Fear, faith and fortune, an innovation summit

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Thank you to our headline sponsor

Thank you to our film partner

Follow the event at

#dmainnovation

Housekeeping

For every £1 invested in design…

. “Design is popular at school, accounting for the lowest truancy rate at Key Stage 4 and attracting over 60,000 students (8,000 from abroad) to further and higher education”

Remaining

Political

2007 Unicef study of child well-being

11/15/2012

11/15/2012 34

Sheila has asked for her

slides to not be

distributed

November 2012

Fear, faith and fortune: An innovation summit.

REAL INNOVATION…

From business case to launch

We built. months

Within an organisation that is

years old.

592

And an agreement that…

…we were going to launch with a beta test and learn format which is a first in our history.

Whilst still delivering…

…68,000,000 other things…

…everyday.

We have built 6 new capabilities.

And brokered 9 new partnerships.

Recruited 20 new people externally.

Developed a new customer experience.

And created the home for mail in the media landscape.

We launched 5 months ago...

And we are working with the likes of……

All with one single focus.

To help agencies and advertisers unlock the power of mail.

And one Belief…

Because without real, there is nothing…….

Tim HamillHead of Planning &

Intelligence

Networking tea and coffee

A question on fear of the future –

and how that affects us

A question on health –

and who we'll put our faith in to take care of it in the future

A question on retail fortunes –

and how shopping will change in the future

M&S Plan AFear, Faith & Fortune

@adamelman

Adam ElmanHead of Delivery – Plan A & Sustainable Business

2,000 factories 20,000 farms

35,000Product Lines

2,000,000 workers 1,000’s raw materials

Engaging75,000 employees & 21m customers each week

Involving

Our Value Chain

� Aiming to be carbon neutral

� Aiming to send zero waste to landfill

� Remove all the artificial colours & flavours from ALL food & drink

� Reduce packaging by 25%

� Become 25% more energy efficiency

� Become 20% more fuel efficient

� Source 100% sustainable wild fish

� Cut carrier bag usage by 33%

� Cut water usage by 20%

� Source 100% sustainable timber

Big, bold targets

Wind turbine or anaerobic digestion

Waste image

Carrier Bag Charging

Product

Carrier Bag Charging

b

-£50m

-£0m

£50m

£100m

£150m

2007/08 2008/09 2009/10 2010/11 2011/12

-£40m

Cost

Neutral

£50m

£70m

£105m

Strong Business Case

Not all about £££

Brand protection Brand enhancement

Innovation Staff motivation

£££

Staff wellbeing Partnerships

Planning permission Supply chain resilience

Lessons learnt

Clear vision Provide Support Create the culture

Use your supply chain Bonus targetsPartnerships

Questions?

@adamelman

Networking lunch

© 100%Open 201215 November 2012

From Open Innovation to Open Business

DMA Conference – 14th November 2012

15 November 2012 96

© 100%Open 2010The Fosbury Flop

At the Mexico City Games in 1968, Dick Fosbury used a then-unorthodox head-first,

back-to-the-bar method of high jumping, to get the gold medal & a new world record.

15/11/2012 97

© 100%Open 201215 November 201215 November 2012 98Conversation, Relationship, Transactions

“Ideas don’t exist in an individuals head. They exist between people, in conversations.”

Jules Evans

© 100%Open 20113 minute JV

1. Explain what you do.

2. Find out what your partner does.

3. Agree what you could do together.

4. Give your joint venture a name.

15/11/2012 99

© 100%Open 201215 November 201215 November 2012 100Open Innovation

Innovating with partners by sharing the risks and the rewards

© 100%Open 201201/08/2012 101Two Models of Open Innovation

Discover and Jam

• Starts with ‘what’ question: an innovation

brief detailing a specific unmet need

• Is a competitive marketplace amongst

customers, suppliers or users

• The innovation process is mediated by a

Trusted Agent

• Innovations are extracted through a

linear process

• Tend to be internal routes to market (e.g.

license deals)

Discover

• Starts with a ‘who’ question: finding

partners to explore a broad opportunity

• Is a cooperative community & process ,

with customers, suppliers or users

• The innovation process is facilitated

through a Catalyst

• Innovations are built using an iterative

process

• Tend to be external routes to market (e.g.

joint ventures)

Jam

© 100%Open 201201/08/2012 102100%Open Innovation Process

Explore Extract Exploit

IdentifyInteresting Questions

A shortlist of partnersand solutions

Taking investable propositions to market

© 100%Open 201215 November 201215 November 2012 103The Net Works

“Networking is only a letter away from not working.”

Chris Powell

© 100%Open 201215 November 2012Open Business Models

15/11/2012 104

Co-Creative

Collaborative

Cooperative

Closed

Joint R&D

Paywall

Crowd-sourcing

Delivery partnership

Proprietary supplier

Joint venture

Alliance

Open source

Creative commons

Minority stake

Copyright

Co-branding

Spinout

Majority stake

Acquisition

Marketresearch

Kaizen

Membership org.

Peer to peer

Design platform

Freemium

Group buying

Communities of interestMerger

Cross licensing

Franchise

Profit share

R&D

© 100%Open 201215 November 201215 November 2012 105E.ON

A customer-led innovation programme which was designed and piloted, and then rolled out cross company with 45,000 customers, to create 8 x £10m propositions.

© 100%Open 201215 November 201215 November 2012 106The Net Works

“Innovation is a by-product of engaged networks.”

Verna Allee

© 100%Open 2010Orange

An Airlock competition that helped source and create a new £20m service proposition

called Fun Finder that launched in Dec 2011.

15/11/2012 107

© 100%Open 201215 November 201215 November 2012 108Start at the End

“Innovation is a U-Shaped Process.”

