Presentatie die gebruikt is door Guido Petit van Alcatel - Lucent tijdens de Vision Meeting 'Intrapeneurship: wat leert ons de praktijk?'. Bron: Alcatal - Lucent | Guido Petit

1. Breakthrough Innovation, Barcelona 2010
Innospire
The global innovation initiative
@ Merck
Dr. Ulrich Betz
Director, Head of Department
Center of Innovation
Merck Serono
Merck KGaA

2. Milestones in the history of Merck
Merck is the oldest pharmaceutical and chemical company in the
world
1668 1827
Friedrich Jacob Merck (1621-1678) Heinrich Emanuel Merck (1794-1855)
buys the Angel Pharmacy (Engel- starts production on an industrial scale
Apotheke)
Innospire 2009 1

3. Merck is not the same as Merck
• Merck KGaA and the U.S. pharmaceutical company Merck & Co.
have been two independent companies since 1917.
• Common historical roots:
• 1891 Merck & Co. founded in New York by Georg Merck, a
member of the Merck family
• As a consequence of World War I, Merck & Co. was expropriated
and became an independent company.
• Today, Merck & Co. holds the rights to the name within North
America. Merck KGaA operates there as EMD and holds the rights
to the name Merck in the rest of the world.
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4. Corporate structure
Merck Group
Business sectors
Pharmaceuticals Chemicals
Divisions
Merck Serono Liquid Crystals
Performance &
Consumer Health Care Life Science Chemicals
Central functions
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5. Merck Group
FY 2009 by division
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6. Merger between traditional Pharma and Biotech
Opportunity to take the best of both worlds
Merck Ethicals Serono
Division of Merck KGaA (family-owned since Family-owned since 1906
1668)
Major success with Rebif®, the leading multiple
Major success with Erbitux® in developing a sclerosis product outside the U.S.
world-class Oncology franchise
Strategy of focusing on specialized therapeutic
Successful CardioMetabolic Care franchise areas for serious medical needs (fertility,
built on core product families (Glucophage®, metabolic endocrinology)
Concor® and Euthyrox®)
Strong capabilities in developing biotech
compounds
Founded 5th January 2007
Focus on innovative small molecular and
protein drugs
Around 17000 employees
€ 4.993 billion sales in 2009
Headquarter in Geneva, Switzerland
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7. Reaching the next level
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8. The 7 sources of innovation
The Innovator Mindset
Company
Line Collabo- Open
wide Consul-
organi- Scouts ration Customers Innovation
idea tants
zation Partners platform
sourcing
Evaluate
- market potential
- probability of success
- exploitability
- cross-divisional synergies
Enable operational phase
„fit for purpose“
New business
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9. To proudly go where nobody
dared to go before…
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10. Or …to proudly go where nobody
dared to go before…
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11. Mobilize Merck‘s full innovation potential
in challenging times
Established processes
innospire
Involvement of all employees
• Across organizational units
• Across the hierarchy
• Beyond existing businesses
Fostering entrepreneurial spirit
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12. Corporate structure
Merck Group
Business sectors
Pharmaceuticals Chemicals
synergies
Divisions
Merck Serono Liquid Crystals
Performance &
Consumer Health Care Life Science Chemicals
Central functions
Innospire 2009 11

13. What is innospire ?
• innospire: The Chemical and Pharmaceutical divisions have jointly
started a new worldwide process to source and develop ideas from all
Merck employees
• innospire mobilizes Merck‘s full innovation potential in economically
challenging times
• innospire created an environment for entrepreneurial individuals to form
highly motivated professionally trained teams and move forward with
innovative business ideas and professional business plans
• innospire especially welcomes ideas that benefit both chemical and
pharmaceutical divisions
• innospire is complementary to the Merck Innovation Award, local
suggestion schemes and the divisional R&D pipeline processes
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14. The innospire Process –
Five phases towards global success
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Idea Idea Innovation Innovation Enabling
Sourcing Selection Market- Bootcamp Projects
place
Kick-off 462 17 6 Grand
March 30 submissions business concepts projects Jury
April May June Oct Dec 2010
Three key differences to „classic“ idea competitions:
1) Idea matures and evolves
(the idea put in does not need to be identical to the idea that comes out of the bootcamp)
2) Team matures and evolves
(it can be different people that propose the idea, that mature the idea to business case
and that finally implement it, teams get training and consulting to overcome hurdles)
3) Self-assembling teams, survival of the fittest
(only those ideas survive that manage to convince a team to work on them)
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15. innospire - Call for Ideas
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16. innospire.merck.de
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17. Thank you!
Innospire has received
462 submissions
from 550 idea champions
out of 32 countries
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18. Total Number of Entries Entries by Date
Date
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19. Number of Entries
100
120
140
160
20
40
60
80
0
Au
st
ra
Be lia
3
lg
iu
m
1
Br
az
il
2
C
hi
C na
ol
61
um
bi
a
5
Fr
an
G c
5
er e
m
an
G y
r
136
G eec
ua e
3
te
m
al
a
1
In
In di
do a
3
ne
si
a
1
Ire
la
nd
1
Ita
ly
9
Ja
pa
M n
52
Entries by Countries
N exi
et
he co
5
rla
nd
s
3
Pe
Ph ru
3
illi
pi
ne
Country
s
9
Po
la
R nd
u
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1
Sa ma
ud nia
i 1
So Ara
bi
ut
h a
1
Ko
re
a
9
S
Sw pa
itz in
2
er
la
nd
Ta
36
iw
Th an
U
16
ai
ni la
te
d n
7
Ar Tu d
ab rk
U Em ey
1
ni i
te
d rate
Ki
4
ng s
do
m
17
U
Ve SA
ne
60
zu
el
Vi a
2
et
na
m
1
18

