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

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Presentation on theme: "Open Innovation and Technology Scouting Roger Leech OI Portfolio & Scouting Director 21st Oct 2010."— Presentation transcript:

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 Trumbull USA Port Sunlight UK Colworth UK Shanghai China Vlaardingen Netherlands Bangalore India

5 Open Innovation - What and Why? Bigger, Better, Faster Through Partnership Bigger Better Faster Pepsi – Lipton JV Created 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 texture Martek create route to sourcing The right partners can drive speed Investing in capability build externally reduces Time to discover x 10

6 Unilevers approach to open innovation mindset organisationcapabilities

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

8 Capabilities aligned to Open Innovation process Manage 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 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 VP Category Discover Leader Project Leader IAD OI Scout EVP Discover Platforms Discover Platform Leader Genesis Leader

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 Programme Platform Discover Genesis Fields Category Discover Category Design Access to Science Access to Technology Access to Innovation Baked 5% 40-50% 80% OI WANTS OI LEADS RiskInvestment

13 How to measure scouting success? Delivery 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 Mindset With a wide spectrum of partners and open innovation models University/ Contract Research Supplier Networks JVs Alliances Science Parks Entrepreneurs Scouting Networks Unilever Corporate Ventures NGOs

16 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

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 couldnt do alone New blending and handling systems New suppliers of transparent materials New ultrasonic sealing technology 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 Offspring 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

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


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