Beiersdorf presentation at InnoCos Paris
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Ralph Schimpf, Corporate Director Prototyping, Beiersdorf, presentation at InnoCos Paris: Open Innovation Across the Value Chain. Conference organized by KGS Global, Paris June 8&9 2011.
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Beiersdorf presentation at InnoCos Paris
- 1. Open Innovation across the value chain Presentation InnoCos Europe Paris, June 9th, 2011 – Dr. Ralph Schimpf
- 2. 2 Value chain in the FMCG industry Culture of (open) innovation Suppliers, External Materials, Compounding, Distribution, technologies Consumer Know How Production trade sources
- 3. 3 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Open innovation by integrating consumers Open innovation by integrating external partners Open innovation at point of sale
- 4. 4 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Innovation by integrating consumers Innovation by integrating external partners Innovation at point of sale
- 5. 5 Leading brands. Innovative skin care.
- 6. Beiersdorf – Global Player Skin care Founded 1882 Company sales 2010: 6.194 Mio. € More than 19.000 employees in more than 150 subsidiaries worldwide
- 7. More than 125 years of innovative skin care 1882! 1900! 1909! 1911! 1922! 1951! 1991! 2002! 2007! 2009! Foundation Introduction Introduction Introduction Introduction Introduction Acquisition Acquisition Acquisition 3. NIVEA Haus Beiersdorf# Eucerin# Labello# NIVEA Creme# Hansaplast# 8x4# La Prairie# Florena# C-BONS# in Berlin eröffnet#
- 8. | Page 8 Focus on What We Do Best * Depending on market, NIVEA Lip Care or Labello. Labello had 16 #1 positions in 2009 and 2010. Source: AC Nielsen / IRI, Status as of December 31, 2010 Full Year Results March 2011
- 9. 9 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Open innovation by integrating consumers Open innovation by integrating external partners Open innovation at point of sale
- 10. The philosophy: Different management styles in early and late phase of innovation PHASE 1 PHASE 2 PHASE 3 PHASE 4 GATE Concept and GATE Development GATE Production Discovery 1 Feasibility 2 and Scale-up 3 and Roll-out Creative phase G2 Executive phase Freezing zone 10
- 11. R&D Discovery Management Innovationpipelines R&D Search fields Discovery Projects GATE 1 11
- 12. 12 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Open innovation by integrating consumers Open innovation by integrating external partners Open innovation at point of sale
- 13. 13 Open Knowledge Management … is more than collecting data and facts, it‘s the ability to group data in a meaningful context, acknowledge and show relations and rules, and to distribute and share knowledge as efficient as possible. !
- 14. 14 Trust – a prerequisite for an open innovation culture Share knowledge Acknowledge performance Have fun together 10
- 15. 15 Short paths – open (= simple) communication R&D Maximum distance in R&D headquarter: 220 m Average distance to international marketing: Marketing 200 m Distance to Packaging Development & Patent department: 500 m R&D Marketing Patent departm. Patent departm. Packaging 100 m Packaging Development
- 16. 16 We invest in short paths Bridge 4th floor, 70 m Tunneling residential buildings Legende: FuE Marketing Patentabteilung 100 m Packaging
- 17. 17 Build up of know How and open network building p loyees, ew R&D em rs r se for n uided tou Training cou 30 lectures & g Property , h l 8 Mo nths wit hain, Intellectua C (R&D, Supply ) Mar keting…
- 18. Corporate R&D HQ R&D Center USA La Prairie (Wilton) Zurich NKO R&D Center New York, Tokyo, Japan C-Bons China Wuhan 18
- 19. 19 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Open innovation by integrating consumers Open innovation by integrating external partners Open innovation at point of sale
- 20. Worldwide Consumer Insight program 20
- 21. 21 We invest in consumer & shopper understanding Regular consumer visits and shopper safaris 1,200 employees have been trained under the frame of a consumer insight program Top management participates regularly
- 22. 22 Web-based insight generation: Netnography Analysis of community communication & blogs in the net community Unfiltered insight generation Creation of new product concepts
- 23. 23 R&D: Technology, as close to consumers as possible In our Testcenter premises more than 300 consumers per day test our newest ideas Consumers are directly involved into discovery projects Bringing together scientists, engineers and consumers allows to develop products with utmost consumer relevance
