1. Open Innovation and Technology Scouting
Roger Leech
OI Portfolio & Scouting Director
21st Oct 2010

2. Agenda Introduction to Unilever
Open Innovation approach with a focus on scouting new opportunities
Case studies
Conclusions

3. 13 > € 1 Billion global brands
€40b turnover (2009)
Western Europe 30%
The Americas 32%
AACEE 37%

4. 6 Global R&D Centres Colworth UK Port Sunlight UK Vlaardingen
Netherlands
Trumbull
USA
Bangalore
India
Shanghai
China

5. Open Innovation - What and Why
Open Innovation - What and Why? Bigger, Better, Faster Through Partnership
Bigger
Better
Faster
Partners allow us to access to growth markets we could never access alone
Partner to harness new capabilities to deliver better outcomes
The right partners can drive speed
Pepsi – Lipton JV
Created a new category
Great ice cream texture
Martek create route to sourcing
Investing in capability build externally reduces
Time to discover x 10

6. Unilever’s approach to open innovation
mindset
organisation
capabilities

7. Critical Functional Capabilities
Organisation A Critical Capability In Unilever
Prioritise in Define
Breakthroughs
From
Discover
Fast,
Large Scale
Deploy
Brilliance
In Product
Design
Differentiating and Transforming
Critical Functional Capabilities
Open Innovation, Patents, Safety & Environment, Regulatory,
Clinicals, Information Management for R&D

8. Want Find Get Manage Capabilities aligned to Open Innovation process
Manage delivery incl. relationship.
Project management
Want
Defining the targets.
Which capabilities do we need to deliver the innovations ?
Find
Ideas Management in relation to defined needs
Scouting for capability providers
Get
Define 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

9. 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

10. Want Summit 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
Genesis Leader
Category VP
Category Discover Leader
EVP Discover Platforms
Discover Platform Leader
Project Leader
IAD
Project Leader
OI Scout
Project Leader 10

11. What makes a good scout? Entrepreneurial Creative
Good experience of science and technology
‘Extrovert’
Organised
Contract understanding
Global mindset
‘Janus’ approach

12. Scouting across the programme
Platform Discover
Genesis Fields
Category Discover
Category Design
OI WANTS
OI WANTS
OI WANTS
OI WANTS
OI LEADS
Access to Science
Access to Technology
Access to Innovation
‘Baked’ % % %
Risk
Investment

13. Delivery How to measure scouting success? New Products New Processes
New Strategy

14. 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)

15. University/ Contract Research Unilever Corporate Ventures
Mindset With a wide spectrum of partners and open innovation models
Supplier Networks
University/ Contract Research
JV’s Alliances
Science Parks
Scouting Networks
Unilever Corporate Ventures
NGO’s
Entrepreneurs

16. What makes a collaboration successful? Case Studies
Pyramid Teabags Accessing capabilities beyond our industry and orchestrating multiple partners
Framingham New service based approach from external data

17. Case Study: Pyramid Fruit Teabag Objective
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

18. Pyramid Tea Bags Case Study
Accessing and orchestrating new capabilities from an ecosystem of partners to deliver what we couldn’t do alone
New ultrasonic sealing technology
New suppliers of transparent materials
New blending and handling systems
Tea suppliers
Flavour houses

19. Pyramid Teabag Case Study Bigger 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

20. Framingham Heart Study
“The Framingham
Heart Study”
Established 1948
5000+ individuals
Established risk factors for heart disease
Ongoing study today
“The Framingham Third Generation”
Started 2003
Recruited children of offspring and their partners
Ongoing study today
“The Framingham
Offspring Study”
Started 1971
Recruited the children of original cohort and their partners
Demonstrated family history important
Ongoing study today

21. 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

22. THANK YOU