ron pierantozzi air_products
TRANSCRIPT
2 Copyright Air Products and Chemicals, inc. 2006
Baseline valuation of company
CurrentBusinessPortfolio
Five Levers To Drive Growth
Businessvalue
($Billion)
GeographicExpansion
Services
CurrentBusinessPortfolio
Business Model Innovation
New PlatformsThe role ofCorporate Venturing
3 Copyright Air Products and Chemicals, inc. 2006
New Business Development at Air Products
Mandate evolved in 2003 to focus on support of existing Growth Platforms, embedded in the SBU’s
– Electronics, Energy, Materials, Healthcare– Continue to look at Whitespace opportunities
NBD Feeds the front end of the pipeline and incubates projects until first revenue.
Established late stage incubation/accelerators in each growth platform/division. Responsible for ramping up the business to growth and integration into SBU.
– Advanced Materials established 2003– Energy Solutions established 2005– Electronics – 1990’s– Healthcare - 2000
Accelerator’s projects have multiple division alignment
4 Copyright Air Products and Chemicals, inc. 2006
Air Products Corporate Venturing
A mix of internal and external venturing activities– Ideas come from within or through a broad search
mechanism
Focus on developing platform level businesses– Keep it large enough to be material
Take advantage of unique skills, capabilities, market channels or customer relationships
– Start with something you know
Focus on growth domains that are linked to corporate growth strategy
– Have a defined strategy
Organizational Model continues to evolve– Never Static– Always evolving to meet the strategic opportunities
5 Copyright Air Products and Chemicals, inc. 2006
Current Role of the New Business Development Group
Develop the strategies for new business platforms– New technologies and new markets
Incubate the early stages of new businesses
Develop the tools for new business creation
Consult with SBU on disruptive approaches
Manage the venture equity investment portfolio
Individuals with diverse backgrounds– Technologists– Business– Commercial Development– Finance
6 Copyright Air Products and Chemicals, inc. 2006
Organizing the Hub and Spoke System
CorporateNew BusinessDevelopment
AdvancedMaterials
ElectronicsEnergy
Solutions
GasesGroup
Healthcare
Each group has a late stage incubator
Growth PlatformsNear Adjacencies
Growth Board
7 Copyright Air Products and Chemicals, inc. 2006
Growth Board
Senior executives– COO– CFO– CTO– VP Corporate Development
Monthly meetings
New platforms
8 Copyright Air Products and Chemicals, inc. 2006
Creating APD’s Growth Platforms
Discovery Incubation Acceleration
CDO
CSTC
Advanced Materials(Chem Group)
Energy Solutions(Gases Group)
Emerging Materials(Electronics)
PerformanceMaterials
EPI
Electronics
Global Healthcare
Healthcare
9 Copyright Air Products and Chemicals, inc. 2006
Not just one competency…but 3!
Discovery Creation, recognition, elaboration, articulation
of opportunities.
IncubationEvolving the opportunity into a business proposition
AccelerationRamping up the
business to stand on its
own
•Corporate Development Office
•Corporate Technology
•Corporate Development Office
•SBU Incubators
•Multiple SBU Impact
•SBU
•New Business Unit
Exploration Experimentation Exploitation
10 Copyright Air Products and Chemicals, inc. 2006
Developing the Culture and Capability
Bring into the corporation new tools for business development
– Learning plan – Gina O’Connor – RPI– Discovery Driven Planning – MacMillan, McGrath– Real Options – MacMillan, van Putten– Entrepreneurship training – Tony Warren – Penn
State– Bell Mason Diagnostic – Heidi Mason, Tim Rohner
Create the learning environment for implementation– Created Innovation College– 30 courses on tools ranging from front end to
project execution– Work with real projects to develop the tools– Expanded globally
11 Copyright Air Products and Chemicals, inc. 2006
Developing Internal Knowledge
Created communities (networks) to share information and ideas
– Over 180 communities – Linked through an internal knowledge
management system
Developing external networks– Through technology partnerships– Open Innovation
Developing insight to new markets and technologies
– University research– Equity investments in technology start ups
12 Copyright Air Products and Chemicals, inc. 2006
Issues and Challenges Going Forward
Availability of seed money– Capacity of organization
Short term focus in SBU’s– Metrics for accelerators vs. conventional– Piloting real options
Building credibility for NBD– Create opportunities within Growth
Platforms – Allows more whitespace opportunity
Developing the right skill set– Neither technology nor business but both– Career path for business development
professionals