Robert Kirschbaum (DSM)
Title: The balancing act between radical and incremental innovation (and the role of intrapreneurs)
Intrapreneurship Conference 2014
www.intrapreneurshipconference.com
#Intracnf14
2. Introduction to Royal DSM
Innovation
Page
- DSM Innovation Center
- Open (Chesbrough) Model
- Venturing
- Stage Gate examples
Emerging Business Area’s
- Bio Medical Materials
- Bio Based Products & Services
- Advanced Surfaces
Learnings
4. DSM at a glance*
Page 3
Sales
~€10 billion
EBITDA
~€1.3 billion
Global
presence
~24,500
employees
worldwide
Listed at
Euronext
NYSE
Share price
quintupled
in 25 years
• DSM is a global Life Sciences and Materials Sciences company active in health,
nutrition and materials
• DSM delivers innovative solutions that nourish, protect and improve
performance in global markets such as food and dietary supplements, personal
care, feed, medical devices, automotive, paints, electrical and electronics,
life protection, alternative energy and bio-based materials
• 5% of Turnover and 10% of our people in R&D.
Sustainability
leader
Top ranking
Dow Jones
Sustainability
Index
* 2013 numbers total DSM
6. Mission
• Our purpose is to create brighter lives for
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people today and generations to come
• We connect our unique competences in Life
Sciences and Materials Sciences to create
solutions that nourish, protect and improve
performance
7. DSM in motion: driving focused growth
People - Planet - Profit: creating value along three dimensions
Page
8. Page
DSM Innovation Center
New Business Development
EBA Biomedical
EBA Bio-based
Products & Services
EBA Advanced
Surfaces
Business Incubator
Enablers / Accelerators
Excellence in Innovation
CTO Office
Licensing
Venturing
8
12. FOR INTERNAL USE ONLY
Breakthroughs can be “Proudly Found Elsewhere”
13. Breakthrough versus Incremental Innovation
The Balancing Act
Innovation Center Business Groups
Long term Vision
Intrapreneurship
Agility
Medium term Vision
Operational Excellence
Lower risk
Pilot plants
Scaling-up
Breakthrough
Innovation
Sustainable, Profitable Innovations
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14. Managing the Portfolio across Levels
Page 15
Product new
to DSM
Market new to DSM
“Adjacent Business”
New to
The World
Emerging
Growth
Mature
Decline
Market life cycle
Improved
Product
Disruptiveness
1~1.5 yr
Established Products
and Business Lines
1.5 – 3 yr 3 - 5 yr 5 - 9 yr
New
Platforms
Break-Away
New
Applications
and Adjacencies
17. Standardized work process for project execution:
the ‘Project Management Process’
Decision
to Scale-up
Phase 3 Phase 4 Phase 5
Final
Review
Transfer to Running
Business phase
(Commissioning,
Market launch and
Full Scale
Production)
Idea
Generation
phase
Decision 1 Decision 2 Decision 3 Decision 4
Business Feasibility
phase
(Market demand
/opportunity)
Development
phase
(Market and
Technology
development)
Scale-up and
Validation phase
(Engineering, Procure-ment
and Construction;
Validation)
Initial
Screening
Decision
to Develop
Decision to
Launch
Decision 5
Phase 1 Phase 2
18. FOR INTERNAL USE ONLY
Why do we need Open Innovation?
DSM
99.9996%
of world
population
outside
DSM!
Networks
needed!
20. FOR INTERNAL USE ONLY
Networks make Open Innovation work
Fuzzy Front End
Interaction
/ Synthesis
Market Scouting / Business Intelligence
Licensing
In Venturing
Spin in
Joint
Business
Developments
Intellectual Asset Management
Acquisitions
Licensing
Out
Spin out/off
Divestments
R&D services
(Chemelot)
Competence Development, Technology Intelligence
29. FOR INTERNAL USE ONLY
Corporate Venturing
A win-win situation is the objective
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30. DSM Venturing – Corporate VC of DSM
DSM Venturing - Mission
DSM´s competence center for external (VC)
