P&G is a company with strong corporate entrepreneurship and an organization culture that encourages creativity through reasonable constructive judgment of ideas, reward and recognition for creative work, mechanisms for developing new ideas, an active flow of ideas and a shared vision. It is necessary to have a combination of market driven innovation and technically driven innovation in order to have a successful corporate. For the growth of corporate entrepreneurship three main factors are necessary: (i) Development of new innovative products
(ii) Global expansion
The success criteria for any innovative product venture should take into consideration both the technological and business parameters like their goals, project deliverables and resources. The entrepreneur ideas are to be evaluated based on (i) basic consumer needs, (ii) evaluating the technology required for the new product development, (iii) business opportunity to determine whether the venture would earn revenue to the company. Further the P&G case also brought to light the following aspects of corporate entrepreneurship:
Companies do not lack good ideas. Rather, the difficult task is to create an organization and processes that refine ideas, build businesses, and bring the best of them to market. Contrary to myth, structure and process are not the enemies of innovation.
Also contrary to myth, large companies have significant advantages over start-ups when it comes to innovation and building new businesses.
Innovation should be approached more broadly than inventing new products and services. It is really about new business design, incorporating all aspects of how the company does business, what they sell, to whom, how and where.
The most successful innovation programs focused on one or two innovation objectives and did them well. They didn’t try to do everything.
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