Marcel Zillig Sales Director +491727490597 zillig@ninesigma.com

using open technology search tools to

out-innovate the competition

2012 © NineSigma Inc.

...working backwards from customers needs often demands that we acquire new competencies and exercise new muscles, never mind how uncomfortable and awkward-feeling those first steps might be.... Jeffrey P. Bezos Founder and CEO Amazon April 2009, Letter to Shareholders

Why Borders Books failed and Amazon survived

„they sell the need to have access“ the need driven approach

Developments are shifting outside the large enterprise …

Company size in # employees

Source: Henry Chesbrough

• > 70% R&D spend outside large organizations (invisible to you)

• 30% of R&D spend

is by SME’s

In challenging companies on how they innovate and grow from:

There is a tangible change:

R&D to Ownership to Avoid Risk to Idea driven to Assets to

S&D /Collaborate & Integrate Access

Fail often Need driven Ecosystem

Enable and engage organizations to use open innovation and develop the right capabilities

Embedding OI into your product creation process / innovation process

Strategic Growth Area’s •Hypothesis or

insights into future market needs

•Key Growth Areas

•Business cases •White spaces

Acceleration options

•Scouting • Internal network •Trusted network •Global ‘network’ •Gather qualified

options •Local search bias/

Firewall •RFP’s & Open

Intelligence for options

Project Portfolio • Internal assets

& resources •External assets

& resources • ‘Due diligence’ •M&A •Partnerships •Project

definition •RFP’s for

problems

Product Creation Process •Your

standard process..

Existing Processes

Your Innovation Ecosystem

Others

Retirees

Suppliers

Universities

Consultants

Universities

Large Corporates

Small entrepreneurial companies

Private Laboratories

University Technology Transfer Offices

Individuals

NineSigma Affiliates

National Labs

GLOBAL INNOVATION COMMUNITY

Research Institutes

Non-profits

Business Units

Business Development

Research Center

Other

INTERNAL

EXISTING NETWORKS

New solutions and ideas come from internal and external networks

Over 2 million solution providers

Industry Academia Labs & Institutes Inventors

Providers in virtually every country

Continually expanding network

NineSigma is your firewall : Protecting the exchange of your sensitive information

• your needs to the global innovation community

• valuable information to you

• preventing leakage and detection by competitors

• allowing identification, development and transfer to your business environment

The RFP is the connector to the global innovation community Searching for Solutions

• a vehicle enabling the exchange of non-confidential information with the global technical community

• a clear, concise and compelling statement of a technical / business need

• a clear outline of a proposed project

• is a business opportunity

• with technical specifications

• with the project timing

• with evaluation criteria

• with responders which are typically unknown to our clients

• circulated broadly against a custom network

• with global responses from Universities, Companies, Research Labs, inventors …

and typically we receive 10 ~15 quality proposals per RFP

• Tacit knowledge • expert crowd sourced:

8.000 to 10.000+ people whom we search for and identify that have relevant knowledge

• non confidential: enables IP transfer and partnership

• 60% industry: business AND academics

• 40% surprise proposals people we did not contact

an RFP is:

project selection connection analysis

and selection report out

Innovations- Source (RFP) Service Success - MAP*

Creation of an RFP report

RFP -Request For Proposal-

translation

2 weeks 2 weeks 4 weeks

NineSigma’s best practices help guide you to a mutually beneficial partnership with the ideal Solution Provider

NineSigma’s Methodology for Assessment and Acquisition

A Straight forward Process supported by Proven Services

*MAP=Method to Assess Providers

A well crafted challenge program can provide a multitude of direct and indirect benefits

• Rapid, diverse and actionable solutions that can be easily inserted into the daily workflow

• Identify new technology leads, ideas & partners • Establish contracts with solvers, import the solutions

and turn these into long term partnerships • Measure what is available on the outside • Benchmark the knowledge inside the company • A source of information that can inspire your R&D

to higher levels

What are the reason for doing RFP`s ? NineSigma Challenge suite

“We have learned a lot about potential partners with RFP´s…. But more importantly this has allowed us to learn a lot about ourselves and our own company”

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Finding solutions others can’t

Typically, 2/3 or more technologies submitted were unknown to the client. In some cases, the clients, although highly knowledgeable in their field, knew of none of the technologies because:

They came from businesses who did not make their IP publicly known.

