Open Innovation in AkzoNobel presentation 11-2012.pdf · The world’s largest paint company and a...

The Courage of Innovation Milano, November 23, 2012

Open Innovation in AkzoNobel

Dr. Dick C. van Beelen

Director OI & Operational Excellence

AkzoNobel RD&I

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AkzoNobel: portfolio of global brands

Confidential – AkzoNobel NV © 2012

AkzoNobel: key facts

3 Confidential – AkzoNobel NV © 2012

The world’s largest paint company and a leading supplier of specialty chemicals

• Global Fortune 500 company

•  Headquarters Amsterdam, The Netherlands

•  2011 revenues € 15.7 billion

•  Ca. 57,000 employees

•  Business areas:

•  Decorative paints

•  Performance Coatings

•  Specialty Chemicals

AkzoNobel: key facts


The world’s largest paint company and a leading supplier of specialty chemicals

•  Grow to €20 billion revenues by 2016

•  Increase EBITDA each year, maintaining 13-15% margin

•  Pay a stable to rising dividend

•  Committed to delivering Tomorrow’s Answers Today

•  Leadership in sustainability (#1 in Chemicals Sector DJSI)

•  Top quartile performance in safety, diversity, employee engagement & talent development

Innovation to fuel our ambitions

AkzoNobel: Solution Promises

Trends / drivers for innovation

BU competences

Peers positioning

Key innovation projects

Serving the needs of the global mid market

Bringing products for wellness & identity

Achieving zero footprint

Saving you time and effort

Creating new horizons in functionality

Confidential – AkzoNobel NV © 2012 5

No innovation culture without

a networking culture


Open Innovation: challenge and opportunity

Consider C&D before starting R&D (Connect & Develop) (Research & Develop)


Open Innovation: challenge and opportunity

Consider C&D before starting R&D

We should not invent the wheel again and again. If a technology or solution we need is:

•  Available within company à find and exploit

•  Available outside company à find and acquire

•  Not available à consider options

Ø  Classical “Collaborative Innovation”: selecting partners from (usually) existing network

Ø  True “Open Innovation”: leveraging the global technology and innovation community


Open Innovation: Toolbox

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technology / solution

existing

not existing

party to AkzoNobel

internal AN external AN network “the globe”

knowledge we have

people we know

parties we do not know


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existing

not existing

party to AkzoNobel


Communities of Practice

Searches

(In-company R&D)

Collaborations


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existing

not existing

party to AkzoNobel


Collaborations

University research programs

Networks

Industry consortia

Existing suppliers / strategic partners

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OI: accelerating innovation by external contributions

•  External = within AkzoNobel and / or outside company

•  Need driven

•  Aims: faster, better, unexpected solutions

•  No target in itself, but supportive to business

•  Ad-hoc project needs, “Top 10 key innovation projects”,

AkzoNobel’s strategic ambitions

•  Journey involving various stakeholders

Open Innovation at AkzoNobel


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Open Innovation at AkzoNobel

Key elements in operation to date

•  CoPs à leveraging AkzoNobel’s knowledge and capabilities

•  ANNI à answers to specific project

challenges and needs •  Strategic Partnering à collaborating for mutual

benefits


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Communities of Practice - leveraging AkzoNobel’s capabilities -

“If only AkzoNobel knew what it knows”

A Community of Practice (CoP) is:

• A group of people linked by a common interest to share knowledge and practice.

• An attempt to formalise informal networks of knowledge and practice sharing without “over managing”

• About the more effective management and exploitation of our collective knowledge.


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Who leader, members and relationships

What common ground and identity

How scope, tools and methods


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Communities of Practice / What

•  Top-down defined domains (mid 2009)

•  Strategically important to the wider AkzoNobel

• Colour & Effects

• Corrosion Protection

•  Efficient Crosslinking

•  Process Efficiency

• Renewable Raw Materials

• Waterborne Technologies


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Communities of Practice / Who

•  CoP leader

•  Full time position, “assignment” from BU to Corporate RD&I, in driver’s seat for CoP progress, not necessarily the expert, but also initiator, organizer, administrator, networker, …

•  Core members

•  Gate keeper and linking pin CoP ßà BU, nominated by BU, recognition and obligation, adequate capacity for active involvement (10-20%), personal targets reflecting CoP role

•  Associated members

•  Interested to join and willing to participate actively, voluntary / own initiative, provide and share knowledge and expertise with colleagues


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Communities of Practice / How

Scope of CoP

•  Leveraging existing knowledge available to AkzoNobel (CoP runs no own R&D projects)

•  Not just a talking club

•  CoP mission, goals and “working agenda” set by core team

•  Subjects and issues covering whole R&D spectrum (Research, Development and Support)

•  Emphasis on internal network, external contributions on ad-hoc basis


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Communities of Practice in action

•  WebEx presentations

•  Core team meetings

•  Sharing best practices

•  Special interest teams

•  Intranet site: source of knowledge (e.g. Wiki) & expertise

•  Newsletters

•  Discussion forum – needs & help

•  Challenge webinars

•  Inter-BU contacts & interactions

•  Selected external input

•  SWOT and gaps identification & recommendations

All across AkzoNobel at large! Confidential – AkzoNobel NV © 2012

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Some metrics: •  Membership ca. 5000 persons to date

•  Not just from RD&I, also Marketing, Process Engineering, Sourcing, …

•  Good BU and geo spread

•  > 40 active special interest working groups •  > 125 webex presentations to date (av. 40 participants) •  Newsletters to > 6000 addressees •  CoP sites 1000 unique visitors/month, 700 site visits/day •  > 800 discussion threads to date •  Many 1:1 and 1:>1 technical exchange and problem solving

interactions


AkzoNobel Networked Innovation (ANNI) - answers to specific needs –

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Needs brief & Request for

Proposal (RFP) Agreement on

acquiring solution

Identifying (potential)

solution provider Making the

solution work

A structured approach to finding (external) solutions:


AkzoNobel Networked Innovation - answers to specific needs –

Approach:

•  Company wide effort initiated end 2009

•  Key factors for successful implementation:

•  Training: introduction of OI concept and OI thinking

•  Cross functional, cross BU, “train the trainer”

•  Alignment: embedding in organization

•  OI Champions in each BU, collectively ANNI team, sharing methods and experiences

•  Results: delivering value to organization

•  Each RFP within AkzoNobel as default first step, thereafter (optionally) to outside world


AkzoNobel Networked Innovation - answers to specific needs –

Results to date:

•  RFP process working very well internally AkzoNobel

•  Simple, low threshold email process, but RFP brief as default document

•  Engaged AkzoNobel community (speed, spread, responses, quality of ideas and solutions)

•  Possibility to set up joint meeting with all solution providers (ideas enrichment!)

•  To date ca. 130 RFPs, average 10 responses per RFP, Red:Amber:Green solution score ca. 10:50:40

•  External AkzoNobel to be strengthened further

•  ANNI approach now broadening to methods beyond the RFP process


Open Innovation: lessons learned

•  A problem well defined is a problem half resolved

•  Culture change from “the lab is our world” to “the world is our lab”

•  Somebody somewhere probably already solved (part of) our problem

• Majority of innovations is a novel combination of existing knowledge

•  From NIH to PFE


None of us is as smart as all of us!

• T H A N K Y O U !

Open Innovation to IP meeting 10-2011 25

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