RA Revisited 270911 DSM Aloys Kregting

IT and Innovation

Aloys Kregting

September 27th, 2011

FOR INTERNAL USE ONLY

CIO DSM

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IT & Innovation

Page For internal use only

The 3 streams…

Physical flow of goods

Financial flow

Information flow

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IT & Innovation


Innovation and IT

• If you desire to become an Intrinsic Innovative Company, also the functions within the Company need to be Innovative

• IT can have impact on Innovation in Physical flow, Finance Flow and of course the Information Flow

• Besides that:

Innovation = Creativity * Collaboration

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Desired end-state

• CSD fully supported• Internal & External collaboration capabilities• Personnel and business performance

management• Personalized information (anyplace, anytime, any

device)

• High Performance Information Culture • Internationally integrated ICT function

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Long terms perspective

• If we are able to accomplish better information and knowledge sharing and efficiency in our work we will shorten time to market for DSM’s products.

• If we are able to help DSM professionals to harness group level knowledge instead of fragmented knowledge this could drive innovation within DSM. Now we will have a great opportunity to improve cross-functional and cross-national collaboration. Even beyond the borders of our company…

• DSM is growing, changing and this means more data- and information production. We need to anticipate to organizational change and growth. In this way we will be able to sustain DSM’s future growth.

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Why DSM need to move Collaboration online?

• Collaborative platforms can boost knowledge, productivity, innovation and engagement

Knowledge

Engagement

ProductivityInnovationCollaboration

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IT & Innovation


Increased number of network innovations• Trend from single inventor to team inventions to network inventions

(Schiele, 2006)

• 1990s: only 20% of companies were heavily relying on external sources of technology

• 2000: 85% of the companies were relying on external sources of technology (Roberts, 2001)

• Even the largest corporations are not able to keep up with global development of crucial technologies by developing them without partners (Pisano and Verganti, 2008; Chesbrough, 2003; Hoffmann and Schaper-Rinkel, 2001; Teece 1992)

• “Increasing capabilities of external suppliers make that companies are increasingly looking outside the boundaries of their R&D functions to find innovations that contribute to their business model” (Chesbrough, 2003)

• Increased outsourcing of complete business functions, including innovation activities (European commission 2005)

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Learning from Digital Natives• The next generations of employees communicate and

collaborate electronically far more than the current generation.• New generation thinks and process information fundamentally

differently from their predecessors• As a result, collaboration has a bright future in the enterprise.

Anticipating possible developments: The only question is whether employees will

want to use company-administered and –directed tools to collaborate or whether they will gravitate to more informal, grassroots solutions that allow contributions from people outside the company as well.

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BASF: Building Communities Around Solutions

CommunitySolutions

Portal

TransactionPortal

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Extending Value Through Intermediaries

CustomerIntermediaryEnterprise

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Home Depot: Connecting to Solve Problems

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Information Enables New Consumption Models

Car Ownership Car Sharing

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RA Revisited 270911 DSM Aloys Kregting

Business

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