How to use open innovation technology search tools to accelerate your innovation cycle

1. using open technology search tools
to
out-innovate the competition
Marcel Zillig
Sales Director
+491727490597
zillig@ninesigma.com 2012 © NineSigma Inc.

2. Why Borders Books failed and Amazon survived
...working backwards from customers needs often demands that we
acquire new competencies and exercise new
muscles, never mind how uncomfortable and awkward-feeling
those first steps might be....
Jeffrey P. Bezos
Founder and CEO Amazon
April 2009, Letter to Shareholders
„they sell the need to have access“
the need driven approach

3. Developments are shifting
outside the large enterprise …
Company
size in
# employees • > 70% R&D spend
outside large
organizations
(invisible to you)
• 30% of R&D spend
is by SME’s
Source:
Henry Chesbrough

4. There is a tangible change:
In challenging companies on how they innovate
and grow from:
R&D to S&D /Collaborate & Integrate
Ownership to Access
Avoid Risk to Fail often
Idea driven to Need driven
Assets to Ecosystem
Enable and engage organizations to use open
innovation and develop the right capabilities

5. Embedding OI into your product creation
process / innovation process
Existing Processes
Strategic Acceleration Project Portfolio Product
Growth Area’s Creation
options • Internal assets Process
• Hypothesis or & resources
insights into • Scouting • External assets • Your
future market • Internal network & resources standard
needs • Trusted network • ‘Due diligence’ process..
• Key Growth • Global ‘network’ • M&A
Areas • Gather qualified • Partnerships
• Business cases options • Project
• White spaces • Local search bias/ definition
Firewall • RFP’s for
• RFP’s & Open problems
Intelligence for
options

6. New solutions and ideas come from internal
and external networks
GLOBAL INNOVATION
Your Innovation COMMUNITY
Ecosystem Non-profits Private Laboratories
Small entrepreneurial
companies Consultants
Large Corporates
Universities
Business Providers in
Development Suppliers virtually every
EXISTING country
NETWORKS Other
National
Over 2 million Business Labs
solution Units Research
providers Universities Center
INTERNAL
Retirees
Others University Technology
Transfer Offices
NineSigma
Industry Affiliates
Academia
Labs & Institutes Individuals Research
Inventors Institutes Continually expanding
network

7. NineSigma is your firewall :
Protecting the exchange of your sensitive
information
• your needs to the
global innovation
community
• valuable information
to you
• preventing leakage and
detection by
competitors
• allowing identification,
development and
transfer to your
business
environment

8. Searching for Solutions
The RFP is the connector to the global innovation community
an RFP is:
• a vehicle enabling the exchange of non-confidential
information with the global technical community • Tacit knowledge
• a clear, concise and compelling statement of a technical / • expert crowd sourced:
business need 8.000 to 10.000+ people
whom we search for and
• a clear outline of a proposed project
identify that have
• is a business opportunity relevant knowledge
• with technical specifications • non confidential:
• with the project timing enables IP transfer and
partnership
• with evaluation criteria
• 60% industry:
• with responders which are typically business AND
unknown to our clients academics
• circulated broadly against a custom network • 40% surprise proposals
• with global responses from Universities, Companies, people we did not
Research Labs, inventors … contact
and typically we receive 10 ~15 quality proposals per RFP

9. NineSigma’s Methodology for
Assessment and Acquisition
A Straight forward Process supported by Proven Services
Innovations- Source (RFP) Service Success - MAP*
project analysis
translation connection report out
selection and selection
RFP
report -Request For Proposal-
Creation of an RFP
2 weeks 4 weeks 2 weeks
*MAP=Method to Assess Providers
NineSigma’s best practices help guide you to a mutually beneficial
partnership with the ideal Solution Provider

10. NineSigma Challenge suite
What are the reason for doing RFP`s ?
A well crafted challenge program can provide a multitude of
direct and indirect benefits
• Rapid, diverse and actionable solutions that can be
easily inserted into the daily workflow
• Identify new technology leads, ideas & partners
• Establish contracts with solvers, import the solutions
and turn these into long term partnerships
• Measure what is available on the outside
• Benchmark the knowledge inside the company
• A source of information that can inspire your R&D
to higher levels
“We have learned a lot about potential partners with RFP´s…. But more importantly
this has allowed us to learn a lot about ourselves and our own company”

11. Finding solutions others can’t
Typically, 2/3 or more technologies submitted were unknown to the
client. In some cases, the clients, although highly knowledgeable in
their field, knew of none of the technologies because:
They came from
businesses who did not
make their IP publicly
known.
or
From sources outside the
client’s core areas of
expertise.
or
From geographically
distant sources for which
the client had had no
information.
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12. Global search for unexpected solutions
Finding ‘unexpected’ connections
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13. Example
An automotive company was looking for a fluid sensor
that could both measure the fluid level and the
temperature in a closed transmission system.
Through the RFP model a small Ukraine
company was identified that developed fluid
level and temperature sensors for the dairy
industry. Client was able to acquire this
technology reducing time, risk and costs.

