These are the presentation slides from the DMA's first innovation summit on 14 November. See more information here http://www.dma.org.uk/content/fear-faith-and-fortune-innovation-summit

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6. Thank you to our headline sponsor

7. Thank you to our film partner

8. Follow the event at
#dmainnovation

9. Housekeeping

14. For every £1 invested in design…

15. Design is popular at
.“
school, accounting for the
lowest truancy rate at Key
Stage 4 and attracting over
60,000 students (8,000 from
abroad) to further and
higher education”

20. Remaining
Political

23. 2007 Unicef study
of child well-being

33. 11/15/2012

34. 11/15/2012 34

46. Sheila has asked for her
slides to not be
distributed

48. Fear, faith and fortune: An innovation summit.
REAL INNOVATION…
November 2012

49. From business case to launch
We built. months

50. Within an organisation that is
592
years old.

51. And an agreement that…
…we were going to launch with a beta test and learn format
which is a first in our history.

52. Whilst still delivering…
…68,000,000 other things…

53. …everyday.

54. We have built 6 new capabilities.

55. And brokered 9 new partnerships.

56. Recruited 20 new people externally.

57. Developed a new customer experience.

58. And created the home for mail in the media landscape.

59. We launched 5 months ago...

60. And we are working with the likes of……

61. All with one single focus.

62. To help agencies and advertisers unlock
the power of mail.

63. And one Belief…

64. Because without real, there is nothing…….

65. Tim Hamill
Head of Planning &
Intelligence

66. Networking tea and coffee

69. A question on fear of the future –
and how that affects us

70. A question on health –
and who we'll put our faith in to take care of it in the future

71. A question on retail fortunes –
and how shopping will change in the future

73. M&S Plan A
Fear, Faith & Fortune
Adam Elman
Head of Delivery – Plan A & Sustainable Business
@adamelman

78. Our Value Chain
35,000
Product Lines
Involving
2,000 factories 20,000 farms
2,000,000 workers 1,000’s raw materials
Engaging
75,000 employees & 21m customers each week

79. Big, bold targets
Aiming to be carbon neutral
Aiming to send zero waste to landfill
Remove all the artificial colours & flavours from ALL food & drink
Reduce packaging by 25%
Become 25% more energy efficiency
Become 20% more fuel efficient
Source 100% sustainable wild fish
Cut carrier bag usage by 33%
Cut water usage by 20%
Source 100% sustainable timber

81. Wind turbine or anaerobic digestion

83. Waste image

84. Carrier Bag Charging

86. Product

88. Carrier Bag Charging

89. Strong Business Case
£150m
£105m
£100m
£70m
£50m
£50m b
Cost
-£40m Neutral
-£0m
-£50m
2007/08 2008/09 2009/10 2010/11 2011/12

90. Not all about £££
£££
Brand protection Brand enhancement
Innovation Staff motivation
Staff wellbeing Partnerships
Planning permission Supply chain resilience

91. Lessons learnt
Clear vision Provide Support Create the culture
Partnerships Use your supply chain Bonus targets

92. Questions?
@adamelman

93. Networking lunch

96. 15 November 2012 © 100%Open 2012 96
From Open Innovation to Open Business
DMA Conference – 14th November 2012

97. 15/11/2012 © 100%Open 2010 97
The Fosbury Flop
At the Mexico City Games in 1968, Dick Fosbury used a then-unorthodox head-first,
back-to-the-bar method of high jumping, to get the gold medal & a new world record.

98. 15 November 2012 © 100%Open 2012 98
Conversation, Relationship, Transactions
“Ideas don’t exist in an
individuals head. They
exist between people,
in conversations.”
Jules Evans

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3 minute JV
1. Explain what you do.
2. Find out what your partner does.
3. Agree what you could do together.
4. Give your joint venture a name.