participations aimed at boosting innovation & growth
Window to the world
Explore new emerging markets, technologies and products in order to
enhance DSM´s product portfolio, technology toolbox and business model's
Strategic value
Add value internally and externally through facilitating strategic co-operations
with start-ups
Financial return
Create value by investing in and divesting start-up companies
31. When to invest in the startup life cycle?
High
High
Low Low
Emerging
Technology Proof of principle Commercialization Expansion
Time
Venture Capital
Public/PE
Grants
"Angels"
Sales
Investment & Risk
Financing
gap
Risk
Investment
amounts
Sales
DSM Venturing
33. Page
Gate 1: New Business Creation
Fuzzy Front End
Licensing
In Venturing
Spin in
Gate 1
Joint
Business
Developments
Acquisitions
Licensing
Out
Spin out/off
Divestments
R&D services
(Chemelot)
Gate 2
34. 1981: We need €’s for a strong fiber “lab-line” !
Page
35. FOR INTERNAL USE ONLY
Dyneema contributes
to Sustainability
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36. Gate 2: New Business Planning
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Fuzzy Front End
Licensing
In Venturing
Spin in
Gate 1
Joint
Business
Developments
Acquisitions
Licensing
Out
Spin out/off
Divestments
R&D services
(Chemelot)
Gate 2
38. Stanyl contributes to Sustainability
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Stanyl (polyamide 46)
turned out to be the
best value-proposition
as high temperature
resistant LED-Lamp
holder
LED technology will use only 10% electricity
39. The Intrapreneur’s “10 commandments”
1. Come to work each day willing to be fired
2. Recruit a strong team
3. Ask for advice before resources
4. Forget pride of authorship, spread credit widely
5. When you ‘bend the rules’, keep the best interest of the
company and its customers in mind
6. Honour your sponsors
7. Underpromise and overdeliver
8. Be true to your goals, but realistic about ways to achieve
them
9. Remember, it is easier to ask for forgiveness than for
permission
10. Do any job needed to make your project work, regardless of
your job description
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40. Intrapreneurs play to win !
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Play to win means:
• Start small, but think big
• Develop what is needed
• Address new customers
• Optimizing reward vs. risk
• Place the eggs in many baskets
• Fail often to succeed sooner
• Long term gains
• Effectiveness
• The Exploratory “WoW”
Poker game
41. Top managers tend to… play “not to lose”
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Play not to lose means:
• Big volume markets
• Develop what you can
• Serve current customers
• Minimizing risk
• All eggs in one basket
• Right first time, never fail
• Short term gains
• Efficiency
• The Exploiting “WoW”
Chess game
Play to win means:
• Start small, but think big
• Develop what is needed
• Address new customers
• Optimizing reward vs. risk
• Place the eggs in many baskets
• Fail often to succeed sooner
• Long term gains
• Effectiveness
• The Exploratory “WoW”
Poker game
42. Introduction to Royal DSM
Innovation
Page
- DSM Innovation Center
- Open (Chesbrough) Model
- Venturing
- Stage Gate examples
Emerging Business Area’s
- Bio Medical Materials
- Bio Based Products & Services
- Advanced Surfaces
Learnings
52. Anti Reflective Coatings
Market
• Demand for anti-reflective (AR) coated solar
cover glass is growing strong
• AR coatings are expected to become standard
Value proposition
• KhepriCoat® AR coating provides an
improvement of PV module efficiency of up to
up to 4% due to reduction of reflection of the
sunlight on the solar cover glass
Glass substrate
Coating
(approx 100 nm)
air
glass
KhepriCoat®
53. Same sun, more power
KhepriCoat® anti-reflective (AR) coating technology for solar glass
• Rooftop Project at DSM with 365 modules coated
with Khepricoat®
• 1MWp project in India start of construction Q3/13
• 4,75MWp project in Belvedere New Jersey
54. FOR INTERNAL USE ONLY
Key Take Aways
• Venturing improves the power to select options
• Open Innovation : A tool to rejuvenate your business
• Partnerships mitigate innovation risks
• Partner with an open mind; dare to share
• Construct Alliances based on complementarity
• Focus on the Grand Challenges
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