akzonobel networked innovation

The AkzoNobel Networked Innovation Story: Share and Cooperate ENG's TECHSCOUT 2013

1. AkzoNobel at a glance

2. The starting point for the networked innovation initiative

3. The building blocks of the AkzoNobel networked innovation approach

4. Preliminary conclusions

Agenda

AkzoNobel Networked Innovation ENG 2013 2

AkzoNobel at a glance

• Headquarters Amsterdam

• 2011 revenues € 15.7 billion

• 57,000 employees

37%

27%

36%

Performance CoatingsDecorative PaintsSpecialty Chemicals

Revenue by Business Area


AkzoNobel Networked Innovation The starting point

• Major acquisitions and divestments since 2005 (ICI, Organon, Uniquema ..)

• Synergies

• One AkzoNobel / Culture

• Organic growth supported by innovation

• Focus

• Speed

• Experience in open/networked innovation

• Innovation brokers

• Universities, suppliers, customers


The AN choice for Knowledge Management What best under the conditions?

The data focused approach The people focused approach


The AN Networked Innovation Organizational Building Blocks

Expert Capability Groups Communities of Practice

AkzoNobel Networked Innovation (ANNI) Champions


Expert Capability Groups Drive critical science areas

• 4 Groups, integrated in Corporate RD&I organization

• Experts in science and technology areas crucial to AkzoNobel

• Balance between critical mass and geographic distributions (4 sites in Europe and Asia)

• Allocated to BU RD&I projects (no corporate funding)

Science and technology input into major BU programs

Participation in BU projects, extensive internal and external networks,


Communities of Practice Leveraging AkzoNobel’s capabilities


Communities of Practice Domains

Top-down defined domains Strategically important to the wider AkzoNobel

• Colour & Effects

• Corrosion Protection

• Efficient Crosslinking

• Process Efficiency

• Renewable Raw Materials

• Waterborne Technologies


Communities of Practice Organization & Scope

• Full time CoP leader, reporting to Corporate RD&I

• Core members (10-20), time investment 10-20%

• Associated members (500-1000)

Leverage existing knowledge available to AkzoNobel:

WebEx / Intranet site / Newsletters / Online discussion forum /

Challenge webinars / Working groups


Communities of Practice Metrics

Membership ca. 5000 to date • Not just from RD&I, also Marketing, Process Engineering,

Purchasing .. • Good BU and geographical spread > 40 active special interest working groups > 125 webex presentations to date (av. 40 participants) Newsletters to > 6000 addressees CoP sites 1000 unique visitors/month, 700 site visits/day > 800 discussion threads to date Many 1:1 and 1:>1 technical exchange and problem solving interactions


ANNI Process and Champions


AkzoNobel as part of a global network The Global Innovation Community


A 4 step process for finding (internally & externally) and incorporating solutions

Developed in cooperation with

AkzoNobel Networked Innovation (ANNI) The process


AkzoNobel Networked Innovation (ANNI) The process

Needs brief & Request for

Proposal (RfP)

Agreement on acquiring solution

Identifying (potential) solution provider

Making the solution work


AkzoNobel Networked Innovation (ANNI) WANT: Identify the need and describe it

An RfP brief is


AkzoNobel Networked Innovation (ANNI) WANT: Ask the right question

«.. there are few things as useless

- if not dangerous -

as the right answer

to the wrong question»

Peter Drucker The Practice of Management, 1954



If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask . Albert Einstein (1879 - 1955) Physicist & Nobel Laureate

AkzoNobel Networked Innovation (ANNI) WANT: Ask the right question

http://www.gurteen.com/gurteen/gurteen.nsf/id/albert-einstein

AkzoNobel Networked Innovation (ANNI) FIND: Identify potential solution provider (internally)

AN

>50’000 employees >100 (?) business lines >1000 sites Is there a solution somewhere? Where?