100. 15 November 2012 © 100%Open 2012 100
Open Innovation
Innovating with partners
by sharing the risks
and the rewards

101. 01/08/2012 © 100%Open 2012 101
Two Models of Open Innovation
Discover and Jam
Discover Jam
• Starts with ‘what’ question: an innovation • Starts with a ‘who’ question: finding
brief detailing a specific unmet need partners to explore a broad opportunity
• Is a competitive marketplace amongst • Is a cooperative community & process ,
customers, suppliers or users with customers, suppliers or users
• The innovation process is mediated by a • The innovation process is facilitated
Trusted Agent through a Catalyst
• Innovations are extracted through a • Innovations are built using an iterative
linear process process
• Tend to be internal routes to market (e.g. • Tend to be external routes to market (e.g.
license deals) joint ventures)

102. 01/08/2012 © 100%Open 2012 102
100%Open Innovation Process
Explore Extract Exploit
Identify A shortlist of partners Taking investable
Interesting Questions and solutions propositions to market

103. 15 November 2012 © 100%Open 2012 103
The Net Works
“Networking is only a letter
away from not working.”
Chris Powell

104. 15/11/2012
15 November 2012 © 100%Open 2012 104
Open Business Models
Franchise Co-branding
Peer to peer Spinout
Cross licensing Delivery partnership
Copyright Alliance
Proprietary supplier Minority stake
Design platform Majority stake
Collaborative
Group buying
Acquisition
Crowd-sourcing
Merger
Communities of interest
Co-Creative
Membership org.
R&D Joint venture
Cooperative Kaizen
Freemium
Creative commons
Paywall Closed
Joint R&D Market
research Open source
Profit share

105. 15 November 2012 © 100%Open 2012 105
E.ON
A customer-led innovation programme which was designed and piloted, and then
rolled out cross company with 45,000 customers, to create 8 x £10m propositions.

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The Net Works
“Innovation is a by-product
of engaged networks.”
Verna Allee

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Orange
An Airlock competition that helped source and create a new £20m service proposition
called Fun Finder that launched in Dec 2011.

108. 15 November 2012 © 100%Open 2012 108
Start at the End
“Innovation is a
U-Shaped Process.”
Paul Vanags

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LEGO
LEGO Cuusoo is a social platform where people can submit designs, build a market
before investing in production, and receive a 1% royalty when it is produced.

110. 15 November 2012 © 100%Open 2012 110
Give Get
Generosity is like compound
interest. The sooner you
bank it the greater
the dividends.

111. 15/11/2012 © 100%Open 2011 111
Open Business Models
Franchise Co-branding
Peer to peer Spinout
Cross licensing Delivery partnership
Copyright Alliance
Proprietary supplier Minority stake
Design platform Majority stake
Collaborative
Group buying
Acquisition
Crowd-sourcing
Merger
Communities of interest
Co-Creative
Membership org.
R&D Joint venture
Cooperative Kaizen
Freemium
Creative commons
Paywall Closed
Joint R&D Market
research Open source
Profit share

112. 15 November 2012 © 100%Open 2012 112
Connect the Dots
“Connect on your
similarities, and benefit
from your differences.”
Valdis Krebs

113. 15 November 2012 © 100%Open 2012 113
It’s a small world…
“The world isn’t getting
smaller, the networks are
getting bigger”
Greg Hadfield

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And Finally…
“More people pooling more
resources in new ways is the
history of civilisation.”
Howard Rheingold

115. 15 November 2012 © 100%Open 2012 115
Thank You
Roland Harwood
Co-Founder & Partner
100%Open | Somerset House | South Building | London | WC2R 1LA
Phone: +44 (0)20 78133 1006 | +44 (0)7811 761 435
Email: roland@100Open.com
Web: www.100Open.com
Twitter: @100Open

