open innovation in the europe marketplace for mutual growth meeting with francesco nachira bu29 2/84...
TRANSCRIPT
Open InnovationOpen Innovation in the Europe Marketplace in the Europe Marketplace
for Mutual Growthfor Mutual Growth
Meeting withFrancesco Nachira
BU29 2/84European Commission DG-INFSO Unit D5 "ICT for Enterprise Networking"
Objective
Discuss approaches for working with the EU Commission via the Digital Ecosystem (DES) to enhance the adoption of European talent, technology and ideas to create global winning innovation with SMEs
Joachim vonHeimburg, Director, P&GMilan Jevtitch, Associate Director, P&GFrancis Bealin, Section Head, P&G
• Brussels, Belgium• Pescara, Pomezia, Italy• Newcastle, UK• Reading, UK • Rusham Park, UK• Schwalbach, Germany• Darmstadt, Germany • Kronberg, Germany
P&G R&D Innovation Centers in EuropeA strong engine for growth
• P&G invests > €1.6 Billion (3.4% of Sales) in R&D• At least a third is invested in Europe (~ 3000 scientists)
• This is matched by at least €1.5 Billion in holistic innovation spending (e.g. design, consumer research, modeling, eng., etc.)
P&G – An Innovation and Brand Leader
2004 #1 Brand Building Company - Forbes2004 #1 Global Innovator - Fortune2005 #2 Global Innovator - Fortune2006 #7 Most Innovative Companies- Business Week
2005 Collaborate with European Union on Open Innovation (Nabil Sakkab at Mr. Busquin’s EU Workshop)
2006 Sharing with Leading Companies at Open Innovation Select Event July Meeting with Commissioner Potočnik
• Ahlstrom• BASF• BMW• BP• BT• Cadbury
• Degussa• DSM• Nokia• Oetker• Philips• Shell
VisionBecome a premier global network based company
GoalsIn-Source 50% of Innovation
2000 20062002 2004
“…52% of our project establishments and in-market initiatives have a significant C+D component!”
– L.A. Huston
Tide Stainbrush
Kandoo Wipes
Mr. Clean Magic Eraser
Swiffer Duster
Mr. Clean Autodry
Olay Regenerist
SK-II Airtouch Foundation
Prilosec OTC
PuR Furnace Filters
C+D Milestone Reached
1
Innovation Mandate
Growth!
Must create growth equivalent to a $4 Billioncompany every year
Importance of Networks
• The economy is no longer a market economy but a network economy.
• Companies are increasingly embedded in networks of alliances. Indeed, networks have become so dominant in the modern society that they have become an organizational form in their own right.
Quote – Pieter De Man (Prof. Org Science – Eindhoven University of Technology, Holland)
Build Innovation Networks
4 Billion/yrNew NOS Generation
9,000 P&G R&D
People
P&G’s Global Innovation Network
China Low Cost Innovation
EuropeNew Product Concepts + Disruptive Technology + Low Cost Innovation (EE)
India Intellectual Capital
JapanHolistic Product Concepts + Execution Excellence
North America
Disruptive Concepts + Technology + Entrepreneurship
Examples of Europe Connections
New foam
Skin wrinkling improvement
P&G has R&D programs with top chemical companies and top Euro university networks (e.g. BASF, Leuven University, etc.)
Novel Enzyme
New Perfume
New Polymer
Open Networks Brokers and e-R&D Channels
NineSigma
AlibabaInnovation Relay Center
YourEncore
•Mutual growth opportunities
•Faster, more cost efficient innovation
• Increased innovation productivity
•Access to the right experts
•Gets to the right solution faster
SynergyA Web-based Network for Innovating with Suppliers
“….we have seen a 30% increase in innovation projects with participating suppliers….”
Benefits to Supplier-Partners
P&G
• Suppliers see more of P&G’s toughest problems
• Suppliers gain additional opportunities to solve our needs
• Suppliers can identify new opportunities for business growth
• Synergy establishes a common language
• Suppliers can submit unsolicited ideas
Theme For Action(Commissioner Potočnik discussion July 6th 2006)
.
Create a state of the art Pan European Network capability to identify talents, technologies and ideas to support innovation. P&G is prepared to partner and take an active role with the EU commission and like minded Euro companies.
• Current EU fragmentation is a barrier to effective connectivity. (How to reach effectively all Euro assets?)
• Where networks have been built, we have seen an increase in successful connections.
• Such network should cover mid-size companies, innovation clusters as well as SMEs.
Opportunities for P&G Participation
in EU Digital Business Eco-systemDiscussion
– How does P&G create a presence in the DBE Portal on which we describe our needs for new innovations and innovation expertise?
– How can P&G leverage the existing transactions and services for matching needs with providers?
– What’s the most natural way to include the EU DBE in our standard Connect+Develop work processes?
Opportunities for P&G Participation in EU Digital Business Eco-system
P&G needs:– Ability to find companies with specific expertise– Matchmaker/Broker functions to link our needs
with qualified providers• Technology• Personal Networking