Milliken Company Insight into Innovation and New Business
Milliken & Company Insight into Innovation and New Business Development © 2010 Milliken, Private & Confidential Innovation and IP. Conference. May 1 st 2015
Example of an Innovation Pipeline Model* Ideal Final Result - A Holistic View of End-to–End Innovation * With Kind Permission www. innovation-framework. com 2
Example of an Innovation Pipeline Model* The Role of Teams & IT Management Tools New Product Blueprinter I 2 M Qmarkets Creax ADEPT * With Kind Permission Launch. Star® www. innovation-framework. com 3
Strategic Opportunity Framework Analysis Framework Developing Sustainable Innovation • Defining the Opportunity Idea Pipeline “Open” Networks Internal Ideas (Business alignment – Campaigns) Screen − Finding • Segmentation & Targeting − Framing • Defining/Proving business case A − Winning C Box MODEL Model 33 BOX − Scaling • Delivering long-term value to Milliken B Finding Scaling Create H 2 H 3 Develop Winning H 1 Win in the Market © 2014 Milliken 4
Milliken Innovation Process Model Process philosophy relies on sound project management principles and progressive elaboration as a function of project phase. Ideation 1 Ideas & Insights 1 A Incubation Market or Technical Development 1 B Laboratory Product Development Validation 2 2 A Pre-pilot Product Development 2 B Commercial & Market Pilot 3 Commercialization 3 Launch & Replication ~$50 – “Testing” “Scaling” $100+ MM PHASE: GATES During the phase you do the project work following project management principles Gates are decision points to advance the project, stop it, or recycle if information is missing “Mature” H 3 H 2 H 1 ~$10 MM Win in the Market Time © 2014 Milliken 4
i 2 m – Doing the Right Projects Right! Marketing Alignment Ø Ø Market assessment Business investment thesis, expected ROI Product needs/benefit requirements Validated hypothesis connected to strategy Ø Ø Ø Preliminary marketing hypothesis Ø & “soft launch” marketing plan Competitive landscape Ø Alpha customer identification Ø Value proposition Ø Business investment case Value proposition and refined Ø investment-level business case Ø Alpha customer validation Alpha customer commitment Market activation & “hard launch” marketing plan Market activation dashboard Product line strategy Where to compete? How to Win? Increased Confidence & Conviction © 2014 Milliken, Private & Confidential © 2014 Milliken 5
Strategic Opportunity Framework Four Key Questions Over a series of stages & gates, knowledge and conviction around four key business-facing questions should advance……. Gate 1 A Gate 1 B Gate 2 A Gate 2 B Gate 3 1. What is the problem to be solve and what is it worth to Milliken to solve it? 2. Where do we plan to play? 3. How do we play to win? 4. How will we activate and scale up the opportunity? Conceptual Hypothesis Working Hypothesis Strong point-of-view Complete Refining / additional knowledge © 2014 Milliken 7
Strategic Opportunity Framework Market Analytics Over a series of phases and gates, conviction and knowledge advances Conceptual Hypothesis Working Hypothesis Strong point-of-view Complete Refining / additional knowledge © 2014 Milliken 8
Strategic Framework Market Sizing Systematic approach to determining the target market size and opportunity … TOTAL MARKET Addressable Market Target Market (prioritized segments) Opportunity Space (within prioritized space) Defined market space Portion of market we can address (aligns with technology and value proposition) Choice on prioritized place to play! Forecasted space, amount of prioritized space that can be won! 9
Innovation Framework Market Sizing Knowledge and conviction on size of the opportunity will progress across phases and gates…… Conceptual Hypothesis Working Hypothesis Strong point-of-view Complete Refining / additional knowledge © 2014 Milliken 10
Innovation & Our Strategic Go-to-Market Framework Upstream Marketing: Creating Value & Competitive Market Advantage • Segmentation & Targeting • Segment attractiveness • Fit with company / SWOT • Positioning • Discover customer needs • Competitive intelligence • Market dynamics/drivers • ID addressable markets insights Innovation Pillar • Execute GTM plans • Salesforce engagement • Lead management • Transactional pricing • CRM • Customer Experience • Product Line Management • Measurement Selection – Segmentation & Targeting (where to play) H 3 Deliver value (play to win) Op Ex Pillar Strategy H 2 Core Go to market plans Pillar NPD, M&A Define the market/ opportunity • Value chain analysis • Value prop/messaging (how to play) • Product portfolio design & development • Value pricing • Brand strategy • Channel strategy / route to mkt. • Integrated Communications Downstream marketing: Delivering Value & Achieving Competitive Market Advantage © 2014 Milliken 11
Summary ü See Innovation from a holistic perspective ü Use teams & Innovation Management IT tools to improve efficiency & develop insight & knowledge ü Stage Gating adds discipline to the NPD process ü Innovation process is aligned and embedded with the Strategic Development Framework * With Kind Permission www. innovation-framework. com 12
Milliken & Company Insight Into Innovation and New Business Development Q&A © 2010 Milliken, Private & Confidential Innovation and IP. Conference. May 1 st 2015
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