Download Leading in Innovation - Henkel

Leading in Innovation
Thomas Müller-Kirschbaum
Corporate Senior Vice President
Laundry & Home Care Investors and Analysts Day
Duesseldorf, September 2, 2009
Disclaimer
This information contains forward-looking statements which are based on
current estimates and assumptions made by the corporate management
of Henkel AG & Co. KGaA. Statements with respect to the future are
characterized by the use of words such as “expect”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, and similar terms. Such statements are
not to be understood as in any way guaranteeing that those expectations
will turn out to be accurate. Future performance and results actually
achieved by Henkel AG & Co. KGaA and its affiliated companies depend
on a number of risks and uncertainties and may therefore differ materially
from the forward-looking statements. Many of these factors are outside
Henkel's control and cannot be accurately estimated in advance, such as
the future economic environment and the actions of competitors and
others involved in the marketplace. Henkel neither plans nor undertakes
to update any forward-looking statements.
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Laundry & Home Care
Five Pillar Strategy for Profitable Growth
2
Innovation
Leadership
1
Brand Equity
3
Portfolio Steering
Category / Region
People
People //
Mission
Mission based
based
Management
Management
5
4
Cost
Focus
Customer
Focus
3
Pacemaker in Innovations
First laundry detergent in cloth-form with softener and anti-static effect (Purex 3in1)
First laundry detergent with “hot water performance“ already at 20°C
“Persil Best Ever“: 100 years Persil
First autodish with 20% less CO2 emission
First combination of design and function: WC ALESSI Surfer
First heavy-duty detergent with soil-repellent for cotton
First light-duty detergent with malodor absorbent
First “3in1“ automatic dishwashing detergent
First “2in1“ automatic dishwashing tablet with integrated rinse aid
Best laundry detergent tablet
First gel-type toilet rim block
First laundry detergent gel
Unique extruded detergents (Megaperls, Super-Compacts)
Fabric softener based on esterquat
First color detergent
First automatic dishwashing tablets
First phosphate-free powder detergent (Zeolite A)
1986 1988 1990 1992 1994 1996
1998
2000
2004 2006 2008 2009
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Recognized Leader in
Innovation Strategy
Innovation strategy of Henkel
Laundry & Home Care wins
"Best Innovator – Award 2005"
Laundry & Home Care
(A.T. Kearney, Fraunhofer Gesellschaft
and WirtschaftsWoche)
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Recognized Leader in
Innovation Execution
Henkel (Persil) among
5 finalists for the
"Innovationspreis der
Deutschen Wirtschaft – 2007"
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Agenda
1 Organization
2 Key Data
3 Innovation Process
4 Open Innovation Network
5 Leading Technologies
6 Key Take Aways
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New Laundry & Home Care Network
Global and Regional R&D
Global
R
&D
Regional R&
D
Specific Development +
Implementation
Discovery + Basic Development
WE
EE
NA
Global
Research
Partnerships
MENA
LA
AP
Network
1
2
3
4
5
6
Organization
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R&D / Technology Sites Worldwide
Düsseldorf
Wien
Scottsdale
Ansan
Cairo
Toluca
Chennai
Multi-technology site
Specialized site
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2
3
4
5
6
Organization
9
Agenda
1 Organization
2 Key Data
3 Innovation Process
4 Open Innovation Network
5 Leading Technologies
6 Key Take Aways
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R&D Expenditures
R&D expenditures as % of sales
2.6
2.2
2.2
2006
2007
2008
2008 incl. expenses for Corporate Research allocated to the business sectors
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2
3
4
5
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Key Data
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Innovation Rate
Sales with Products Younger than 3 Years
Innovation rate as % of sales
40
35
25
2006
2007
2008
¼ Substantial increase in innovation rate over the last years
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2
3
4
5
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Key Data
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Innovation KPI in Laundry & Home Care
Financial Impact
• Innovation rate
(Sales with products younger than 3 years, 2008)
• Gross profit improvement
of new products
(Higher profitability of new products, 2009 vs. 2008)
>5pp
TION
A
V
O
INN
MARG
Execution
• Average time to market
40%
(Months)
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Open Innovation
• Open Innovation rate
(Share of projects with substantial external contributions)