14. Technology Landscaping
the visualized matrix for your strategic decisions
Quick Scan - Landscaping- Trending - Monitoring
NineSigma supports global companies to help them make sense of complex technology and business
environments and to exploit these to their advantage
Sourcing, analyzing and visualizing the coherent landscape of relevant technology, players, opportunities and threats
Answering “so what does this mean for me”

15. Nine Sigma Open Intelligence Service
Signals of change through ‘unexpected connections’
Knowledge
Technology
Global Knowledge & Technology
Monitoring Expertise
• Every two years double amount of technical
information Technology
• Research: 1,5m peer reviewed Market
Quick Scan
articles per year Industry
• Patents: 1,900,000 per year Application
• Expected doubling of global knowledge
Intelligence & Knowhow
in 2020 every 72 days Commercial
Landscaping
Connections
Environment
Technology
Markets Insights
Geographic Current
Socio-Economic Future
Legal Alternative
Competitive State of the art
Political Intellectual Property
Regulatory Availability
Disruptive / Incremental
“Open Intelligence - Opportunity and Option identification within the 3 spaces
Technology, Knowledge and Environment for building a better vision”

16. Examples of Open Intelligence Service projects
Flexible Photovoltaic: Landscape and Technology Platform Selection
A FMCG company wanted to apply photovoltaic to packaging. Within 8 weeks, NineSigma created a
landscape of the current technology options, technology maturity and players for flexible photovoltaics and
helped the client select the right technology platform and partners.
Geothermal Systems Market: Landscape and capability assessment
A Global Oil & Gas Drilling company wanted to enter the Geothermal Enhanced Systems Market. NineSigma
created a landscape of the technologies and capabilities needed for this new space and mapped this against
the current internal technologies and capabilities. Additional challenge was the distribution of knowledge
throughout the different business units of the Client.
CMOS Technology: Identification of Application Opportunities for CMOS sensor
A global Semiconductor company wanted to learn what the potential cross industry application opportunities are for
their proprietary CMOS sensor technology. NineSigma created a landscape of potential application domains,
competitive technologies, players and identified a number of key opportunities.
Opportunity Assessment: Food Waste Streams
A global food and beverage company wanted to learn what the potential opportunity was for up-cycling the food
waste streams into low cost foodstuff. Within a 12 week timeframe NineSigma created a global landscape and
insight into the current waste streams, quality, quantity, technologies and processing partners.
Global Technology Monitoring: Natural and Artificial sweeteners
A Global Drinks company wanted to have a quarterly update of all the technology developments on natural
super sweeteners and artificial sweeteners. NineSigma created a quarterly monitor newsletter delivering a
cross industry perspective on the latest relevant developments.

17. Innovation Community

18. to summarize:
We support you to:
• Identify players, adjacencies,
new technologies and Detect
trends and
Defining
need
applications and detection signals of
portfolios
change
of trends & ‘signals of change’
• Identify needs & A virtuous cycle
opportunities, prioritize
innovation portfolios
Organize and core competence cycle
and frame challenges manage Transforming
needs into
ecosystems
• Develop capabilities to challenges
successfully
collaborate Identifying
and
(become partner of choice, acquiring
not customer of choice) solutions

19. NineSigma – Working with us
How do we work with our clients?
NineSigma works with Select service to best Leverage NineSigma’s Deliver new knowledge,
client to define their meet needs and global innovation capabilities, and
innovation needs leverages our assets network partners to client
and core
competencies

20. food/drink
chemical
NineSigma active client distribution
Client data base : 4935 companies
Created in 2000, head office Cleveland USA
Local European presence Leuven Belgium
The global open innovation leader :
RFP challenge management
Trans-industry intelligence programs other FMCGs
Innovation training & facilitation
Technology push & pull models
Crowd sourcing platforms
> 2.5 million solver data base
North America • Brazil • South Africa • Europe • Japan • Korea • Australia RFP topics by industry (>2000)

