080108 Valeo and Open Innovation OECD SymposiumFinal dis · 2016-03-29 · Domains are neither a...

Property of Valeo – Duplication prohibited

February 26th, 20071

«Open Innovation in Global Networks»Symposium

Copenhagen,

February 28, 2008

Patrice ReilhacInnovation Director

Driving Assistance Domain

Valeo’s Domains: A disruptive innovation approach in the automotive industry



Domain as a disruptive innovation approach

� Valeo: the Group & the Branches

� The classical innovation process

� The need for more

� The solution: Valeo‘s Domains

� Lessons learned and next steps



The Group

Valeo is an independent global

industrial group fully focused

on the design, production

and sale of components,

integrated systems and

modules for cars and

trucks, in both the OEM

and aftermarket segments.



2006 Customer Mix Passenger Cars

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%



Valeo Key Figures

131 plants131 plants

29 countries29 countries68 R&D centers68 R&D centers

91 nationalities91 nationalities

71 100 people71 100 people€ 10 Bn sales€ 10 Bn sales

31 December 2006



Valeo Group Organization

Chairman& CEO

Valeo ServiceTechnical

Vice President

FunctionalVPs

VLS VWS

VIC VES

VEC VC

VSS VEMS

IAM

OES

VCC

VT

ChiefOperating

Officer

10 Industrial Branches – 2 Aftermarket Branches100 Divisions – 10 National Directions

Quality

Purchasing

IS

Industrial

HR

Comm

Finance

Legal

R&DSales

Strategy

Operations

(P&L Responsibility)

Networks

(Functional Organization)



Global Footprint 2007

North AmericaNorth America

16 Sites(10 LCC)

16 Sites(10 LCC)

1.3 bn1.3 bn

South AmericaSouth America

10 Sites10 Sites

0.5 bn0.5 bn

EuropeEurope

70 Sites(24 LCC)

70 Sites(24 LCC)

6.9 bn6.9 bn

North AfricaNorth Africa

9 Sites9 Sites

AsiaAsia

26 Sites37 sites*

26 Sites37 sites*

1.1 bn2.2 bn*

1.1 bn2.2 bn*

*Including unconsolidated companies

Globalization

R&D



R&D 2007

� More than 6% of sales in R&D

� More than 6,000 engineers and technicians

� 68 R&D centers

� More than 600 new patents filed in 2005

Mainly organised by Branch (Product Ligns)



R&D Mission

StrategicCreate market driven, leading innovations and

effectively translate them into standards

OperationalDevelop best in class competitive products efficiently within simultaneous engineering

project teams

NetworkDevelop expertise within R&D teams, well

adapted to their tasks and promote synergies, generated via network actions

The Valeo Innovation Process



Advanced TechnologyAdvanced Technology

ConceptConcept DevelopmentDevelopment ProductionProduction

CustomerCustomer

P2P2P3P3

P0P0P1

ValeoValeo

Principles

�� Deliverables by Phase

�� Simultaneous Engineering Project Teams

�� Validation and management committees

�� Structured processes with phases

�� Annual strategic planning > TDP Process

�� Indicator driven Improvement processes

INNOVATION PROCESS



� Test new creative market driven ideas� Test new creative market driven ideasP3

Project Objectives

� Build global Standards� Build global StandardsP2

� Develop Customer Applications� Develop Customer ApplicationsP1

� Optimize existing Products� Optimize existing ProductsP0

Branches

Divisions

P2P2P3P3

P0P0P1

Innovation Process



The rationale for the Domain creation in 2004…

NEED FOR MORE

� Transversal approach

� Extended carmakers intimacy

� End-user orientation

� „Embedded“Societal trends

OLD APPROACH

� Product line focus only

� Intimacy with carmakers only at component level

� Lack of end-user input

The Valeo Domains



Technology and Innovation Strategy

► Safety

Focus on Market NeedsTransversal Synergies

► Well-being

► Environment & Mobility



Driving Assistance: Reconciling automobiles and safety by reinforcing the active aspects of accident prevention and avoidance.

Powertrain Efficiency: Reconciling automobiles and the environment by contributing to the creation of cleaner, more fuel-efficient vehicles.

