AN OPEN INNOVATION TOOLSET TO BOOST INNOVATION … · educating, selling, marketing •Approves Company eligibility •Matches Company fee of $12.5K per technology search NINESIGMA

Copyright 2013, NineSigma 1

AN OPEN INNOVATION TOOLSET TO

BOOST INNOVATION EFFECTIVENESS

11.05.2013

QUEBEC SEEKS SOLUTIONS

Andy Zynga, CEO, NineSigma


NINESIGMA OVERVIEW

OUR CLIENTS ON NINESIGMA:

THE BEST IN THE WORLD AT UNCOVERING

TECHNOLOGIES TO SOLVE INNOVATION NEEDS.

OFFICES IN USA, EUROPE, JAPAN,

AUSTRALIA, KOREA AND CANADA 37,000 + PROPOSALS

RECEIVED FROM 116 COUNTRIES

2,500 + OPEN INNOVATION

PROJECTS COMPLETED

DIVERSE CLIENTS

MULTINATIONALS, MIDDLE MARKET,

NON-PROFIT, GOVERNMENT

2 MILLION + SOLUTION

PROVIDERS CONTACTED

PROGRAM MANAGER

EXPERIENCE: 28 YEARS AVERAGE

INDUSTRY EXPERTISE, 150

PROJECTS MANAGED


A SAMPLE OF OUR GLOBAL CLIENTS

PROGRAM DELIVERY IN:

North America Brazil South Africa Europe Japan Korea Australia

MITSUBISHI MATERIALS NEC

suntory

TOSHIBA ISUZU MOTORS

KOMATSU

HITACHI CONSTRUCTION

SUMITOMO

OSAKA GAS

ASAHI BREWERIES

The Coca-Cola Company DENSO

OMRON

SHISEIDO

TEIJIN

SHOWA DENKO

SUMCO KIRIN HOLDINGS

OLYMPUS IDEMITSU

DENKA

http://www.generalmills.com/corporate/index.aspx

http://www.johnsoncontrols.com/publish/us/en.html

http://www.kimberly-clark.com/

http://www.eastman.com/

http://www.akzonobel.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Kri4oPhxZEMPKM&tbnid=N7uSeOeGZOEnpM:&ved=0CAUQjRw&url=http://www.ghgreductionsummit.com/About/AboutTheCCEMC/tabid/95/Default.aspx&ei=E7VQUZjZOsmx0AGa5YGwAQ&bvm=bv.44158598,d.dmg&psig=AFQjCNE_XP9tH83VGB_HqGGrDtGiEZ38Fg&ust=1364330129727635

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=JHPslcNP9Bf-vM&tbnid=L9e_1ZaSbW5q_M:&ved=0CAUQjRw&url=http://secondmuse.com/portfolio.html&ei=jbdQUeatOunZ0QGEmYDADA&bvm=bv.44158598,d.dmg&psig=AFQjCNHqwybAO4Qb8C5OgiWJOJojXTQqXA&ust=1364330760841537


HOW DOES THE TECHNOLOGY SEARCH

PROCESS WORK?

TYPICALLY 6-8 WEEKS


NON-CONFIDENTIAL NEEDS BRIEF A PROBLEM WELL STATED IS A PROBLEM HALF SOLVED

CLEAR Is written so that researchers in other

industries can understand what is needed

CONCISE Provides the critical information for

potential Solution Providers to

understand what is needed for the

technology to be evaluated and acquired

COMPELLING Has a financial reward that is

commensurate with the proposed project


PACKAGE LEAK DETECTION

DISPENSER TECHNOLOGY

MICROWAVE EVEN HEATING

SENSORS

WHERE COULD UNEXPECTED CONNECTIONS TAKE YOU?

EXPANDING YOUR REACH THROUGH UNEXPECTED CONNECTIONS


SUMMARY OF KEY STEPS FOR

TECHNOLOGY SEARCH

Universities

Industry

Labs

NINESIGMA PH.D. TEAM 2. SOLUTION PROVIDERS

1. CLIENT

NineSigma Proprietary Search Methodology & Database

BROADCAST SEARCH

5.

2.

4.

“Technology Brief”

summarizing the

need (RFP)

Proposed

IP Solution

Proposed

IP Solution

Proposed

IP Solution

NON-CONFIDENTIAL

NON-CONFIDENTIAL

NON-CONFIDENTIAL

NON-CONFIDENTIAL


Return on open innovation

Data from VDMA project in textile machinery industry

Direct cost of OI project

€ 18 000 ,- + approx. 2 person months

Estimated value of realized solution

€ 375 000,-

ROI : approx. 2000%

Quality of solution:

Average of 89% immediate “fit for purpose”


THE STATE OF OHIO CREATED AN

“OPEN INNOVATION INCENTIVE”

AS A MEANS OF ECONOMIC

DEVELOPMENT FOR THE REGION.


