Innovation at Whirlpool - Creating a New Competency

In 2002, Whitwam decided to bring in more structure into the innovation process so as to increase the participation to include all employees and also to get more practical ideas. In monthly I-Board meetings, the top management evaluated and funded new proposals. Only new ideas that helped enhance Whirlpool's existing brands or products would be considered (Refer to Figure I for flow of ideas from the employees to the decision makers). Snyder also came out with an "I-box" to ensure that only brilliant ideas reached the I-board. The I-box was a two-step graphing tool. In the first step, the employees had to demonstrate that their proposals were something that people would buy. These arguments had to be backed by market research...

Between 2003 and 2005, Whirlpool's revenues had grown at an average of 9% per annum. Fettig had attributed one third of this growth rate to innovative new products. As of April 2006, Whirlpool's innovation pipeline had 568 projects under development of which 195 were being scaled up for commercial launch. The company expected these new appliances to rake in another US$ 3.3 billion in annual sales once they were launched (Refer to Exhibit IV (A) and Exhibit IV (B) for Whirlpool's innovation pipeline). Commenting on these improved results, Fettig explained, "We're seeing evidence of what we call a "want in." In other words, consumers see something that is so different or innovative that they want to buy it as opposed to: they have to buy it...