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Transcript of “Picking the Right Product” Colin Billiet nano-porous solutions limited (formerly Group Chief...
“Picking the Right Product”
Colin Billiet nano-porous solutions limited
(formerly Group Chief Executive of the domnick hunter group plc)
14th May 2010
Building Profitable Growth Through Product Innovation
Basics
• Know your core technologies and competences• Know your customers and markets• Show commitment from the top – Board level• Make Product Innovation a cornerstone of your
business growth strategy• Maintain investment through the economic cycle
Technology and Innovation
• Maintain a healthy level of investment in core technologies
• Recognise and value your know how! • Insist on novelty in new designs (Patentable
features)• Aggressively target reduced manufacturing costs
while adding benefits – typically 30% is achievable• Measure new product sales and Patent filings
– e.g. % of annual sales introduced in last 3 years
Customers and Markets
• Fully understand customers needs• Demonstrate how your products will contribute to
their growth and profitability• Work in partnership and share the rewards• Develop strong synergies - most customers appreciate
this approach • Innovation is a ‘door opener’• New technology is also a ‘door opener’
Leadership
• Must be from the very top - CEO• Do not delegate responsibility• Set tough goals – usually achieved• Define what is a new product• Leverage existing technology and competence• New technologies need lots of investment• New technologies also a champion
New Products
• Listen to the customer• Identify the real requirement• Imagine the possibilities• Follow your instincts
- do not blindly follow market research• Ensure buy-in from all concerned
- advise/inform/get ownership- get feedback an avoid surprises
Example of New Product Innovation
New modular desiccant compressedair dryer – patents pending
• New innovation possible despite market maturity
• Sold on new innovation and simplified design – elimination of many system components
• Integral inlet and outlet filtration• Everything in the box to get started
- cables, brackets etc.
Flexibility
• Modular construction allows machine builders to utilise their own controls.
• Future proofed for other applications
A. Air dryer module
INNOVATION
Identified opportunities
A.£300kB. £2mC. £100kD. £500kE. £500kF.£100k
TOTAL £3.5m
B.Air dryer range
C.Variant
D. Variant
E.Variant
F.Variant
Product road map
Example of New Technologynano-porous adsorbent hollow fibre technology
• 75% energy saving• 80% space saving• 70% weight saving• Competitive price position• Patents pending
• Addresses a market sector where existing technology is unsuitable (£100m annual sales potential)
• Enables heat regeneration in small high volume applications – regeneration time reduced from 8 hours to 2 minutes
Old technology vs. New
New adsorbent heated hollow fibre•Low pressure loss•Fast kinetics•Any orientation•Unaffected by vibration•Very low thermal mass•Low energy consumption
Granular technology•Uneven bead size•Suffers from channelling, by-pass, high pressure losses and attrition•Effected by orientation and vibration
Rewards from sustained innovation
• Organic growth is the lowest cost/risk to expansion• Retention and growth with existing customers is high• Profitability is higher as a result • Ability to gain new customers is enhanced – many
large companies no longer have the ability to innovate• Motivational for employees – high retention• New technology is a longer term investment for future
prosperity – when the ‘cash cow’ is exhausted• It is a journey, not a destination
Thank you for your time
Any questions?