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Open Innovation and Technology Scouting

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Presentation on theme: "Open Innovation and Technology Scouting"— 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 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


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