As the follow up article of previous article, there is a specific term defining Knowledge outsourcing as C&D (Connect and Develop). This is because C&D has been replacing R&D as a new innovation model as global companies adopt this concept to innovate their products.
Its essential concept is open innovation. Since competitive market is getting heated as well as technology development is accelerating its speed, the difficulties are growing to keep up with the competitive power by company itself. That is why there comes C&D strategy enabling companies to overcome internal capability limitations and to acquire external new ideas. It is more effective to combine corporate internal knowledge and external knowledge and then achieve the new innovation in reducing risk.
There is a mentality of ‘Collaboration’ behind the C&D concept. This is a win-win strategy producing synergy effect by the share of each other’s knowledge between more than two companies through selection and concentration.
The pioneer company of C&D model is the world consumer supplies company, P&G. A.G. Lafley declared C&D strategy as the entire corporate strategy in the year of inauguration. He set the innovative goal at 50% from outside and switched its company management strategy from the paradigm of “not invented here” to “proudly found elsewhere”.
The C&D structure of P&G is built on the several components; Technicians, Suppliers, On-line networks. Among them, about 70 of technical professionals are building the network with P&G partners who are useful to P&G and collecting all kinds of necessary technologies for P&G. Besides, they also received not only products but new ideas and innovations from its suppliers.
Furthermore, P&G is flowing its technology and patents and absorbing new ideas through on-line network connected with other companies. From this endeavor, it results in that 42% of products imply external ideas and technologies.
Once again, P&G is another good example of knowledge outsourcing. It is more systemically operating C&D strategy throughout the company. 42% of products from external sources are substantial number. Therefore, it indicates the effectiveness of C&D greatly. Innovation comes from outside not inside any longer could be true these days. Companies rather need to turn their eyes outside than inside so that they can find the breakthrough.
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=110&oid=009&aid=0001969649
Posted by 20500238 Sunju PARK
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