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Cultivating
Innovation

              March 2010
Rimma Driscoll
               Global Business
Insert photo   Development
               INNOCOS
               November 27, 2012
               © P&G 2010
For Discussion . . .

1. About P&G

2. C+D: What is it and why is it
   important?

3. Examples: C+D at work
About P&G . . .
• 300 brands; sales 180+
  countries
• Operations in ~75 global
  markets
• Built on Partnerships
• Driven by Innovation
• Global Advertising Leader
• Established: 1837
• HQ: Cincinnati
• Sales: $83.7 Billion

• Largest CPG Company in the World
Our Brands . . .
• Among the Most Trusted in the World



• 25 Billion-Dollar Brands
Our Values . . .

  P&G’s Brands and
   People Improve
   the Lives of the
       Worlds’
     Consumers.
What Drive Us . . .



  We are        The        Innovation
  Purpose-      Consumer   is Our
  Driven and    is Boss.   Lifeblood.
  Values-Led.
Our History . . .




                           James Gamble

    William Procter
                      We are a company founded in
                        and grown by partnerships.
   It’s in our DNA. It’s who we are. How we work.
For Discussion . . .

1. About P&G

2. C+D: What is it and why is it
   important?

3. Examples: C+D at work
Innovation has always
         been our Lifeblood
Innovation is how we’ve grown . . .
  List of Firsts:
  1879    IVORY     white soap equal in quality to imported castiles
  1911    CRISCO    all-vegetable shortening
  1933    DREFT     synthetic household detergent
  1946    TIDE      heavy-duty laundry detergent
  1955    CREST     toothpaste to prevent tooth decay
  1960    DOWNY     rinse add fabric softener
  1961    HEAD & SHOULDERS anti dandruff shampoo
  1961    PAMPERS affordable, mass-marketed disposable diaper

 And the list goes on….
  2003    MR. CLEAN MAGIC ERASER unique scrubbing sponge
  2005    TIDE COLD WATER superior cleaning in cold water
  2007    BRAUN PULSONIC       first self cleaning electric razor
  2008    ALWAYS INFINITY      absorbs 10X its weight
  2012    TIDEPODS     3-in-1 laundry product
Strengthening Our
Innovation
Program and
Pipeline
To consistently win with consumers
around the world across price tiers
and preferences, and to consistently
win versus our best competitors, each
P&G product category must have a
full portfolio of innovation.


This is a top priority at P&G.
How to get there . . .

  We can’t be everywhere. Think of everything.
  And we certainly can’t be first and the best by
  thinking we can . . .
  Especially not at the speed with which the world now
  operates.
  To deliver what consumers’ need, in an efficient and
  cost effective way … that is still market leading … we
  need to tap the ideas of the world…
Tap the innovative power
of the world




   > 8,000 R&D
                      2 MILLION
                  Scientists/Engineers
Toward that Aim . . .

• We started Connect + Develop just over 10 years
  ago.

• It began as an area within P&G that brought
  innovation in, and took it out

• It’s become core to how we innovate,
  across all our brands, and across
  the company
• >70 C+D Leaders Worldwide
• 11 Regional C+D Hubs
     NA, LA, Europe, Israel, India, China, Japan
• 1,000s of networks
• 100s of university partners globally
GBD “Village”                                                          Internal P&G

                                                                      External Resource


                  • Oakland
                  • Evaluserve
Consultants/      • Beanstalk
Service Providers • E&Y                 BUs           Regional
                                                      EcoSystems
                  • C&FS


 Strategic                       QA             R&D
 Partnerships                                                      Data Sources

• Labs                                                          • Mintel
• Universities
• Governments
                        PS&RA           GBD       Acctg         • Cap IQ
                                                                • Euromonitor
                                                                • Etc.



