Download Business and Service Overview

Food & Drink Innovation Network
Creating an Intrinsically Innovative Company
Emma Hughes
Managing Director, yet2.com Europe Ltd
 yet2.com Inc, 2009
Page 1
yet2.com – open innovation, technology transfer
and patent trading company.

10 years of experience in supporting companies develop their business
through Technology Transfer and IP transactions.

Yet2.com bridges the gap between industry needs and sources of
innovative technology. Trusted advisors and experts.

Global cross industry and relationship based network. Yet2.com offices in
US (Boston), Europe (UK, Liverpool) & Asia (Japan, Tokyo)

Expert Hands on Professional Services & Proven Experience in :-
– Technology and Technology Needs Identification / Prioritization
– Technology Scouting, Acquisition & Open Innovation Strategy
– Technology Licensing
– Patent Trading
 yet2.com Inc, 2009
Page 2
Example Members
Advisory Board inc: AGFA, Avery Dennison, Bayer, DSM, DuPont, Philips, P&G, Takeda
 yet2.com Inc, 2009
Page 3
Open Innovation - Internal & External Activities
Chesborough - well known but what does it actually
mean for your company?
Implementing an Innovative Culture: Getting Started

Define what innovation means for your company. Question perceptions
of “open” innovation internally
• Various organization structures & funding, internal v external, central
scouts v integrated within BU. Inherent tension
• Creating an intrinsically innovative culture needs to be strategic across
all levels (top management, project and individual)
• Requires mid and long term innovation initiatives - Review IP strategy
• Requires committed finances and resources
• Look at internal, existing processes AND external scouting activities
 yet2.com Inc, 2009
Page 5
Open Innovation Company Challenges

Trying to change company culture is an ongoing & common problem

The right resource and a budget is required
–
–
–
Reallocation of budget for external collaborations
Easier to spend internal resource than cash outside
Who evaluates?

IP issues –contamination, NDA’s

Lack of modern communication media – next generation has different view to
openness (its not everything!)

Defining the real needs of the company – needs clarity
–
–
–

What solutions are internal,
When in the process do you look externally
How do you articulate the real problem
What tools and when!
Open Innovation Requirements
COMPANIES’ UNMET NEEDS
Missing feature / performance issue /
legislation change
Improve an existing product
Improve price
Reduce cost / identify
manufacturing efficiencies
Step function change in
Monitor next generation
performance
technology curves
Wholly unmet need
Expand into new “white space”
External Technology Acquisition Program
External Innovation - building on existing capabilities & competencies
within the company.
WFGM Practice:
Identifying Needs/Articulating/Prioritizing

Tools, Sourcing & Marketing

Screening / Engaging/ Closing deals

Implementing / Integrating
Process Example- Techneed Identification

Guided Techneed discussion session
– Involve R&D and Marketing/Business professionals.
– In house OI or technology leaders eg Dupont or external consultants

Data Collection:
– Need-Prioritizing Tool produces a collection of technology needs in template format,
create tangible inventory.
– Build corporate innovation support network and illustrate potential of external tech
acquisition internally

Acquisition Option Recommendations:
– Place technology needs into action-oriented groups through Triage process, using
proprietary methodology.
– Understand what should be solved internally, sourced externally, needs partnering

Prioritization
– Small-group ‘Triage’ to set priorities that will most impact key business drivers
– Team consensus to BU leadership decision makers
– Ensure strategic direction – what links to company competency and strategy,
understand business strategy
Considerations for Technology Needs

Financial Impact

– Current Status of impacted
products
– Risks of not solving
– Benefit of solving the need
– Size of affected revenue streams

Cost/Effort to Implement
– Internal Capabilities available to
develop v implement
Urgency

External Development
Factors
– Known solutions
– Known IP Positions
– Uniqueness of solution(s)
Technology Needs Prioritized
50
Improved
45
40
Urgency
35
Need#1
Best
30
Alternative
Replace
Replacement
25
Natural
Dispose
Radiate
Eliminate
Best
(other)
20
Eliminate
Dev
15
10
Formed
5
0
0
10
20
30
Financial
40
50
BU1
BU2
BU3
BU4
BU5
Highest rated
Needs for both
Urgency and
Financial
Impact, across 4
BUs.
Packaging
Need#16
Need#24
Need#33
‘Apples to apples’ comparison – enabling prioritizing across the company
Internal v External
New technology or existing solution in another area, start up
business or established partner.
Research Tools

Patent mining, publications, company news, research papers
etc
Internal Sourcing Tools

Customers, suppliers, business partners, lab networks, internal
experts
External Sourcing Tools

Brokers, consultants, technical experts, online networks
Why use an innovation broker?

Unique insight in to cross industry open innovation best
practices
–
–
–
–

How are other companies organising for Open Innovation
What is required internally before working externally
What skills & resources are required
What processes and tools are available (ID, prioritizing, articulating)
Experienced practitioners with diverse cultural and industrial
sector collaboration experience
– Network beyond your own
– Real Market Knowledge of who has what
– Deal experience – what works what doesn’t
How an innovation broker can help.

