The Business

Of

Innovation

John Shaw

CIO

Kingspan

09.25 – 09.45 Tuesday 24 February 2015

Aviva, Dublin

Introduction

Kingspan is the world leader in

Energy Efficiency Solutions

Innovation is Integral

to the

Kingspan Culture

Successful Innovators

are

Open Disruptive Innovators with Strong Processes

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2020

• Sustainable Cloud ?

The Business of Innovation

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2017

• Sustainable Cloud ?

The Business of Innovation

Abu Dhabi Midfield Terminal Design, UAE

Insulated Panels

• Kingspan is recognised as the Global Leader in Energy Efficiency Solutions.

• Across the globe the Transition to Sustainability is underway;

The European Commission has set a goal of 20% Renewable Energy by 2020

In North America, there is exploding demand for Onshore Wind and Solar Power.

China is driving down the price of Renewable Energy via Solar PV technology

• 4 forces drive this transition ;

Climate change

Growing Demand for Energy

Rising Price for Fossil Fuels

Energy Security

Business Context

A transition to Sustainable Energy permanently extracts us from the Energy Crisis

Crisis, What Crisis?

“...We can get 100 percent of our energy from wind, water, and solar (WWS) power. And we can do it today—efficiently, reliably, safely, sustainably, and economically...

...The obstacles to this transformation are primarily social and political, not technical or economic...”

Dr Mark DelucchiUniversity of California

IEEE Spectrum September 2011

Cloud is key to this transformation

The Big Picture

• Kingspan is recognized as the global leader in Sustainable Building Solutions ;

• Agile Management Model, with rapid decision-making• Entrepreneurial Culture, acting on opportunities as they arise• Partnership approach, delivering ‘ Think Global, Act Local’ • Product Leadership built via Innovation & partnership• Integrated Supply Chain maximises Operational performance

Sustained Sales Growth

Kingspan Success

Kingspan’s Business Model spans 4 Product

Sets ;

Insulated Panels

Insulation Boards

Access Floors

Environmental

58% of Sales Revenue

Insulated Roof & Wall Panel Systems

Integrated Solar PV Solutions

Benchmark Façade Systems

Controlled Environments

Structural Products

Profiles & sections

Door Components

Insulated Panels

Jaguar Land Rover, England

Kingspan Energy

25% of Sales Revenue

Perth Arena, Australia

Insulation

Insulation Boards

Insulation Boards for Roofs, Walls & Floors

HVAC, Piping & Ductwork Insulation

Timber Frame Systems

TEK Building Systems (SIPs)

9 % of Sales Revenue

Access Floors

Spectrum Health Medical Group, Grand Rapids, USA

Access Floors

Raised Access Floor Systems

Underfloor Wire & Cable Management

Underfloor Air Distribution

8 % of Sales Revenue

Environmental

Solar Thermal Systems

Micro Wind turbines

Air Source Heat Pumps

Hot Water Systems

Environmental Rainwater Harvesting

Sustainable Drainage Systems

Pollution Control Systems

Fuel storage systems

Lane Community College, Eugene, Oregon, US

Kingspan Solar

Kingspan’s Innovative Solutions

Kingspan relentlessly drives product innovation

Manufacturing Locations

Global expansion underway

Kingspan Scale

• 62 Kingspan Factories, 7,000 employees

• 85 Countries with Kingspan activities

• 120 Kingspan locations

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2020

• Sustainable Cloud ?

The Business of Innovation

University of Louisville Student Recreation

Center Louisville, Kentucky

Insulated Panels

Disruptive Technology Creates lasting change

Aqueduct

Steam Engine

Electricity

Source: Chris Roche, EMC

Disruptive Technology of the past

People want Ease of Personal Computing at Work

The independent evolution of 4

powerful disruptive forces has

converged.

Leading to a seamless

consumerisation with instant

access to information via smart

devices.

People now expect this in their

workplace.

This creates a Multiplication of

Forces that drive business at an

increasingly pace.