From sources outside the client’s core areas of expertise.

From geographically distant sources for which the client had had no information.

or

or

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Global search for unexpected solutions Finding ‘unexpected’ connections

Example An automotive company was looking for a fluid sensor that could both measure the fluid level and the temperature in a closed transmission system.

Through the RFP model a small Ukraine company was identified that developed fluid level and temperature sensors for the dairy industry. Client was able to acquire this technology reducing time, risk and costs.

Technology Landscaping the visualized matrix for your strategic decisions Quick Scan - Landscaping- Trending - Monitoring

NineSigma supports global companies to help them make sense of complex technology and business environments and to exploit these to their advantage Sourcing, analyzing and visualizing the coherent landscape of relevant technology, players, opportunities and threats

Answering “so what does this mean for me”

Nine Sigma Open Intelligence Service Signals of change through ‘unexpected connections’

Environment

Knowledge

Technology

Current Future Alternative State of the art Intellectual Property Availability Disruptive / Incremental

Expertise Technology Market Industry Application Knowhow Commercial

Markets Insights Geographic Socio-Economic Legal Competitive Political Regulatory

Connections

“Open Intelligence - Opportunity and Option identification within the 3 spaces Technology, Knowledge and Environment for building a better vision”

Technology Monitoring

Intelligence & Landscaping

Quick Scan

Global Knowledge & Technology • Every two years double amount of technical

information • Research: 1,5m peer reviewed

articles per year • Patents: 1,900,000 per year • Expected doubling of global knowledge

in 2020 every 72 days

Geothermal Systems Market: Landscape and capability assessment A Global Oil & Gas Drilling company wanted to enter the Geothermal Enhanced Systems Market. NineSigma created a landscape of the technologies and capabilities needed for this new space and mapped this against the current internal technologies and capabilities. Additional challenge was the distribution of knowledge throughout the different business units of the Client. Opportunity Assessment: Food Waste Streams A global food and beverage company wanted to learn what the potential opportunity was for up-cycling the food waste streams into low cost foodstuff. Within a 12 week timeframe NineSigma created a global landscape and insight into the current waste streams, quality, quantity, technologies and processing partners.

Examples of Open Intelligence Service projects

CMOS Technology: Identification of Application Opportunities for CMOS sensor A global Semiconductor company wanted to learn what the potential cross industry application opportunities are for their proprietary CMOS sensor technology. NineSigma created a landscape of potential application domains, competitive technologies, players and identified a number of key opportunities.

Global Technology Monitoring: Natural and Artificial sweeteners A Global Drinks company wanted to have a quarterly update of all the technology developments on natural super sweeteners and artificial sweeteners. NineSigma created a quarterly monitor newsletter delivering a cross industry perspective on the latest relevant developments.

Flexible Photovoltaic: Landscape and Technology Platform Selection A FMCG company wanted to apply photovoltaic to packaging. Within 8 weeks, NineSigma created a landscape of the current technology options, technology maturity and players for flexible photovoltaics and helped the client select the right technology platform and partners.

Innovation Community

to summarize: We support you to: • Identify players, adjacencies,

new technologies and applications and detection of trends & ‘signals of change’

• Identify needs & opportunities, prioritize innovation portfolios and frame challenges

• Develop capabilities to successfully collaborate (become partner of choice, not customer of choice)

Defining need

portfolios

Transforming needs into challenges

Identifying and

acquiring solutions

Organize and manage

ecosystems

Detect trends and signals of change

core competence cycle

A virtuous cycle

NineSigma works with client to define their innovation needs

Select service to best meet needs and leverages our assets and core competencies

Leverage NineSigma’s global innovation network

Deliver new knowledge, capabilities, and partners to client

How do we work with our clients? NineSigma – Working with us

chemical food/drink

NineSigma active client distribution Client data base : 4935 companies

RFP topics by industry (>2000)

FMCGs other

Created in 2000, head office Cleveland USA Local European presence Leuven Belgium The global open innovation leader : RFP challenge management Trans-industry intelligence programs Innovation training & facilitation Technology push & pull models Crowd sourcing platforms > 2.5 million solver data base

North America • Brazil • South Africa • Europe • Japan • Korea • Australia

NineSigma - Industry Experience Breadth of expertise across diverse disciplines

o Aerospace o Automotive o Biotechnology o Chemistry o Computing o Consumer Products o Defence o Electrical & Electronics

o Food and Drink o Green Technology o Manufacturing o Materials o Medical o Mechanical & Industrial o Petroleum o Telecommunications

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NineSigma supports companies: o Accelerate their innovation process o Expand access to new knowledge o Find un-expected solutions o Reduce risk in decision-making o Develop new skills and processes o Accelerate product time to market

NineSigma – Accelerating Innovation How do we support our clients?

