Open Innovation in the Europe Marketplace for Mutual Growth Meeting with Francesco Nachira BU29 2/84 European Commission DG-INFSO Unit D5 "ICT for Enterprise Networking"
Objective Discuss approaches for working with the EU Commission via the Digital Ecosystem (DES) to enhance the adoption of European talent, technology and ideas to create global winning innovation with SMEs Joachim vonheimburg, Director, P&G Milan Jevtitch, Associate Director, P&G Francis Bealin, Section Head, P&G
P&G R&D Innovation Centers in Europe A strong engine for growth Brussels, Belgium Pescara, Pomezia, Italy Newcastle, UK Reading, UK Rusham Park, UK Schwalbach, Germany Darmstadt, Germany Kronberg, Germany P&G invests > 1.6 Billion (3.4% of Sales) in R&D At least a third is invested in Europe (~ 3000 scientists) This is matched by at least 1.5 Billion in holistic innovation spending (e.g. design, consumer research, modeling, eng., etc.)
P&G An Innovation and Brand Leader 2004 #1 Brand Building Company - Forbes 2004 #1 Global Innovator - Fortune 2005 #2 Global Innovator - Fortune 2006 #7 Most Innovative Companies- Business Week 2005 Collaborate with European Union on Open Innovation (Nabil Sakkab at Mr. Busquin s EU Workshop) 2006 Sharing with Leading Companies at Open Innovation Select Event July Meeting with Commissioner Potočnik Ahlstrom BASF BMW BP BT Cadbury Degussa DSM Nokia Oetker Philips Shell
Vision Become a premier global network based company Goals In-Source 50% of Innovation
C+D Milestone Reached 52% of our project establishments and in-market initiatives have a significant C+D component! L.A. Huston SK-II Airtouch Foundation Mr. Clean Magic Eraser PuR Furnace Filters Swiffer Duster Kandoo Wipes Prilosec OTC Olay Regenerist Tide Stainbrush Mr. Clean Autodry 2000 2002 2004 2006
Innovation Mandate 1 Growth! Must create growth equivalent to a $4 Billion company every year
Importance of Networks The economy is no longer a market economy but a network economy. Companies are increasingly embedded in networks of alliances. Indeed, networks have become so dominant in the modern society that they have become an organizational form in their own right. Quote Pieter De Man (Prof. Org Science Eindhoven University of Technology, Holland)
Build Innovation Networks
4 Billion/yr New NOS Generation 9,000 P&G R&D People
P&G s Global Innovation Network China Europe India Japan North America Low Cost Innovation New Product Concepts + Disruptive Technology + Low Cost Innovation (EE) Intellectual Capital Holistic Product Concepts + Execution Excellence Disruptive Concepts + Technology + Entrepreneurship
Examples of Europe Connections New foam Novel Enzyme Skin wrinkling improvement New Perfume New Polymer P&G has R&D programs with top chemical companies and top Euro university networks (e.g. BASF, Leuven University, etc.)
Open Networks Brokers and e-r&d Channels YourEncore NineSigma Innovation Relay Center Alibaba
Synergy A Web-based Network for Innovating with Suppliers Mutual growth opportunities Faster, more cost efficient innovation Increased innovation productivity Access to the right experts Gets to the right solution faster.we have seen a 30% increase in innovation projects with participating suppliers.
Benefits to Supplier-Partners P&G Suppliers see more of P&G s toughest problems Suppliers gain additional opportunities to solve our needs Suppliers can identify new opportunities for business growth Synergy establishes a common language Suppliers can submit unsolicited ideas
Theme For Action (Commissioner Potočnik discussion July 6 th 2006). Create a state of the art Pan European Network capability to identify talents, technologies and ideas to support innovation. P&G is prepared to partner and take an active role with the EU commission and like minded Euro companies. Current EU fragmentation is a barrier to effective connectivity. (How to reach effectively all Euro assets?) Where networks have been built, we have seen an increase in successful connections. Such network should cover mid-size companies, innovation clusters as well as SMEs.
Opportunities for P&G Participation in EU Digital Business Eco-system Discussion How does P&G create a presence in the DBE Portal on which we describe our needs for new innovations and innovation expertise? How can P&G leverage the existing transactions and services for matching needs with providers? What s the most natural way to include the EU DBE in our standard Connect+Develop work processes?
Opportunities for P&G Participation in EU Digital Business Eco-system P&G needs: Ability to find companies with specific expertise Matchmaker/Broker functions to link our needs with qualified providers Technology Personal Networking