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Open Innovation in Chemicals

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Discover why Open ILearn How Open Innovation can help you speeding up your R&D efforts

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Open Innovation in Chemicals

  1. 1. Sébastien Gourdon<br />Open Innovation Director at SpecialChem<br />sebastien.gourdon@specialchem.com<br />Vinny Sastri<br />President, Winovia LLC<br />vsastri@winovia.com<br />Open Innovation in Chemicals:How to Speed Up Your R&D Efforts with OI<br />
  2. 2. Open Innovation: A Step-change in innovation<br />Open Innovation: what is it exactly?<br />Open Innovation in practice<br />Open Innovation in Chemicals & Materials: The Goose that Laid Gold Eggs?<br />Chemicals & Materials at the heart of Open Innovation<br />Opportunity to make business<br />SpecialChem Open Innovation Offer<br />Offer presentation<br />Case-study<br />Open Innovation - Key Factors of Success<br />Agenda<br />2<br />
  3. 3. Open Innovation<br />A Step-change in innovation<br />3<br />
  4. 4. Historically, Innovation has been closed<br />Innovation Made Within the Walls of Companies<br />4<br />Internal technology base<br />Closed Innovation: <br />Only based on internal R&D capabilities<br />of a company<br />
  5. 5. Open Innovation Definition<br />Solve R&D Problems and Buy / Sell technologies<br />Licence, spin out, divest<br />Internal technology base<br />Internal/external venture handling<br />External technology to solve R&D problems<br />External technology base <br />Other firm´s market<br />Our new market<br />Our current market<br />C 2002 Henry Chesbrough EIRMA SIG III, 2005-10-20<br />
  6. 6. Open Innovation Definition<br />A Seeker, External Contacts, Respondents<br />6<br />A Seeker Looking for:<br /><ul><li> Technologies / Solutions
  7. 7. Partners
  8. 8. Concepts / Ideas
  9. 9. Processes / Methods
  10. 10. Suppliers
  11. 11. Customers to buy techno
  12. 12. …</li></ul>Accesses the outer world<br />- Submitting a RFP<br />(Request For Proposal)<br /><ul><li>Could be to a structured network of relevant people / Companies
  13. 13. On-line networks</li></ul>And get proposals from Respondents<br /><ul><li>Solvers
  14. 14. Partners</li></li></ul><li>69% of the European companies are already using open innovation methods (Survey WU Vienna, 2009. 1018 companies - including Top 500 companies in Europe - in 24 European countries were contacted)<br />From R&D to C&D (Connect & Develop)<br />Procter & Gamble claims having 50% of its innovation coming to some extent from external sources (A.G Lafley, P&G CEO, 2006)<br />Open Innovation Definition<br />They use it to innovate faster and reduce cost of innovation<br />7<br />Where are you in OI?<br />
  15. 15. Open Innovation in Chemicals & Materials<br />The Goose that Laid Gold Eggs?<br />8<br />
  16. 16. Chemicals at the Heart of Open Innovation<br />Open Innovation in Chemicals & Materials: A Huge Opportunity!<br />9<br />$<br />$<br />$<br />YOU?<br />$<br />$<br />$<br />$<br />Chemicals are used in almost all end-user markets…<br />… AND almost all along the value chains<br />55% of Open Innovation RFPs are related to <br />Chemicals & materials!<br />Survey done by SpecialChem, end of 2010<br />On approximately 200 RFPs published on OI Platforms<br />
  17. 17. Open Innovation: A Business Opportunity for You<br />You can play on both sides!<br />As a Seeker<br />Monetize your dormant R&D<br />Resuscitate dead R&D projects by involving external resources (sell techno, partner in JV…)<br />Solve R&D problems<br />Find solutions to technological problems with the support of people having already searched the same thing<br />Scout innovative technologies<br />Access suppliers out of your network and save time<br />Market your technologies<br />Find partners who could turn your techno in new products or penetrate new markets<br />As a Respondent<br />Make business with corporations out of your network ( i.e. large brand owners)<br />Detect companies needing your help now<br />License your technologies to organizations in new market for you<br />Co-develop technologies / products in collaboration with large corporations<br />10<br />