80%
Patents
• Patent activity ranking
(Worldwide ranking in patent publications
#1
in our category, 2008)
• Granted patent rate
(Share of granted patents in patent portfolio as
50%
measure for patent quality, 2008)
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2
3
4
5
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Key Data
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Agenda
1 Organization
2 Key Data
3 Innovation Process
4 Open Innovation Network
5 Leading Technologies
6 Key Take Aways
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Predicting, Influencing, and Using
Future Technological Developments
Technologies
Extrapolation
status today
Scenarios for
new technologies
„Retropolation“
from future scenarios
Consumer needs
today
short term
medium term
long term
¼ Innovation strategy: Recognized leader in market-relevant
innovations
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2
3
4
5
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Innovation Process
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Innovation Process
From Future Scenarios to Market
Future foresight with scenarios
The use of future scenarios supports the long-term and
systematic analysis of future challenges.
Strategic search fields
Tomorrow's success potentials are divided into strategic search
fields for the Henkel business in order to be able to translate
these into innovations.
Innovation ideas
Through the strategic search fields innovation ideas are
systematically generated and prioritized in pipelines
according to their time sequence.
Innovation steering
Henkel Inno Gate drives the efficient
implementation of prioritized innovation
ideas into successful, market-oriented
products.
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2
3
4
5
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Innovation Process
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Henkel Inno Gate
¼ Efficient steering of new product introduction process
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2
3
4
5
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Innovation Process
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Agenda
1 Organization
2 Key Data
3 Innovation Process
4 Open Innovation Network
5 Leading Technologies
6 Key Take Aways
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Open Innovation Network
Packaging
suppliers
Equipment
suppliers
Raw material
suppliers
External
inventors
Institutes,
Universities
Technology
brokerage
1
2
3
4
Licensing
5
6
Open Innovation Network
Scientific
advisory board
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Suppliers as
Major Innovation Contributors
Examples from Autodish
• Unique polymer with
enhanced anti-scaling performance
• Exclusive surfactant technology for
unique “Extra-Dry” claim
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2
3
4
5
6
Open Innovation Network
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Suppliers as
Major Innovation Contributors
Examples from Autodish
• Unique polymer with
enhanced anti-scaling performance
• Exclusive surfactant technology for
unique “Extra-Dry” claim
"Borrow with Pride"
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2
3
4
5
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Open Innovation Network
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Agenda
1 Organization
2 Key Data
3 Innovation Process
4 Open Innovation Network
5 Leading Technologies
6 Key Take Aways
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Key Technologies Match with
Strategic Search Fields
Strategic Search Fields
Hygiene
Well Being
Key Technologies
Washing performance
Surface modification
Long-lasting effects
Sustainability
Activated release
Simplicity
Automation
Demographics
1
2
3
4
5
6
Leading Technologies
Biotechnology
Nanotechnology
Alternative washing &
cleaning technologies /
robotics
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Washing Performance
Main Driver is Smart Chemistry
Sinner Circle (Dr. Herbert Sinner, 1959)
Past
Chemistry
Today
Time
• Shorter washing
Time
cycles
Mechanics
1
2
3
4
Temperature
5
6
• Lower temperatures
• Less mechanics
• Lower dosage
Leading Technologies
Chemistry
Temperature
Mechanics
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Activated Release
Encapsulation Technology
Example: Controlled Release of Fragrance
Scent Impression
Release by
Friction
100 µm
encapsulated
perfume
free perfume
Time
Microcapsules with
perfume in fabric
softener …
(smaller than
hair diameter)
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2
3
4
5
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… are transferred to
textiles …
(fluorescence-marked
in light microscope)
Leading Technologies
... and produce a
scent experience
when touching the
textile.
