Achieving the next level of excellence in innovation

Transcription

1 0 Achieving the next level of excellence in innovation DSM Innovation Center October 2010

2 Successful transformation track record 1 DSM new brand Coal Mining Commodity Chemicals Specialty Chemicals Life Sciences & Materials Sciences A history of continuous innovation

3 Elements innovation boost, as announced in 2005 Elements innovation boost, as announced in Core Businesses Life Sciences Materials Sciences Additional innovation expenditure Managing the pipeline Intrinsically Innovative Company Accelerated Growth Areas NBD Acquisitions > 75m p/a Top 50 projects Emerging Business Areas Venturing/Licensing Best practices To ~ 1bn by 2010 Business opportunities Investments Management Both focused on the short- and long term

4 Innovation boost Proud to have achieved 1bn sales from innovation Increased speed of innovation Setting up EBAs Strong innovation infrastructure/culture External recognition as leading innovator Proven our ability to accelerate the pace of innovation

5 Huge improvement of innovation practices at DSM Innovation Aspirations Innovation Strategy Idea Generation and Validation Project Management Average DSM 2006 Average DSM 2010 Industry average 5 Commercialization and Launch 6 Portfolio Management 7 External Networks 8 Organization 9 Culture and Talent Overall results have considerably improved since 2006

6 Broad range of innovations 5 Climate and Energy Health and Wellness Functionality and Performance Emerging Economies PER.C6 Focus on societal trends drives innovation success

7 DSM in motion: driving focused growth 6 People - Planet - Profit: creating value along three dimensions

8 Innovation in new strategy 7 Next level aspiration Innovation sales: > 20% of total sales Sales EBAs (BMM/BP&S): > 1bn Innovation focus on platforms Value creation via best practices Set up China and India Innovation Centers to 20% From 12% Innovation sales Doubling innovation sales

9 Further boosting innovation performance 8 1. Focused approach through innovation platforms 2. Balance radical and incremental innovation 3. Internationalize: Regional Centers in China and India 4. Expand open innovation 5. Improving innovation practices: Excellence in Innovation 6. Supporting (corporate) Technology Platform ROPUFA Dyneema DeSolite - super coatings KhepriCoat Rovimix OVN Palapreg ECO Achieving the next level of excellence in innovation

10 Focused platforms and a well-stocked pipeline 9 Global shifts Climate & Energy Health & Wellness Innovation Platforms (Examples - Business Groups) Bio Bio processing processing ingredients ingredients Food/feed Food/feed ingredients ingredients (Bio) (Bio) Manufacturing Manufacturing Bio-based Bio-based clean clean // green green materials materials Sports Sports & Life Life Protection Protection Materials Materials Emerging Business Areas ( DSM Innovation Center) Bio-based Bio-based Products Products & Services Services Advanced Advanced Surfaces Surfaces Biomedical Biomedical

11 Building new growth platforms 10 Strategy Bio-based Products & Services License and service model to cellulosic ethanol industry Production of bio-based chemicals from traditional crops Focus on green materials with better performance Aspirations Sales in 2020 > 1bn High EBITDA margin Develop EBA Advanced Surfaces Strategy Biomedical Expand current biomaterials, application and technology portfolio Grow emerging drug delivery business through market presence/access Venture/partner for regenerative medicine & tissue engineering

12 Balance radical and incremental innovation 11 Introduction of portfolio management tool Company wide insight into composition of portfolio Optimizing the mix between radical and incremental innovation Allows comparison of innovation platforms Market life cycle emerging growth mature Existing Portfolio Radical Portfolio decline 0.5bn Improved offering 1bn Offering** new to PMC Offering new to DSM Innovation type (proposition is.) Enabling company wide steering of innovation portfolio Offering new to world

13 Steering of radical portfolio 12 Introduction of global company-wide approach Reinforces long term attention for Life Sciences and Materials Sciences Further encourages cross fertilization between LS and MS Managing Board decides on final composition of portfolio Platform stage-gating with graduation criteria Business Discovery Business Development Theme Business opportunity Incubation Platform Platform/ Business area in BG/DIC BU / BG Themes cloud Reinforcing the key pillars of DSM s strategy

14 Open innovation is key 13 Venture capital investing in and partnering with early stage companies Licensing: increasing the use of new business models and open innovation throughout DSM Joint ventures Strategic partnerships Intrinsic part of innovation at DSM

15 Excellence in Innovation program 14 Five modules targeted at improving: BGs innovativeness: inspirational leadership, strategy and capabilities Top project delivery: project management, commercialization skills Market understanding: knowledge management, hidden needs Entrepreneurship: cultural change, business plan contest Performance orientation: diagnostic, targets, incentives, accountability Boosting innovation performance throughout DSM

16 Accelerating and supporting innovation 15 DSM Innovation Center New Business Development Enablers EBA Biomedical Excellence in Innovation EBA Bio-based Products & Services CTO Office EBA Advanced Surfaces Licensing Business Incubator Venturing

17 Core elements of (open) innovation at DSM 16 Strong strategic commitment Tailored organizational structure enables efficient steering of innovation portfolio Focus on building relationships with external partners throughout innovation pipeline Continuous drive to improve: from Good to Great Creating sustainable growth for all stakeholders

18 Mission of DSM 17 17