Disruptive Vendors driving this –

Google, Apple, Amazon,

Facebook

4 forces are revolutionizing business & society, creating new leaders

4 disruptive IT Forces

Source: Gartner

Corporate Executive Board 2012Connect & Sell 2012IBM Buyers Preference Study 2011

97%75% 57%

Of the time

cold calls

do not work

B2B purchaser

influenced

by social media

Buying decisions

are made before sales

rep involvement

What once worked, will not work anymore

Buyers have changed

A Digital Journey for the customer

1. Web Store

2. Configure Product

3. Upsell /

Cross-sell

4. Checkout

5. Customer Support

Sales Funnel : 1914 Customer Journey : 2014

1898 : Sales Funnel created by Elias Lewis

Important to understand Business Context first

Digital Master ?

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2020

• Sustainable Cloud ?

The Business of Innovation

Seattle Commercial Hangar Seattle,

Washington

Insulated Panels

• Innovation is the creation of better products, processes, services that are readily available to society.

• Innovation differs from Invention - invention refers to the creation of the idea or method itself.

• Innovation differs from improvement - improvement refers to doing something better rather than doing something different.

Innovation ?

Innovation Drives our Civilisation

• Open innovation is a paradigm that assumes Organisations can use external and internal ideas, and internal and external paths to market, as the organisations look to advance their technology

• Open Innovation is Innovating with partners by sharing risk and reward

Open Innovation ?

Open Innovation = a Virtuous Helix of Public + Private + Academic

A disruptive innovation helps create a new market and eventually disrupts an existing market, displacing an earlier technology

Kingspan Integrated Solar PVKingspan Cold Store

Disruptive Innovation ?

Kingspan Kooltherm Kingspan Benchmark

Disruptive Innovation is Challenging & Exhiliarating

Ingredients for Success ?

Innovation fails without 3 key Ingredients

EC Innovation Index 2014 :

“ All of the innovation leaders have higher than average scores in

Public-private co-publications per million populations, which suggests good linkages between the science base and enterprises. “

Ingredient # 1 : The Virtuous Helix

Finland is consistently in the ‘ Innovation Leaders’ since the mid-1990s

Open Innovators are different.... .... And can be Identified in Aptitude tests

THE INNOVATOR’s DNA : HBR May 2012

5 Key Traits of the Innovator

1. Associational thinking: I creatively solve challenging problems by drawing on

diverse ideas or knowledge.

2. Questioning: I often ask questions that challenge others' fundamental assumptions.

3. Observing: I get innovative ideas by directly observing how people interact with

products and services.

4. Idea Networking: I regularly talk with a diverse set of people (e.g., from different

functions, industries, geographies) to find and refine new business ideas.

5. Experimenting: I frequently experiment to create new ways of doing things.

Source: HBR, Jeff Dyer, Hal Gregersen, and Clayton M. Christensen

Ingredient # 2: The Right People on the Bus

We can all learn from the Great Innovators

Sometimes you’ll meet an exceptionally Disruptive Innovator....

Ingredient # 2: The Right People on the Bus

The Course of History is set by the Unreasonable Man

Dis

cip

lin

e

Innovation

Start Up

Bureaucracy

Hierarchy

Great

Organisations

Ingredient # 3: A Culture of Innovation

Great Organisations have a Structured Innovation Process

Culture ?

Organizational culture is

the set of values and beliefs

shared by an organization's members.

How can we “ see “ Culture ?

Values

AssumptionsBeliefs

BehaviorVISIBLE

INVISIBLE

Strategic planning

Management leadership

Vision

Portfolio management

Collaboration

Rewards and recognition

Funding and resource allocation

Acceptance of risk taking

Roles & responsibilities

Capability development

Strategy

&

Management

Process,

Tools, and

Metrics

People

&

Culture

Frameworks

Processes

Measurement & communication of value

Assessing Innovation Culture ( scale of 1 – 5 )

Culture is ...

The way we do things around here

Innovation Value Institute ( http://ivi.nuim.ie )

Ingredient # 3: A Culture of Innovation

Innovation Culture is measured by Outcomes

Backed up with Leadership

1. Set a vision and goals for Innovation in your group

2. Assess the current state of Innovation

3. Purposefully execute an innovation plan that builds on innovation strengths and breaks down barriers that inhibit Innovation

4. Enact the right level of innovation training and enabling tools for your organization

5. Effectively communicate your innovation vision and plan

6. Use performance management as a key innovation driver

7. Visibly show passion for Innovation; role model the behaviors you want to drive; expect the same of your leaders

8. Measure progress to goals

9. Reward and recognize innovation results

10. Repeat these 10 steps

Innovation Value Institute

( http://ivi.nuim.ie )

Ingredient # 3: A Culture of Innovation

Leadership always differentiates the Winners

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2020

• Sustainable Cloud ?

