RA Revisited 270911 DSM Jaco Fok


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Ricoh Academy Revisited bijeenkomst bij DSM met het thema Chaning Business Models & Innovation. Een gevarieerd programma met mooie sprekers. Sustainability & Alliances als rode draad door het programma.

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RA Revisited 270911 DSM Jaco Fok

  1. 1. Open Innovation applied by DSMJaco Fok, VP Business IncubatorSeptember 27, 2011
  2. 2. DSM 2010: a company to be proud of!Employees 21.911 31%Annual Sales € 8.176 billion 37%EBITDA € 1.161 billion PerformanceEBIT € 752 million Materials NutritionNet Profit € 507 million 17%Capital employed € 5.468 billion 9% 6% IndustrialPerformanceSingle A Credit Rating Chemicals Nutrition PharmaStrong Corporate Governance Other Polymer IntermediatesGlobal #1 or 2 DJSI (Chem. sector ’04 ~’11) Page 1
  3. 3. DSM organization chart DSM Managing Board DSM Innovation Center Corporate Staff Shared Competences Business Support Nutrition Pharma Performance Polymer Materials Intermediates DSM Nutritional Products DSM Pharmaceutical DSM Engineering DSM Fibre Intermediates - Human Nutrition and Products Plastics Health - Animal Nutrition and DSM Anti-Infectives DSM Dyneema Health DSM Food Specialties DSM ResinsBusiness and markets Page 2
  4. 4. Our world is facing serious challenges…Page 3
  5. 5. Global recession(s)Page 4
  6. 6. Climate Change….. ?Page 5
  7. 7. We cannot leave it up to the next generationto solve the problems Page 6
  8. 8. The chemical industry is ideally positioned to address the real issues….Page 7
  9. 9. Our history Commodity Specialty Life Sciences & Coal Mining Chemicals Chemicals Materials Sciences Page 8
  10. 10. DSM: Transformation completed 2000 2005 2010* Base Chemicals Others Petrochemicals & Materials Polymer Intermediates Engineering Others Plastic Products Base Chemicals Performance & Materials Materials Breakdown DSM sales (%) Others Pharma Nutrition * Excluding discontinuedSlidePage 9 9
  11. 11. Our purpose is to create brighter lives for people today and generations to come. We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance.Page 10
  12. 12. DSM in motion: driving focused growth People - Planet - Profit: creating value along three dimensions Page 11
  13. 13. InnovationProud to have achieved Next level aspiration• € 1bn sales from innovation • Innovation sales 20% of total sales• Increased speed of innovation • EBA sales > € 1bn (2020)• Setting up (4) EBAs• Setting up innovation • Innovation focus on defined platforms infrastructure/culture • Value creation via best practices• External recognition as leading innovator • Set up Innovation Centers in China/India From building the machine to doubling the output Page 12
  14. 14. Monitoring Innovation Performance1 Innovation Aspirations Average DSM 20062 Innovation Strategy Average DSM 20103 Idea Generation and Validation Industry average4 Project Management5 Commercialization and Launch6 Portfolio Management7 External Networks8 Organization Scale 1 - 49 Culture and Talent 2.0 2.5 3.0 3.5 Page 13
  15. 15. Further boosting the innovation performance1. Focused approach through innovation platforms2. Balance radical and incremental innovation ROPUFA® KhepriCoat™3. Internationalize: Regional Centers in China and India4. Expand open innovation Dyneema® Rovimix® OVN5. Improving innovation practices: Excellence in Innovation6. Supporting (corporate) Technology Platforms DeSolite - super coatings™ Palapreg® ECO Achieving the next level of excellence in innovation Page 14
  16. 16. Accelerating and supporting innovation DSM Innovation Center New Business Development Enablers EBA Excellence in Biomedical Innovation EBA Bio-based CTO Office Products & Services EBA Advanced Surfaces Licensing Business Venturing IncubatorPage 15
  17. 17. Growth of the EastFrom reaching out to becoming truly global
  18. 18. Choose the right hunting areas! Page 17
  19. 19. Balance radical and incremental innovation Introduction of portfolio management tool • Company wide insight into emerging composition of portfolio Radical Market life cycle Portfolio • Optimizing the mix between radical growth and incremental innovation Existing • Allows comparison of innovation mature platforms Portfolio • “Philips 4 x 4 approach” decline Improved Offering** Offering Offering offering new new new to to PMC to DSM world Innovation type (proposition is….) Enabling company wide steering of innovation portfolio Page 18
  20. 20. Prof. Henry Chesbrough Page 19
  21. 21. Why do we need Open Innovation?Dare to have it proudly found elsewhere > 99 % of world population outside us! Open innovation: DSM networks !
  22. 22. Contrasting principles of Innovation• Closed Open• All smart people work for us Most of the smart people do not work for us• Invent, develop, produce yourself Add internal & external forces• Discover and get to market as No1 We can profit from outside R&D• Commercialize quickly Choose the best business model• Create most and best idea’s to win Use internal and external idea’s to win• Control your IP to defend positions Profit from other’s and combine with own IP Page 21
  23. 23. Value Creation by Open Innovation Open innovation is no longer a competitive advantage It has become a competitive necessity! Market Scouting / Business Intelligence Joint Business Licensing Developments In Venturing Well defined Rear End Spin inFuzzy Front End Acquisitions Interaction / Synthesis Divestments Licensing Spin out/off Out R&D services Competence Development, Technology Intelligence Intellectual Asset Management Page 22
  24. 24. How to mitigate risks?Page 23
  25. 25. Pros and Cons of Open Innovation+Shorter time to market - Info overflow+ Higher chance of success - Culture change is slow+ More funnel output - Many legal contracts+ Lower innovation costs - IP leakage (China)+ Mitigated risk (options) - Balance of power+ Reputation; recruitment - Upfront Investment+ Knowledge based economy - Less job rotation+ …… -… Page 24
  26. 26. Open the Chemical Park: creation of ChemelotEindhoven AachenBrussels Page 25 Maastricht