Source: The Valen Group

Fortune 500 consumer goods and services companies have long regarded innovation as an exclusively internal capability closely nurtured behind well guarded walls. Innovation was something only “my own” company could do for our customers. In reality, going it alone is one of the biggest mistakes some corporations will make in the next decade, watching market power shift to competitors who willingly open their eyes to sourcing the best emerging inventions inside or outside their organizations. A. G. Lafley, who runs one of the largest corporations known for innovation, The Procter & Gamble Company, actively seeks to source up to half of its blockbuster hits outside of its own R&D group to ensure continued growth.

A number of key trends are making it difficult for large corporations to depend exclusively on their own internal resources for ideas and competitive advantages. Market information and science is merely a few clicks away with global convergence of intellectual capital through the Internet. Moreover, with private equity funding and increasing talent mobility fueling technology innovation in small companies, large corporations no longer corner the market for new ideas. Market leading corporations have to be built for scale which makes it difficult to sustain a flexible, innovative environment.

As global competition intensifies, growth pressures drive the need for shorter innovation cycles and lower costs. Large corporations are finding it increasingly difficult to keep up. The reality is that corporations can't abandon innovation inside their companies, but to only count on internal R&D is like picking one or two stocks in your personal investment portfolio - causing unnecessary risk for the expected return. Thus, large corporations need to create pathways to access potent sources of external innovation.

Valen Group Innovation Programs

The Valen Group works with Fortune 500 consumer goods companies to create a competitive advantage through innovation. Our Growth Strategy Methodology has helped executives allocate the right amount of resources toward sourcing innovation as an accelerator to reach growth goals. We have helped executives structure their organizations and build capabilities to identify and access the wealth of innovation both outside and inside their companies through our Corporate Innovation Program . We take action through our New Business Development Alliance and Acquisition Strategy Methodologies from targeting to acquiring, joint-venturing, aligning or licensing technologies, brands, and other IP that provide a competitive advantage.

By allocating the appropriate mix of resources to sourcing innovation, executives will reduce R&D investment risk, accelerate time-to-market and allow their organizations to focus on strengthening existing channel relationships and leveraging scale advantages.

Why the Valen Group

We have specific expertise in enabling large companies to access and work with small, entrepreneurial innovation leaders interested in taking their ideas to the mass market. We have had extensive experience in helping Fortune 500 food companies better compete through open source innovation:

•  Developed strategy for leading Fortune 100 food manufacturer to access growth and create a competitive point of difference in the low carb market segment. Identified leading market entry opportunity, sized market potential, and managed deal negotiations to fruition

•  Engineered a channel expansion alliance strategy for a leading consumer products manufacturer that will provide growth for each partner venture for our client through joint product development, co-branding and combined distribution leverage