The Business of Innovation

Perth Arena, Australia

Insulation

Vision

• Carbon Negative Building

• Real-time Energy Monitoring

• Electric Vehicle Charging

Example : Carbon Negative Vision & Cloud

An Envelope Approach with 6 elements

• Renewable Energy Generation : Solar PV & Wind

• Reduce Energy Consumption : LED Lighting

• Reduce Energy Loss : Insulated Panels

• Reduce Water Usage : Rainwater Recovery

• Renewable Transportation ; Electric Car charging

• Integrated Management : ISO50001

Kingspan aims to be a Carbon Zero Company

Energy Generation : Solar PV

Issue to address

• Rising energy demand

Solution:

• 1000 M2 Kingspan Integrated Panel : Solar PV + Insulated Panel

• 130 kW generation capacity

Benefit:

• Move to Carbon Negative

• Cost Control

Kingspan Solar PV is growing fast in the market

Energy Consumption : Lighting

Issue to address

• 1000 M2 floor area, Halogen Lighting

• € 2,930.00 annual bill for lighting

Solution:

• Kingspan iLED lighting upgrade

• Motion detection, dimming functions

• € 708.00 annual bill for lighting

Benefit:

• 76 % reduction in annual cost

• Low maintenance

• Convenience

Kingspan iLED Lighting is ideal for high-ceiling buildings

Energy Monitoring : Data Management

Issue to address

• 2000 M2 Office and Lab area

• 58 staff, varying energy usage-types

• Multiple energy generation sources, loads

Solution:

• Data Collection hub : Intel Quark

• Data Storage : Cloud

• Data Presentation : Microsoft SharePoint

Benefit:

• One stop shop for all Data

• Globally Accessible

• Integrated Approach

Kingspan has a strong track-record in Data Management Solutions

In August 2014 Kingspan attained ISO 50001 Accreditation for the Energy Management System at our Group Office & Innovation Centre in Kingscourt. The lead auditor from Certification Europe completed the Stage 2 audit on Friday 15 August 2014.

The enabling technology for the Energy Management System is Intel Quark & Microsoft SharePoint

An Envelope Approach to Energy Efficiency Management was taken at the facility, enabling a Carbon-Negative Building via 8 key Innovations;

Kingspan Benchmark

Kingspan Energy

Kingspan Rainwater Recovery

Kingspan Doors

Kingspan Insulation

Kingspan Wind

Kingspan Access Floors

Kingspan ILED Lighting

A fully Digitised Energy Management System

Energy Management Certification

2013 CO2 Emission offset

* Figures are from 1 Mar – 31 Dec 2013

Energy Efficiency Performance : 2014 v 2013

2013 Energy Footprint

Annualised Solar Generation exceeds usage by 35 %

Energy Efficiency : Next Steps

Continuous Improvement Approach

Kingspan Electric Car Chargers

• 6 x Charging Points

• September 2014

Kingspan Wind

• 15 kW turbine

• April 2015

Kingspan Heat Pump

• 22% energy usage reduction

• June 2015

Further Kingspan Energy Efficiency Solutions;

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2020

• Sustainable Cloud ?

The Business of Innovation

Mosaic Village Charlotte, North Carolina

Insulated Panels

• Sustainability : Shifting to Renewable Energy• Micro-Generation : Converting Buildings into Power Plants [1]• Storage : Hydrogen and Other Energy Storage Technology• Digitisation : Smart Grid Technology• Electric Vehicles : Plug in, Electric, Hybrid, Fuel Cell based

1st Industrial Revolution :

Steam Engine + Coal = Factories

2nd Industrial Revolution :

Oil + Electricity = Suburbia

3rd Industrial Revolution :

Internet + Renewable Energy = Distributed Capitalism

The Third Industrial Revolution is based upon 5 Pillars:

2020 : The Third Industrial Revolution

2 Disruptive forces colliding: Sustainability + Cloud

New Products & Services are emerging, driven by The Internet of Things

Function and

data

Connected

Limited security

Data drives

function

Interoperable

Security fundamentalFunction over

data

Isolated

Optional security

Past

Today

Future

2020 : Internet of Things

The Future is already here, only it is not evenly distributed William Gibson

2020 : IoT meets Cloud

The Internet of Things – Drives huge demand for Cloud Services

• Kingspan Vision

• Kingspan’s Business Environment

• Kingspan’s Innovation Culture

• Examples

• 2020

• Sustainable Cloud ?