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Activated Release
Switchable Surfactants
Surfactants – Active Ingredients for Cleaning
Water-repellent / Oil-attractingTail
Water-attracting /
Oil-repellent
Head
Water
Soil
Soiled Textile
1
2
3
4
5
6
Leading Technologies
Clean Textile
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Alternative Washing Technologies
Partial Re-Usage of Wash / Rinse Water
Based on Smart Chemistry
Products
Clothes
Water
Clothes + Water
Water
Water
Source: Flavio Marin Flores, Univ. Tec de Monterrey
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2
3
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Leading Technologies
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Alternative Washing Technologies
Solvent
Systems
Non-Solvent
Systems
Non-Aqueous
• PER
• Carbon
hydrates
• Siloxanes
• Liquid CO2
Aqueous
• Wet clean
• Micro emulsions
• Foam
Physical Systems
• Ultrasound
• Electrolysis
• Electro dialysis
• Magnetic devices /
Water treatment
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2
3
4
5
6
Leading Technologies
Gases
• Ozone
• Ionized gases
• Steam
In cooperation with:
WfK Cleaning
Technology
Research Institute
Physical Systems
• Plasma
• Laser
• Microwaves
• Vacuum
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Biotechnology
Probiotic Cleaning
1
1
Cleaner with stabilized probiotic bacteria
2
Application of probiotic bacteria to soiled
surface and activation of bacteria
3
Probiotic bacteria replicate and
degrade the soil
4
After degradation of soil some bacteria remain
until re-soiling
2
3
4
5
6
Leading Technologies
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Biotechnology
Low Temperature Enzymes
Consumer benefit
• Better stain removal at 20 °C
• Shorter washing cycles
Sustainability benefit
• Energy saving
• Higher concentrated products
• Substitution of petro-chemically
based ingredients
e.g. low temperature protease
1
2
3
4
5
6
Leading Technologies
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Nanotechnology
New Bleaching Technology
Example: Titanium dioxide-Technology
Consumer benefit
• On-the-go bleach
• Malodor control
• Germ killing
Titandioxide
R
Sustainability benefit
• Sun powered bleach
• Natural mineral
Reactive
species
O2
-0,6 V
e.g. Photocatalytic bleach
TiO2 activation by sunlight
hv
390nm
O2
hv
OH
TiO2
H+ + OH
2,5 V
H2O
C6H5OH
6CO2 + 3H2O
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2
3
4
5
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Leading Technologies
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Agenda
1 Organization
2 Key Data
3 Innovation Process
4 Open Innovation Network
5 Leading Technologies
6 Key Take Aways
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Key Take Aways
• Innovation strategy and leading innovation process
aligns market needs with technology development
• Well balanced innovation pipeline guarantees
continuous output short and long term
• Steering best-in-class open innovation network
• Exclusive access to future leading technologies
• Essential contribution to profitable growth
TION
A
V
O
INN
MARG
¼ Leading in Innovation
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2
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Key Take Aways
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Lab Tour
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Laundry Innovation
• Purex Complete 3-in-1 Sheets
• Nanotechnology: Photocatalytic Bleach
2
Automatic Dishwashing
• High-Throughput-Experimentation
• Quick-Dry Technology
• Multifunctional Liquid
3
Activated Release
• Switchable Surfactants / Alternative Washing Technologies
• Fragrance Release Mechanisms
4
Biotechnology
• Probiotic Cleaning
• Enzyme Technology as Enabler for Compactation
1
2
3
4
5
6
Key Take Aways
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Lab Tour
Biotechnology
3
1
4
Activated
Release
Laundry
Innovation
2
Automatic
Dishwashing
B 02, Ground Floor
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2
3
4
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Key Take Aways
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Henkel is a leader with brands and technologies
that make people's lives
easier, better and more beautiful.
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