       Technical           Infolytics           Tax
                                                          Bankers/
       EcoSystems                       Legal             Advisors
Collaborating Internally….
And Externally…

With our partners, we’ve delivered game-
changing
products, designs, packaging, processes
and go-to-market solutions. . .
And a few more…
Core               Traditional   Alternative
               Capabilities          P&G
               Technology        R&D
P&G            Product concept   R&D
               Manufacturing     PS
Business
               Brand Equity      Marketing
Model:         Marketing         CMK/Mktg

Deconstruct    Selling           Sales
               Distribution      Distribution
into
               Shared Services   Back office
capabilities
               KEY                    P&G        Partner
Business Model Examples at P&G

                                          Build & Extract Value
                                                                                              Accelerate Innovation




                                                                                                Technology In-



                                                                                                                 Trademark In-
                                                 Brand Lease




                                                                    Outsourcing
                                    Outlicense
                      Traditional

                                    Trademark




                                                                                                Product &
                                                                                  Franchise




                                                                                                                 License
                                                                                                license
                      P&G

Capabilities




                                                               JV




                                                                                                                                 JV
Technology
Product concept
Manufacture/Service
Brand Equity
Marketing
Selling
Distribution
Shared Services
Key                   P&G Partner Both
Types of Activities


     • Products “in” & “out”
     • Technologies “in” & “out”
     • Capabilities/Know-how “in” & “out”
     • Non-standard/complicated
     • Trademarks “in” & “out”
For Discussion . . .

1. About P&G

2. C+D: What is it and why is it
   important?

3. Examples : C+D at work
Connect + Develop Examples:
    Packaging Solutions
Olay® Regenerist
Anti-Aging Eye Roller


• Micro-rollers massage in hydrating
  anti-aging treatment

• #2 selling Olay product globally

• Content Manufacturing Agreement with
  Japanese company and Universal Packaging
  of California
Innovation in Packaging

Partnered with the Waste and Resources Action
Program (WRAP) in UK to deliver innovation that
enables packaging reduction without compromising
integrity.




                                 14% Less Plastic


                   Before BOWS                        After BOWS
                    38.7 grams                         33.2 grams

                           Thicker                  Thinner
•Sustainable Packaging Company
•Based in California
Renewable Materials
                   • Supplier partnership: sustainable innovation
                   • Braskem, SA, of Brazil
                   • Introducing with Pantene Nature Fusion
                     products in 2012




Aiming to meet P&G’s sustainability needs, Braskem offered a
renewable, sustainable, sugarcane-derived plastic.

Pantene Nature Fusion launched in the new packaging in North America
in 2012; additional packaging innovation is underway.
A Few More Examples
Olay® Regenerist
                   • In-licensing technology agreement with
                     small French SME, Sederma
                   • Category-changing anti-wrinkle cream
                   • Additional upstream projects underway



At a technical conference in Europe, P&G first learned of a new peptide
technology and met members of a small French cosmetics company,
Sederma.

Sederma’s work became a key component in the blockbuster product,
Olay Regenerist, which quickly became a global market leader, beating
$350 boutique creams.
Oral-B® Pulsonic®
                       Toothbrush
                       • Development sourcing relationship with
                         a Japanese company
                       • Category-advancing product in one year
                       • Ongoing, expanded relationship, including
                         Master Joint Development Agreements




P&G Oral Care had a pulsating toothbrush on the drawing board, with five
years needed for development.

The partnership, coupled with additional P&G R&D, resulted in the Oral-B
Pulsonic Toothbrush. It launched in less than a year.
Questions ?

Discussion . . .
Cultivating innovation by improving internal cross-departmental interaction (Rimma Driscoll - Proctor & Gamble)

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Cultivating innovation by improving internal cross-departmental interaction (Rimma Driscoll - Proctor & Gamble)

