A project proposal for Novozymes on how to engage in open innovation for external knowledge sourcing - rationale behind, why it would be of value to Novozymes, and concrete steps on how to realise this. By Dan Herlin & Benna Hedegaard

1. NOVOZYMESAUGUST 25th
Zymeshare
Open innovation platform
Proposal for Novozymes
by Dan Herlin & Benna Hedegaard
August 25, 2011

2. NOVOZYMESAUGUST 25th
A NEW R&D INITIATIVE
2010
Project Phase 1RDM
Expand Novozymes
innovation capacity
Q4 2011
Online External R&D
Community
Q1 2011 TODAY
Project
Proposal
We ask R&D Management to:
Support the initiative
Dedicate the necessary resources
for pilot start-up
Conceptualization
Connect to create
 Open Innovation
Idea Formation

3. NOVOZYMESAUGUST 25th
EXECUTIVE SUMMARY
6.
Implementation
1.
Novozymes must grow the
enzyme market to grow
4.
Novozymes is the right
catalyst
3.
Tomorrows researchers
are eager to
collaborate online
2.
Engage in external
knowledge sourcing
5.
We propose:
Zymeshare.com

4. NOVOZYMESAUGUST 25th
NOVOZYMES MUST GROW THE ENZYME MARKET TO GROW
57%
47%
53%
50%
50%
Million
DKK
0
2000
4000
6000
8000
10000
12000
Novozymes Sales
Base Case
10%
New industries and application areas must emerge to ensure the growth
of both Novozymes and the enzyme market

5. NOVOZYMESAUGUST 25th
Key customer
collaborations
University
collaborations
TOTALCapabilities
leveraged
Capabilities available
across applications
In-houseresources
Long tail of ‘outside’
resources that might
have a solution
Novozymes’
internal R&D
Access to a low
quantity of highly
capable minds in
targeted
disciplines
Access to a
vast pool of
highly capable
minds across all
disciplines
The Long Tail of R&D
DISTANT SOURCES OF KNOWLEDGE HOLD INCREDIBLE POTENTIAL
Collaboration between capable minds in non-core application areas becomes
increasingly important for NZs continued growth = Growth of the total market
Bridge knowledge gap across
applications and beyond
Bridge
Application A
Technology B
Industry Known
Industry Unknown
Bridge

6. NOVOZYMESAUGUST 25th
Enlarge the global industrial
enzyme market
Increase demand and
awareness of enzymes
Support valuable knowledge-
sharing
Expand Novozymes’
innovation capacity
Maintain technology
leadership position
Reach out to unusual
suspects
Facilitate an external research and networking community
…online!
THE FUTURE CALLS FOR INNOVATIVE INITIATIVES

7. NOVOZYMESAUGUST 25th
NOVOZYMES IS THE RIGHT CATALYST
OI
Open Innovation communities hold
potential to generate radical ideas
It takes a profit driven organization to
commercialize ideas
• Innovation-driven Growth
• Market Leader
• Reputational Assets
• Sustainability Profile
knowledge sharing
Complementary Assets

8. NOVOZYMESAUGUST 25th
FACILITATE AN ONLINE COMMUNITY
- BUT HOW?
We need to understand:
• Why join a community?
• What do users value?
• How will the community develop?
ONLINE SURVEY CASE COMPETITION
• 50 respondents
• Network and Collaboration
• Knowledge sharing
• 25 Novozymes Interns
• Community administration
• User attraction / retention
IN-DEPTH INTERVIEWS
• 20 interviewees
• Biotech Engineers
• DTU / KU  PhDs, Master /
Bachelor students

9. NOVOZYMESAUGUST 25th
5000000
7000000
9000000
11000000
13000000
15000000
17000000
19000000
21000000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Linkedin
Facebook
Twitter
G+
IT IS ABOUT CREATING A PLACE THAT FULFILLS A PERSONAL NEED
Facebook fulfills
a social need
Linked-in fulfills a
professional need
> 750
million
users
> 130 million
users
Time to reach 20 million users
Users
24 days
1035
days
1152
days
1825
days
NICHED COMMUNITIES