20. Entries by targeted Business Sector
22%
Pharma Entries
45% Chemicals Entries
Pharma+Chemicals Entries
33%
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21. Entries by Idea Type
16%
21% Application Entries
Material Entries
22% Process Entries
41% Service Entries
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22. The innospire process –
Phase 2: Idea Selection
1st set of Criteria 2nd set of Criteria
Phase 2 • Suitability for further optimization • Prioritization of joint Chemical
to a full business plan & Pharma ideas
Idea
Selection • Market attractiveness,
potential revenue • Balance Blue Sky (long term)
ideas, medium-term ideas,
462 ideas • Industry attractiveness, and Quick Wins (fast sales
competitive situation generators)
• Risk profile, proof of concept
• Balance ideas with a focus
feasibility
on materials, technologies,
17 member • Breakthrough vs. applications and new
cross-functional incremental innovation business models
evaluation team
• Synergies with existing business
Re- Evaluation
Pre-assessment Evaluation 40 interviews evaluation
with by 2nd set
by 1st set with idea by 1st set of criteria
scorecards of criteria of criteria
owners
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23. The innospire process –
Phase 3: Innovation Marketplace
Phase 3
Objectives and Criteria
The Objectives of this Phase Criteria for next Phase 4
• First presentation of idea on marketplace • Refined business concept
events • Are the different roles, e.g. champion, finance,
• Recruitment of bootcamp teams marketing/sales, present in the team?
• Creative entrepreneurial colleagues can • Is there a clear leader?
apply to join a team. • Do the team members have a consistent vision?
• Refinement of business concepts • Are the team members very committed?
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24. Innovation Market Place
• Presentation of 17 business concepts
- Market Place Kick-off event
- Poster sessions at key locations including Darmstadt, Geneva and Boston
- Date: June 2009
- Presentation by Poster, Powerpoint, or Video
- Intranet portal for global coverage
• Recruitment of bootcamp teams and refinement of
business concepts
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25. Innovation Bootcamp
The innovation bootcamp has the objective
to nurture and coach early stage ideas in
Merck, to advance in the company and to
become successful businesses
Modules
- Teaching - Coaching - Writing - Fun
Content
- Case studies - Basic theory - Presentation skills
- Marketing plan - Market Forecasting - Manufacturing issues
- Financial plan - Legal issues - Team building
- Integration plan - Launching plan
Faculties
Prof. Stefan Stremersch, Chair of Economics and Chair of Marketing at Erasmus University Rotterdam
Prof. Dr. Walter Van Dyck, Professor of Technology and Innovation Management, Tilburg University
Dr. Guido Petit, Director of Alcatel-Lucent Technical Academy
Merck internal experts on manufacturing, patent, financial, integration issues and HR
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26. Teams are inspired and innovative
I need innospire because I need innospire because
It gives a chance to make cross-divisional It adds a lot to the fun I have at my job and
ideas real, that have no home in the makes Merck a more attractive employer. It
business units is a great opportunity to broaden my
and would not have a chance otherwise expertise and knowledge.
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27. Statements from innospire
bootcamp participants
I need innospire because
– It gives a chance to make cross-divisional ideas real, that have no
home in the business units and would not have a chance otherwise
– It gives us the possibility to think of innovations by combining
different divisions expertise
– The process brings ideas to reality
– It encourages Merck employees to use their own creativity for the
good of the company
– It adds a lot to the fun I have at my job and makes Merck a more
attractive employer. It is a great opportunity to broaden my
expertise and knowledge.
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28. The Grand Jury
• Composed of members of the
Executive Management Boards
from Merck Chemicals Division
and from Merck Serono
• 20min for each team leader
to present the business plan
• 10min Q&A
• Selection of projects that are endorsed to move to the enabling
phase
• Allocation of budget
• Debriefing of teams
• 5 of the 6 presented business plans were endorsed!
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29. From idea to business
TAs/BUs
LC/PC/AT
Pipelines
direct
uptake
internal idea call
later uptake
innospire
formation of new
business unit
innovation
Innovation spin off
incubator incubator
out-licensing
mature with innovation funding
Project selection and
governance via
Innovation Steering
Committee
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30. Merck Innovation Steering
Committee
Members
• Head Porfolio Development Head Advanced Technologies
Head R&D Head Performance Life Science
Head Patents Head Innovation Management
Mandate
• Fully exploit cross-divisional synergies
• Promote innovation @ Merck
• Align on innospire calls and other innovation initiatives
• Governance of cross-divisional incubator projects
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31. Two cross-divisional project teams are in the
enabling phase supported by innospire funds
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32. Additional ideas will be followed-up
and qualified in 2010
2009 2010 2011 2012
Idea
Innovation
Call Bootcamp Project Enablement
2009
Idea
Follow-up Innovation
Bootcamp Project Enablement
Workshops
Idea Innovation
Call Bootcamp Project Enablement
2011
2010: Focus on idea evaluation and maturation from 2009 call
feedback to all idea submitters, new idea call in 2011
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33. innospire
A success story
• Highlighting the importance and the support for innovation
at all times
• Fostering global inter-divisional collaboration
• Supporting innovative thinking and an entrepreneurial
mindset
• Training, coaching and support for project teams
• 5 endorsed business plans on their way in highly
motivated project teams to generate new business for
Merck
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34. Thank you! ulrich.betz@merck.de
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