Electrolux AB: Managing Innovation

The world’s second largest home appliances company has introduced a change in its global organization structure. Electrolux AB has consolidated its research and development, marketing and design functions at the top to form what is known as the “Innovation Triangle.” This change is in tune with the pursuit of innovation as a source of differentiation in a competitive industry. The concept has been tested in Electrolux Brazil for four years before being scaled up globally. The amplified version of the Innovation Triangle has a singular objective: to facilitate innovation enterprise-wide by leveraging cross-functional, cross-geographical and cross-business synergies. The ultimate goal is to launch new products faster, better and in greater number. The unveiling of the new organizational structure presents an opportunity for the company's Innovation team to review the company’s ongoing innovation initiatives. The four-member team grapples with issues around improving the company’s innovation pipeline.