10. NOVOZYMESAUGUST 25th
TOMORROWS RESEACHERS ARE GEARED TO
SHARE KNOWLEDGE AND COLLABORATE ONLINE
0% 20% 40% 60% 80% 100%
Comment research/ideas
Help problem solving
Solve challenges posted
Receive comments research
Definitely
Some extent
No value
Don't know
35%
Passion of
field
18%
Career
building
8%
Monetary
Reward
27%
Expand
pool of
knowledge
12%
Recognition &
Fame
> 60% infer value from external knowledge input
< 30% collaborate as much as they would like
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Consult as much as you would like?
Receive valuable input (external…
Consult others in solivng problems?
Definitely
Some extent
No Value
Don't know
> 80 % show a high degree of professional pride
> 70 % see value collaboration with other researchers
Provide help/input
Seek help/input

11. NOVOZYMESAUGUST 25th
A SNEAK PEAK AT HOW ZYMESHARE WILL APPEAR
About
Tools
Enzymes boost efficiency on Thailand
rubber plant
My Profile
Sponsored by Novozymes
Zymeshare reaches > 2 million users
Today Zymeshare has reached two million users. Read
more…
Making light of enzymes
A novel assay couples methyltrans- ferase activity to
bioluminescence
NETWORK MAPCOLLABORATIONDATABASES
Yao Ming publicized article “The Dentist who
cured cancer”…read more
Ashvin Rabadia seeks bioinformatics
expert for joint research program in
India…
EXPERT FORUM CHALLANGES
Novel enzyme technology
can convert forestry waste into fertilizer within 3 to 8
hours.
NOVOZYMESAUGUST 25th
About Zymeshare Career
Zymeshare
Conferences
Susanne Mayer joined the group Tar Sand
Processing
Recent ActivitiesNewsfeed
Ron Burt is now part of the collaborative
group Enzymologists
Industry & Application
SNAPSHOT OF ZYMESHARE
EXPERT FORUM ‘ANSWER’
COLLABORATION NETWORK
KNOWLEDGE SHARING
Sitemap
MR. GARNER
INDUSTRY & APPS
Zymeshare ™

12. NOVOZYMESAUGUST 25th
COMMUNITY BUILDING TAKES TIME
t
Source: Model by Dan & Benedikta
Social Capital
&
Number
of users
Zymeshare
Pilot
Zymeshare
Community
Zymeshare
Mini
Zymeshare
Innovation
Social
Capital &
Number of
Users
Value for
NZ
Value for
Novozymes
Zymeshare ™
NZ’
learning
curve
Novozymes’
Learning
Curve

13. NOVOZYMESAUGUST 25th
+ Relationships with prominent groups of young scientists
VALUES CAN BE IDENTIFIED FOR EACH STAGE
Zymeshare Pilot Zymeshare CommunityZymeshare Mini Zymeshare Innovation
Zymeshare ™
+ Structure of global enzyme research
+ Expanding professional network and collaborations
+ Input from challenges / Talent spotting
+ Access to cross-disciplinary networks
+ Innovation
+ Global Community
+ New applications
New industries

14. NOVOZYMESAUGUST 25th
IMPLEMENTATION: WHERE TO BEGIN
Zymeshare ™
Who are Innovators?
Where to begin?
Innovators Early
adopters
Late
adopters
CumulativeAdoption
t
Early
majority
Diffusion of Innovation
Source: Rogers, E
• Deeply fascinated by biotech and enzymes
• Hungry for opportunities and networking
• Talented and optimistic
• Entrepreneurial drive
• High propensity for internet / social media
use
• Identify beta testers
• Cultivate and nurse community
ambassadors
• Create the community with the
users
• Build credibility / social capital
Beta Testers
• Top M.Sc. and Ph.D. students

15. NOVOZYMESAUGUST 25th
ACTIVITIES TO BE INITIATED
Zymeshare ™
Launch of Zymeshare PilotQ4 2012
• Project plan
• Budget
• Identify and map initial test pilot group
• Identify types of information that they could value
• Develop platform with the users
• Intomics analysis
• Mapping of enzyme research activity world wide
• Development of functional tools
• Platform design
• Promotion
Project
plan
User
Analysis
Research
Mapping
Platform
Design

16. NOVOZYMESAUGUST 25th
Zymeshare ™
1.
Novozymes must
grow the market
to grow
2.
Facilitate an
external online
community
WRAP-UP…
3.
High potential in
unusual suspects
4.
Novozymes is
the right
catalyst
5.
Researchers
are eager to
collaborate

17. NOVOZYMESAUGUST 25th
THANK YOU