Ron pierantozzi air_products
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Ron pierantozzi air_products Presentation Transcript

  • 1. Corporate Venturing Ron Pierantozzi Pieranr@airproducts.com
  • 2. Five Levers To Drive Growth The role of Business New Platforms Corporate Venturing value ($Billion) Services Geographic Expansion Business Model Innovation Current Current Business Business Portfolio Portfolio Baseline valuation of company2 Copyright Air Products and Chemicals, inc. 2006
  • 3. New Business Development at Air Products Mandate evolved in 2003 to focus on support of existing Growth Platforms, embedded in the SBU’s – Electronics, Energy, Materials, Healthcare – Continue to look at Whitespace opportunities NBD Feeds the front end of the pipeline and incubates projects until first revenue. Established late stage incubation/accelerators in each growth platform/division. Responsible for ramping up the business to growth and integration into SBU. – Advanced Materials established 2003 – Energy Solutions established 2005 – Electronics – 1990’s – Healthcare - 2000 Accelerator’s projects have multiple division alignment3 Copyright Air Products and Chemicals, inc. 2006
  • 4. Air Products Corporate Venturing A mix of internal and external venturing activities – Ideas come from within or through a broad search mechanism Focus on developing platform level businesses – Keep it large enough to be material Take advantage of unique skills, capabilities, market channels or customer relationships – Start with something you know Focus on growth domains that are linked to corporate growth strategy – Have a defined strategy Organizational Model continues to evolve – Never Static – Always evolving to meet the strategic opportunities4 Copyright Air Products and Chemicals, inc. 2006
  • 5. Current Role of the New Business Development Group Develop the strategies for new business platforms – New technologies and new markets Incubate the early stages of new businesses Develop the tools for new business creation Consult with SBU on disruptive approaches Manage the venture equity investment portfolio Individuals with diverse backgrounds – Technologists – Business – Commercial Development – Finance5 Copyright Air Products and Chemicals, inc. 2006
  • 6. Organizing the Hub and Spoke System Growth Board Energy Electronics Solutions Corporate Growth Platforms Near Adjacencies New Business Development Advanced Materials Healthcare Gases Each group has a Group late stage incubator6 Copyright Air Products and Chemicals, inc. 2006
  • 7. Growth Board Senior executives – COO – CFO – CTO – VP Corporate Development Monthly meetings New platforms7 Copyright Air Products and Chemicals, inc. 2006
  • 8. Creating APD’s Growth Platforms Performance Advanced Materials Materials (Chem Group) Energy Solutions EPI CDO (Gases Group) Discovery Incubation Acceleration CSTC Emerging Materials Electronics (Electronics) Healthcare Global Healthcare8 Copyright Air Products and Chemicals, inc. 2006
  • 9. Not just one competency…but 3! Discovery Incubation Acceleration Creation, Evolving the Ramping recognition, opportunity into up the elaboration, business to a business articulation stand on its proposition own of opportunities. Exploration Experimentation Exploitation •Corporate •Corporate •SBU Development Development Office •New Business Office •SBU Incubators Unit •Corporate •Multiple SBU Technology Impact9 Copyright Air Products and Chemicals, inc. 2006
  • 10. Developing the Culture and Capability Bring into the corporation new tools for business development – Learning plan – Gina O’Connor – RPI – Discovery Driven Planning – MacMillan, McGrath – Real Options – MacMillan, van Putten – Entrepreneurship training – Tony Warren – Penn State – Bell Mason Diagnostic – Heidi Mason, Tim Rohner Create the learning environment for implementation – Created Innovation College – 30 courses on tools ranging from front end to project execution – Work with real projects to develop the tools – Expanded globally10 Copyright Air Products and Chemicals, inc. 2006
  • 11. Developing Internal Knowledge Created communities (networks) to share information and ideas – Over 180 communities – Linked through an internal knowledge management system Developing external networks – Through technology partnerships – Open Innovation Developing insight to new markets and technologies – University research – Equity investments in technology start ups11 Copyright Air Products and Chemicals, inc. 2006
  • 12. Issues and Challenges Going Forward Availability of seed money – Capacity of organization Short term focus in SBU’s – Metrics for accelerators vs. conventional – Piloting real options Building credibility for NBD – Create opportunities within Growth Platforms – Allows more whitespace opportunity Developing the right skill set – Neither technology nor business but both – Career path for business development professionals12 Copyright Air Products and Chemicals, inc. 2006