01 Petr Kotal on Open Innovation
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Transcript of 01 Petr Kotal on Open Innovation
The Role of The Role of SME`sSME`s, Public , Public Sector and Large Enterprises Sector and Large Enterprises
in the in the Open Innovation JourneyOpen Innovation Journey
PetrPetr KotalKotal
ArkoArko consultconsult Arko consultGeneva, Prague
Personal History
• Ph.D., D.Sc. in biochemistry
i. 20 years in academic clinical research
ii. 15 years at Procter & Gamble (R&D, External & Government Relations)
iii. Consultancy(Open innovation)
•
Arko consultGeneva, Prague
•• Current challenges in innovation Current challenges in innovation
•• Open Innovation Open Innovation …… The early yearsThe early years
•• Looking forwardsLooking forwards
Today’s Agenda
Arko consultGeneva, Prague
Discovery Market
Develop/Develop/EvaluateEvaluate
Adapt/Adapt/AdoptAdopt QualifyQualify LeverageLeverage
Arko consultGeneva, Prague
SME`sSME`s Large Large EnterprisesEnterprises
Public Public SectorSector
Product launches: New but not novel
Hardly any breakthroughs
Less innovation at top companies
Pace of Innovation Accelerating
Cost Increasing
Fast Followers Following Faster
Resources Constrained
Consumers More Demanding
The realities of modern innovationThe realities of modern innovation
Scope50% of innovations from outside
“Proudly found elsewhere”<10% of innovation from outside
Focus 3600Mostly technology leads that are brought to practice
Risk/Reward Shared Pay for and own everything
IntellectualProperty Manage as appropriate Keep it inside
Organization Manage Know-How and Know-Who Manage know-how
Old WorldOld World
A Vision for Change
Level of outsourced R&D?
Procter & GambleProcter & Gamble
Over Over $68$68 billion in salesbillion in sales
300 brands in over 300 brands in over 160 countries160 countries
#1 or #2 in #1 or #2 in 80%80% of our categoriesof our categories
140,000140,000 employees (incl. Gillette)employees (incl. Gillette)
The Innovation Challenge
Almost $100 million additional sales every week
Reliance on external partnersReliance on external partners
$5 Billion/yrNew NOS Generation
P&G R&D9,000 People
Challenge
•• Current challenges in innovationCurrent challenges in innovation
•• Open Innovation Open Innovation …… The early yearsThe early years
•• Looking forwardsLooking forwards
Today’s AgendaToday’s Agenda
Arko consultGeneva, Prague
Cross-Fertilization
The Synthetic Detergent
• Surfactant
• Builder-enhancing detergency power by chelating calcium in water
EHDP
Tartar control toothpaste
Prevent tartar formation by chelating calcium
EHDP
Bisphosphonate drugs Common Therapy for Osteoporosis
Binds to bone calcium and inhibits bone destruction
X
Annual sales > US$1.5 Billion
Bone destruction due to osteoporosisProtected bone
Cross-Fertilization
• Opportunity for SME`s?
• Reapplication of “drug”technologies in e.g. consumer products
Arko consultGeneva, Prague
Open Innovation3600 View
• Product • Packaging • Production • Marketing• Distribution
• Commercial innovation
• Cost innovation• Public funding
Arko consultGeneva, Prague
Public Funding• 7th Framework Program• European Structural Funds
Discoverwhere the EU and your Company
goals are in line andget a funding
European Structural FundsEuropean Structural Funds175 billions of 175 billions of €€ in 2007in 2007--1313
Arko consultGeneva, Prague
Benefits of Open InnovationBenefits of Open Innovation
Drive growth & profit
Speed
Risk
•• Challenges in innovationChallenges in innovation
•• Open Innovation Open Innovation …… The early yearsThe early years
•• Looking forwardsLooking forwards
Today’s Agenda
Arko consultGeneva, Prague
Both SME`s and Large Enterprises (LP) can lead !
ReactiveReactive““LP`sLP`s dondon’’t know what they wantt know what they want””
SME`sSME`s drive the process anddrive the process andhave convincing data on the value of the have convincing data on the value of the
innovationinnovation
ProactiveProactive““LP`sLP`s know what they wantknow what they want””
LP`sLP`s drives the process and can rapidly drives the process and can rapidly evaluate candidate solutionsevaluate candidate solutions
Success Stories
• Consumer product industry
• IT industry
• Automotive industry
• Electro technical industry Arko consultGeneva, Prague
P&G’s Global Innovation Vision
“We will acquire 50% of our technologies and products from outside P&G.”
A.G. Lafley, CEO (2002)GBUs
Employees/ Retirees
CorporateNew
Ventures
Technology Council
Communities of
PracticeTrade Partners
Joint Development Partners
Virtual Networks
Venture Capital
Alliances
Contract Labs
Research Institutes
Suppliers
MDOs ConsumersIndependent
Entrepreneurs
.
Results (July 2006)
52%
Over 70% from SME`s
A.G. Lafley
“Innovation is our lifeblood”
“Simply put, innovation is a pre-requisite for sustainedgrowth. There is no other path.”
“
QuotesQuotes
• Outstanding consumer and regulatory understanding
• Manufacturing expertise/scale• World class marketing• Global distribution• Financial Muscle
What can Large Enterprises offer to SME`s
Arko consultGeneva, Prague
Tips for SME`s• Reapply “Cross-fertilization” in a daily
practice• Leverage “know who” in addition to
“know how”• Understand and focus on EU long term
objectives and engage in EU funding• Engage in public/private partnerships• Reflect needs of large enterprises and
learn about their business needs• Build regulatory and IP capability
Thank youThank you
PetrPetr KotalKotal
Arko consultGeneva, Prague