  18. 18. SpecialChem Open Innovation Offer<br />11<br />
  19. 19. SpecialChem is:<br />+450,000 Members Registered on SpecialChem / Omnexus Websites<br />AN INTERACTIVE MARKETING<br />AND<br />BUSINESS DEVELOPMENT COMPANY<br />FOR CHEMICALS & MATERIALS <br />ACCELERATING GROWTH<br />Company founded in 2000<br />Headquartered in Paris, France<br />Locations in US / China / India<br />>65 engineers & marketers<br />Experience FROM the chemicals & client industries<br />12<br />
  20. 20. SpecialChem is managing the largest Network in the world<br />It is a Business Network, not academia<br />SpecialChem Network is Chemicals & Materials only, all along the value chains<br />It is a truly global Network, made of professionals from 5 continents<br />We support your search of Solvers and Partners only<br />We focus on Connectivity<br />We offer very Competitive Pricing<br />SpecialChem Open Innovation Offer<br />Open Innovation Finally Simple & Effective<br />13<br />
  21. 21. > 5,000,000 professionalsvisit our Chemicals & Materials websites every year<br />> 450,000 registered and fully profiled chemicals & materials professionals:The world’s largest Network in chemicals and materials (January 2011)<br />The Largest Network in Chemicals & Materials<br />A Global Network, Covering a Wide Range of Chemicals Technologies<br />14<br />
  22. 22. 15<br />A Network To Find Solvers & Partners<br />Uniqueness of SpecialChem’s Network: 94% of Business Members<br />Members who could market your chemicals for you<br />Members who could buy your chemicals<br />Members who could co-develop chemicals with you<br />
  23. 23. A 4-Week Streamlined Process<br />2<br />A SpecialChem expert reviews it and gives green light for publication when framed correctly<br />1<br />3<br />Your RFP is communicated to the largest business Network in Chemicals and Materials<br />Fill out your request into a ready to use RFP template<br />4<br />SpecialChem forwards you all proposals received<br />SpecialChem Open Innovation Process Description<br />
  24. 24. Case Study<br />How SpecialChem Open Innovation Service Accelerated the Search of New Natural Fibers<br />17<br />
  25. 25. Background:<br />SpecialChem client is a multiple billions dollar specialty chemicals company (HQ in the US) <br />Client has identified a growth opportunity to replace fiberglass-reinforced composites by natural fiber-reinforced composites<br />Client does not master the technology allowing him to propose such natural fibers<br />Objectives:<br />Client wants to source natural fiber technology that can be used to fabricate composites<br />Client needs a ready-to-use solution<br />Client wants to introduce the first products within the next year.<br />Challenges:<br />Client is using Open Innovation Intermediaries for a long time to enrich its portfolio of technologies, but:<br />Proposals are lab-scale solutions, too far from the market<br />Cost per square yard and batch-to-batch consistency limits the proposals fitting client expectations<br />Some proposals submitted have already been investigated by client and do not correspond<br />Client’s Background, Objectives & Challenges<br />Business Objectives Incompatible with Academia Networks <br />18<br />
  26. 26. The efficiency of Open Innovation depends on: <br />The quality of the Request for Proposal (RFP) framing <br />The quality of the network receiving the RFP. <br />Our innovation experts have designed a proprietary template for an RFP that forces Seekers to “get to the point” and give clear guidelines to potential Solvers or Partners.<br />The process is simple and effective: <br />Client completes the SpecialChem RFP template<br />RFP is reviewed by SpecialChem experts – senior engineers with industrial background<br />If client needs support to frame its RFP, an expert would assist.<br />The Request For Proposal (RFP)<br />Absolutely critical to success!<br />19<br />