The Business of Innovation

Kingswood Academy, UK

Insulation

Cloud Computing is the delivery of Computing as a service rather than

a product, whereby shared

resources, software, and information

are provided to computers and

other devices as a utility over the

internet

Sustainability is the capacity to endure. For humans, sustainability is the long-

term maintenance of well being, which

has environmental, economic, and

social dimensions, and encompasses

the concept of stewardship, the

responsible management of resource

use.

Source:

Wikipedia

Sustainable Cloud?

2 Disruptive forces colliding: Sustainability + Cloud

Features

1. Sustainable Cloud Service1. Availability

2. Security

3. Confidentiality

2. Sustainable Energy Supply1. Secure Grid connection

2. Micro-Generation PV & Wind

3. Carbon Negative model

3. Sustainable Energy Distribution1. UPS is a storage medium

2. DC powered Servers

3. DC in, DC out

4. Sustainable Energy Use1. Energy Efficient Management

2. Virtualisation

3. Certified Devices

5. Sustainable Building1. Low carbon Design

2. Low carbon Materials

3. LEED Certified

Sustainable Cloud Computingis the

delivery of computing as a service over the

internet

in a manner which

utilises renewable energy sources, energy

efficient technology and low-carbon footprint

hosting facilities

to deliver

Highly Available, Secure and Confidential

Services.

Sustainable + Cloud

All Elements of Sustainable Cloud already exist…

Henry Ford

“Today & Tomorrow”

1926

The Right Attitude Helps…..

We choose to go to the moon in this decade and do the other things,

not because they are easy, but because they are hard,

because that goal will serve to organize and measure the best of our energies and skills,

because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win.

President John F. Kennedy

12th September 1962

… and Don’t forget Vision

Conclusion

Kingspan is the world leader in

Energy Efficiency Solutions

Innovation is Integral

to the

Kingspan Culture

Successful Innovators

are

Open Disruptive Innovators with Strong Processes

John Shaw is CIO at Kingspan, the world leader in Energy Efficiency Solutions, and is based at Kingspan’s Global Headquarters inKingscourt, Ireland.

Kingspan’s 2013 revenue exceeded €1.79 Billion across 4 product groups. The company employs over 6,500 staff in 85 countries

across the globe. With 62 factories, Kingspan’s business is rapidly expanding to meet global demand for sustainable, smart andenergy efficient building products. A full list of Kingspan’s products can be seen at Kingspan.com

John joined the company in June 2013 to lead Kingspan’s IT Strategy. He is a Chartered Engineer ( C Eng FIEI ) with Engineers

Ireland with over 25 years’ experience in the Energy, Pharma and Manufacturing sectors. John holds an MBA in Technology

Management and a Bachelor's Degree in Electronics Engineering from University College Dublin. A senior member of the IEEE

and a Certified Project Manager with the Project Management Institute, John joined Kingspan from Mainstream where he was

hired as CIO during the start-up phase, having previously held senior IT executive positions in Pfizer, Accenture and GeneralElectric.

John led a strategy in 2014 to introduce a New Way of Working for IT in Kingspan which resulted in accreditation to 5 ISO

standards, including ISO50001 for Energy Management and ISO certifications for IT Security, Service, Business Continuity andQuality Management.

The 2015 Digital Strategy at Kingspan is focused on 3 themes – a better Digital experience for Customers, a Digital drive forOperational Excellence and an integrated approach to Smart Energy.

Useful Links;

Kingspan's DIgital Strategy: IVI Winter Summit : 09 September 2014

Kingspan's Energy Management System : ISO50001 Ireland : 23 September 2014

Contact:Eur Ing John P. Shaw C.Eng FIEI PE BE MBA PMP Landline +353 42 969 8000CIO Cell: +353 87 283 6499Kingspan Group plc, Skype: john.shaw.kingspanDublin Road, eMail: john.shaw@kingspan.comKingscourt, Co. Cavan Linkedin: John ShawIreland Website: Kingspan.com

Presenter