A question on fear of the future –and how that affects us
A question on health –and who well put our faith in to take care of it in the future
A question on retail fortunes –and how shopping will change in the future
M&S Plan A Fear, Faith & Fortune Adam Elman Head of Delivery – Plan A & Sustainable Business@adamelman
Our Value Chain 35,000 Product Lines Involving 2,000 factories 20,000 farms 2,000,000 workers 1,000’s raw materials Engaging 75,000 employees & 21m customers each week
Big, bold targets Aiming to be carbon neutral Aiming to send zero waste to landfill Remove all the artificial colours & flavours from ALL food & drink Reduce packaging by 25% Become 25% more energy efficiency Become 20% more fuel efficient Source 100% sustainable wild fish Cut carrier bag usage by 33% Cut water usage by 20% Source 100% sustainable timber
Approach toInnovation- It’s all about thepeople Mike Addison 14th November’12
Introductions• Fast Moving Consumer Goods • BSc and Ph.D Chemistry from Edinburgh University (’73 to ’80)•>175 Years old •Joined P& G late ’81 in R&D in Newcastle•~120,000 people employed worldwide • 17 years innovation for Fabric &Home Care• Operations in 80 countries • 4 years in charge of European Seed Fund to• Net Sales of >$80 billion turbo charge internal innovation.• 24 billion dollar brands •10 years establishing and developing Open Innovation interests in the UK•Spends almost $2 billion per year onR&D • Retired 31st October 2012
Provocations !• What sort of Business are you in ?• What innovation do you want and can afford?• Be intentional on where you want to play?
Perspective on Innovation & Collaboration P&Gs Purpose and growth strategy is to improve more lives in more parts of the world more completely — with an unrelenting focus on innovation. We want to partner with the best innovators everywhere, which is why Connect + Develop is at the heart of how P&G innovates. Bob McDonald President and Chief Executive The Procter & Gamble Company
Primary Business Model P&G Business Model• Obtain deep customer and consumer insight• Fulfil needs with superior technology and products• Brand the products• Build scale via world class advertising and global distribution.
P&G’s Approach to Innovation I N • CommercialB • Creation NR • Relevance O • SustainingA V •ReachN A •TransformativeD • Profitability T • Disruptive I Where to Play O How to N Win
Innovation Flavours• Commercial Innovation – Enhance brand appeal without product change• Sustaining Innovation – Lead a category/industry through product improvement• Transformative Innovation – Change an existing category/industry to make major share gains with sustainable competitive advantage• Disruptive Innovation – Create entirely new sources of consumption, new categories or new segments.
Provocations !• What is your innovation process ?• How do you progress through the process?• Who is responsible for what?• Are you managing appropriately?
New Product Development Stage GatedFront End Innovation Development Venture Proposition Business Model Market Map Product CONSUMER Concept -Prototypes NEEDS - Market tests Functional - Societal Trends -Transactional Map -Regulatory trends Learning -Technology trends Technology Map SALES
Discovery vs. Development Discovery Development• Front End Innovation • Stage Gate• Complex • Complicated• People Centric • Process Centric• Story (Killer issue) Focus • Metric focus• Management Lite • Management Heavy
Provocations•How can the external world helpyou?•How can they contact you?•Will they want to work with youagain?
Engaging with Open Innovation Business Goals & Strategy Innovation Strategy Open Innovation Targets Find the Build the Make it Do theOpportunities Promising contagious deal
Facilitating External Access Internal External Deal MakingAligned with • Wide range of deal Proactive searchinginternal clients structures to deliver against high priorityFocused against mutual value needsstrategic priorities Externally • Legal support andOpen to external networked and expertiseserendipity connected • On going governanceSecuring the right Right people, right and complianceinternal resources places, right time www.pgcd.com
Supplying Open InnovationResponding to Need Creating Demand Get Networked Get Entrepreneurial Yet2.com Understand the NineSigma customer Innocentive EEN (SME base) Focus on the story Focus on USP Maximise value Protect your IP Protect your IP Address the need Understand your competition
Bringing it all together Manual Toothbrushes Stretch Electric Toothbrushes S h a Whitening Strips r eForms , Flavours, Benefits, Audience, Price
Stories from the Front End • Disruptive • Brand Extension • Re-application of core competencies • Non obvious re- definition of need.