© Imaginatik plc 2014 | Webinar: KLM Royal Dutch Airlines: A Lean Approach to Open Innovation...

© Imaginatik plc 2014 | www.imaginatik.com

Webinar: KLM Royal Dutch Airlines: A Lean Approach to Open InnovationInnovation Masters Series

October 21, 2014

Rogier van Beugen, KLM

Geoff Carss, Imaginatik

2 © Imaginatik plc 2014 | www.imaginatik.com

Why the Innovation Masters Series?

Hear about innovation best practices from real-world practitioners Advance the state of the art of innovation discipline Share your perspectives and learn in a “community” setting


The Age of Innovation

Today’s leading companies

excel at both Operations and

Innovation


Innovation Programs

Imaginatik works with clients to

build Innovation Programs that

unlock new levels of innovation

maturity.

Innovation Maturity Framework


Sustainable Innovation

Competence

The core elements of a

mature enterprise-wide

sustainable innovation

competence


Rogier van BeugenDirector of Innovation, KLM Royal Dutch Airlines

Today’s speaker

Rogier is the Director of Innovation at KLM Royal Dutch Airlines. Over the past decade, Rogier has held a number of leadership roles at KLM Royal Dutch Airlines. The focus of the past three years has been organizational change, including innovation. Rogier is responsible for stimulating employees to be innovative and optimizing innovation by bringing in external ideas and inspiration.


Introduction to Air France KLM and the aviation industry

Innovation Strategy @ KLM

Open Innovation endeavors

KLM’s innovation strategy & the Green Aruba Challenge


Air France-KLM is a global leader in air transport

NETWORK& HUBS

FLEETMODERN,

FUEL EFFICIENT

BRANDS

KNOWHOW

with more than 77 million passengers and €25.5 billion in revenues in 2014


Airline traffic will double in the coming 20 years


Core business unchanged since foundation in 1919 All Competitors have access to same suppliers (OEM’s) Highly cyclical, commoditized industry

Industry characteristics


Competition = Battlefield

Compete where all competitors have the same ‘hardware’ Where costs are everything Where all competitors share (roughly) the same business model


The world around us is changing rapidly with many potential game changers impacting our industry…

Aging population

Transparency & Trust Personalization& Choice

Globalization & State Capitalism

Networked organization

Changing workforce

Urbanization / Megacities

Emerging economies/Rise of middle class

Migration Generation X,Y,ZDigital Natives

Big data analytics 3D Printing Environmental concerns

Digitization & Internet of Things

Automation & Robotics

Imbalanced population growth

Energy game changers

Re-shoring

Exponential Change

Security


Find value outside Other industries Technology Developments Startups

Use knowledge & Capabilities Enhance products & services Improve processes Develop skills

Sources of innovation


CompetencesVenturing /

Startup ScoutingOpen Innovation

Business Model Innovation

Programs(Cross company, multi department)

BioFuels Big Data Robotics

Key elements of KLM’s innovation strategy


KLM is a leader in sustainability, which is recognized by its unique WWF partnership & 8 year consecutive number 1 position in the DJSI

8 times #1 sector leader, 4 times #1 super sector leader

KLM targets and measures:Climate action Plan follow up: • From 2007 carbon neutral growth with enablers on low, mid and high

impact level, including offsetting.• Partnership WWF 2008- 2012 and renewed to 2015, including

biofuels: • 20% CO2 savings in 2020 and 1% biofuel in 2015.


Own marketrevenue

Internaldevelopment

cost

Revenues

0

Costs

Own marketrevenue

Internal & externaldev. cost

Licenses

Spin-offs

Divestures

New Revenues

Cost & Time savings fromleveraging externaldevelopment

Closed I nnovation Open Innovation

Own marketrevenue

Internaldevelopment

cost

Revenues

0

Costs

Own marketrevenue

Internal & externaldev. cost

Licenses

Spin-offs

Divestures

New Revenues

Cost & Time savings fromleveraging externaldevelopment

Closed I nnovation Open Innovation

Connecting Knowledge & Resources Reducing Costs & Adding New Revenues

Our main OI challenges KLM Engagement

Strategy & frameworks

Culture

Specific competencies

Internal Open Innovation

Technology Scouting

Corporate Venturing

Open Innovation plays a key role in KLM’s innovation approach


Why did we do it / why Aruba?

The partnership KLM-ARUBA

What did we do?

What was the response?

Selecting the winner

KLM’s Green Aruba Challenge


Why Aruba?

But we wanted to do more… biofuel flights can go anywhere


Green Aruba: world-wide recognized ambition

Richard Branson:

“Aruba will set the lead for all other Caribbean islands”

Mike Eman, Prime Minister of Aruba about Green ARUBA:

” We looked for a development where we could connect growth and progress to wellbeing of our society”

Source: TedX Binnenhof 31 march 2014 - Global challenges Dutch solutions


Building an entrepreneurship challenge

The objective: help Aruba reach their goals through entrepreneurship

The prize: launch of their business on Aruba (parallel to launch of biofuel flights)

Activating the Dutch and Aruban ‘green’ startups to contribute

Using the combined KLM and Aruba networks

Finding the best innovations and supporting them


The partnership Aruba - KLM

Dividing the effort

Feet in both continents

KLM main organizer of the challenge

Aruba facilitator of the prize (launch of 2 x 2 weeks, stay on Aruba)

Commitment from Aruba to help bring the winner but also other submissions forward


Using Innovation Central as the platform


The selection process

Juryon Bonaire

Challenge

50 + solutions

Winner takes off

DutchJury

KLMTeam

e.g. 10 good idea’s Top 5

concepts

3 weeks 2 wkn 2 wkn

April 7th April 28th May 2nd May 17thOnline Offline Offline


1st selection will be done online by expert team comparing pairs of concepts


Semi finals; Dutch expert jury


High profile jury in the finals


And the winner is…


50 (proper) submissions

Strong top 20

Excellent top 5

Great reception on Aruba, in media but also among relevant partners both in NL and on Aruba (government, airport etc.)

3 from top 5 have started business

Very positive perception; internal and external

The results


The winner has successfully launched!

© Imaginatik plc 2014 | Webinar: KLM Royal Dutch Airlines: A Lean Approach to Open Innovation...

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