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.

1. Open Innovation applied by DSM
Jaco Fok, VP Business Incubator
September 27, 2011

2. DSM 2010: a company to be proud of!
Employees 21.911
31%
Annual Sales € 8.176 billion
37%
EBITDA € 1.161 billion
Performance
EBIT € 752 million Materials Nutrition
Net Profit € 507 million
17%
Capital employed € 5.468 billion 9%
6%
IndustrialPerformance
Single A Credit Rating Chemicals Nutrition
Pharma
Strong Corporate Governance Other
Polymer Intermediates
Global #1 or 2 DJSI (Chem. sector ’04 ~’11)
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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 Resins
Business and markets
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4. Our world is facing serious challenges…
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5. Global recession(s)
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6. Climate Change….. ?
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7. We cannot leave it up to the next generation
to solve the problems
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8. The chemical industry is ideally positioned to
address the real issues….
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9. Our history
Commodity Specialty Life Sciences &
Coal Mining
Chemicals Chemicals Materials Sciences
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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 discontinued
Slide
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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.
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12. DSM in motion: driving focused growth
People - Planet - Profit: creating value along three dimensions
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13. Innovation
Proud 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
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14. Monitoring Innovation Performance
1 Innovation Aspirations
Average
DSM 2006
2 Innovation Strategy
Average
DSM 2010
3 Idea Generation and Validation
Industry
average
4 Project Management
5 Commercialization and Launch
6 Portfolio Management
7 External Networks
8 Organization
Scale 1 - 4
9 Culture and Talent
2.0 2.5 3.0 3.5
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15. Further boosting the innovation performance
1. Focused approach through
innovation platforms
2. Balance radical and
incremental innovation ROPUFA® KhepriCoat™
3. Internationalize: Regional
Centers in China and India
4. Expand open innovation
Dyneema® Rovimix® OVN
5. Improving innovation practices:
Excellence in Innovation
6. Supporting (corporate)
Technology Platforms DeSolite - super
coatings™
Palapreg® ECO
Achieving the next level of excellence in innovation
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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
Incubator
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17. Growth of the East
From reaching out to becoming truly global

18. Choose the right hunting areas!
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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
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20. Prof. Henry Chesbrough
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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. 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
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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 in
Fuzzy Front End
Acquisitions
Interaction
/ Synthesis
Divestments
Licensing Spin out/off
Out
R&D services
Competence Development, Technology Intelligence
Intellectual Asset Management
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24. How to mitigate risks?
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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
+ …… -…
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26. Open the Chemical Park: creation of Chemelot
Eindhoven
Aachen
Brussels
Page 25 Maastricht