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CONFIDENTIAL

Create new business opportunities for assets

like basic materials, components & technologies

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Alexander Van Damme

Business Development

alexander.vandamme@verhaert.com

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Agenda Situating the challenge

Risks involved

How? -A 3 step approach

Conclusions

Why should you do it?

Find opportunities

Develop opportunities

Convincing the right player

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Types of innovation

Duration of

competitive advantage

Development time &

Risk

High

Low

Low High

Technology

driven

Market &

User driven

Driven by

Company

Assets

Driven by

existing

product

Innovation driven by existing

assets,

Often this implicates lower

technological risks, but significant

market uncertainties.

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• Material?

• Process?

• Technology?

• Component?

• Patent?

• Data?

• Competence?

• Production capacity?

• Brand?

• ….

What is your asset?

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Gas barrier material

Pipes and

hoses

What are new

areas of

growth?

• Gas barrier material (oxygen, CO2, N2, etc)

• Transparent

• Hydrophilic

• Scratch resistance

• Low impact resistance

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Thermoset material Fuel system

Air supply

system

Powertrain

Cooling system

Brake

components

? Growth outside

the automotive

• Impact resistance

• Mechanical strength

• Chemical resistance

• Temperature resistance

• Lightweight

• Mouldable

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Innovating in the beginning of the value chain

Market development for technologies, for materials and

components

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Specific challenges

High risk projects

Lack of knowledge of

the value chain

Too many options

Slow adoption rates

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No guarantee of succes – but expectations are high

Long time to money

Plans are often vague at the start

High risk projects

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Lack of knowledge

of the value chain

The target customer is not your direct customer in the

value chain

The value chain is averse of change, and will be blocking

the innovation

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Few options are excluded – everything is possible

Most options and target applications are general and

unspecific

The added value in the intended application is not fully

understood

Too many options

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Since so many stakeholders have to be convinced, the adoption rates are slow. PVC took 15 years to grow to significant market volumes

Often capital intensive applications, requiring excellent added value in order to justify the investments

Risk averseness of market players: changing material or technology might bring benefits, but it will increase risks dramatically

Slow adoption rates

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Reactive versus active application

development

Classical info sources: salesteams, suppliers, contacts with clients, brainstorms, fairs and conferences. This is reactive follow up of existing opportunities

When being pro-active, you have several advantages:

– First mover advantage

– You will end up in more disruptive applications: new markets, not mere product variations

– You can choose the high value applications

– More control of the process

– Supports a perception as innovative player

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A 3 step process

Finding opportunities Developing

opportunities Convincing the

right market player

Using abstraction and

datamining to find

opportunities

Understanding the

added value it can bring

to the target application,

and maximising it

Choosing the right target,

the right arguments and

the right model

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Finding opportunities

We combine abstraction with datamining to find many

relevant opportunities from broad application fields

You don’t know the application, you don’t know how your

features are appreciated

So include secondary and unimportant features, they

might proove to be vital

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Abstracting your product:

what problems does it solve?

People don’t want to

buy a drill,

they want a hole

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High

rigidity Chemical

resistant

Low MVTR

Water absorption

Impact

resistant Usable in challenging

environments, like

engines, production

installations

Gass barrier

Preserving

foods

light & strong

Keeping

the content

dry

Translucent Showing

content

Abstracting

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Example: ‘Whiteboard’

Abstracting & Datamining to find new opportunities

Smooth surface

Scratch resistant

Heat treated enamel

powder (porcelain) on

steel backing

T° resistant

Easy to clean

Aesthetic look – gloss finish

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IPC Nr Description

E04F13/00 4 Coverings or linings, e.g. for walls or ceilings

A61K6/00 4 Preparations for dentistry

A47J36/00 3 Parts of cooking-vessels

F27B3/00 2 Hearth-type furnaces, e.g. of reverberatory type ; Tank

furnaces

H01M8/00 2 Fuel cells

A01K61/00 1 Culture of fish, mussels, crayfish, lobsters, sponges,

pearls or the like

A47G7/00 1 Flower holders or the like

A61K8/00 1 Cosmetic or similar toilet preparations

A61L27/00 1 Materials or coatings for grafts or prostheses

E01C9/00 1 Special pavings ; Pavings for special parts of roads

E02B3/00 1 Engineering works in connection with control or use of

streams or rivers

E04D1/00 1 Roof covering by making use of tiles, slates or

shingles

F04C18/00 1 Rotary-piston pumps specially adapted for elastic

fluids

What areas within

‘cements or building

material’ mention

‘porcelain’ or ‘enamel’

and ‘steel’ or ‘iron’ or

‘metal’

Based on +/- 400 patents

Datamining – patent resources

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Roof tile: porcelain layer on steel

backing plate.

Form stability, fire resistance,

corrosion resistance, waterproof,

surface hardness

Porcelain coated stainless steel

heating cooker.

Providing a durable, heat resistant

cooker

Protection plate for underwater

Prevents corrosion, but also

growth of marine creatures

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Outdoor table with integrated

Tepanyakki

Scratch resistant

T° resistant

Easy to clean

Aesthetic look – gloss finish

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Developing opportunities

This is about understanding the added value

Your application should be highly attractive, or it shouldn’t be

You should make a difference in the value driver

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Example

One of the opportunities we researched for Vyncolit was

the integration in induction hubs

The material allowed faster heating, and smaller

dimensions

After tests, we knew the heating speed was 8% faster,

this was not disruptive enough, so the application was

dropped

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Example New business development

opportunities based on

Quaryl material

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Launch of the Squaro Edge 12

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Convincing the right market players

Choosing who to target

– Where in the value chain

– What player?

Who within the organization

What to tell them?

What after this first introduction?

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Who to target?

• The key decision maker in the value chain

• Most of the time, it’s not your direct customer, it will

be a brand owner

• Go for a market leader or market challenger, that

has a need to innovate

Dry run your pitch with a smaller player

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Talk about their problem

and how you will solve it,

Not about how fantastic

your product is

Talk to the business Not to the R&D department

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Don’t expect them just to

buy your product

immediately

Go for a cooperation

where you can start

testing the integration of

your material

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Conclusions

So what do we bring to these projects?

Toolset

Active in

different

markets

Technical

assets

Creativity

Methodology

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It’s about bringing your current assets to new markets

– Not a mere marketing activity

– Not a mere product development

activity

But a combination of the two

Conclusions

This approach will bring a more focussed

business development approach. Aiming at

specific opportunities instead of shooting wildly at

possible new applications

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Slide 34

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