The document discusses improvements to Novozymes' innovation and new product development processes. It aims to increase organic growth from innovation by 50% by bringing more significant innovations to market faster. Key changes introduced include a project scoring tool to prioritize projects, allocating resources to projects in a transparent structured way, strengthening cooperation across functions through a common NPD process, using rapid learning cycles to mature ideas quickly, and standardized business case and portfolio reporting tools to improve decision making.

1. Anders Ohmann
Project Management,
Business Development

2. 2

3. The challenge we have been given
“We have to
increase the
organic growth
that originates
from innovation
by 50%.
”We need to bring
more significant
innovations faster to
Peder Holk Nielsen, CEO
the market.
“We need to
fail faster.”
Sources: www.b.dk

5. Is about aligning the way we prioritize our
efforts according to our strategy.
For example
A scoring model guides on corporate
importance
Prioritization is based on the right insight
Option of accelerating projects while others
mature
The outcome
We focus our efforts on the right projects at
the right time.

6. Attractiveness reflected in the project score
Risk scoring
Risk score
Time to money
Peak delta sales
Project score
Project: [Project name] Score by x-mark Scored by: [Initials]
Parameter High risk 3 2 1 0 Low Risk Reason for scoring Guiding comments
Business case
Strength of
value
proposition
Customer benefit is
intangible and/or difficult to
measure.
Difficult value capture.
Clear and significant
customer benefit.
No competing technologies.
Easy to capture value.
[Comments]
Customer benefits could be cost savings, strong
differentiation opportunity etc. High risk would cover intro
of a 2nd generation product, where the customer needs to
spend time/resources to prove same benefit as 1st
generation product.
Market and
customer
understanding
No close contact to specific
relevant customers.
Contract signed with partner
having good end-customer
insight
[Comments]
How well do we understand the value for the customers,
and how well is this documented. A high score on this
parameter should give increased confidence in the
assessment of the value proposition strenght
Sales channels
A completely new route-to-market
needed.
We can use existing sales
organization and sales
channels.
[Comments]
Consider if distributors have conflicting interests in NZ
product vs. Other products
Customer
feasability
High CAPEX required.
Significant product testing.
New regulatory approving
(at customer).
Easy to implement in
customers production and
sales processes at no cost
risk
[Comments]
Include consideration of conservatism within
industry/customers.
Be aware that the scoring should not be a weighted
average; a single showstopper is sufficient for a low
score.
Competitor
barriers
It will be easy for
competitors to fast present
a similar product.
We will be able to build IP
or other very solid barriers
preventing competitors
entering
[Comments]
Be aware that the enzyme might be unique, but there could
be future other competing technologies
Customer
application
knowledge
No NZ experience with
application.
Established application
where our testing
capabilities mirror those of
our customers
[Comments]
It should be considered if we understand the full production
process at the customer and understand any adverse effects
of our products
Technical
feasabilty
Large technical gap, which
we are not sure we can fill.
Minor modification of
existing technology
[Comments] Can we find the molecule? Can we develop an application?
Production
feasability
(profitability)
Not confident that we can
produce at an acceptable
cost (no experience in this
field or low yields)
We are confident that we
can produce economically
feasible based on solid
experience
[Comments]
Licence to
operate
(regulatory, IP
and safety)
Significant constraints.
Existing competitor IP
No expected constraints [Comments]
Be aware that the scoring should not be a weighted
average; a single showstopper is sufficient for a low
score.
Strategic fit Outside scope of IS. High priority area in IS [Comments]
Importance to
Potential blockbuster; Key
Novozymes
Limited application.
element in building platform
[Comments]
(top mgt.
Single opportunity only
for future growth
Support)
Importance to NZ; Top management support/interest. The
product/project might be important in the Industry Strategy
without having significant impact on Novozymes
Competencies
and production
capabilities
We need new competencies
and/or new production
technology.
Building on existing
competencies and known
production technology
[Comments]
Resources
availability
No capacity available.
Sufficient resources
available
[Comments]
Will depend on the project prioritization, but for a number
of projects, it might be obvious up-front that the project
might suffer from lack of resources
Technical Market
Organizatio
n
Resources
Time to
Money
Peak sales

7. Is about allocating the right resources to the
right projects at the right time.
For example
Projects manned with cross-functional
resources from start to end
Fixed resource allocation pulse
The outcome
One transparent and structured approach to
handle the growing task of allocating the right
resources to the right projects.