  27. 27. The Request For Proposal (RFP)<br />From a Template to a well framed RFP (1)<br />20<br />He described why this search was important, why the opportunity behind was attractive<br />
  28. 28. The Request For Proposal (RFP)<br />From a Template to a well framed RFP (2)<br />21<br />Client was as specific as possible<br />he indicated what could be explored…<br />…and wrote black on white what he was not interested in receiving<br />He highlighted priorities<br />Client needs a ready to use solution (not an idea, not a concept)<br />
  29. 29. Publication Towards SpecialChem’s Network<br />Client’s RFP Communicated To Potential Solvers<br />22<br />
  30. 30. Submitted Proposals<br />Non-Confidential Responses Are Sent To SpecialChem<br />23<br />
  31. 31. Submitted Proposals<br />Non-Confidential Responses Gathered Through a Template<br />24<br />Business card to identify and contact the Respondent<br />Uniqueness description to differentiate the solution from others<br />Maturity description: is the solution far to the market?<br />General description to understand what is the solution about<br />What kind of business is the respondent ready to consider?<br />
  32. 32. Submitted Proposals<br />Example of Responses – enough information to contact, or not.<br />25<br />
  33. 33. Results Delivered by SpecialChem<br />Business Proposals<br />A Fast and Streamlined Process<br />A unique Access to the largest network in Chemicals and Materials<br />A Truly Global Network<br />A Business Network, providing ready-to-use solutions<br />RFP Published 3 weeks<br />+1,000 Readers<br />17 Proposals<br />Canada / USA<br />India / Korea<br />New Zealand<br />South Africa<br />UK / Netherlands<br />Client in advanced discussion mode with 7 of them<br />26<br />Comments from client:<br /><ul><li>“With Other OIA, I received proposals from US only”
  34. 34. “Responses are very business-oriented”
  35. 35. “Proposals are mostly ready-to-be-used solutions”
  36. 36. “The SpecialChem process is very fast”</li></li></ul><li>Key Factors of Success<br />27<br />
  37. 37. Have access to the right network<br />Use specialized networks instead of general network<br />Network to be used depends on your search<br />Privilege Business Network<br />Academia does not work with the same time frame and motivation<br />For short term needs and ready to use solutions, use business networks<br />Plan time and resources<br />Open Innovation is not a magic process!<br />Without time and dedicated persons, it won’t work<br />You need time to frame the RFP, to screen the proposals, to contact the respondents<br />Adopt an open mind<br />Be prepared to fight the Not Invented Here Syndrome<br />Always look for win-win situations<br />There are efficient ways to protect IP<br />Key Factors of Success<br />To Be Successfull with your Open Innovation Process, you must:<br />28<br />
  38. 38. Focus on Effective RFP Framing<br />Tips and best practices for an effective RFP<br />Goal: <br /> Obtain qualified responses to Request For Proposals (RFPs) that will align with the Seeker’s requirements detailed in the RFP<br />29<br />Seekers<br />Identified Need<br />The competitive edge<br />Effective Request for Proposal<br />Qualified respondents<br />Qualified respondents<br />Qualified respondents<br />Respondents<br />
  39. 39. Provide enough specifics. Disclose non-confidential information only.<br />30<br />What is the right level of information in an RFP?<br />Too much<br /><ul><li>Giving away proprietary information and strategy</li></ul>Too Little<br /><ul><li>Very general
  40. 40. Lack of any detail</li></ul>The right balance<br /><ul><li>Tease but do not unveil !!