Tech Search XYZ

INVOICE

• SALES

• MARKETING

• EDUCATION

HOW THE PROGRAM WORKS

OHIO DEVELOPMENT

SERVICES AGENCY

(ODSA)

• Provides funding to

NineSigma for

educating, selling,

marketing

• Approves Company

eligibility

• Matches Company fee

of $12.5K per

technology search

NINESIGMA

• Finds and educates

potential Clients

• Validates economic

impact (jobs created

etc.) with Company

• Performs technology

searches

• Reports results to

ODSA

OHIO BASED MID-

MARKET COMPANY

• Gets access to world’s

best technology

solutions to accelerate

innovation, get to

market faster

• Pays fee of $12,500

for technology

searches

$12,500 $12,500

Support Services

INVOICE

Tech Search XYZ

INVOICE


SINCE JANUARY 2013, CONTRACTS FOR 24

TECHNOLOGY SEARCHES HAVE BEEN AWARDED

SELECTION OF COMPANIES:


THE OPEN INNOVATION INCENTIVE EXCEEDS

THE STATE’S EXPECTATIONS

This program is the least expensive

way to create jobs. We are very

pleased with the progress! - Ohio Third Frontier Commission

June, 2013

“

”



SELECTED CLIENTS IN CANADA

CLIENT SECTOR

Cenovus Energy/Oil/Gas

CCEMC Funding Agency for technology projects that reduce

greenhouse gas emissions.

Devon Energy/Oil/Gas

Enbridge Energy/Oil/Gas

FPAC Forestry

Nexen Energy/Oil/Gas

OSLI Energy/Oil/Gas

PTAC Funding agency for technology projects that promote

advancement of hydrocarbon energy technology

Royal Construction/Building materials


CASE STUDY

• A Manufacturing Process and Automation company was searching for

commercially viable inspection technologies for surface and sub-surface

defect recognition in animal hide and other flexible material goods.

• The company was looking to develop an automated inspection system to

increase efficiency and accuracy of the inspection process.

• Numerous proposals were received that identified various methods and

techniques to examine flaws in flexible materials.

• The proposals represented approximately seven technology areas including

ultrasonic, X-ray, computer visual identification, all of which would remove

the subjectivity from the inspection process.

• The Client selected eight respondents for further discussion based on the

potential of their proposed solutions.

FLAW DETECTION IN FLEXIBLE MATERIAL GOODS

RESULTS

OVERVIEW & CHALLENGES

KEY TAKEAWAYS

• Of the eight proposals short listed by the Client, two were

ultimately selected for contract.

• One was from a technology company and the other was from a

university professor.


CASE STUDY

• In down hole drilling, extreme pressure, temperature, and distance

make use of existing electronics components near impossible.

• Client wanted to improve the use of two way communication and

sought NineSigma's help in identifying partners with innovative and

robust wireless communications systems.

• NineSigma broke the project into two sections - one to focus on

data transmission technology and the other to focus on powering

these devices "down hole" with newer, breakthrough techniques.

• Nearly 50 responses were received by NineSigma, and a variety of

approaches were identified through a facilitated evaluation,

including approaches from outside oil and gas applications.

NOVEL WIRELESS COMMUNICATION SYSTEMS FOR DOWN HOLE APPLICATIONS

RESULTS


KEY TAKEAWAYS

• By breaking the problem down into two separate but

linked projects, a wider array of interesting technologies

was proposed.

• The client was able to tailor a complete solution by

finding a good match between new methods for wireless

data transmission and ways to power them.


CASE STUDY

MAMMAL TRACKING TECHNOLOGIES

• OSLI partnered with NineSigma to identify new technologies for tracking

hoofed mammals like moose, caribou, deer, and wood bison, as well as

large predators like wolves.

• The goal was to implement a world-class approach to assuring

environmental sustainability, social well-being and economic viability in

Alberta’s Boreal Forest, while still providing the world with oil for energy.

• To find better solutions, OSLI engaged with NineSigma to put out a

Request with selection criteria that included strong scientific and

technical merit, economic potential, little to no stress on animals, and

cost effectiveness.

• Solutions were welcomed from diverse types of organizations – small to

large companies, NGOs or governments, academic researchers,

consultants, venture capitalists, entrepreneurs, and inventors.

APPROACH


KEY TAKEAWAYS

• NineSigma vetted entries together with OSLI, and the top four

technologies were funded for testing.

• These winning solutions from the U.S. and Europe include

improvements of current forward-looking Infrared technology,

military technology, multi-spectral imaging, and unmanned

aerial vehicles and drones. These four technologies do not

involve methods currently used in the oil sands region.

“We are making great progress in our goals to improve accuracy, timeliness, and economic factors in mammal tracking by seeing these top technologies in action. These technologies could advance the management of industrial impacts on wildlife while enabling safer extraction and provisioning of oil as a viable global energy resource.”

— WILL HUGHESMAN, NEXEN, LAND STWEARDSHIP WORKING GROUP CHAIR FOR OSLI


SUCCESS STORY

• Manufacturer of solutions that protect people, products and property was

looking for applications that would enable camera-equipped mobile devices

to measure and identify the surface features of small appliances.