8. Is about strengthening cooperation across
teams, functions and industries, integrating
our technical and commercial expertise.
For example
One common New Product
Development process
At any stage in the process both
commercial and technical perspectives
are applied
New stages and activities to ensure
that new products reach the market
right
Outcome
We unite our efforts even better to bring more
innovation faster to market.

9. What is new in the New Product
Development process?
SCOPING FEASIBILITY DISCOVERY DEVELOPMENT LAUNCH

10. Scoping of new projects
SCOPING DISCOVERY DEVELOPMENT LAUNCH
10
DEV
Gate
LCH
Gate
DIS
Gate
FSB
Gate
IPG
Gate
SCP
Gate
FEASIBILITY
1 FULL VERSION
IDEA
2 MATURE FOR DISCOVERY
DISCOVERY DEVELOPMENT LAUNCH
DEV
Gate
LCH
Gate
DIS
Gate
IPG
Gate
SCOPING
SCP
Gate
3 MATURE FOR DEVELOPMENT
DEVELOPMENT LAUNCH
DEV
Gate
LCH
Gate
IPG
Gate
SCOPING
SCP
Gate

11. Fast tracking
1 STANDARD PROCESS: NORMAL RESOURCE ALLOCATION
SCOPING DISCOVERY DEVELOPMENT LAUNCH
DEV
Gate
LCH
Gate
DIS
Gate
FSB
Gate
IPG
Gate
SCP
Gate
FEASIBILITY
2 FAST TRACK PROCESS: INTENSIVE RESOURCE ALLOCATION
SCOPING LAUNCH
DEV
Gate
LCH
Gate
DIS
Gate
FSB
Gate
IPG
Gate
SCP
Gate
DISCOV-ERY
FEASIBILITY
DEVELOP-MENT

12. We use Rapid learning cycles to
mature our ideas as fast as possible
1) Identify key decisions and
knowledge gaps
2) Make a visual plan
together
3) Follow up in the team
4) Take decisions based on
learnings
Integration
event
Learning
cycles

13. Is about creating and using the right
information, at the right time.
For example
More specific requirements at each
stage
Clear guidelines on how to work with data
New IT system for ease and transparency
Outcome
We improve decision making and increase
empowerment to operate once requirements
are met.

14. What were our challenges before we
started?
Market
Data
Historical
Tracking
Market
Definition
Sales Forecast
Periods
One single business
case fitting all
industries
What should we do with
all those different
business cases?
Those guys are all good
but so different!
We need to find a way to
incorporate all those good ideas
into one place
and it needs to be
simple, transparent
and trustworthy

15. Portfolio views prepared to guide decisions
Portfolio views will ensure transparency and guide

16. What could happen to a business case
Time
Sales
forecast
Sales seeds, leads
and opportunities
Gaps
?
?
FEASIBILITY DISCOVERY DEVELOPMENT LAUNCH

17. The future
What does it look like when we get there?
Excited customers
Our customers find our products suit their
exact needs and help them grow their
business
Stronger products
Together we develop new products that hit
the market right, every time
Clearer priorities
Decisions and priorities are transparent and
logical to everybody in Novozymes
Cooperative mindset
We cooperate smoothly across teams,
functions and industries, integrating our
technical and commercial expertise

18. What key tools are being introduced
or strengthened?
• Project scoring tool
* Scoring of risk
• Resource allocation process
• New stage-gate NPD process
* Fast tracking
* Rapid learning cycles
• Standardized business case tool
• Portfolio reporting

19. Thank you!