Download - Open Innovation and Technology Scouting Roger Leech OI Portfolio & Scouting Director 21st Oct 2010
Open Innovation and Technology Scouting
Roger Leech
OI Portfolio & Scouting Director
21st Oct 2010
Agenda
•Introduction to Unilever
•Open Innovation approach with a focus on scouting new opportunities
•Case studies
•Conclusions
13 > € 1 Billion global brands
€40b turnover (2009)
Western Europe 30%
The Americas 32%
AACEE 37%
6 Global R&D Centres6 Global R&D Centres
TrumbullUSA
Port SunlightUK
ColworthUK
ShanghaiChina
VlaardingenNetherlands
BangaloreIndia
Open Innovation - What and Why?Bigger, Better, Faster Through Partnership
Bigger Better Faster
Pepsi – Lipton JVCreated a new
category
Pepsi – Lipton JVCreated a new
category
Partners allow us to access to growth
markets we could never access alone
Partner to harness new capabilities to deliver
better outcomes
Great ice cream textureMartek create route to
sourcing
The right partners can drive speed
Investing in capability build externally reducesTime to discover x 10
Unilever’s approach to open innovation
mindset
organisation capabilities
OrganisationA Critical Capability In Unilever
BreakthroughsFrom
Discover
Fast,Large Scale Deploy
BrillianceIn Product Design
Prioritise in Define
Differentiating and Transforming Critical Functional Capabilities
Open Innovation, Patents, Safety & Environment, Regulatory, Clinicals, Information Management for R&D
Capabilities aligned to Open Innovation process
Manage Manage delivery incl. relationship.Project management
WantDefining the targets.Which capabilities do we need to deliver the innovations ?
FindIdeas Management in relation to defined needsScouting for capability providers
GetDefine business goals of alliance and likely alliance type. Approach & build deal quickly or separate
Scouting
Deal Architecture
Technology Licensing
Define for OI
Alliance Management
Excellence
Underpinned by……
Open Innovation Training, Open Innovation Communication, IT for Open Innovation
FIND – Who scouts?
•Project scouts – provide input into projects deliverables with external science and technology
•OI Scouts – help projects to find companies, academic centres, consultants and solutions
Want Summit
10
Stretching the ambition and prioritising the Wants…• Scheduled event to provoke, prioritise and review the Wants• Wants are owned by the Programme• Maintain running list of all Wants and associated activities• Improve the Want definition through best practise• Confirm commitment to the selected Strategic OI Wants
Category VPCategory Discover
Leader
Project Leader
Project Leader
Project Leader
IAD
OI Scout
EVP Discover PlatformsDiscover Platform
Leader
Genesis Leader
What makes a good scout?
• Entrepreneurial • Creative• Good experience of science and technology• ‘Extrovert’• Organised• Contract understanding• Global mindset• ‘Janus’ approach
Scouting across the programme
ProgrammeProgrammePlatformDiscover
GenesisFields
CategoryDiscover
CategoryDesign
Access to ScienceAccess to Science Access to TechnologyAccess to Technology Access to InnovationAccess to Innovation
‘Baked’ 5% 40-50% 80%
OIWANTS
OIWANTS
OIWANTS
OIWANTS
OIWANTS
OIWANTS
OIWANTS
OIWANTS
OI LEADS
Risk Investment
How to measure scouting success?
Delivery
New Products New Processes New Strategy
Unilever – 2010 OI Scouting Facts
• ~ 50 scouting activities done with external partners
• to date ~14 activities have resulted in contract action from the internal project team
• current portfolio of ~500 OI activities (excluding CDAs)
MindsetWith a wide spectrum of partners and open innovation models
University/ Contract Research
Supplier Networks
JV’s Alliances
Science Parks
Entrepreneurs
Scouting Networks
Unilever Corporate Ventures
NGO’s
Pyramid Teabags Accessing capabilities beyond our industry and orchestrating multiple partners
What makes a collaboration successful? Case Studies
Framingham New service based approach from external data
Case Study: Pyramid Fruit TeabagObjective
•To delight our consumers with a transformed product that touches multiple sensory cues
–great new flavours, –large pieces of fruit and tea,–new look packaging–a novel transparent teabag
•While maintaining the fastest line speeds in the industry and product integrity
Pyramid Tea Bags Case Study
Accessing and orchestrating new capabilities from an ecosystem of partners to deliver what we couldn’t do alone
New blending and handling systems
New suppliers of transparent materials
New ultrasonic sealing technology
Tea suppliers Flavour houses
Pyramid Teabag Case StudyBigger better outcomes
•Marketplace–Successfully launched in 44 countries–Major growth driver for Tea Category
•Partnerships–Lasting partnerships that have formed the basis of new strategic alliances–Commercial success
Framingham Heart Study
“The FraminghamHeart Study”• Established 1948
• 5000+ individuals• Established risk factors for
heart disease• Ongoing study today
“The FraminghamOffspring Study”• Started 1971• Recruited the children of
original cohort and their partners
• Demonstrated family history important
• Ongoing study today
“The Framingham Third Generation”
• Started 2003• Recruited children of
offspring and their partners
• Ongoing study today
Summary
• A business as big and complex as Unilever draws on a wide range of open innovation models - There is no one best practice
• Different situations will see us draw on different models – we want and need a wide palette
• We are continually learning and looking for repeatable models
• Who is working for you to develop/market your products or services?
• Construct your own approach to suit your capabilities, strategic intent
THANK YOU