  • 2. Rimma Driscoll Global Business Insert photo Development INNOCOS November 27, 2012 © P&G 2010
  • 3. For Discussion . . . 1. About P&G 2. C+D: What is it and why is it important? 3. Examples: C+D at work
  • 4. About P&G . . . • 300 brands; sales 180+ countries • Operations in ~75 global markets • Built on Partnerships • Driven by Innovation • Global Advertising Leader • Established: 1837 • HQ: Cincinnati • Sales: $83.7 Billion • Largest CPG Company in the World
  • 5.
  • 6. Our Brands . . . • Among the Most Trusted in the World • 25 Billion-Dollar Brands
  • 7. Our Values . . . P&G’s Brands and People Improve the Lives of the Worlds’ Consumers.
  • 8. What Drive Us . . . We are The Innovation Purpose- Consumer is Our Driven and is Boss. Lifeblood. Values-Led.
  • 9. Our History . . . James Gamble William Procter We are a company founded in and grown by partnerships. It’s in our DNA. It’s who we are. How we work.
  • 10. For Discussion . . . 1. About P&G 2. C+D: What is it and why is it important? 3. Examples: C+D at work
  • 11. Innovation has always been our Lifeblood
  • 12. Innovation is how we’ve grown . . . List of Firsts: 1879 IVORY white soap equal in quality to imported castiles 1911 CRISCO all-vegetable shortening 1933 DREFT synthetic household detergent 1946 TIDE heavy-duty laundry detergent 1955 CREST toothpaste to prevent tooth decay 1960 DOWNY rinse add fabric softener 1961 HEAD & SHOULDERS anti dandruff shampoo 1961 PAMPERS affordable, mass-marketed disposable diaper And the list goes on…. 2003 MR. CLEAN MAGIC ERASER unique scrubbing sponge 2005 TIDE COLD WATER superior cleaning in cold water 2007 BRAUN PULSONIC first self cleaning electric razor 2008 ALWAYS INFINITY absorbs 10X its weight 2012 TIDEPODS 3-in-1 laundry product
  • 13. Strengthening Our Innovation Program and Pipeline To consistently win with consumers around the world across price tiers and preferences, and to consistently win versus our best competitors, each P&G product category must have a full portfolio of innovation. This is a top priority at P&G.
  • 14. How to get there . . . We can’t be everywhere. Think of everything. And we certainly can’t be first and the best by thinking we can . . . Especially not at the speed with which the world now operates. To deliver what consumers’ need, in an efficient and cost effective way … that is still market leading … we need to tap the ideas of the world…
  • 15. Tap the innovative power of the world > 8,000 R&D 2 MILLION Scientists/Engineers
  • 16. Toward that Aim . . . • We started Connect + Develop just over 10 years ago. • It began as an area within P&G that brought innovation in, and took it out • It’s become core to how we innovate, across all our brands, and across the company
  • 17. • >70 C+D Leaders Worldwide • 11 Regional C+D Hubs NA, LA, Europe, Israel, India, China, Japan • 1,000s of networks • 100s of university partners globally
  • 18. GBD “Village” Internal P&G External Resource • Oakland • Evaluserve Consultants/ • Beanstalk Service Providers • E&Y BUs Regional EcoSystems • C&FS Strategic QA R&D Partnerships Data Sources • Labs • Mintel • Universities • Governments PS&RA GBD Acctg • Cap IQ • Euromonitor • Etc. Technical Infolytics Tax Bankers/ EcoSystems Legal Advisors
  • 20. And Externally… With our partners, we’ve delivered game- changing products, designs, packaging, processes and go-to-market solutions. . .
  • 21. And a few more…
  • 22. Core Traditional Alternative Capabilities P&G Technology R&D P&G Product concept R&D Manufacturing PS Business Brand Equity Marketing Model: Marketing CMK/Mktg Deconstruct Selling Sales Distribution Distribution into Shared Services Back office capabilities KEY P&G Partner
  • 23. Business Model Examples at P&G Build & Extract Value Accelerate Innovation Technology In- Trademark In- Brand Lease Outsourcing Outlicense Traditional Trademark Product & Franchise License license P&G Capabilities JV JV Technology Product concept Manufacture/Service Brand Equity Marketing Selling Distribution Shared Services Key P&G Partner Both
  • 24. Types of Activities • Products “in” & “out” • Technologies “in” & “out” • Capabilities/Know-how “in” & “out” • Non-standard/complicated • Trademarks “in” & “out”
  • 25. For Discussion . . . 1. About P&G 2. C+D: What is it and why is it important? 3. Examples : C+D at work
  • 26. Connect + Develop Examples: Packaging Solutions
  • 27. Olay® Regenerist Anti-Aging Eye Roller • Micro-rollers massage in hydrating anti-aging treatment • #2 selling Olay product globally • Content Manufacturing Agreement with Japanese company and Universal Packaging of California
  • 28. Innovation in Packaging Partnered with the Waste and Resources Action Program (WRAP) in UK to deliver innovation that enables packaging reduction without compromising integrity. 14% Less Plastic Before BOWS After BOWS 38.7 grams 33.2 grams Thicker Thinner
  • 30.
  • 31.
  • 32. Renewable Materials • Supplier partnership: sustainable innovation • Braskem, SA, of Brazil • Introducing with Pantene Nature Fusion products in 2012 Aiming to meet P&G’s sustainability needs, Braskem offered a renewable, sustainable, sugarcane-derived plastic. Pantene Nature Fusion launched in the new packaging in North America in 2012; additional packaging innovation is underway.
  • 33. A Few More Examples
  • 34. Olay® Regenerist • In-licensing technology agreement with small French SME, Sederma • Category-changing anti-wrinkle cream • Additional upstream projects underway At a technical conference in Europe, P&G first learned of a new peptide technology and met members of a small French cosmetics company, Sederma. Sederma’s work became a key component in the blockbuster product, Olay Regenerist, which quickly became a global market leader, beating $350 boutique creams.
  • 35. Oral-B® Pulsonic® Toothbrush • Development sourcing relationship with a Japanese company • Category-advancing product in one year • Ongoing, expanded relationship, including Master Joint Development Agreements P&G Oral Care had a pulsating toothbrush on the drawing board, with five years needed for development. The partnership, coupled with additional P&G R&D, resulted in the Oral-B Pulsonic Toothbrush. It launched in less than a year.