- 24. 24 Consumer integration – without filter Observation rooms Bath rooms with camera equipment Consumers test products and prototypes Observation followed by common interpretation of test person and observer
- 25. 25 Consumer integration - „online“ lab Group discussion and development in direct neighbourhood Adaptation of product with direct feedback Product optimisation within hours
- 26. 26 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Open innovation by integrating consumers Open innovation by integrating external partners Open innovation at point of sale
- 27. 27 Attracting partners – it’s more than business numbers High investments in one of the biggest skin research labs in Europe: A magnet for scientists & suppliers
- 28. Ways of Collaborating with suppliers: Open doors Incubation Lab Open market place or symposium Collaboration between BDF and with a privileged external partner to external partners „at the bench“ to identify innovative ideas and jointly find solutions for solutions which lead to collaborations scientific challenges In-house Seminar Promotion of existing technologies Trusted Network to invite external and raw materials by suppliers innovators to propose ideas and as a trigger for further activities solutions addressing BDF´s scientific challenges
- 29. 29 Cooperating with fragrance houses Integration of 2 partners 2 external employees with permanent office in our R&D headquarters Defined projects Common evaluation of fragrances No direct competition between partners
- 30. 30 Incubation Lab Employees from selected raw material suppliers in our labs Typically 2 to 6 weeks Mutual deployment of employees Defined projects No direct competition among partners
- 31. 31 Incubation Lab – Success factors Unrestricted utilisation of technology and know how Transparence of decision processes and criteria Commitment for common projects Quicker decisions on both sides of the table Innovation in an open-minded working atmosphere
- 32. 32 Success factor Top Management Commitment
- 33. 33 Technology Scouting – Open for new perspectives Systematic search in adjacent industries and technology fields
- 34. 34 Technology Scouting Beiersdorf practices full-time and part-time scouting: Full-time + + Broad, long-time experience and special personal qualification and interest - Overflow limits competence of assessment +- Medium term: Loss of practical-operational basis - - Competition with line organisation Part-time + Direct link with line organisation + + Continued education and job enrichment + - - Loss of focus on core job
- 35. 35 Webplatform „Pearlfinder“ Why creating our own solution? Commercial providers (e.g. Innocentive) are only applicable for very special solutions Beiersdorf needs a tailor-made platform
- 36. 36 Our approach: the Trusted Network Pearlfinder is covered by a Nondisclosure Agreement: Beiersdorf ensures no IP activities related to the external ideas provided to Pearlfinder. Through Beiersdorf´s openness the external partner can better understand our needs.
- 37. 37 Key elements of Pearlfinder – 3 Briefing types Open Briefing (Open community) Non-confidential search fields, e.g. new preservatives Technology Briefing (Selected partners, typically >10) Scientific challenges to get ideas, e.g. specific anti-aging principles Engineering Race (Selected partners, typically 2-3) Request for solutions, e.g. formula with special attributes
- 38. 38 AGENDA Company Beiersdorf Innovation process Key factor innovation culture Open innovation by integrating consumers Open innovation by integrating external partners Open innovation at point of sale
- 39. 39 Importance of Point of Sale Emotional encounter with the brand; orientation and advice
- 40. 40 The NIVEA houses: Open doors for consumers Nivea Houses in Berlin, Hamburg & Dubai Direct selling of products Wellness & beauty treatments for consumers Important learnings on consumer needs
- 41. 41 Scientific consumer advisory service Demonstration of dermatological know how and skin competence creates trust Intensive dialogue with consumers Targeted questions, evaluation of data and feedback generates insights
- 42. Computer-aided product advice: NIVEA Skin Moisture Elasticity Lipids Skin type with recommendation for sun protection Hair Degree of damage Lipids Colour Used at NIVEA-Houses Shop-in-Shops
- 43. Computer-aided product advice: Eucerin
- 44. Take home messages A healthy (open) innovation culture is a prerequisite for a running strategy („Culture eats strategy for breakfast“ – P. Drucker) Creative integration of external know how is a key influencing factor (Open) Innovation does not only mean product innovation (e.g. POS)