Implementing open innovation Paul Isherwood GSK by zY4kni

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									    Making it all happen:
Implementing innovation
   FDIN Open Innovation Seminar
                     Paul Isherwood
                  26th November 2009
            How true is this quotation?


    “Everything
    that can be
    invented has
    been invented”

Attributed to Charles H. Duell, Commissioner of the
  United States Patent and Trademark Office, 1899

                                                      Charles H. Duell (1850-1920)
   The long nose of innovation
Most valuable innovations take a long time to develop
An idea may well start with an invention - the bulk of the work
and creativity is in that idea's augmentation and refinement
Those who can shorten the nose by 10% to 20% make at least
as great a contribution as those who had the initial idea
Long noses are great for sniffing out those ideas sitting there
neglected, just waiting to be exploited
         Bill Buxton, Principal Scientist at Microsoft Research, Business Week, 2 January 2008
5Ps overview – innovation strategy

 PURPOSE – why you need to innovate
 PROCESS – which development stages should you use
 PEOPLE – what human resources are needed
 PARTNERS – how external partners can help
 PERFORMANCE – which targets & metrics are key

                     Source: Open Innovation in Action, Andrew Gaule, H-I Network, October 2006
                  Agenda
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers, external
website, new product launches (better, faster, more!)
                  Agenda
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers, external
website, new product launches (better, faster, more!)
GSK company mission
Market Leading Brands Driven by Science
           Based Innovation
                  CEO 2009 Objectives



Continue to pursue business development / acquisition opportunities to
support global diversified growth and continue to look for bolt-on
acquisitions for our consumer business.




Make significant progress in doubling Consumer, to include an ambitious
strategy for globalizing Nutritionals, looking for external switch
opportunities and expanding rapidly in Emerging Markets
                  CEO 2009 Objectives



Continue to pursue business development / acquisition opportunities to
support global diversified growth and continue to look for bolt-on
acquisitions for our consumer business




Make significant progress in doubling Consumer, to include an ambitious
strategy for globalizing Nutritionals, looking for external switch
opportunities and expanding rapidly in Emerging Markets
     GSK Four Growth Platforms


                Growth
Accelerate   Marketing     Geographic       New
Innovation   Excellence    Expansion      Business




   Our business will be differentiated by GSK’s
   superior science and marketing capabilities
GSK Launches Lucozade in China
                  Agenda
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers, external
website, new product launches (better, faster, more!)
                   Open Innovation:
            Finding Great Ideas in Surprising Places

Universities


Suppliers                                            New
                                                  Innovative
Search
                                                   Products,
Partners
                                                    Market
Internal
                                                    Models
Sources



     Open Innovation: Using the capabilities of the
        outside world to accelerate innovation
     Leveraging Open Innovation



Open Innovation
                          Pharmaceuticals
                          •    Neurology
                          •    Anti-infectives
                          •    Oncology
                          •    Respiratory
                          •    Cardiovascular
                          •    Metabolic
                          •    Vaccines




                      Consumer Healthcare
                      •       OTC
                      •       Oral Care
                      •       Nutritionals
Open Innovation – External
      Want    Find    Get     Manage


                                   External
             GSK Technology      Technologies
                 Scouts

               Search
              Companies

                External
                Networks

                 Culture
                 Change




             Enablers
ENIGMA rollout day – September 2007


 Who was there? 75 external organisations (150 people)
  • Ingredient & packaging suppliers
  • Research associations & institutes
  • Development organisations
  • Process equipment manufacturers
  • Environmental companies
  • Academic institutions
  • Consultants & inventors
  • Competitors & industry representatives
 Q & A session, networking, mingling, conversations etc
        How does ENIGMA work?
A cross functional group committed to managing the
relationships between GSK and its external network
Increased quality of dialogue with external network that
can help us deliver solutions to our business drivers
 • GSK relationship owners
 • Agreed levels of engagement
 • Appropriate levels of dialogue
 • Regular innovation exchanges
 • Idea generation sessions
 • Stretching innovation agendas    Getting unusual suspects to solve R&D puzzles
                                             Harvard Business Review May 2007


Innovation focus – ideas submitted quarterly, cross
functional team reviews, timely feedback and action
ENIGMA Think Tank – March 2009


 2 key technical challenges identified by brand/R&D teams
 Bring together scientific experts to creatively explore issues
 24 organisations attended – academia & industry contacts
 Plus innovation experts from OUTSIDE food & drink
 6 GSK facilitators from R&D, Marketing & Procurement
 Brainstorming type activities to stimulate creative thinking
 Several potential areas identified for further investigation
Connectivity → Interactions → Idea sharing = Networking
ENIGMA Think Tank – March 2009
                  SPARK Network
GSK Consumer Healthcare’s
innovation ecosystem
Virtual team of innovators from
around the world
Share best practice and provide
access to innovation resources
Formed early 2007 – one global
telecom a month since
Facilitate I*3 meetings (Insights,
Ideation, Innovation) – unique
creativity sessions designed to
build future pipelines
Top 50 original, business building
ideas showcased & voted on
       Innovation sans Frontieres

2 teams of 12 creative individuals
– budget, tools & resources
Free reign to innovate with no
senior management input &
outside normal process
Tasked with generating several
“big ideas” in the most innovative
& creative way possible
7 months to fully develop ideas
from concept to prototype
Opportunities identified were
progressed to next project stage
    MIDAS – Prospecting for Gold
Started in 2005 by group of R&D
people with passion for innovation
Inclusivity – everybody involved
Quickplace database for submitting
& comparing ideas
Finding others with common
interests stimulates further idea
generation
Sessions held covering brainstorms
& innovation tool teach-ins
Focused science presentations by
experts on current areas of interest
        Ideas – three simple questions

    Is there a consumer need?
    Can we crack the technology?
    Can we make money on it?