21. NineSigma - Industry Experience
Breadth of expertise across diverse disciplines
o Aerospace o Food and Drink
o Automotive o Green Technology
o Biotechnology o Manufacturing
o Chemistry o Materials
o Computing o Medical
o Consumer Products o Mechanical & Industrial
o Defence o Petroleum
o Electrical & Electronics o Telecommunications

22. NineSigma – Accelerating Innovation
How do we support our clients?
NineSigma supports companies:
o Accelerate their innovation process
o Expand access to new knowledge
o Find un-expected solutions
o Reduce risk in decision-making
o Develop new skills and processes
o Accelerate product time to market
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23. Nine Sigma’s Innovation Road Map
Developing Open Innovation programs that meet client needs
On-going program
review & support
Report-out, OI
performance review
Scoping workshop,
selection & priorities
Training workshop, OI
OI GOALS:
tools & coaching
• Solutions
Interviews and data • Opportunities
collection • Improvements
• Breakthroughs
• Higher Value
NineSigma Personalised Program Innovation Program
Innovation Innovation Development & Program Implementation
Audit Workshop Training Roll-Out & Results
Session A Session B

24. Our Open Innovation Toolbox
Knowledge
QUICK - SCAN OI SKILLS ASSESSMENT
SOLUTION SEARCH
OPPORTUNITIES & DEVELOPMENT
TARGETED TECHNOLOGY LINKED INNOVATION /
TECHNOLOGY SEARCH MONITORING CROWDSOURCING
Solutions
Skills
TARGETED OPEN INTELLIGENCE / RAPID PRODUCT
PARTNER SEARCH LANDSCAPING PROTOTYPING
Expertise

25. Examples of collaborative innovation outcomes
Where do these ideas and technologies come from?

26. A sample of our clients
OSAKA
GAS
The Coca-Cola Company
IDEMITSU DENSO
NEC suntory
MITSUBISHI MATERIALS
OLYMPUS SUMITOMO
HITACHI SHOWA
TOSHIBA SHISEIDO CONSTRUCTION DENKO
ISUZU MOTORS DENKA
KOMATSU
TEIJIN
ASAHI BREWERIES SUMCO OMRON
KIRIN HOLDINGS
North America • Brazil • South Africa • Europe • Japan • Korea • Australia

27. Client Endorsements
Our effectiveness is confirmed by our client’s feedback
“We use NineSigma when we are looking for
“We’ve distributed technology briefs to more alternative approaches to solve problems or “Innovation and technical excellence are
than 700,000 people through NineSigma and where a solution from a different industry may critical to Air Products’ continued success in
have as a result completed over 100 projects, help.” Todd Abraham, VP of Global Research the market. We believe that working with
with 45% of them leading to agreements for and Technology Strategy, Kraft NineSigma will amplify our internal R&D
further collaboration.” Larry Huston, Nabil efforts and will expand our ability to access
Sakkab, Procter & Gamble in Harvard external resources and capabilities globally”
Business Review, March 2006 Miles Drake, Vice President and Chief
Technology Officer, Air Products
“We found the NineSigma Intelligence
program particularly helpful in getting us
quickly up to speed on our
internal knowledge on geothermal
energy. We have some strategic
“We are extremely pleased with the
results from NineSigma. The companies decisions ahead of us, but the
“Innovation is the lifeblood of our company. If we
and individuals NineSigma connected us NineSigma program helped get us to
don’t innovate, we won’t grow, or even survive, in
to provided us with ready solutions to a the point where we can make the best
today’s fast moving world and highly competitive
materials need that we have been unable decisions possible.” Rod Nelson, Vice
to address with our internal expertise. business environment. We have chosen to
President, Schlumberger
NineSigma delivered fast and significant partner with NineSigma to establish our
value to our program.” Robert Networked Innovation Program because they
Finocchiaro, Ph.D., Technical Director, have an impressive track record of making open
3M innovation work for companies like ours,”
“The NineSigma Intelligence Program has proven to
Graeme Armstrong, Corporate Director of
be an outstanding tool for us in our exploration of
Research, Development and Innovation at
emerging technology. The quality, organization, and
AkzoNobel.
delivery of information, especially NineSigma’s
assessment and recommendations, will help us make
strategic decisions. “ Kent Young, Director of
Source: Authorized attributable comments. Technology, Sherwin-Williams