Implementing a strategy and process (review best practice)

Gathering & understanding of what you need - external perspective &
tools

Articulating that need to the outside world - confidential description

Marketing to a broad network –networks beyond your own

Scouting & evaluating external solutions – key questions

Increasing speed to engagement - existing relationships

Understanding expectations and differences across diverse companies

Flexible & entrepreneurial deal facilitators – understands nuances
Technology Need – Retain anonymity
Why use other networks & brokers?
OTHER NETWORKs:
YOUR NETWORK:
-Regional and subject expertise
beyond comfort zone
-Suppliers
-Geographically broad
-Select university
relationships
-Solutions from other industries
-Conferences/trade
shows
-Industry journals
-Direct access to a large
population of SMEs
-Broad reach to
universities/research institutions
-Connect through private equity
-Network of affiliated brokers
Quality & Diversity of the networks that is important. A constant
stream of good ideas relies on forming great external connections
Key value add of Innovation Brokers
Connectivity

Deep reach into corporate technical staffs – not just size of network but diversity and
relationships

Access to key gatekeepers (tech transfer & tech acquisition)

Relationships with venture capital and SMEs
Confidentiality

Opportunity screening and initial discussions

Protect client name and application
Expertise

Support best practice and upfront preparation

Evaluation and communication methods

Market and buy-side knowledge

Business formation and commercialization skills
External perspective

Unbiased evaluation and critical thinking

Understand nuances between different types organisations

Flexible in what a deal looks like
Company Best Practices – intrinsically innovative

Look at defensive use of Open Innovation – don’t get to end of a project
and find you’re already in competition with someone else

Change IP strategy to support open innovation

Peer reviews – integrate alumni of the company

Not just about looking outside – develop existing suppliers and educate
sourcing resource

Implement a process to identify and review (WFGM)

Incorporate internal and externally sourced technology within projects –
reward both

Use new innovative and varied communication media to engage all the
organisation
Thank – you
For further details please contact:
[email protected]
0151 705 3540
Appendix
 yet2.com Inc, 2009
Page 20
Yet2.com….Experts in Bringing all the Pieces
Together
Global
Market
Knowledge
Technology/
IP
Yet2.com
People
&
Experience
Capital
yet2.com links Ganeden BioTech to DSM
Ganeden BioTech
DSM
Purpose
Deal Size
Date
Developer of a highly efficacious probiotic
(microbial digestional aid), which is sold through
retail drug stores and supermarkets and can be
incorporated into foods and beverages
Holds leading positions in the Nutrition sector,
particularly the markets for ingredients for human
and animal nutrition and health and personal care
May enable many new probiotic applications in
both food and feed that DSM wants to follow
closely as an area of potential future business
DSM joined a private equity partner in a $12
million financing round
November 2007
HIGHLIGHTS SINCE TRANSACTION
• Ganeden products were featured on Oprah Winfrey’s syndicated radio program in November (as a result of an
introduction from rede4).
• DSM evaluating possible future partnering with Ganeden for the development of specific applications
 yet2.com Inc, 2009
Page 22
Yet2.com links ElectroPetroleum to Customers and
Raises $10 Million
ElectroPetroleum (EPI) developed a
technology to extract heavy oil. 2/3 of the
world’s oil supplies are heavy oil, so this
technology has broad implications. The
technology uses 1,000 watts of DC
electricity to heat the oil and ‘cold crack’ it.
The technology competes favorably with
steam and an AC technology. Field tests
showed a 10 times improvement in oil
output per well at a cost of $4 per barrel.
October 2007 - EPI retained yet2.com to
find partners and capital.
July 2008 - Yet2.com got 3 term sheets for
investment and closed a $10 million round
from DFJ Element. Yet2.com also sourced
the first customer, Deloro, who gave EPI
10% of a 63 million barrel field.
 yet2.com Inc, 2009
2008
Page 23
IP-based Spin-out: NaturNorth auction
NaturNorth
Subsidiary of Potlatch – maker of IP-protected bioactive birch
bark-derived materials for pharma, ag, cosmetics, paints.
Derived from birch bark
Buyer
Small Pharma company in clinical trials for a new formulation
with a NaturNorth derivative as a key ingredient
Purpose
Deal Size
Date
Couldn’t afford to switch/re-qualify supplier in the midst of
Phase III trials, and greatly strengthened their monopoly
through acquisition of 30-patent portfolio
Winning auction bid was [7-figures], with several other bidders
lined up ot buy non-critical patent families for [6-7 figures]
February 2008
Outer bark +
unique chemistries
yield pure Betulin
R4
R3
R2
R1
 yet2.com Inc, 2009
Page 24
And, a Library of
~1000 Derivatives
Yet2.com links Axela Biosensors Inc. and KimberlyClark on biosensors deal
January 11, 2006 –
Axela Biosensors has completed a significant
exclusive in-licensing agreement with KimberlyClark. The agreement includes exclusive rights
to approximately 150 world-wide patents and
applications, as well as transfer of significant
immunodiagnostics assay technology. As part
of the agreement, K-C will be acquiring an
equity interest in Axela. “These technologies
are are a significant contribution towards our
execution of product offerings in the diagnostic
market, including our Diffractive Optics
Technology (DOT™) products planned for
product launch in 2006” said Rocky Ganske,
CEO, Axela Biosensors.
August 2006: Axela launches new real-time
analytical device (8 months from deal).
 yet2.com Inc, 2009
Page 25