Business Innovation:
Portfolio Management & Execution Power
Did you know that business model innovation is seen by most CEOs as the way
to create future value but at the same time as very hard to implement?
I will give you the insights how to realize sustainable profitable growth using our
Business Innovation concept !
My name is Koen Klokgieters and I’m VP Business Innovation with more than 20
years of experiences in innovation.
‘Link to the Future’
Koen Klokgieters
VP Business Innovation
March 2008

The key challenge regarding Business Innovation is:
“How to create a sustainable innovation environment?”
Situation
Situation
You are responsible for the start of or running a complex and long term innovation program or
portfolio with clear innovation objectives and targets
This portfolio exits of more complex innovation projects
The basics of project management of each separate project is well in place
Each project works in parallel to deliver the innovation targets
There are (strong or weak) interrelationships between these projects to manage
There are different (internal and external) stakeholders to manage
Complication
Complication
The Innovation Objectives and targets are defined in only financial terms: Revenue/Profit growth
The Innovation Strategy doesn’t give directions for prioritizing and decision making processes
There is not overall logic overview for the portfolio to ensure the overall targets
There isn’t framework to oversee the impact of the portfolio on the current Business Model
There isn’t framework to oversee the impact of the portfolio on the technology integration needs
There isn’t a systematic way to manage the execution of the innovation projects successfully
Key Questions
Key Questions
1. Do I really understand the Innovation Strategy of my company? If not how can I?
2. Have I optimized our Innovation Portfolio to set the right priorities and the take the right
decisions? If not how can I?
3. Am I able to mobilize and manage the execution power in my company? If not how can I?
| Business Innovation
In collaboration with [Client] Link to the Future
21 March 2008 1

Do you really understand the Innovation Strategy of your
company?
Do you have a clear Vision on the Business Drivers and the
Technology Trends that founds the innovation Strategy?
Global / Mega Trends Product / Service Technology
Consumer / Client Trends Process Technology
W
Market Trends Enabling Technology e
vi kno
i m ew w
pl o th
Do you recognize the perceived Strategic Business Advantage em n at
en Inn wi
you will create with the innovation strategy? ta ov tho
tio at u
n i on t a
w S s
Product Advantage People Advantage ill tr ha
Configuration Advantage
be at re
Politics Advantage
ha egy d
Presence Advantage Purpose Advantage rd
!
Did you decide on the targets for change in proposition and
value creation driven by the Innovation Strategy?
New Revenues / Market share/ Profit
New Customer experience
Reputation
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21 March 2008 2

Can you optimize your Innovation Portfolio?
Do you design the necessary changes in the business model
and how it will be done?
Value Proposition Core Capabilities An
Client Segments Business Functions o
th pt
Distribution & Communication Channel Partners re e im
Client Relationship Revenues & Cost Structure in so rig ise
no ur ht d
va ce pr po
tio s t ior rtf
n o e itie oli
Do you develop the necessary changes in the technology and ob n s o
je ab an wi
how it can be integrated in existing technology? ct le d ll
iv th se
es e t
!
Product / Service Technology
Process Technology
Enabling Technology
Do you understand the Benefit Logic how these changes will
deliver the innovation targets?
Benefit Logic
Business Case
Decision Making Process
| Business Innovation
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21 March 2008 3

Can you manage successfully the implementation of the
innovation projects?
Do you use a proven operational innovation approach ?
Innovation Process
M
Methodology an
Tools fa ag
bu cto ing
si rs th
ne w e
ss ill ke
va de y s
Do you work with the right people and partners? lu liv uc
e er c
! th ess
e
Leadership
Experts
Clients & Suppliers
Do you communicate in the right way with your in- and
external environment?
Innovation measurements and reports
Communities, events and communication channels
Physical innovation spaces
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21 March 2008 4

The answer to these questions is to use the right innovation frameworks and people
with experiences to work with you and your team on your concrete innovation
projects
The first step is to help you understanding the current Innovation Strategy of your company. So
we don’t define a new strategy we simply give you insights of the completeness and level of
detail. This is necessary to know if your portfolio will meet the targets and directions of
innovation.
The second step is to help you to recognize the level of optimization of your current portfolio.
We do this by analysing a subset of individual projects:
• For each project we show you the possible impact on the current business model(s)
• For each project we show you the alignment with the strategic objectives and targets
• For each project we show you the impact on technology integration issues
The outcome from the subset of your portfolio will be plot in the Business Innovation
Framework. This framework will give you an overview of the changes in the business model and
technology for your company driven by the projects. We will show you how to set the right
priorities and leading the decision making process in optimizing the portfolio.
The third step is to do a detailed analysis for a selection of projects on managing the execution.
For each project we deliver the current critical issues for successful execution. We will show
you how to boost the execution power by managing these critical issues.
The fourth step is to build a sustainable environment for systematic innovation and execution in
your company.
Our approach is a strong hands-on way of working with you and your team
| Business Innovation
In collaboration with [Client] Link to the Future
21 March 2008 5