Nine Sigma’s Innovation Road Map Developing Open Innovation programs that meet client needs

Session A

Personalised Innovation Workshop

Program Development & Training

Innovation Program Roll-Out

NineSigma Innovation Audit

Program Implementation & Results

Session B

Interviews and data collection

Report-out, OI performance review

Scoping workshop, selection & priorities

Training workshop, OI tools & coaching

On-going program review & support

OI GOALS: • Solutions • Opportunities • Improvements • Breakthroughs • Higher Value

Our Open Innovation Toolbox

RAPID PRODUCT PROTOTYPING

TECHNOLOGY MONITORING

LINKED INNOVATION / CROWDSOURCING

OI SKILLS ASSESSMENT & DEVELOPMENT

QUICK - SCAN OPPORTUNITIES

TARGETED PARTNER SEARCH

TARGETED TECHNOLOGY SEARCH

SOLUTION SEARCH So

lutio

ns

Skills

Expertise

Knowledge

OPEN INTELLIGENCE / LANDSCAPING

Examples of collaborative innovation outcomes

Where do these ideas and technologies come from?

A sample of our clients

North America • Brazil • South Africa • Europe • Japan • Korea • Australia

MITSUBISHI MATERIALS OLYMPUS

NEC suntory

TOSHIBA

ISUZU MOTORS KOMATSU

HITACHI CONSTRUCTION

SUMITOMO

OSAKA GAS

ASAHI BREWERIES

The Coca-Cola Company

DENKA

DENSO

OMRON

SHISEIDO

IDEMITSU

TEIJIN

SHOWA DENKO

SUMCO

KIRIN HOLDINGS

“Innovation and technical excellence are critical to Air Products’ continued success in the market. We believe that working with NineSigma will amplify our internal R&D efforts and will expand our ability to access external resources and capabilities globally” Miles Drake, Vice President and Chief Technology Officer, Air Products

Source: Authorized attributable comments.

“Innovation is the lifeblood of our company. If we don’t innovate, we won’t grow, or even survive, in today’s fast moving world and highly competitive business environment. We have chosen to partner with NineSigma to establish our Networked Innovation Program because they have an impressive track record of making open innovation work for companies like ours,” Graeme Armstrong, Corporate Director of Research, Development and Innovation at AkzoNobel.

“We use NineSigma when we are looking for alternative approaches to solve problems or where a solution from a different industry may help.” Todd Abraham, VP of Global Research and Technology Strategy, Kraft

“We found the NineSigma Intelligence program particularly helpful in getting us quickly up to speed on our internal knowledge on geothermal energy. We have some strategic decisions ahead of us, but the NineSigma program helped get us to the point where we can make the best decisions possible.” Rod Nelson, Vice President, Schlumberger

“The NineSigma Intelligence Program has proven to be an outstanding tool for us in our exploration of emerging technology. The quality, organization, and delivery of information, especially NineSigma’s assessment and recommendations, will help us make strategic decisions. “ Kent Young, Director of Technology, Sherwin-Williams

“We are extremely pleased with the results from NineSigma. The companies and individuals NineSigma connected us to provided us with ready solutions to a materials need that we have been unable to address with our internal expertise. NineSigma delivered fast and significant value to our program.” Robert Finocchiaro, Ph.D., Technical Director, 3M

“We’ve distributed technology briefs to more than 700,000 people through NineSigma and have as a result completed over 100 projects, with 45% of them leading to agreements for further collaboration.” Larry Huston, Nabil Sakkab, Procter & Gamble in Harvard Business Review, March 2006

Our effectiveness is confirmed by our client’s feedback Client Endorsements