   How do you combine what’s
    needed from the customer with
    what’s possible technically?
   When those two things come
    together you can create
    products that delight your
    customers
                  Agenda
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers, external
website, new product launches (better, faster, more!)
    GSK High Performance Behaviours
                  Cluster                                     Behaviour
         Innovative Thinking                                 Information Search
     Seeking information, managing complexity,           Creating Business Solutions
   generating ideas, developing options, depth &
    creativity of thought, encouraging innovation             Flexible Thinking
Engaging & Developing People                               Building Relationships
Valuing & respecting others, coaching, creating trust,           Teamwork
 empowering others facilitating groups, developing
             people and building teams                       Developing People
             Leading People                                       Influence
  Communicating a compelling vision, influencing            Building Confidence
   others, generating passion, energising others,
            building confidence & belief                       Communication
        Achieving Excellence                               Enable & Drive Change
Getting results, driving excellence, customer focus,      Continuous Improvement
 making targets, galvanising action, delivering the
                      bottom line                             Customer Focus
            R&D Innovation Awards
Nominated by Leadership Teams:
 • Guru
 • Fusion
 • Innovation maestro
 • Process innovation
 • Risk taker
Nominated by peers:
 • Demonstrates functional area expertise
 • Pushes the envelope in building the pipeline
 • Cuts through red tape to deliver results
 • Breaks down barriers to drive our growth
                  Agenda
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers, external
website, new product launches (better, faster, more!)
Open Innovation Benchmark Survey
                                            http://www.ninesigma.com/



 NineSigma helps companies develop & maximise value from their
 open innovation programmes
 Survey sent to R&D executives and business unit leaders in Dec 2008
 More than 100 innovation leaders responded to the survey
 Some of the significant findings include:
 •   Increasing importance of external partnerships in the next 5 years
 •   Different barriers to adoption reported by small and large companies
 •   Predicted increase in spending on external innovation from 2008 to 2009
 •   NPD & Basic Research are cited as current focus areas of OI efforts
  Open Innovation vs. Collaboration
Open innovation: much more explorative
 • Believing that good ideas can come from anywhere
 • Casting the net wide for ideas – more you invite the better the output
 • Aims to identify opportunities, explores possible futures
 • Thrives on connections, accidental discovery & good luck
Collaboration: has a specific purpose & can be quite directive
 • Generally sets out to address a problem already identified
 • Knowledge of capabilities, expertise, strengths of partners
 • Different values, backgrounds & cultures can present problems
 • Does not happen naturally – needs hierarchies & planning
  Incremental vs. Radical Innovation
Incremental innovation: Step forward along a technology
trajectory
 • Moving from the known to the unknown with little uncertainty
 • Using existing methods and technology to generate minor
   improvements
 • Short term focus
Radical innovation: Entirely novel approach to achieve a
breakthrough
 • Often involves working outside mainstream paradigms
 • Requires larger leaps of understanding
 • Demands a new way of seeing the whole problem
 • Considerable change in basic technologies and methods
 • Higher risk, higher reward
              Breadth of Innovation
Innovation should be considered in its
broadest view when seeking ideas or input
In an innovation supported growth model,
growth can come from a number of areas:
 • Ingredients
 • Products
 • Packs
 • Processes
 • Claims
 • Routes to market
 • Regulatory compliance
All are valid
                    Agenda
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers,
external website, new product launches (better, faster,
more!)
Open Innovation Promotional Booklet
What problems are we trying to solve?
Open Innovation External Website
      www.innovation.gsk.com
          Superiority – New Claims
Brand      Claim       Brand     Claim     Brand     Claim


          5 times               29% hip              Taller,
        faster than             fracture           stronger,
         generics              reduction            sharper




         4 times               50% more              25%
          faster                weight             stronger
                                 loss               enamel



          Doesn’t               Boosts             Drug-free
        scratch like            mental               better
          Colgate               energy             breathing
Consumer – 2009 Major Launches
                   Nutritionals – 2009 launches




•   7 projects, 24 new products plus updated packaging
•   Powders, bars, gels, tablets & RTD – less than 12 Months
     Entering new categories – 2008/09




• Alert   – designed to sharpen your mental performance
• Alert   Plus – quickly consumed, provides a mental energy boost
Conclusions & takeout from today
PURPOSE – GSK business, brands, strategy, objectives
PROCESS – expanding external and internal networks to
generate ideas and fuel the pipeline
PEOPLE – culture changes, innovative behaviours,
innovation awards
PARTNERS – OI benchmark survey, OI vs. collaboration,
incremental vs. radical, breadth of innovation
PERFORMANCE – OI brochure, business drivers, external
website, new product launches (better, faster, more!)
       Fusion Fuels Innovation

Process by which multiple particles join together to
 form a nucleus, accompanied by release of energy

								
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