functional silos eliminated Linkage between • Problem identification • External knowledge acquisition • Internal knowledge sharing across units • Global exploition of innovations
- 7. Goal : “Tap into knowledge and ideas outside the company” Additional aim: To improve sharing knowledge and ideas within the company. 70 senior technology entrepreneurs in 6 regional CONNECT+DEVELOP HUBS. Web based 21 global communities of practice. Changes in innovation products
- 9. Sender unit ability and the willingness to share knowledge. The motivation and the ability of the receiving unit The mechanism to share knowledge (Disseminative Capacity ) -TRUST -Social status and norms of reciprocity -Firms performance management system -Functional silos (Absorptive Capacity) -Inter-unit trust and shared cognition -NIH syndrome -Expatriates/ Inpatriates -Short term assignment -Web based learning system
- 10. Performance management system, compensations and rewards Strong social networks Strong organizational culture-knowledge sharing an important shared value Matching recruits Retention of personnel Mechanisms for utilization of expertise
- 11. Curing Not Invented Here syndrome. Design appropriate structural mechanism Open communities of practice. Regional hubs to scan the environment. Respect knowledge sharing across Improving link between • Problem identification • External knowledge acquisition • Internal knowledge sharing across units • Global exploitation of innovations- Open network
- 12. Presented by: P.G.B.Dharmarathne A/BBA/09/030 R.S. Samarasinghe A/BBA/09/115 K.G.T.M Deshanthi A/BBA/09/029 D.K.D.Madhubhashini A/BBA/09/068