However, companies have to adjust to the times, and DEC being unable to was, gradually overcome by its rivals.
DEC can teach us various lessons but one such lesson is that of Trialability - namely, that new ideas that are broken up in installments will more readily be realized. DEC was successful, precisely because it split its program into two phases. Doing so made it trialable which represented less uncertainty to clients and to the company itself.
Opening up innovation at P&G
Tags: Diffusion; external technology; marketing; compatability; mergers; licensing; spin-offs.
Proctor and Gamble devised an innovative way to spin-off or diffuse its innovations.
After having slipped and plunged in the late 1990s and in the early years of the millennium, to some of the biggest declines ever, P&G introduced a new CEO, A.G. Lafley, to modify their direction and to change their forecast. Lafley and Gil Cloyd, P&G's chief technology officer, opened their innovation process to external sources of technology, i.e. receiving half of their ideas from the outside, and, in order to do so, they developed a special research and development team.
Their research team focused on compatibility of external technology and that too can explain their success, for compatibility, as Rogers (1995) explains, is one of the key components of successful innovation. Innovations have to be perceived as being consistent with existing values, past experiences, and needs of potential clients. Approximately, 35% of P&G's most successful...
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