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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: [email protected] 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
Thank you for attending