2. Five Levers To Drive Growth
The role of
Business New Platforms Corporate Venturing
value
($Billion)
Services
Geographic
Expansion
Business Model
Innovation
Current
Current Business
Business Portfolio
Portfolio
Baseline valuation of
company
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3. New Business Development at
Air Products
Mandate evolved in 2003 to focus on support of existing
Growth Platforms, embedded in the SBU’s
– Electronics, Energy, Materials, Healthcare
– Continue to look at Whitespace opportunities
NBD Feeds the front end of the pipeline and incubates
projects until first revenue.
Established late stage incubation/accelerators in each
growth platform/division. Responsible for ramping up
the business to growth and integration into SBU.
– Advanced Materials established 2003
– Energy Solutions established 2005
– Electronics – 1990’s
– Healthcare - 2000
Accelerator’s projects have multiple division alignment
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4. Air Products Corporate Venturing
A mix of internal and external venturing activities
– Ideas come from within or through a broad search
mechanism
Focus on developing platform level businesses
– Keep it large enough to be material
Take advantage of unique skills, capabilities, market
channels or customer relationships
– Start with something you know
Focus on growth domains that are linked to corporate
growth strategy
– Have a defined strategy
Organizational Model continues to evolve
– Never Static
– Always evolving to meet the strategic opportunities
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5. Current Role of the New
Business Development Group
Develop the strategies for new business platforms
– New technologies and new markets
Incubate the early stages of new businesses
Develop the tools for new business creation
Consult with SBU on disruptive approaches
Manage the venture equity investment portfolio
Individuals with diverse backgrounds
– Technologists
– Business
– Commercial Development
– Finance
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6. Organizing the Hub and Spoke
System
Growth Board
Energy
Electronics Solutions
Corporate
Growth Platforms
Near Adjacencies New Business
Development
Advanced
Materials Healthcare
Gases
Each group has a
Group
late stage incubator
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7. Growth Board
Senior executives
– COO
– CFO
– CTO
– VP Corporate Development
Monthly meetings
New platforms
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8. Creating APD’s Growth Platforms
Performance
Advanced Materials Materials
(Chem Group)
Energy Solutions EPI
CDO (Gases Group)
Discovery Incubation Acceleration
CSTC
Emerging Materials Electronics
(Electronics)
Healthcare
Global Healthcare
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9. Not just one competency…but 3!
Discovery Incubation Acceleration
Creation, Evolving the Ramping
recognition, opportunity into up the
elaboration, business to
a business
articulation stand on its
proposition own
of opportunities.
Exploration Experimentation Exploitation
•Corporate •Corporate •SBU
Development Development Office
•New Business
Office
•SBU Incubators Unit
•Corporate
•Multiple SBU
Technology
Impact
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10. Developing the Culture and
Capability
Bring into the corporation new tools for business
development
– Learning plan – Gina O’Connor – RPI
– Discovery Driven Planning – MacMillan, McGrath
– Real Options – MacMillan, van Putten
– Entrepreneurship training – Tony Warren – Penn
State
– Bell Mason Diagnostic – Heidi Mason, Tim Rohner
Create the learning environment for implementation
– Created Innovation College
– 30 courses on tools ranging from front end to
project execution
– Work with real projects to develop the tools
– Expanded globally
10 Copyright Air Products and Chemicals, inc. 2006
11. Developing Internal Knowledge
Created communities (networks) to share
information and ideas
– Over 180 communities
– Linked through an internal knowledge
management system
Developing external networks
– Through technology partnerships
– Open Innovation
Developing insight to new markets and
technologies
– University research
– Equity investments in technology start ups
11 Copyright Air Products and Chemicals, inc. 2006
12. Issues and Challenges Going
Forward
Availability of seed money
– Capacity of organization
Short term focus in SBU’s
– Metrics for accelerators vs. conventional
– Piloting real options
Building credibility for NBD
– Create opportunities within Growth
Platforms
– Allows more whitespace opportunity
Developing the right skill set
– Neither technology nor business but both
– Career path for business development
professionals
12 Copyright Air Products and Chemicals, inc. 2006