Notas del editor

  1. Two brothers-in-law, competing for the same raw materials. Their joint venture to negotiate better supplier pricing, led to the creation of the Procter & Gamble Company in 1837.
  2. We have recently reaffirmed our commitment to innovation: strengthening our innovation program and pipeline is a top priority at P&G. Tide PODS is just one example of P&G innovation that obsoletes existing products or creates entirely new product categories.
  3. One way GBD has helped boost internal collaboration is through our review of submissions. www.pgconnectdevelop.com is our externally facing website, where anyone can submit innovations for consideration. These are reviewed by people in the relevant business units / functions who best know if these innovations will be of interest or a strategic fit for the Company. These submissions can be shared across different business units, which encourages internal collaboration and discussion of potential solutions and opportunities.
  4. We don’t just look for upstream technologies…we look for packaging, processes, fully cooked projects..a wide range of opportunities.
  5. Video runs
  6. As ongoing partners, P&G shared with Brazilian company, Braskem SA, P&G’s sustainability goals and vision. Braskem one day offered a renewable, sustainable, sugarcane-derived plastic. Introduced with Pantene Nature Fusion products in 2012. Work is now underway on additional brands. The new material is being made in an innovative process that transforms sustainably harvested sugarcane into a high-density polyethylene plastic – that is 100% recyclable.
  7. P&G Skin Care was looking both internally and externally for anti-wrinkle technology options for next-generation Olay products. At a technical conference in Europe, P&G first learned of a new peptide technology and met members of a small French cosmetics company, Sederma, who had developed an exclusive version of Peptide. With the resulting partnership, Sederma’s work became a key component in the blockbuster product, Olay Regenerist, which quickly became a global market leader, beating $350 boutique creams.
  8. P&G Oral Care was looking for a strategic expansion of its dental care line. A pulsating toothbrush was on the drawing board, but still had up to 5 years in development. Through C+D, the company found a Japanese firm with a product matching P&G’s vision. The partnership, coupled with additional P&G R&D, resulted in the Oral-B Pulsonic Toothbrush. It launched in less than a year.