Consumer Goods Technology

“new” and “improved product” categories, defining gears allowed Clorox to think about projects across the corporation in a different way: “First by purpose [game changer, core growth, rapid response], second by size of the prize and third by resources required,” explains Mitchell. “This has allowed us to take a disciplined look at the portfolio and make critical decisions on how to increase its value and return on investment.”

Processes and functions downstream of product development, like product supply and sales, can also better plan for what’s coming.

“Since the portfolio is driven from strategy, gearing also allows us the advantage of ensuring that

each business unit is fulfilling not only its financial but also its strategic purpose within the corporation,” says Mitchell.

COMING TO FRUITION Once new processes and technologies were in place, the pipeline of projects shifted in composition to include higher value and more sustainable core growth and game-changing products. At the same time, the total number of projects was cut in half, freeing up resources. With this shift, the total value of the portfolio increased 30 percent. Clorox also realized a 25 percent increase on average in speed to market. In addition, Clorox’s open innovation model

has doubled the number of patent filings and significantly grown the value of its intellectual property.

“All combined, this has built our confidence to double our target for growth from new and improved products as well as significantly increase our cost savings targets,” says Mitchell.

Clorox’s transformed internal and external innovation processes came

Thanks to improved innovation processes, Clorox successfully launched Green Works, a breakthrough line of natural cleaning products.

INNOVATION ADVICE FROM CLOROX

Clorox’s Director of R&D Jim Mitchell shares best definitions that are meaningful to your specific practice tips for polishing innovation processes: business strategy and customer.

• While some argue that innovation is constrained • Get the fundamentals right. Processes and tools by process, the right business processes, designed to deliver accurate data are required to find the correctly, can accelerate it and increase your return real value of innovation and deliver cost savings. on investment.

• Change management is critical. The implementation

• Base resource allocation and investment decisions of new processes and tools inevitably require on a portfolio view of all projects. Use project individuals to change roles and learn new skills.

together for the January 2008 launch of Green Works, a breakthrough line of natural cleaning products. By targeting the right strategic partners through its extended open network, Clorox was able to quickly capture a more than 50 percent share of the natural cleaning category.

“We hope to deliver even stronger growth and greater value for our customers through new and improved product development,” concludes Mitchell. “In addition, given the pressures of the rising costs in commodities, we are utilizing our innovation processes more and more to deliver value in cost effective ways.”