117. Approach to
Innovation
- It’s all about the
people
Mike Addison
14th November’12

118. Introductions
• Fast Moving Consumer Goods • BSc and Ph.D Chemistry from Edinburgh
University (’73 to ’80)
•>175 Years old
•Joined P& G late ’81 in R&D in Newcastle
•~120,000 people employed worldwide
• 17 years innovation for Fabric &Home Care
• Operations in 80 countries
• 4 years in charge of European Seed Fund to
• Net Sales of >$80 billion turbo charge internal innovation.
• 24 billion dollar brands •10 years establishing and developing Open
Innovation interests in the UK
•Spends almost $2 billion per year on
R&D • Retired 31st October 2012

119. Provocations !
• What sort of Business are you in ?
• What innovation do you want and
can afford?
• Be intentional on where you want to
play?

120. Perspective on Innovation & Collaboration
P&G's Purpose and growth strategy is
to improve more lives in more parts of
the world more completely — with an
unrelenting focus on innovation.
We want to partner with the best
innovators everywhere, which is why
Connect + Develop is at the heart of
how P&G innovates.
Bob McDonald
President and Chief Executive
The Procter & Gamble Company

121. A Company of Brands

122. Primary Business Model
P&G Business Model
• Obtain deep customer and consumer
insight
• Fulfil needs with superior technology and
products
• Brand the products
• Build scale via world class advertising and
global distribution.

123. P&G’s Approach to Innovation
I
N • Commercial
B • Creation N
R • Relevance O • Sustaining
A V
•Reach
N A •Transformative
D • Profitability T
• Disruptive
I
Where to Play O How to
N Win

124. Innovation Flavours
• Commercial Innovation
– Enhance brand appeal without product change
• Sustaining Innovation
– Lead a category/industry through product improvement
• Transformative Innovation
– Change an existing category/industry to make major
share gains with sustainable competitive advantage
• Disruptive Innovation
– Create entirely new sources of consumption, new
categories or new segments.

125. Provocations !
• What is your innovation process ?
• How do you progress through the
process?
• Who is responsible for what?
• Are you managing appropriately?

126. New Product Development
Stage Gated
Front End Innovation
Development
Venture Proposition
Business
Model
Market Map
Product
CONSUMER Concept -Prototypes
NEEDS - Market tests
Functional
- Societal Trends -Transactional
Map
-Regulatory trends Learning
-Technology trends Technology Map SALES

127. Discovery vs. Development
Discovery Development
• Front End Innovation • Stage Gate
• Complex • Complicated
• People Centric • Process Centric
• Story (Killer issue) Focus • Metric focus
• Management Lite • Management Heavy

128. Provocations
•How can the external world help
you?
•How can they contact you?
•Will they want to work with you
again?

129. The Open Innovation Model

130. Engaging with Open Innovation
Business Goals & Strategy
Innovation Strategy
Open Innovation Targets
Find the Build the Make it Do the
Opportunities Promising contagious deal

131. Facilitating External Access
Internal External Deal Making
Aligned with • Wide range of deal
Proactive searching
internal clients structures to deliver
against high priority
Focused against mutual value
needs
strategic priorities Externally • Legal support and
Open to external networked and expertise
serendipity connected • On going governance
Securing the right Right people, right and compliance
internal resources places, right time
www.pgcd.com

132. Supplying Open Innovation
Responding to Need Creating Demand
Get Networked Get Entrepreneurial
Yet2.com Understand the
NineSigma
customer
Innocentive
EEN (SME base) Focus on the story
Focus on USP Maximise value
Protect your IP Protect your IP
Address the need
Understand your
competition

133. Bringing it all together
Manual Toothbrushes
Stretch Electric Toothbrushes
S
h
a Whitening Strips
r
e
Forms , Flavours, Benefits, Audience, Price

134. Stories from the Front End
• Disruptive
• Brand Extension
• Re-application of core
competencies
• Non obvious re-
definition of need.

135. Open Innovation Par Excellence
CREST
SPINBRUSH

136. Thanks for
the
attention.
Mike Addison
Innovation Catalyst
mcaddison@live.co.uk

138. Thank you for attending