Question: The chapter compares and contrasts closed versus open innovation. It also describes Procter & Gamble's Connect+Develop open innovation system. With your group members, brainstorm to prepare a brief memo with a set of talking points regarding the following questions:
1. What are some of the risks of an open innovation approach that a company should consider before embarking on it?
2. Do you believe P&G's Connect+Develop (C+D) open innovation system has the potential to create a competitive advantage for the firm? How might P&G's capabilities be strengthened as a result? If C+D does have the potential to create a competitive advantage, do you believe it is sustainable? Why or why not?
3. Larry Huston and Nabil Sakkab, (former) executives at P&G, proclaimed, "Connect+Develop will become the dominant innovation model in the 21st century."89 Do you agree with their statement? Why or why not? If C+D did become the dominant innovation model, how would this affect its potential to create a competitive edge for a firm?
4. Introducing the C+D innovation model requires tremendous organizational change. As Huston and Sakkab described the change effort: "We needed to move the company's attitude from resistance to innovations ‘not invented here' to enthusiasm for those ‘proudly found elsewhere.' And we needed to change how we defined, and perceived, our R&D organization-from 7,500 people inside to 7,500 plus 1.5 million outside, with a permeable boundary between them."90 Identify some of the major obstacles a manager would encounter attempting this kind of organizational change. For example, how might P&G's research employees react? Although you have not been formally introduced to organizational structure, consider some recommendations for how to accomplish such large-scale organizational change successfully.