Ralph Schimpf, Corporate Director Prototyping, Beiersdorf, presentation at InnoCos Paris: Open Innovation Across the Value Chain.
Conference organized by KGS Global, Paris June 8&9 2011.
1. Open Innovation across the value chain
Presentation InnoCos Europe
Paris, June 9th, 2011 – Dr. Ralph Schimpf
2. 2
Value chain in the FMCG industry
Culture of (open) innovation
Suppliers,
External Materials, Compounding, Distribution,
technologies Consumer
Know How Production trade
sources
6. Beiersdorf – Global Player Skin care
Founded 1882
Company sales 2010: 6.194 Mio. €
More than 19.000 employees
in more than 150 subsidiaries worldwide
7. More than 125 years of innovative skin care
1882! 1900! 1909! 1911! 1922! 1951! 1991! 2002! 2007! 2009!
Foundation Introduction Introduction Introduction Introduction Introduction Acquisition Acquisition Acquisition 3. NIVEA Haus
Beiersdorf# Eucerin# Labello# NIVEA Creme# Hansaplast# 8x4# La Prairie# Florena# C-BONS# in Berlin eröffnet#
8. | Page 8
Focus on What We Do Best
* Depending on market, NIVEA Lip Care or Labello. Labello had 16 #1 positions in 2009 and 2010. Source: AC Nielsen / IRI, Status as of December 31, 2010
Full Year Results
March 2011
10. The philosophy: Different management styles in early and
late phase of innovation
PHASE 1 PHASE 2 PHASE 3 PHASE 4
GATE Concept and GATE Development GATE Production
Discovery
1 Feasibility 2 and Scale-up 3 and Roll-out
Creative phase G2 Executive phase
Freezing
zone
10
13. 13
Open Knowledge Management
… is more than collecting data and facts, it‘s the ability to
group data in a meaningful context,
acknowledge and show relations and rules,
and to distribute and share knowledge as efficient as possible. !
14. 14
Trust – a prerequisite for an open innovation culture
Share knowledge
Acknowledge performance
Have fun together
10
15. 15
Short paths – open (= simple) communication
R&D
Maximum distance in R&D headquarter:
220 m
Average distance to international
marketing: Marketing
200 m
Distance to Packaging Development &
Patent department: 500 m
R&D
Marketing
Patent departm.
Patent departm. Packaging
100 m
Packaging Development
16. 16
We invest in short paths
Bridge 4th floor, 70 m
Tunneling residential
buildings
Legende:
FuE
Marketing
Patentabteilung
100 m
Packaging
17. 17
Build up of know How and open network building
p loyees,
ew R&D em rs
r se for n uided tou
Training cou 30 lectures & g Property
,
h l
8 Mo nths wit hain, Intellectua
C
(R&D, Supply
)
Mar keting…
18. Corporate R&D HQ
R&D Center USA La Prairie
(Wilton) Zurich NKO R&D Center
New York, Tokyo, Japan
C-Bons China
Wuhan
18
21. 21
We invest in consumer & shopper understanding
Regular consumer visits and
shopper safaris
1,200 employees have been trained
under the frame of a consumer
insight program
Top management participates
regularly
22. 22
Web-based insight generation: Netnography
Analysis of community communication
& blogs in the net community
Unfiltered insight generation
Creation of new product concepts
23. 23
R&D: Technology, as close to consumers as possible
In our Testcenter premises more than 300
consumers per day test our newest ideas
Consumers are directly involved into
discovery projects
Bringing together scientists, engineers and consumers allows to develop
products with utmost consumer relevance
24. 24
Consumer integration – without filter
Observation rooms
Bath rooms with camera equipment
Consumers test products and prototypes
Observation followed by common interpretation of test person and observer
25. 25
Consumer integration - „online“ lab
Group discussion and development in direct neighbourhood
Adaptation of product with direct feedback
Product optimisation within hours
27. 27
Attracting partners – it’s more than business numbers
High investments in one of the biggest skin research labs in
Europe: A magnet for scientists & suppliers
28. Ways of Collaborating with suppliers: Open doors
Incubation Lab
Open market place or symposium Collaboration between BDF and
with a privileged external partner to external partners „at the bench“ to
identify innovative ideas and jointly find solutions for
solutions which lead to collaborations scientific challenges
In-house Seminar
Promotion of existing technologies Trusted Network to invite external
and raw materials by suppliers innovators to propose ideas and
as a trigger for further activities solutions addressing BDF´s
scientific challenges
29. 29
Cooperating with fragrance houses
Integration of 2 partners
2 external employees with permanent
office in our R&D headquarters
Defined projects
Common evaluation of fragrances
No direct competition between partners
30. 30
Incubation Lab
Employees from selected raw material
suppliers in our labs
Typically 2 to 6 weeks
Mutual deployment of employees
Defined projects
No direct competition among partners
31. 31
Incubation Lab – Success factors
Unrestricted utilisation of technology and know how
Transparence of decision processes and criteria
Commitment for common projects
Quicker decisions on both sides of the table
Innovation in an open-minded working atmosphere
33. 33
Technology Scouting – Open for new perspectives
Systematic search in
adjacent industries
and technology fields
34. 34
Technology Scouting
Beiersdorf practices full-time and part-time scouting:
Full-time
+
+ Broad, long-time experience and special personal qualification and interest
- Overflow limits competence of assessment
+- Medium term: Loss of practical-operational basis
- - Competition with line organisation
Part-time
+ Direct link with line organisation
+
+ Continued education and job enrichment
+
-
- Loss of focus on core job
35. 35
Webplatform „Pearlfinder“
Why creating our own solution?
Commercial providers (e.g.
Innocentive) are only applicable for
very special solutions
Beiersdorf needs a tailor-made
platform
36. 36
Our approach: the Trusted Network
Pearlfinder is covered by a Nondisclosure
Agreement:
Beiersdorf ensures no IP activities related to
the external ideas provided to Pearlfinder.
Through Beiersdorf´s openness the external
partner can better understand our needs.
37. 37
Key elements of Pearlfinder – 3 Briefing types
Open Briefing (Open community)
Non-confidential search fields, e.g. new preservatives
Technology Briefing (Selected partners, typically >10)
Scientific challenges to get ideas, e.g. specific anti-aging principles
Engineering Race (Selected partners, typically 2-3)
Request for solutions, e.g. formula with special attributes
39. 39
Importance of Point of Sale
Emotional encounter with the brand; orientation and advice
40. 40
The NIVEA houses: Open doors for consumers
Nivea Houses in Berlin, Hamburg & Dubai
Direct selling of products
Wellness & beauty treatments for consumers
Important learnings on consumer needs
41. 41
Scientific consumer advisory service
Demonstration of dermatological know
how and skin competence creates trust
Intensive dialogue with consumers
Targeted questions, evaluation of data
and feedback generates insights
42. Computer-aided product advice: NIVEA
Skin
Moisture
Elasticity
Lipids
Skin type with recommendation for sun
protection
Hair
Degree of damage
Lipids
Colour
Used at
NIVEA-Houses
Shop-in-Shops
44. Take home messages
A healthy (open) innovation culture is a prerequisite for a
running strategy („Culture eats strategy for breakfast“ – P.
Drucker)
Creative integration of external know how is a key influencing
factor
(Open) Innovation does not only mean product innovation (e.g.
POS)