  41. 41. Provide enough detail
  42. 42. Non-confidential information only
  43. 43. You are not giving away your intellectual property</li></ul>Qualified responses that meet your needs !<br />
  44. 44. Typical Product Development Process<br />Requirements flow-down from market to product and to process<br />31<br />Market<br />Market / Customer Requirements<br />Product<br />Product Specifications<br />To<br />Components / Parts/ Formulation<br />Component / part / additive Specifications<br />To<br /><ul><li>In a typical product development process, the flow of information is:
  45. 45. Market requirements, to
  46. 46. Product performance, to
  47. 47. Product Design, and finally to
  48. 48. Production Processes</li></ul>Production<br />To<br />Manufacturing methods<br />
  49. 49. The RFP Flow-up process<br />Seekers need a material or process that meet predefined market needs<br />32<br />Market<br />Market / Customer Requirements<br />Product<br />Product Specifications<br />To<br />Components / Parts/ Formulation<br />Component / part / additive Specifications<br />To<br />In the RFP process, the flow is reversed. Seekers are looking for:<br /><ul><li>A technology,
  50. 50. A material, and/or
  51. 51. A process </li></ul>that will meet predefined market requirements.<br />Production<br />To<br />Manufacturing methods<br />
  52. 52. Roles and responsibilities between the two parties<br />Clearly define the business relationship between the parties<br />Seeker’s role / responsibility?<br /><ul><li>Licensee / User?
  53. 53. Buyer / Owner?
  54. 54. Co-developer?
  55. 55. Other?</li></ul>Respondent’s role / responsibility?<br /><ul><li>Provide already-developed existing technology?
  56. 56. Develop new concepts/ technologies?
  57. 57. Provide already-developed materials, additives, parts or components?
  58. 58. Manufacture the seeker’s proprietary technology / product?
  59. 59. Provide ideas or develop a new manufacturing method?</li></ul>33<br />
  60. 60. 34<br />New product / technology<br />New manufacturing process<br />Money<br />New product / technology<br />Existing manufacturing process<br />Existing product / technology<br />New manufacturing process<br />Existing product / technology<br />Existing manufacturing process<br />Time<br />Be realistic with respect to timing of deliverables<br />The more novel or complex the need - the longer the time & higher the budget <br />
  61. 61. Laundry list of generic “wants” – no detail<br />WANTS:<br />Seek RFP from company that can provide:<br /><ul><li>Market analysis and penetration
  62. 62. Novel coating material
  63. 63. Must be able to adhere to all surfaces including metals, ceramics, composites, plastics and wood
  64. 64. Has proprietary coating technology
  65. 65. Provides distribution channels</li></ul>35<br />Example of a Bad RFP<br />Poorly written RFPs will generate poor responses<br />
  66. 66. Example of a Good RFP<br />More specifics on actual “needs”. TEASE BUT DO NOT UNVEIL !!<br />NEEDS:<br />Seek RFP from company that can provide a material that:<br /><ul><li>Can be coated on to polystyrene (powder coating methods only)
  67. 67. Adheres to polystyrene (peel strength of 1.5 to 2.0 kN/m))
  68. 68. Has a gloss of 100 – 120 GU
  69. 69. Is conductive with a surface resistivity of 104 – 105 ohm/sq
  70. 70. Can be sterilized by γ-radiation up to 7.5 MRads and retains 95% of its adhesion, gloss and conductivity
  71. 71. Should not contain any heavy metals
  72. 72. Must have the ability to be used on standard powder coating equipment</li></ul>Excellent chance to obtain qualified respondents that meet your expectations detailed in the RFP<br />36<br />
  73. 73. Example of Good RFP<br />37<br />
  74. 74. Example of a Good RFP<br />38<br />
  75. 75. Summary<br />39<br />
  76. 76. Higher chance of success<br />Largest Network<br />Chemicals & Materials only<br />Global Network<br />Speed<br />Simple on-line Process<br />Size of the Network<br />Business<br />Business Network, not academia<br />Cost effective<br />Streamlined process<br />Focus on connectivity<br />Other source of revenue<br />No risk<br />We commit on results<br />Summary<br />Open Innovation Finally Simple & Effective<br />40<br />
  77. 77. Thank You!<br />41<br />Sébastien Gourdon<br />Open Innovation Director at SpecialChem<br />sebastien.gourdon@specialchem.com<br />Vinny Sastri<br />President, Winovia LLC<br />vsastri@winovia.com<br />

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