01 Petr Kotal on Open Innovation
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Transcript of 01 Petr Kotal on Open Innovation
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The Role of The Role of SME`sSME`s, Public , Public Sector and Large Enterprises Sector and Large Enterprises
in the in the Open Innovation JourneyOpen Innovation Journey
PetrPetr KotalKotal
ArkoArko consultconsult Arko consultGeneva, Prague
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Personal History
• Ph.D., D.Sc. in biochemistry
i. 20 years in academic clinical research
ii. 15 years at Procter & Gamble (R&D, External & Government Relations)
iii. Consultancy(Open innovation)
•
Arko consultGeneva, Prague
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•• Current challenges in innovation Current challenges in innovation
•• Open Innovation Open Innovation …… The early yearsThe early years
•• Looking forwardsLooking forwards
Today’s Agenda
Arko consultGeneva, Prague
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Discovery Market
Develop/Develop/EvaluateEvaluate
Adapt/Adapt/AdoptAdopt QualifyQualify LeverageLeverage
Arko consultGeneva, Prague
SME`sSME`s Large Large EnterprisesEnterprises
Public Public SectorSector
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Product launches: New but not novel
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Hardly any breakthroughs
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Less innovation at top companies
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Pace of Innovation Accelerating
Cost Increasing
Fast Followers Following Faster
Resources Constrained
Consumers More Demanding
The realities of modern innovationThe realities of modern innovation
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Scope50% of innovations from outside
“Proudly found elsewhere”<10% of innovation from outside
Focus 3600Mostly technology leads that are brought to practice
Risk/Reward Shared Pay for and own everything
IntellectualProperty Manage as appropriate Keep it inside
Organization Manage Know-How and Know-Who Manage know-how
Old WorldOld World
A Vision for Change
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Level of outsourced R&D?
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Procter & GambleProcter & Gamble
Over Over $68$68 billion in salesbillion in sales
300 brands in over 300 brands in over 160 countries160 countries
#1 or #2 in #1 or #2 in 80%80% of our categoriesof our categories
140,000140,000 employees (incl. Gillette)employees (incl. Gillette)
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The Innovation Challenge
Almost $100 million additional sales every week
Reliance on external partnersReliance on external partners
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$5 Billion/yrNew NOS Generation
P&G R&D9,000 People
Challenge
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•• Current challenges in innovationCurrent challenges in innovation
•• Open Innovation Open Innovation …… The early yearsThe early years
•• Looking forwardsLooking forwards
Today’s AgendaToday’s Agenda
Arko consultGeneva, Prague
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Cross-Fertilization
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The Synthetic Detergent
• Surfactant
• Builder-enhancing detergency power by chelating calcium in water
EHDP
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Tartar control toothpaste
Prevent tartar formation by chelating calcium
EHDP
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Bisphosphonate drugs Common Therapy for Osteoporosis
Binds to bone calcium and inhibits bone destruction
X
Annual sales > US$1.5 Billion
Bone destruction due to osteoporosisProtected bone
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Cross-Fertilization
• Opportunity for SME`s?
• Reapplication of “drug”technologies in e.g. consumer products
Arko consultGeneva, Prague
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Open Innovation3600 View
• Product • Packaging • Production • Marketing• Distribution
• Commercial innovation
• Cost innovation• Public funding
Arko consultGeneva, Prague
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Public Funding• 7th Framework Program• European Structural Funds
Discoverwhere the EU and your Company
goals are in line andget a funding
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European Structural FundsEuropean Structural Funds175 billions of 175 billions of €€ in 2007in 2007--1313
Arko consultGeneva, Prague
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Benefits of Open InnovationBenefits of Open Innovation
Drive growth & profit
Speed
Risk
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•• Challenges in innovationChallenges in innovation
•• Open Innovation Open Innovation …… The early yearsThe early years
•• Looking forwardsLooking forwards
Today’s Agenda
Arko consultGeneva, Prague
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Both SME`s and Large Enterprises (LP) can lead !
ReactiveReactive““LP`sLP`s dondon’’t know what they wantt know what they want””
SME`sSME`s drive the process anddrive the process andhave convincing data on the value of the have convincing data on the value of the
innovationinnovation
ProactiveProactive““LP`sLP`s know what they wantknow what they want””
LP`sLP`s drives the process and can rapidly drives the process and can rapidly evaluate candidate solutionsevaluate candidate solutions
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Success Stories
• Consumer product industry
• IT industry
• Automotive industry
• Electro technical industry Arko consultGeneva, Prague
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P&G’s Global Innovation Vision
“We will acquire 50% of our technologies and products from outside P&G.”
A.G. Lafley, CEO (2002)GBUs
Employees/ Retirees
CorporateNew
Ventures
Technology Council
Communities of
PracticeTrade Partners
Joint Development Partners
Virtual Networks
Venture Capital
Alliances
Contract Labs
Research Institutes
Suppliers
MDOs ConsumersIndependent
Entrepreneurs
.
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Results (July 2006)
52%
Over 70% from SME`s
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A.G. Lafley
“Innovation is our lifeblood”
“Simply put, innovation is a pre-requisite for sustainedgrowth. There is no other path.”
“
QuotesQuotes
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• Outstanding consumer and regulatory understanding
• Manufacturing expertise/scale• World class marketing• Global distribution• Financial Muscle
What can Large Enterprises offer to SME`s
Arko consultGeneva, Prague
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Tips for SME`s• Reapply “Cross-fertilization” in a daily
practice• Leverage “know who” in addition to
“know how”• Understand and focus on EU long term
objectives and engage in EU funding• Engage in public/private partnerships• Reflect needs of large enterprises and
learn about their business needs• Build regulatory and IP capability
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Thank youThank you
PetrPetr KotalKotal
Arko consultGeneva, Prague
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