Paul Vanags

© 100%Open 2010LEGO

LEGO Cuusoo is a social platform where people can submit designs, build a market

before investing in production, and receive a 1% royalty when it is produced.

15/11/2012 109

© 100%Open 201215 November 201215 November 2012 110Give Get

Generosity is like compound interest. The sooner you bank it the greater the dividends.

© 100%Open 2011Open Business Models

15/11/2012 111

Co-Creative

Collaborative

Cooperative

Closed

Joint R&D

Paywall

Crowd-sourcing

Delivery partnership

Proprietary supplier

Joint venture

Alliance

Open source

Creative commons

Minority stake

Copyright

Co-branding

Spinout

Majority stake

Acquisition

Marketresearch

Kaizen

Membership org.

Peer to peer

Design platform

Freemium

Group buying

Communities of interestMerger

Cross licensing

Franchise

Profit share

R&D

© 100%Open 201215 November 2012

“Connect on your similarities, and benefit from your differences.”

Valdis Krebs

15 November 2012 112Connect the Dots

© 100%Open 201215 November 201215 November 2012 113It’s a small world…

“The world isn’t getting smaller, the networks are

getting bigger”Greg Hadfield

© 100%Open 201215 November 201215 November 2012 114And Finally…

“More people pooling more resources in new ways is the

history of civilisation.”Howard Rheingold

© 100%Open 201215 November 2012

Thank You

15 November 2012 115

100%Open | Somerset House | South Building | London | WC2R 1LAPhone: +44 (0)20 78133 1006 | +44 (0)7811 761 435Email: roland@100Open.com Web: www.100Open.com Twitter: @100Open

Roland HarwoodCo-Founder & Partner

Approach to Innovation- It’s all about the people

Mike Addison14th November’12

Introductions

• Fast Moving Consumer Goods

•>175 Years old

•~120,000 people employed worldwide

• Operations in 80 countries

• Net Sales of >$80 billion

• 24 billion dollar brands

•Spends almost $2 billion per year on R&D

• BSc and Ph.D Chemistry from Edinburgh

University (’73 to ’80)

•Joined P& G late ’81 in R&D in Newcastle

• 17 years innovation for Fabric &Home Care

• 4 years in charge of European Seed Fund to turbo charge internal innovation.

•10 years establishing and developing Open Innovation interests in the UK

• Retired 31st October 2012

Provocations !

• What sort of Business are you in ?

• What innovation do you want and

can afford?

• Be intentional on where you want to

play?

P&G's Purpose and growth strategy is

to improve more lives in more parts of

the world more completely — with an unrelenting focus on innovation.

Perspective on Innovation & Collaboration

We want to partner with the best

innovators everywhere, which is why

Connect + Develop is at the heart of

how P&G innovates.

Bob McDonaldPresident and Chief Executive

The Procter & Gamble Company

A Company of Brands

P&G Business Model• Obtain deep customer and consumer insight

• Fulfil needs with superior technology and products

• Brand the products

• Build scale via world class advertising and global distribution.

Primary Business Model

P&G’s Approach to Innovation

•Commercial

• Sustaining

•Transformative

• Disruptive

I

N

N

O

V

A

T

I

O

N

B

R

A

N

D

•Creation

• Relevance

•Reach

• Profitability

Where to Play How to

Win

Innovation Flavours

• Commercial Innovation

– Enhance brand appeal without product change

• Sustaining Innovation

– Lead a category/industry through product improvement

• Transformative Innovation

– Change an existing category/industry to make major share gains with sustainable competitive advantage

• Disruptive Innovation

– Create entirely new sources of consumption, new categories or new segments.

Provocations !

• What is your innovation process ?

• How do you progress through the

process?

• Who is responsible for what?

• Are you managing appropriately?

New Product Development

Front End InnovationStage Gated Development

Venture Proposition

Technology Map

Market Map

Product Concept

Functional

Map

CONSUMER NEEDS

- Societal Trends

-Regulatory trends

-Technology trends

-Prototypes

- Market tests

-Transactional Learning

SALES

Business

Model

Discovery vs. Development

Discovery

• Front End Innovation

• Complex

• People Centric

• Story (Killer issue) Focus

• Management Lite

Development

• Stage Gate

• Complicated

• Process Centric

• Metric focus

• Management Heavy

•How can the external world help

you?

•How can they contact you?

•Will they want to work with you

again?

Provocations

The Open Innovation Model

Business Goals & Strategy

Innovation Strategy

Open Innovation Targets

Find the

Opportunities

Build the

Promising

Make it

contagious

Do the

deal

Engaging with Open Innovation

Facilitating External Access

Internal

� Aligned with

internal clients

� Focused against

strategic priorities

� Open to external

serendipity

� Securing the right

internal resources

External

� Proactive searching

against high priority

needs

� Externally

networked and

connected

� Right people, right

places, right time

Deal Making

• Wide range of deal

structures to deliver

mutual value

• Legal support and

expertise

• On going governance

and compliance

www.pgcd.com

Supplying Open Innovation

Responding to Need� Get Networked

� Yet2.com

� NineSigma

� Innocentive

� EEN (SME base)

� Focus on USP

� Protect your IP

� Address the need

Creating Demand� Get Entrepreneurial

� Understand the

customer

� Focus on the story

� Maximise value

� Protect your IP

� Understand your

competition

Bringing it all together

Forms , Flavours, Benefits, Audience, Price

Manual Toothbrushes

S

h

a

r

e

Stretch Electric Toothbrushes

Whitening Strips

Stories from the Front End

• Disruptive

• Brand Extension

• Re-application of core competencies

• Non obvious re-definition of need.

Open Innovation Par Excellence

CREST

SPINBRUSH

Mike Addison

Innovation Catalyst

mcaddison@live.co.uk

Thanks for

the

attention.

Thank you for attending