Post on 07-Apr-2018
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New Business Incubation
Jelto SmitsCEO Technology Incubator
Lighting and Innovation Analysts Day
September 28, 2007
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Disruptive Innovations Offer Greatest Returns
Disruptive innovations do not start in mass markets, rather in niche
markets that value the unique selling point (Innovators Dilemma)
Require new capabilities, non-traditional ways of working and patience,similar to the venture capital approach
Therefore we established a novel way of working:
A staged new business development process Run by dedicated, agile organizations
Supervised at board level and
Executed by entrepreneurs
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New Businesses Incubation
NewBusiness
Patent / Technology licensing
Spin Up
Spin Out
Spin Off
ContractR&D
(adjacent)
Corporate
Research(disruptive)
Transfer to existingPhilips businesses
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applied technologies
existing new
appliedmarketing
existing
new
Cost
Innovation
Feature
Innovation
MarketInnovation
Break AwayInnovation
Focus Areas of Incubators
Healthcare, Lifestyle and Technology
Technology
Incuba
tor
2002
Healthcare and Lifestyle
Incubators2006
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New Business Development Boards
Three New Business Development boards, handling incubator and
sector New Business Development
Chairmen: Philips board members
Members: Philips board members
Philips CTO Business CMO, CTO
M&A
Incubator CEOs
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New Business Stage-Gating
Bell-Mason approach
Expansion
& Value
Capture
5. Growth4. Beta3. Alpha2. Seed
Gates
1. Pre-seed
Ideation
New Business Development Boards
Research
Incubators
Sectors
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Critical Dimensions of New Business
Development
PEOPLE
Management
Team
Venture Board
PRODUCT/SERVICE
Product/Service
Delivery
Venture platform
MARKETINGBusiness Plan
Marketing
Sales
FINANCE
Cash
Control
Financing
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New Business Monitoring Process
Following best practices of VC industry
PEOPLEFINANCE
PRODUCT/SERVICE
MARKET
PEOPLEFINANCE
PRODUCT/SERVICE
MARKETBusiness Plan
Marketing
Sales
Management
Team
Venture Board
Cash
Financing
Control
Venture Platform
Product/Service
Delivery
PEOPLEFINANCE
PRODUCT/
SERVICE
MARKET
PEOPLEFINANCE
PRODUCT/
SERVICE
MARKETBusiness Plan
Marketing
Sales
Management
Team
Venture Board
Cash
Financing
Control
Venture Platform
Product/Service
Delivery
PEOPLEFINANCE
PRODUCT/SERVICE
MARKET
PEOPLEFINANCE
PRODUCT/SERVICE
MARKETBusiness Plan
Marketing
Sales
Management
Team
Venture Board
Cash
Financing
Control
Venture Platform
Product/Service
Delivery
PEOPLEFINANCE
PRODUCT/
SERVICE
MARKET
PEOPLEFINANCE
PRODUCT/
SERVICE
MARKETBusiness Plan
Marketing
Sales
Management
Team
Venture Board
Cash
Financing
Control
Venture Platform
Product/Service
Delivery
PEOPLEFINANCE
PRODUCT/
SERVICE
MARKET
PEOPLEFINANCE
PRODUCT/
SERVICE
MARKETBusiness Plan
Marketing
Sales
Management
Team
Venture Board
Cash
Financing
Control
Venture Platform
Product/Service
Delivery
Expansion
& Value
Capture
5. Growth4. Beta3. Alpha2. Seed
Gates
1. Pre-seed
Ideation
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Technology Incubator
Scope and selection criteria
Scope:
Philips Corporate R&D Laboratories
Selection Criteria: Capable & motivated team, willing to deal with the risk
Disruptive technology with distinct USP
Technology relevant for large markets with multiple products Potential sales >EUR 100 m., preferably >1 B
Technology well protected by intellectual property
Technology relevant for Philips
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Incubation Pipeline
Portfolio Technology Incubator
Prepare
transfer
BusinessSeedPre-
Seed
Ideation Capture
thevalue
Alpha Beta Growth
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Spin-outs
Polymer Vision (Dec-06) and Silicon Hive (Apr-07)
Polymer Vision received EUR 21million investment from TechnologyCapital SA (Lux) to commercializethe Readius rollable display Philips keeps minority
shareholding Wins 2007 3GSM Global Award
Silicon Hive received investment fromNVP (USA) and TVM (D) to expandconfigurable processor business Philips keeps minority
shareholding
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ultra low power design
all terrain detection system single component system
First Exits from Technology Incubator
Laser Sensors, transferred to Philips Lighting (Jan-06)
Potential Market >1 billion units
PC Mouse
Printer
Portable
Devices
Remote Control
GamepadMobilePhone
Watches
Notebook
1st
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New Business Leveraged through Sectors
amBX gaming peripherals launched by Philips CE (Aug-07)
amBX scripting software enables (supplier)
CEs gaming peripherals(customer)
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New Business Leveraged through Sectors
3D, a fascinating example of disruptive innovation
3D often spontaneously mentioned during consumer groups as ananticipated next step in creating a more immersive and captivatingexperience.
- Philips 3D consumer research
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