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August 02, 2006
Innovation Pays Off--P&G Gets Great Earnings.
Evidence is piling up that innovation/design/creativity pay off on the bottom line and Procter & Gamble's latest earnings are but the latest proof.
Let me quote CBS MarketWatch on this:
"Procter & Gamble Co., the world's largest consumer products company, said Wednesday that fiscal fourth-quarter net income rose 36%, as new products drove better-than-expected sales growth ..."
In issue # 1 of IN--Inside Innovation, we ran a table by Peer Insight that showed companies focussing on consumer experience do better in the stock market than those that don't. Consumer experience is one of many expressions of innovation. P&G is good at it, good at design strategy and good at innovation. And don't forget, this is a packaged goods company. It isn't a hot, high tech startup.
Earnings for US companies for this quarter look they will hit double-digits. That would make it the twelfth (now that's a funny-looking word) quarter that corporate earnings hit double-digits. We haven't seen that since the late 50's, I believe. Not every company is getting those returns, but those innovating appear to be reaping much of the rewards.
If you're a CEO or a manager--or a designer or an employee--think about that.
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P&G is one of the more design and innovation oriented companies around. Their innovation process was featured in at Congressional briefing luncheon we (Athena Alliance) sponsored in June. A summary of that discussion (which included Roger Martin) and the full text of the remarks can be found at our web site at www.athenaalliance.org
Posted by: Ken Jarboe at August 2, 2006 03:25 PM
P&G amazes me on their integration of design into everyday products. Commodities aren't supposed to be glamorous, but somehow they do it. And while 'design' as a feature is something average Joe doesn't usuall directly acknowledge - they involuntarily are drawn to it, everyone wants something that looks as good as it works. (and Target's success attests to that)
For us, as a design focused digital ad agency, incorporating the ROI as part of great design is a must and has become our main mission. Sometimes it means using different technology, materials, or delivery methods - but when you make the connection between good design, and the right price point, customers eat it up and our clients reach their profit goals (and come back to us for more!). And in the case of P&G, they crush expectations!
Posted by: Scott Teger at August 5, 2006 10:52 PM
If one wishes to introduce a new product to the market place,Where do you go without spending your last dollar to some scam artist.
Posted by: Clifford Roth band at August 24, 2006 10:07 PM