1. Page 1 Leveraging the Global Innovation Community Paul Stupay Executive Vice President NineSigma Inc NineSigma Overview

2. Page 2 Agenda Background / history on NineSigma Lessoned Learned What is our capability How can this capability be applied to government

3. Page 3 NINESIGMA IS THE LEADER IN OPEN INNOVATION SERVICES NineSigma works with Clients... to discover innovative ideas, technologies, products and capabilities from outside their organizations... to coach and develop Networked Innovation Champions across organizational units and regions... to create inter and intra-organizational collaborations NineSigma profile  Offices in USA, Europe and Japan  Over 1,700 Open Innovation projects completed  More than 2 million solution providers contacted  25,000+ proposals received from over 100 countries  The largest open global network

4. Page 4 Asahi Breweries Alps Electric The Coca-Cola Company Denka Denso Fuji Electric Device Technology Hitachi Construction Idemitsu Isuzu Motors Kirin Holdings Komatsu Meta Water Mitsubishi Material NEC Olympus Omron Osaka Gas Shiseido Showa Denko Sumco Sumitomo Electric Industries Sumitomo Metal Suntory Teijin Toshiba Toshiba Tec Some of our many global clients

5. Page 5 The future of innovation will be different Your Competitor’s Innovation Ecosystem Your Innovation Ecosystem VS.

6. Page 6 Value to the Customer  Identify emerging technologies  Innovate faster  Expert sourcing for specific needs  Global innovation ecosystems to solve problems and bring commercialize solutions “We will acquire 50% of our technologies and products from outside P&G.” – A.G. Lafley, CEO, P&G 2000 Procter & Gamble’s Connect + Develop Program Increased Innovation Effectiveness Revenue Percent R&D Spend

7. Page 7 How does NineSigma help? It’s all about leveraging global resources Over 2 million Solution Providers More than 100 NineSigma Affiliates Continually expanding network Providers in virtually every country Viral networking extends our reach further NINESIGMA OPEN GLOBAL INNOVATION NETWORK:

8. Page 8 The Request is the connector to the global innovation community 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 in terms of Business opportunity Technical specifications Project timing Evaluation criteria Circulated broadly against a custom network Global responses from Universities, Companies, Research Labs, inventors … Typically receive ~12+ proposals per RFP >3/4 responders typically unknown to client

9. Page 9 Hi Tech Xerox CASE STUDY: THE CHALLENGE: Xerox needed a next-generation roller for its color printer that would have a significantly longer life span. THE INSIGHT: “[Santokh] Badesha notes that the new rollers also will reduce or eliminate the need for a certain type of oil in the printing process. This unintended benefit has a multiplier effect – not only has Xerox found a solution to prolonging the life of its product, it likely has hit on a way to reduce its carbon footprint.” THE OUTCOME: A solution was found in the Michigan Molecular Institute. MMI had a material unrelated to the printing industry that could be adapted to meet Xerox’s need.

10. Page 10 Automotive and Transportation CASE STUDY: THE CHALLENGE: Evaluation of disruptive platform technology in Alternative Powertrain area that imposes a threat to the major business of Tier 1 Company OUR APPROACH: NineSigma assessed the current status of the technology, its readiness level, and limitations. We identified and evaluated alternative approaches, ranked key players as potential partners and analyzed market dynamics, entry strategy and current roadblocks for technology commercialization THE OUTCOME: Identified an opportunity to re-align client’s core competency (control electronics and actuators) with the emerging technology

11. Page 11 Consumer Products Hallmark CASE STUDY: THE CHALLENGE: Hallmark was seeking new technology to extend a physical communications medium into the digital world. The technology would enable a user to augment their personal expressions with digital platforms. THE APPROACH: Proposals were received from North and South America, Europe, Asia, Oceania and the Middle East. Many respondents expressed an eagerness to work with Hallmark since they were named on the RFP. The client short-listed five or six interesting responses and ultimately selected a German provider, Metaio. THE OUTCOME: Hallmark worked with Metaio to get cards with the new technology on the market in time for Mother’s Day 2010.

12. Page 12 Aerospace & Defense CASE STUDY: THE CHALLENGE: New Technology Development- Microwave Monolithic Integrated Circuit (MMIC) OUR APPROACH: We worked with a leading Aerospace company to identify co-development partners to develop new technologies and components for phased array communications and radar in aerospace applications. THE OUTCOME: Of particular interest were new advances for the following technologies and components: New chip-scale packaging techniques Thermal management solutions New enabling materials for higher levels of integration. Power amplifiers

13. Page 13 What Makes Us Different … We Make Connections That Others Can’t

14. Page 14 Some parting thoughts…. There is now an opportunity to apply lessons from industry’s experience with Open Innovation to help drive new sources of innovation for government programs. We want to help government teams reach the best technologies and get beyond the usual suspects. Industry welcomes collaboration with government. Please join us as we build our strategic direction in partnership with industry.

15. Page 15 Paul Stupay stupay@ninesigma.com Phone: 216-295-4810 Jeanne Langley langley@ninesigma.com Phone: 919-593-4911 Thank you!