© imaginatik plc 2014 | webinar: klm royal dutch airlines: a lean approach to open innovation...
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© Imaginatik plc 2014 | www.imaginatik.com
Webinar: KLM Royal Dutch Airlines: A Lean Approach to Open InnovationInnovation Masters Series
October 21, 2014
Rogier van Beugen, KLM
Geoff Carss, Imaginatik
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Why the Innovation Masters Series?
Hear about innovation best practices from real-world practitioners Advance the state of the art of innovation discipline Share your perspectives and learn in a “community” setting
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The Age of Innovation
Today’s leading companies
excel at both Operations and
Innovation
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Innovation Programs
Imaginatik works with clients to
build Innovation Programs that
unlock new levels of innovation
maturity.
Innovation Maturity Framework
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Sustainable Innovation
Competence
The core elements of a
mature enterprise-wide
sustainable innovation
competence
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Rogier van BeugenDirector of Innovation, KLM Royal Dutch Airlines
Today’s speaker
Rogier is the Director of Innovation at KLM Royal Dutch Airlines. Over the past decade, Rogier has held a number of leadership roles at KLM Royal Dutch Airlines. The focus of the past three years has been organizational change, including innovation. Rogier is responsible for stimulating employees to be innovative and optimizing innovation by bringing in external ideas and inspiration.
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Introduction to Air France KLM and the aviation industry
Innovation Strategy @ KLM
Open Innovation endeavors
KLM’s innovation strategy & the Green Aruba Challenge
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Air France-KLM is a global leader in air transport
NETWORK& HUBS
FLEETMODERN,
FUEL EFFICIENT
BRANDS
KNOWHOW
with more than 77 million passengers and €25.5 billion in revenues in 2014
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Airline traffic will double in the coming 20 years
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Core business unchanged since foundation in 1919 All Competitors have access to same suppliers (OEM’s) Highly cyclical, commoditized industry
Industry characteristics
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Competition = Battlefield
Compete where all competitors have the same ‘hardware’ Where costs are everything Where all competitors share (roughly) the same business model
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The world around us is changing rapidly with many potential game changers impacting our industry…
Aging population
Transparency & Trust Personalization& Choice
Globalization & State Capitalism
Networked organization
Changing workforce
Urbanization / Megacities
Emerging economies/Rise of middle class
Migration Generation X,Y,ZDigital Natives
Big data analytics 3D Printing Environmental concerns
Digitization & Internet of Things
Automation & Robotics
Imbalanced population growth
Energy game changers
Re-shoring
Exponential Change
Security
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Find value outside Other industries Technology Developments Startups
Use knowledge & Capabilities Enhance products & services Improve processes Develop skills
Sources of innovation
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CompetencesVenturing /
Startup ScoutingOpen Innovation
Business Model Innovation
Programs(Cross company, multi department)
BioFuels Big Data Robotics
Key elements of KLM’s innovation strategy
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KLM is a leader in sustainability, which is recognized by its unique WWF partnership & 8 year consecutive number 1 position in the DJSI
8 times #1 sector leader, 4 times #1 super sector leader
KLM targets and measures:Climate action Plan follow up: • From 2007 carbon neutral growth with enablers on low, mid and high
impact level, including offsetting.• Partnership WWF 2008- 2012 and renewed to 2015, including
biofuels: • 20% CO2 savings in 2020 and 1% biofuel in 2015.
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Own marketrevenue
Internaldevelopment
cost
Revenues
0
Costs
Own marketrevenue
Internal & externaldev. cost
Licenses
Spin-offs
Divestures
New Revenues
Cost & Time savings fromleveraging externaldevelopment
Closed I nnovation Open Innovation
Own marketrevenue
Internaldevelopment
cost
Revenues
0
Costs
Own marketrevenue
Internal & externaldev. cost
Licenses
Spin-offs
Divestures
New Revenues
Cost & Time savings fromleveraging externaldevelopment
Closed I nnovation Open Innovation
Connecting Knowledge & Resources Reducing Costs & Adding New Revenues
Our main OI challenges KLM Engagement
Strategy & frameworks
Culture
Specific competencies
Internal Open Innovation
Technology Scouting
Corporate Venturing
Open Innovation plays a key role in KLM’s innovation approach
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Why did we do it / why Aruba?
The partnership KLM-ARUBA
What did we do?
What was the response?
Selecting the winner
KLM’s Green Aruba Challenge
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Why Aruba?
But we wanted to do more… biofuel flights can go anywhere
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Green Aruba: world-wide recognized ambition
Richard Branson:
“Aruba will set the lead for all other Caribbean islands”
Mike Eman, Prime Minister of Aruba about Green ARUBA:
” We looked for a development where we could connect growth and progress to wellbeing of our society”
Source: TedX Binnenhof 31 march 2014 - Global challenges Dutch solutions
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Building an entrepreneurship challenge
The objective: help Aruba reach their goals through entrepreneurship
The prize: launch of their business on Aruba (parallel to launch of biofuel flights)
Activating the Dutch and Aruban ‘green’ startups to contribute
Using the combined KLM and Aruba networks
Finding the best innovations and supporting them
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The partnership Aruba - KLM
Dividing the effort
Feet in both continents
KLM main organizer of the challenge
Aruba facilitator of the prize (launch of 2 x 2 weeks, stay on Aruba)
Commitment from Aruba to help bring the winner but also other submissions forward
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Using Innovation Central as the platform
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The selection process
Juryon Bonaire
Challenge
50 + solutions
Winner takes off
DutchJury
KLMTeam
e.g. 10 good idea’s Top 5
concepts
3 weeks 2 wkn 2 wkn
April 7th April 28th May 2nd May 17thOnline Offline Offline
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1st selection will be done online by expert team comparing pairs of concepts
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Semi finals; Dutch expert jury
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High profile jury in the finals
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And the winner is…
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50 (proper) submissions
Strong top 20
Excellent top 5
Great reception on Aruba, in media but also among relevant partners both in NL and on Aruba (government, airport etc.)
3 from top 5 have started business
Very positive perception; internal and external
The results
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The winner has successfully launched!