P&G Corp.
...tage for its long-term position. 2)Following are some hinders to implement the new approach. • Lack of communication between categories: The categories and brands system fostered internal competition. This internal competition, along with an extreme concern for protecting the secrecy of new product ideas from outside competitors, established the air of secrecy. Lack of communication impedes the new approach because breakthrough innovation requires corporation across divisions. • Resources limitation: For past twenty years, R&D focused on adding things to existing brands to make them more competitive. Many resources dedicated to extensions so that P&G did not have enough left over to put toward discontinuous major innovation and new categories. • Each business unit was too narrow a focus on existing categories, new product ideas that did not fit into a category were not pursued. This made it hard to move breakthrough products into commercial units because the commercial units were focused on growing their current businesses. 3) Following are some challenges CNV faces: • The CNV is a centralized innovation organization, and it is challenging to form a right team. Team members must have broad and deep understanding of company’s capability, core advantage over competitors, customer needs, finance position and whole view of strategy. How to motivate talent people to join in the risky new position and how to manage those talent people are challenging. • CNV needs to show the traits, needs concrete proof to convince this CNV approach works and enhances P&G’s position by commercializing the product ideas. However, CNV had to pass its product ideas onto operating sectors for full commercialization. Due to the cross-sector technology involved in CNV products, the products did...