Strategic innovation imperative
Uday GillCEO - FIbers
Innovation is fundamental to industry transformation
Paradigm shifts leading to phase changes are happening over shorter periods
Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 Industry 5.0
Steam GasLooms, gins
Electrical PowerAssembly Lines
Synthetic Chemistry
AutomationComputer Control
Process Control
Data AnalyticsMachine Learning
New MaterialsBio-Technology
1781 – Early 1900s Late 1990s - PresentMid 1900s – Late 1900s
Rate
of
Inn
ovati
on
Product Innovation
Digital-Man Innovation
Electronics Innovation
Process Innovation
Experience EconomyIntegrated Ecosystems
All C 2 B???
What Next
Meaningful and viable differentiation through product innovation is a slow process
Invention to market is a long road
Apparel Hometech Technical
Segment
Recycling
and Bio
Composites
Space & DefenseFashion
Blends
Filling fibers
InsulationRenewable fibers
Light weighting
1960s 1970s 1990s 2010s
Sustainability
Next Gen
Intelligent Textiles
Wearable devices
2020s
%
18.2 16.7 15.4 12.7 10.5 9.9
24.521.6
15.813.0
9.4 8.5
8.27.2
5.7
4.6
2.5 1.3
0
10
20
30
40
50
60
1960-70 1970-80 1980-90 1990-2000 2000-2010 2010-20
China India US
Textiles and clothing (% of value added in manufacturing)
Benefits of cost innovation tapering off
Scale and efficiency now providing nominal improvements
0.0
0.2
0.4
0.6
0.8
1.0
0
500
1000
1500
2000
2500
1960s 1970s 1980s 1990s 2005 2010 2014
Pla
nt
sc
ale
(T
PD
)C
ap
ex
Ind
ex
(19
60
s b
as
e)
2018
Resource Light
Exacting performance
On demand Supply
Green perspective
Experience over stuff
Internal process focus
Race to reduce costs
Product focused R&D
Economies of scale
Competition
Opportunity
Supplier FocusConsumer Preferences
Multi level innovation needed to facilitate convergence of expectations
Dilemma of divergent expectations
Resource Light
Exacting performance
On demand Supply
Green perspective
Experience over stuff
Internal process focus
Race to reduce costs
Product focused R&D
Economies of scale
Competition
AI
Robotics
Bio-synthesis
New Materials
Supplier FocusConsumer Preferences
New technology basics to facilitate convergence of expectations
Innovation / technology help bridge the gap
Consequences of inadequate innovation
Wasted capital, diminishing innovation capability
50%
60%
70%
80%
90%
100%
-10
10
30
50
70
90
110
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Perpetual Overcapacity
Utilization Rate
Mill
ion T
ons
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
1.2
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1990-2000 2000-07 2010-17 2017 2018 2020-30
GDP Growth TFP Growth
Innovation imperative to counter declining productivityW
orl
d G
DP
Gro
wth
Wo
rld
To
tal F
acto
r P
rod
uct
ivit
y G
row
th
Innovation is aimed at increasing marginal returns and competitive advantage
Imp
act
of
Tech
Bo
om
TFP - Difference between the growth of output and the growth of a combination of all factor inputs, that reflects the contribution as a result of more efficient use of resources or adoption of new technologies
Imp
act
of
Seco
nd
Te
ch B
oo
m
Strategic innovation help capitalize on disruptive trends
Advanced Robotics –
Man Machine Interface
New
Sustainable Materials
Mass Digitization –
Advanced AI
Synthetic Biology
Mass
Customization
Universal
Computing
Bio
Economy
Physi
cal
Dig
ital
Bio
logic
al
Mega
Tre
nds
These challenges also offer an opportunity to innovate
Forging traditional innovation with customer insight and industry foresight
Time
Strategic innovation – to propel value growth
Strategic Innovation delivers
higher stakeholder value and
sustainably create competitive
advantage
Va
lue
/ G
row
th
Innovation in product and
process development
Cashing in on prior
innovation
Before Current Future
Emerging Initiatives that can change the game
Internal
innovation
Partnerships
for profit
Multi-modal
co-operation
Innovation
Ecosystem
Speedfactory
Disruptive Innovations
Engineered SilkColmar Graphene+
Individual innovations will fructify faster with the creation of alliances
Sewbots SpeedfactoryCredit: Agence Zoom
Structure for strategic innovation
Executing integration framework for a smart organization
Smart organization to:
Redefine markets and products
Reconfigure the value chain
Innovatively approach
differentiation
Products and
Services
Processes and
Technology
Critical Thinking
and Next Gen IdeasLeadership and
collective skills
Su
sta
ina
bility
Le
ns
Leadership role critical for mutually reinforcing innovation and performance
STRATEGIC INNOVATION
Strategic innovation alone is not enough
0
1
2
3
4
5
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
% ROA
Earn
ings
/ In
vest
men
t
Opportunity
Vision Execution
TimeVision vs Execution
Fast track execution is key to success
Imperatives for sustainable business strategy
Organization structure that encourages and invests in cross functional expertise
People processes to embed innovation culture
Build for agility and adaptiveness
Designing Smart Organizations
Safety of use
Resource Light
Designed for Next Life
Harmonize with the Ecosystem
Filter offerings from experience perspective
Must have feel good element
Attributes Intune with expectations
Leverage Customer Experience
Innovate and lead
Thank You