Business Innovation Concept is a standardised Capgemini
approach to manage your innovation in a systematic way (1)
Initiatives
Strategic Business Advantages
Product roductionresence People {Politics} Purpose}
P P {
0. Understanding the Innovation
Strategy
Determine the impact on Business Model & Technology
Parameter Score Comments
Business Model
?
Degree of change Using the mill further down the chain as a point of contact
# Business Model building blocks & impact
Experience with new DRP has difficulties with ’sole (direct contact with
Client
r
Internal vs. partner networks large mill)
Transformation Capability Not yet experience with moving down the chain
Old vs. new
Technology
?Degree Change chain
of (in ) Standard for Client
Strategic Impact Experience with new technology (Client) All existing
high
OSB’s Business Model Initiatives Drivers Value Creation Integration with legacy / Transformation from legacy No legacy
Growth market Market Share > 50% New revenue stream +X7 mio profit in 2012
Impact on Business Model and Technology desired Project x
Formaldehyde
Project 1 No Y M € NPV
High Low
high
- License on technology (option license to
Project 2 No
equipment supplier) and license fee
Impact
medium
Cocreation
Project 3 No?? No MelasunMelam
Proj.y Proj.C
Partner Customer Proj. 1
Proj.S
OSB
Close 2 existing Product oriented Project 4 No?? < Z M € license fee
Network Relationship
Existing revenue stream will go up, higher
Proj. M
FR Melaglass
Proj.V
Technology
Proj.2
Project 5 100%
demand, S/D balance
Duraclean
Proj.M
medium
Project 6 100% No If no action, our market share will decline
Proj.3
Core
Close 2 existing
Business
Close 2 existing Value
* Lower glue costs
Distribution
DRP
Customer
Mill (OSB) Project 7 50% No LEED
Proj.N
Capabilities Functions Proposition Channels Segment Proj.5
Proj. B
Continuous Resin
Project 8 No Z M € NPV Proj.8
low
Project 9 100%
Proj.4
PF Proj.L
Plywood
Cost
Close 2 existing
Structure PROFIT
Revenue
Volume Melamine
Streams
(Volume * Price) Project 10 No
Proj.9
(On Hold)
low
Proj.7
low medium high
Proj.6
Proj.10
The mill is DMM’s point of contact, where the DRP is DMM’s direct client
The mill is DMM’s point of contact, where the DRP is DMM’s direct client
High Low
low medium
Business Model
high
Challenge
1. Describe Business Model 2. Determine impact, alignment 3. Determine impact on
4. Optimise the portfolio
per project with strategic goals business model & technology
With this approach you will get Insights how to optimize your Innovation Portfolio
and the Feasibility of the implementation success of Strategic Innovation Objectives
| Business Innovation
In collaboration with [Client] Link to the Future
21 March 2008 6

Business Innovation Concept is a standardised Capgemini
approach to manage your innovation in a systematic way (2)
high
desired Formaldehyde
Project x
Impact
medium
MelasunMelam
Proj.y Proj.C
Proj.S
OSB
Proj. M
FR Melaglass
Proj.V
Duraclean
Proj.M
Proj.N
LEED
Continuous Resin
Proj. B
low
PF Proj.L
Plywood
(On Hold)
4. Optimize the portfolio
low medium high
Challenge
Preparation Mobilisation “My
& event
Innovation”
Mobilisation 1MOVE dag
Digital portal
Iteration 1 Accelerated Innovation Approach
Iteration 2 Iteration 3 Iteration 4
70 Event
Process
Spaces Methods
2 wks
2 wks 2 2 wks
wks 2 wks
2 wks 2 wks
2 wks
70 Event
Reports Tools
Innovation
Project 1MOVE dag
Innovatio
Measurement
Leaders space
s 1MOVE dag
Release #1 Release #2 Release #3 Release #4
70 Event “Execution
Manager “Networks”
Communication
s
Managing the Critical Success Factors: Time, Power”
Experts Coordination, Integration and Measurements
5. Analyse max. three
6. Start boosting the innovation 7. Secure way of work in the
innovation projects
projects organisation
in detail
With this approach you will be able to boost your running innovation projects
| Business Innovation
In collaboration with [Client] Link to the Future
21 March 2008 7

Koen Klokgieters/ Capgemini / Utrecht
Vice President BUSINESS INNOVATION Consulting Services
http://koenklokgieters-english.blogspot.com/
http://koenklokgieters.blogspot.com/
T: +31 30 689 7312 | M: +31 6 51123259
koen.klokgieters@capgemini.com
www.capgemini.com
Papendorpseweg 100, Postbus 2575, 3500 GN UTRECHT
Koen has more than 20 years (international) experience as a Management Consultant in 4 different roles
(thought leader, program manager, interim executive and coach). He started at AT&T in EMEA-Headquarters
and worked for two university spin-off consultancy organisations until he started in 1999 working for Capgemini.
He has dealt with large (international) innovation programs with clients such as DSM, Essent, Nuon, NS and
KLM/Air France. Key issues in these programs are enlarging innovation power. Aimed at implementation of
innovation strategies: capabilities, organisation & process innovation.
Besides management consulting he is connected to Post-academic training institutes as a trainer for
management consultants and is a member of several non-executive boards for innovative organisations.
In Capgemini, he is the thought leader in Business Innovation. Together with his team and international
network, he improves the innovation capabilities of clients to ensure market success. He shares his vision,
ideas, inspiration and experiences at congresses, guest lectures at universities and columns on the internet.
With his current Business Innovation team he will bring Capgemini a boost in market growth in several
industries and in leading business issues for major (global) accounts.
| Business Innovation
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21 March 2008 8