Post for Mberiah
One result of Ford's chief
executive officer encouraging
better idea sharing among
employees is its new Ford
Focus shown here.
QR 9-3 P&6k Tide Fods Ad
Procter & Gamble's new Tide
Pods launch shows how it has
improved both planning and
implementation bY involving
consumers earlier in its
innovation activities.
An important part of Ford's current turnaround has been chief execut
officer ALn Uutatty's encouraging managers and employees to speak
and volunteer ideas to improve its technology and line of new caIS-
openness lacking in U.S. auto companies in the past.23 Furlher, Mulally
made clear that managers and employees in different departments
rivals. Instead of the not-invented-here (NIH) thinking of past Mulally has encouraged managers and employees to see themselves as
of the i.One Ford,, team and share information and help one another.
emphasis on improved employee communications has helped Ford
new models, add new technologies, and redesign its supply chun'24
customer and supplier suggestions Firms ask their sales ple to talk to customers and ask their purchasing personnel to talk to
pliers to discover new-product ideas.2s Whirlpool gets ideas Customers on ways to standardize components so that it can cut the
ber of different pioduct platforms to reduce costs'26 Business
tell firms to actively involve customers and suppliers in the new-qil
development process. This means the focus should be on what the
produci will aitually do for them rather than simply what they wa* A. G. Lafley, cEo of Pro cter & Gamble (P&G), gave his executives a revolfiia
thought: "Look outside the company for solutions to problems rather than
P&G knows best." when he ran P&G's laundry detergent business, he had to
Professional R&D and innovation laboratories that are
of large corporations are sources of open innovation and can
prod-uct ideas.32 IDEO is a world-class new-product devel
having designed more than 4,000 of them. IDEO designs Apple mouse and the Crest Neat Squeeze toothpaste dispem-Brainstorming
sessions conducted at IDEO can gr
ideas in an hour. IDEO's "shop-a-1ong" visits with
the laundry boxes so they were easier to open. why? while consumers said
laundry boxes were "easyto open," cameras they agreed to have installed in the
dry rooms showed they opened the boxes with screwdrivers!28
With a $150 million marketing budget, inZOlZP&G launched Tide Pods, a
ary three-chamber liquid dose that cleans, fights stains, and brightens- P&G
Tide Pods as "its bigtest laundry innovation in more than a quarter century'"
Tide Pods has produced the highest consumer-satisfaction scores the company
seen for a newlaundry product-. But after its successful new-product launch, Pl
signed its packaging afier discovering that some children thought the pods
and tried to eat them.2e
Itesearch and Eevelopment Laboratories Another source of I is a flrm's own research and development laboratories. Apple's sleek iPad'
iMac models came out of its Apple Industrial Design Group, which
driven by the obsessive concerns of its co-founder, the late Steve Jobs, fort
industrial design in atl the company's products. one secret behind Apple's
ability to convert vague concepts into tangible products: an action-item
from every meeting. This focuses on who doeswhatby whenl3l
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