• This was a short-range technology need with a very quick turnaround.

• Xerox responded to the RFP with a proposal for an optical approach to

align electronic inputs on a backplane. The technology was not being

actively used by the company.

• Client is licensing the technology and testing it in production.

OPTICAL OBJECT RECOGNITION AND FEATURE MAPPING FROM MOBILE DEVICES

RESULTS


KEY TAKEAWAYS

• Client wasn’t sure of the proposed solution at first, but after

some deeper discovery, they learned that the solution was

going to fit their needs.

• Open Innovation can bring ready-to-implement technologies

from other peer companies for rapid deployment.


CASE STUDY: GRAND CHALLENGE

HEAD HEALTH CHALLENGE I

• The GE NFL Head Health Grand Challenge is a $60 million program that

includes research and challenges to develop new solutions to help

advance understanding of mild traumatic brain injury.

• The first $10 million Challenge invites proposals for scanning

technologies and biomarkers.

• A second $10 million Challenge with Under Armour launches Fall 2013 to

find, fund, and develop new solutions to diagnose and protect against

traumatic brain injury.

• Because GE and the NFL bring distinct resources to their partnership,

NineSigma worked closely with GE and the NFL to align their goals and

design a challenge program that would achieve each of their objectives.

• With two challenge topics, and a diverse judging panel, the prize

strategy was a critical component that had to be defined and clearly

communicated to a broad technical and consumer audience.

APPROACH


KEY TAKEAWAYS

• Translating each Sponsor’s objective into an integrated topic

and prize strategy is a critical first step which determines the

success of the program.

• Even a large scale, multi-year Challenge such as this can be

defined, scoped and launched in a short period of time when

there is executive buy-in and support .

http://www.nflgebrainchallenge.com/


“Innovation and technical excellence are

critical to Air Products’ continued success in

the market. We believe that working with

NineSigma will amplify our internal R&D

efforts and will expand our ability to access

external resources and capabilities globally”

Miles Drake, Vice President and Chief

Technology Officer, Air Products

Source: Authorized attributable comments.

“Innovation is the lifeblood of our company. If

we don’t innovate, we won’t grow, or even

survive, in today’s fast moving world and highly

competitive business environment. We have

chosen to partner with NineSigma to establish

our Networked Innovation Program because

they have an impressive track record of

making open innovation work for companies

like ours,” Graeme Armstrong, Corporate

Director of Research, Development and

Innovation at AkzoNobel.

“We use NineSigma when we are looking

for alternative approaches to solve problems

or where a solution from a different industry

may help.” Todd Abraham, VP of Global

Research and Technology Strategy, Kraft

“We found the NineSigma Intelligence

program particularly helpful in getting us

quickly up to speed on our internal

knowledge on geothermal energy. We have

some strategic decisions ahead of us, but

the NineSigma program helped get us to

the point where we can make the best

decisions possible.” Rod Nelson, Vice

President, Schlumberger

OUR EFFECTIVENESS IS CONFIRMED BY

FEEDBACK FROM OUR CLIENTS

“The NineSigma Intelligence Program has

proven to be an outstanding tool for us in

our exploration of emerging technology.

The quality, organization, and delivery of

information, especially NineSigma’s

assessment and recommendations, will help

us make strategic decisions. “ Kent Young,

Director of Technology, Sherwin-Williams

“We are extremely pleased with the results from NineSigma. The companies and individuals NineSigma connected us to provided us with ready solutions to a materials need that we have been unable to address with our internal expertise. NineSigma delivered fast and significant value to our program.” Robert Finocchiaro, Ph.D., Technical Director, 3M

“We’ve distributed technology briefs to more

than 700,000 people through NineSigma

and have as a result completed over 100

projects, with 45% of them leading to

agreements for further collaboration.” Larry

Huston, Nabil Sakkab, Procter & Gamble in

Harvard Business Review, March 2006

http://www.kraftfoodscompany.com/home/index.aspx

http://www.akzonobel.com/

http://www.sherwin-williams.com/


Thank You

STAY CONNECTED

www.NineSigma.com

www.ninesigma.com/blog

PRESENTER EMAIL

PHONE

@NineSigma

@NineSights

Andy Zynga [email protected]

(216) 295-7876


APPENDIX

http://blogs.hbr.org/cs/2013/04/the_innovator_who_knew_too_muc.html

HBR Blog Post: The Innovator who Knew Too Much

By Andy Zynga | April 29, 2013

http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html#disqus_thread

HBR Blog Post: The Cognitive Bias Keeping Us from Innovating

By Andy Zynga | June 13, 2013



http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html

http://blogs.hbr.org/cs/2013/06/the_cognitive_bias_keeping_us_from.html

Documents

AN OPEN INNOVATION TOOLSET TO BOOST INNOVATION … · educating, selling, marketing •Approves Company eligibility •Matches Company fee of $12.5K per technology search NINESIGMA