Technology Scouting: identifying the needs of all Sherwin-Williams divisions and scouting for potential solutions from startups, inventors, independent labs, customers, research institutes and more.What has Sherwin-Williams’ External Innovation team done to leverage open innovation in the short and medium term? In addition, the Company has used open innovation to combat its own bureaucracy as an organization with over 60,000 employees spread across five continents, by looking outwards towards smaller firms, universities, and inventors as sources of new product ideas 5. Globally, the Company faces increasing competition from smaller, low-cost players focused on commodity products, increasing the need for product innovation to maintain Sherwin-Williams’ advantage 4. ![]() Within the U.S., the Company has seen a shift in customer behavior linked to demographics, as more millennials are spending money on home improvement projects, and rely more on technology during the paint purchasing process. While the paint industry is relatively mature (global sales are expected to grow 2-3% annually), Sherwin-Williams has embraced open innovation as a means for increasing its growth rate 3. Why is open innovation important to Sherwin-Williams? The Company’s External Innovation program was launched in 2008 as an initiative to identify externally-developed technologies for products that could improve shareholder value and financial performance 2. With $17 billion in revenue, Sherwin-Williams manufactures paints and coatings used by professional contractors, home improvement DIY-ers and industrial manufacturers 1. ![]() ![]() But Sherwin-Williams, (the “Company”), the largest global producer of coatings (i.e. One might not expect a 152-year-old paint company to have an intense focus on open innovation.
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