Innovare's Front End at Bayer

Copyright © 2000-2012, Innovare, Inc. All rights reserved.

Bayer Material Science Finds Lasting Value Bayer Material Science Finds Lasting Value Using Using InnovareInnovare’’ss FrontFront--End ApproachEnd Approach


• The innovation challenge – how to create value added opportunities for polycarbonate sheet

– Bayer’s polycarbonate sheet business was profitable but its products commoditized– Polycarbonate’s impressive impact resistance made it ideal for industrial safety shielding applications – After 9/11 and hurricane Katrina a new building environment emerged

• building owners and architects were looking for new materials that could be used to strengthen new designs

Entering the Architectural Glazing MarketEntering the Architectural Glazing Market

• To seize the opportunity Bayer targeted the architectural market for value-added glazing products


• But how should Bayer approach the market and with what products?

• Bayer chose Innovare to help them find their way


Organizing for InnovationOrganizing for Innovation

• Innovare’s Don Ross partnered with Ken Schwartz, Bayer’s architectural glazing innovation team leader

– Don provided the front end process, structured the research, and facilitated the team• He provided innovation process expertise and coaching to sponsoring management gaining their

support and resources– Ken lead the team and was on the point for the project content

• He recruited team members based on functional expertise, open-mindedness and excitement for innovation, and a willingness to roll up their sleeves and become engaged with the team’s work


FrontFront--End ApproachEnd Approach

• We followed Innovare’s 3 phased front-end process– The process places a strong emphasis on Discovery to develop an externally driven view of the market,

customer needs and enabling technology prior to concept development

Tech ExplorerTech Explorersmsm

Vocal InsightsVocal Insights®®

Market Market DriversDriverssmsm

The 3 front-end phases

1. Discovery

2. Concept Development

3. Concept Validation


Phase 1 DiscoveryPhase 1 Discovery

During Discovery we answered 3 questions:

• What’s driving the market?• What are the customer needs throughout the value chain?• What technologies will enable us to satisfy customer needs better

than the competition?


Market DriversMarket Drivers

• What’s driving the glazing market?– We answered that question by using a combination of secondary sources and expert interviews– Each team member was assigned 1 or 2 topics to explore individually– We explored key architectural trends, regulation changes, and social issues impacting the glazing

market– We shared our findings during a Market Drivers workshop and captured our combined insights


Customer NeedsCustomer Needs

• What are the customer needs throughout the value chain?

– We answer that question using Innovare’s Vocal Insights – voice of the customer and team immersion process

– Team members visited and interviewed value chain members and customers to explore their needs– This included architects, builders, window and curtain wall manufacturers and the U.S. government

(embassies and army buildings)– We followed up the field work with a Vocal Insights Immersion workshop to share the different voices and

build our need insights


Enabling TechnologyEnabling Technology

• What technologies will enable us to satisfy customer needs better than the competition?

– We used our Tech Explorer technology discovery process– The team engaged internal and external experts representing technologies we were intrigued with– We explorer the current state of the art and future trajectory of each technology– We shared our finding and created technology application visions that would enable new glazing product

innovations during Tech Explorer workshops


Phase 2: Concept DevelopmentPhase 2: Concept Development

• During Innovare Greenhouse workshops we create hundreds of beginning ideas and shaped them into 22 new product concepts

• 3 steps from insights to concepts during Greenhouse Workshops

• Step 1 – Divergence– Immersion into insights and generating many beginning ideas

• Step 2 – Convergence – Idea grouping, selection and building in feasibility through creative problem solving

• Step 3 - Articulation– Develop concept descriptions and concept story boards


Phase 3: ValidationPhase 3: Validation

• What we did to build the case for investment

• Approach:– Depth interviews and concept sharing sessions with executives in value chain firms, experts and thought leaders– Secondary research: syndicated, association, government, investor, and corporate reports– Held team validation workshops to process our findings

• Outputs:– Understanding of value chain participant strategies– Likely future business environment– SWOT on proposed innovations– Volume estimates– Strategic recommendations for entry point, partnering approach and market share targets– Product line plans– Product and technology road maps

Concept Portfolio

Added features

New Product

New Service

Improvement A

Level Two Line

Game Changing Breakthrough

Low Hanging Fruit

Enterprise Line

$0 $100 $200 $300 $400 $500 $600

Market Value $ Million

Tech

nolo

gy In

nova

tion

Breakthrough

Platform

Incremental

Derivative


What We AccomplishedWhat We Accomplished

• Developed the innovation strategy for the North American architectural glazing market

• Established a portfolio of new products and technology concepts with an estimated future value of over $400 million in top line

• Four new products introduced at the American Institute of Architects show

• Three Platforms passed Validation Phase 3 and are in development pipeline


Sustaining InnovationSustaining Innovation

• Our front end process provided the team with the knowledge foundation for sustained innovation

– Several team members moved on to develop the Eco-Commercial Building program, a new global business model based on our work but applied across Bayer’s building materials product lines and geographies

– The Eco-Commercial Building program• Provides architects and builders of major projects technology consulting and access to a network of

expert suppliers • Enables green and zero energy buildings while leveraging Bayer’s diverse materials


Top Reasons for InnovareTop Reasons for Innovare

1. Systematic front-end team process including discovery, informed concept development, and validation

– Delivers a portfolio of strong concepts aligned with strategy

2. Integrates technology with market and customer needs

– Targets innovation efforts towards the key problems within the customer environment

3. Efficient organizational learning approach that optimizes limited team resources

– Knowledge driven team immersion empowers experts in your organization to excel at innovation

Copyright © 2000-2012, Innovare, Inc. All rights reserved.Grounded in Research, Driving for Innovation

®RIN N O V A E

In no vate: (in' ə – vate) v.

- vated, -vating, - vates.

To begin or introduce

something new; be creative.

[Latin INNOVARE

(in' ə – vär - ē)

to renew; from novus, new.]

Contact: Donald Ross Ph.D. MBA President

617-479-3818

[email protected]

www.innovare-inc.com

mailto:[email protected]

http://www.innovare-inc.com/

Business

Innovare's Front End at Bayer