AkzoNobel Networked Innovation (ANNI) FIND: The Champion approach

Create a team of networked innovation champions (NIC) from all BU’s as the core team and as the driver of the networked innovation activities within all parts of the organization


ANNI Working Group Networked Innovation Champions (NIC)


ANNI Champions role Within BU

• Lead and coach networked innovation approach

• Single point of contact for ANNI activities in BU

• ANNI needs selection and prioritisation

• Coaching need development and brief writing

• “Spider” in the network within BU

• Managing and distributing internal RfP

• Coordinating external brief activities

• Encourage timelines

• Coaching and facilitating evaluation of responses

• Manage ANNI project portfolio

• Collecting and sharing metrics


ANNI Champions role Beyond BU

• Identify and communicate best practices

• Combine metrics into full picture

• Participate in and contribute to NIC Workgroup activities


AkzoNobel Networked Innovation Implementation

• AN Top down initiative end 2009 • Key factors: • Training: a) NIC b) local “champions” c) all users

• Cross functional, cross BU, “train the trainer”

• Alignment: embedding in organization • NIC in each BU, collectively ANNI team, sharing methods

and experiences

• Always RFP within AkzoNobel as first step, thereafter (optionally) to outside world


Cooperation within NIC The team to lead and drive

• Two F2F meetings / year

• Invited presentations

• Monthly telcons

• Exchange of RfP for reviews (problem definition)

• Team share point site


ANNI SharePoint Site Where the NIC meet


Metrics What is not measured .

Progress control • All along the process

• Number of trainings

• Number of RfP

• Number of feedbacks

• Quality of feedbacks

• Outcome of the RfP

• Regularly discussed in NIC team


Process control Numbers of RfP


Process Control Feedback to RfPc


Internal RfP Number Feedback SolutionWay to

solution HintsNo

knowhow UnclearActual Status

Portable 5 1Chelated .. 11 1Encapsulation . 18 1Prevention 2 1.00Paint .. 4 1Adhesion .. 28 1.00Adhesion .. 25 1.00Precision . 3 1Reduction 2 1Reduction 13 1Control . 15 1.00Adhesion . 13 1.00Improvement .. 3 1.00Gloss 3 1.00Label-free . 4 1.00Hammertone ... 1 1.00Achieving .. 22 1.00Formation . 18 1.00Perfect 3 1Approaches .. 20Improving ..Thick .. 1 1Waterborne .. 4 1Fire . 13 1Selective 4 1Radical .. 7 1Coating .. 12 1.00

Color code New and innovative

Helpful and informative

Old and tested

Not so good

Final solution!

About each RfP an outcome summary is prepared and entered into the ANNI database: • Overall evaluation of output • Each idea/feedback is commented

Process Control Outcome reporting


¾ To date ca. 130 RFPs, average 10

responses per RFP

Broadly engaged AkzoNobel community (speed, spread, responses, quality of ideas and solutions)

Success control Internal RfP


Implementation Integration into daily activities

• Integration into innovation process

• Part of target setting in some (s)BU

• e.g. 50% of new products with external (to sBU) input

• Part of P&D dialog

• Recognition / awards


Implementation Recognition

And the Cross Link Award 2009 goes to Functional Chemicals sBU Elotex and Decorative Paint for their cooperation on sustainable latexes!


OI beyond ANNI AkzoNobel used further approaches

ANNI (int/ext)

Venturing

Academic Programs

< 2 years 2-8years > 8years


A look back and forward: It is about changing the culture

• Top down initiative

• Resources / responsibilities

• Focus on behavior

• Integration in processes and organization (flexibility)

• Metrics (targets)

• Success stories

Broad engagement (still needs reinforcement)

Culture Behavior

Norms

Beliefs

Values

..


RD&I | Operational Excellence 36


akzonobel networked innovation

Education

akzonobel balance

bu anni

anni process

anni activities

anni champions role

bu projects

bu rdi projects

practice of management