Comfort Enhancement : Reconciling automobiles and well-being by making vehicles easier to use and enhancing driver and passenger comfort.

Valeo Domains



Driving Assistance

� Driving Assistance

� Monitor vehicle perimeter, inform or alert driver and other road-users, initiate appropriate corrective actions



Domain Tools

PowertrainEfficiency

ComfortEnhancement

DrivingAssistance

Demo Cars

SolutionMapping

TransversalProjects

MarketStudies



Domain General Principle

Component

P2

Domain Funding and

Control

Domain orBranch

Funding and Control

BranchFunding and

Control

Domain

� drives process via TDP and Specs

� supervises execution

� has funds to supportprojects, relevant for the domain

System/Module

P3Component

P3

System/Module

P2

Domain as innovation & business development incubatorDomain as innovation & business development incubator

Solution-System/Module

P3

Concept ValidationConcept Validation

Customer communication Customer communication

via Domain demo carvia Domain demo car



Domain organization: basic principles

� Each Domain has a Domain director with a dedicated budget.

� The main lever of the Domain is innovation,

� based on market inputs like: societal analysis, internet surveys, customer clinics with demo cars, focus group, predevelopment and/or co-innovation with carmakers.

� The Domain is in charge of coordinating the TDPs(Technological Development Plans) of all Branches belonging to its Domain and to propose a global Domain strategy aligned with Valeo corporate targets.

� A Domain can have a dedicated technical center to work on specific transversal advanced projects and to integrate the technologies of the Branches into single demo car.



Blind SpotDetection Radar

Adaptive rear lights with MicroOpticsTM

technology

UltrasonicPark Assist

Front and Rear Flat Blade wipers

Adaptive XLedTM

headlamps

V-360 A sixth sense for safety

Human

Machine

Interface

FRONT SYSTEM

FUSION



BeamAtic ™ Plus

A new link between the front camera and a fully adaptive

headlamp system

Progressive Lighting ModuleProgressive Lighting Module

Beam PatternBeam Pattern

VideoVideo

AnalysisAnalysis

in in

PrototypePrototype



Human Machine Interface Domain Car

*

Features supporting your drivingFeatures supportingyour manoeuvering

XtraVue picture on Head-up Display

ParkVue picture on navigation display

Automatically activated when reverse gear

*

USES A PROTOTYPING SOFTWARE ENVIROMENT

FROM A SOFTWARE START-UP

TO QUICKLY INTEGRATE

NEW FUNCTIONS COMING

FROM INTERNAL OR EXTERNAL SOURCES.

�� Strong enabler for Open Innovation



Classical creativity processes follow the Closed Innovation paradigm

Source: H. Arnold

Chesbrough´s closed innovation model

Research Development

The MarketResearch Projects

Boundaryof the firm



Open Innovation paradigm:Valeo’s Domain as enabler

Source: H. Arnold

Chesbrough´s open innovation model

Research Development

The MarketResearch Projects

Boundaryof the firm

New Market

Domain coordination for an open & global network leading to best-in-class solutions

Domain coordination for an open & global network leading to best-in-class solutions



Why disruptive?

� Domains are neither a central, nor a product lign R&D

� Aligned with societal trends and OEM R&D strategies

� Similar to the concept of Ambidextrous Organization:

– Incremental innovation inside „traditional“ product lign

– Radical innovation boosted/pushed by the Domain team both for transversal innovations or for new fields

� Dedicated resources (people & expenses) allocated on a yearly basis by the Group, but monthly follow-up fully integrated with associated Branches

� Both Domain Advanced Tech Center and Product Marketing under the lead of the Domain Director

� The Domains are the main source of Open Innovation interactions with the surrounding „eco-system“



Where are we?

� Domains launched since 2004:

� Strong impetus to Valeo‘s innovation approach

� Increased R&D visibility externally & internally

� Strong market recognition

� Impact on the order intake



What‘s next?

� Consolidation of best practices between domains

� Exploration of Interdomain synergies

� Integration into R&D excellence clusters

� In-depth investigation of Open Innovation potential

….. and the ideas coming from this symposium



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080108 Valeo and Open Innovation OECD SymposiumFinal dis · 2016-03-29 · Domains are neither a...

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