PowerPoint-presentatie

Managing Innovation: challenges for BonarNacht van de Innovatie 20th March 2014

12Bonar, part of Low & Bonar, plcLow & Bonar PLC UK listed company for more than 60 years, with 3 divisions:Bonar (61 % of T/O), following mergerTechnical Coated Fabrics (31% of T/O), acq.2007Yarns (8% of T/O)Bonar (2013) organised in three regions:Bonar EMEA Bonar NAFTABonar APAC

Bonar manufacturing internationally on 11 sites:Western Europe(6)Eastern Europe(2)North America(1)Middle East(1)China(1)

1200 employees, 300 M turnover in 2013Market overview : CivilProduct type ApplicationsGeotextiles:Nonwovenand Woven SeparationFiltrationReinforcementProtection3D geosynthetics and composites(Knitted) geogrids DrainageErosion controlStabilizationSoil consolidationReinforcement

Construction FibersMicro and Macro Concrete reinforcement Tunneling and Mining

Market overview : Interior & TransportationProduct type ApplicationsSpunbond Nonwovens of bicomponent yarnsPrimary tuft backings for Carpet tiles - Dust control mats Commercial broadloom carpet Molded automotive carpet Car mats

Market overview : Building & Industry

Product type Applications3-D monofilament structures Drainage, ventilation and sound control for : Green & metal roofs- Foundation walls & hard floorsPre-vegetated green roof mats New construction and refurbishment Technical wovensScreens; Ground coversMushroom fabrics

NonwovensFilter medium support Bituminous roofing membrane reinforcement

Introducing BonarLeading producer and supplier of high quality synthetic technical textiles, with capabilities in extrusion, nonwovens and wovens , 3d polymeric mats and composites

POLYMERSEXTRUSIONTECHNOLOGY PlatformsPP/PET/PA/PE/PVA

Filament-> YarnsAdditives for specificPerformance & color

Slit Film/Flat Tapes

Fibres

Woven fabrics3D polymeric matsNeedlepunchednonwovensSpunbonded nonwovens

GridsOur StrategyAccelerating growth by expanding into high growth markets for Civil, Flooring, Building products (NAFTA, APAC)Excelling in innovation by design & manufacturing customer-specific technical textile components, helpingBy adding functionality to their productsImproving environmental sustainabilityHelping their processes become more efficientCost & Efficiency leadership to build global businessComplementing organic growth with bolt-on M&A:E.g. Xeroflor prevegetated mats for greenroofs (2012)Texiplast geosynthetics for Civil applications (2013)

Innovative growth ambition16% of revenues from new ( 150 patent positions worldwide.Active co-creation with key accounts (over 75% of T/O):Joint NPD pipeline, 1-3 year horizonJoint IPOpen innovation with suppliers, peers in valuechain.Participate in EU-projectsOur drivers for product innovation

A brief history2006-2007, key acquisitions by Low & Bonar shaping leading technical textile nicheplayer with global ambition.2008-2010: economic downturn brings focus on bottomline.2011: CEO states that Innovation is key in growth strategy2012: CEO announces merger of 2 divisions to accelerate innovative growth in existing markets: 25 m invested supporting future growth2013: CEO supports Innovation & Business Creation initiatives for NPD, NBD, facilitated by The Bridge2014: CEO announces retirement in February.T/O +17% since 2010, at GBP 403m (2013)Profit +40% since 2010 at GBP 26m (2013), ROCE (17%),

2012 questionnaire: own perception on innovativeness of senior management of Low & BonarPotential obstacleMain responsDo we really know the market/our customer needs?need to know customer & market betterAre we too much stuck in tradition?More active scouting of new technology neededAre we avoiding to take risks in order to protect current business?risk avoidance behavior dominantDo we have sufficient/strong cross-functional innovation teams?cross-functional buy-in too smallDo we accept failures and learn from them?rather avoid risk, dont startDo we have the right strategy to support continuous innovation?not clear & communicatedWhere are we now (2014)?Innovation key element of our strategy (annual report)Organization structure adapted to accelerate innovation.Role CEO crucial for Strategy & StructureSystems, Skills, Staff and Style integratedShared Values: Freedom to operate, Accountability, Innovation, Integrity and Open Communication.Global business strategy: alignment with global customersRegional operational structure: close to/focus on marketsChallenge: ways of working in a matrix organizationCross-functional, regional roles

Help how will it work?How will it work? New ways of workingWho do I report to? Functional & HierarchicalWhat am I accountable for? RACI accountability matrixWho will run Bonar? CEO + Exec teamWhere do I fit in?What does the Global Business Unit (GBU) do? Regional vs Global rolesFour Regions

13Adapting global R, D & IFrom Technology-platform organization to Business-aligned.Market-led innovation (pull instead of push)From Operations-supporting to Sales & Marketing leverageMarketing sets priorities, provides focus, owns NPDFrom first make product, then find market to early stage business planning (business plan voted before work starts, prioritized NPD roadmapsFrom making things better (existing customers) to making new & better things (new markets, new technologies)

Research, Development & Innovation

Market led innovation and strategically balanced R&D project portfolio (25 fte) Expertise Centers (NL, B, USA) designed for executing new product development (NPD) roadmaps aligned with global business.Sustained partnerships with leading institutes for polymer research and process engineering (over 10% of R&D exp.)

Stage-gated NPD: a prerequisite16

Recommendations internal NPD audit (2013)Focus on ownership (market-led innovation) and accountability for NPD projectsInstall ideation sessions to fill NPD pipelineNPD projects rigorously (and uniform) in Stage-Gate process.Next to approving gate-transfer, the installed Gate Review Board should focus on project delivery (E2E).

How are we doing on the innovation monitor?We have an active operational idea generation/innovation meeting system per business segment: screens ideas, votes, prioritizes (since 2013)We have an accepted stage-gate system in place for our key projects (since 2008)We have clear metrics to measure innovation (2012)We are progressing on cross-functional buy-in, ownership and leadership for our NPD roadmaps.We have innovation on the executive agenda.Next stepsInnovation reviewed each quarter by Bonar MT.Hiring (additional) innovators to develop strategic initiatives: towards 1.25% R&D expenditure?We have a highly motivated staff in RD&I. Need to work on cross-functional roles and management support (ownership)We defined an ambitious growth agenda. Need to keep focus also on longer term goals and safeguarding core expertises.Innovation is..turning ideas into MoneyTo turn interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of skills, competencies and collaboration

Innovation has nothing to do with how many R&D dollars you have..Its not about money. Its about the people you have, how youre led and how much you get it.20Track record. Processes and tools. Good practice examples.Lets give it the right priority.We now have 3 presentations that will show well we are able to turn successful market led ideas into Money and also show how we can get Oxygen into idea generation20What else?People! Be diverse, foster informal networks. Invite inside-out as well as outside-in views.Foster cross-functional teamwork! From Idea to LaunchFocus on strategic goals! Thats where our (future) market is!Empowerment Accountability!Take risks, try new ways, but fail fast!Our roots: Technology based (but market driven)Long term customer-relations in B2B (but open for new opportunities)Take pride in what we make (and listen to the customer/end-user)Value technical expertise/experts (and respect other functions)Select the right managers to manage this!Thank you!Jan.Mahy@Bonar.comQ&A