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Innovation Best Practises. Esade Creapolis

Barcelona, April 26th 2012

Mònica Mateu. Innovation Office GBST. mmateua@gallinablancastar.com

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Open innovation best practises

1. Innovation strategy and challenges

2. Open innovation and ecosystems management

3. A new organization: Innovation cells

4. Beyond innovation cells

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100 %50 % 100 % 100 % 100 %

GBST’s Shareholders

RETAILHYGIENE PET FOODPRIVATE EQUITY

PRIVATE EQUITYFOOD OTHER

Spanish industrial Group,owned 100% by Carulla family

Spanish industrial Group,owned 100% by Carulla family

Findim

Italo-Swiss Holding Co.,owned 100% by Fosatti family

Italo-Swiss Holding Co.,owned 100% by Fosatti family

25 %75 %

GBST Group

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Our Brands

GLOBAL BRANDS

LOCAL BRANDS

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Accelerate the switch from homemade to our products

100% homemade 100% ReadyAssembly solutions

Vision GBST

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Copyright Doblin

INVESTMENT

RETURN

Seeking Growth beyond Current Product Innovation

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INCREMENTAL DISRUPTIVE

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CORE PERIPHERY

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INDUSTRY CLIENT

1 2 3 4 5 6 7

1010

Innovation strategy. Strategic alignment

JAN 10 JUN 10 JAN 11

Innovation challenges definition

Open innovationvectors

INNOCELLSUnits with a focus

1. READY MEALS

2. PACKAGING

3. LIKE HOMEMADE AUTHENTIC TECH.

4. HOLISTIC

5. CULINARY MAP OPPORTUNITY

ON STAND BYBio/organic B Model

Mood Food

Long term, flexible, multi department units to seek radical and incremental innovation at a cross level.

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FewerBiggerBetter

MAR 12

DECISIONS

PROJECTS

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Consumer-Centred Based on unmet needs

2

Aligned with Business Strategy

1FewerBigger Better

Culinary solutions with authentic homemade taste

Related to culinary mapRelevant recipes

M PORTIONS PER YEAR

1.581

1.651

1.942

2.521

2.826

3.360

6.069

7.889

9.856

9.993

12.464

Pizza&Pie

Eggs

Legume

Rice

Fish&Sea Food

Potato

Soups

Meat&Poultry

Vegetables

Salad

Pasta

3,6%

5,0%

3,6%

0,3%

0,9%

1,0%

5,0%

72,0%

1,0%

21,0%

16,0%

14,0%

4,0%

13,0%

9,0%

32,0%

84,2%

100,0%

28,0%

95,4%

74,0%

83,9%

82,4%

95,7%

86,1%

90,9%

61,0%

10,8%

6,0%

% OCCASIONS INDUSTRIAL VS HOMEMADE3

6 Cross Global needs & synergic capabililtiesFlexible local solutions adapted to culinary map

Searching WOW effect In entire experience

SimpleEmphaticGood

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Open5 Cross functional teams Internal and external talentCo-creation with consumers

Innovation Principles in GBST

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Feasibility GateViability Gate (Pre-) Clearance Gate Post Launch Review

CONCEPT EXPLORATIONDISCOVER OPPORTUNITIES UPSCALING LAUNCHDEVELOPMENT

GO!

• Disruptive technologies

• Innovation platforms beyond the product (Business models, services,…)

• Technical solutions solved faster

• Reducing cost• Manufacturing

flexibility

• New shipping & sales channel strategies

• Merchandising

WH

OO

pen

Inn

ova

tio

n V

AL

UE

Innovation consultants, agencies,...

Suppliers (Packaging, RM, engineering, etc.)

Custumers/ Consumers

Pre-qualified network : inonovation brokers ,experts, technology parks, food clusters, universities, etc.

Business partners (co-development partner)

Strategic fit Gate

• New areas of opportunity • Adding external capabilities• Higher volume of ideas• “Outside the box” starting

points

Open innovation: value added

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HEALTHY FOOD

Salt replacement

Functional fats

Bio/organic

ENVIRONMENTAL

Mood food

Packaging innovation

Non thermal,high pressure technologies

Home food experience

DELIVERY

Home foodholistic action

From Challenges to Project Clusters

HOMEMADEPERCEPTION

BRAND IMAGE

READY MEALS

Ready Meals

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Our Innovation ecosystem

UNIVERSITIES+RESEARCH CENTERS + PUBLIC AGENTS

COOK CENTERS

INNOVATION BROKERS

GROUP COMPANIES

INNO PARTNERSS

SUPPLIERS

PACKAGING

CONSUMERS

NOVAD

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Initiatives Business tests/Prototyping

Filt

er n

º1

Go

to m

arke

t

Filt

er n

º4

Mkt

g&Te

ch e

xper

tsB

usin

ess

expe

rts

GB

ST

Op

en In

no

vati

on

w

ork

sho

ps

Externals External

s Externals External

s

1st validation/approval by the ISC will take it to the next stage

1st Business case defined for concrete business model –

approval by the ISC will take it to the next

stage

Final Business case with key assumptions

tested – approval by the ISC will take

it to GO LIVE

Open innovation funnel

Final Business case with key

assumptions ready to be tested –

approval by the ISC will take it to the next

stage

WORKSHOPS + INNOCELLS FOR EACH LINE OF PROJECTS

16

10

15 20 25 30

20

25

30

15

35

10

Probability of success

Pro

du

ct/t

ech

no

log

y

New to the company

Adjacent to current offerings

Same as current

offerings

Same as present

Adjacent to present

New to the company

Intended market

40-50 %

50-60 %

25-40 %

60-75 %

5-25%

Risk-Adjacency Matrix for New Products

* source: Harvard Business Review by George S.Day + ATKearney

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GBST’S Innovation: innovation for growth

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INNO CELLS

INNO DNAINNO RADAR

What should we do?

How should we be?Where should we look?

I place

Vision: Open innovation across the board….

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READY MEALS

LIKE HOMEMADE TECHNOLOGY

CULINARY MAP OPPORTUNITIESHOLISTIC

PACKAGING

Search for homemade tasteNatural dryHealth and wellness (salt and fat)Ambient like fresh

Develop and deploy tools for discoveryIdentify opportunitiesDevelop culinary expertise within GBST

Create a new business lineIdentify initiatives for business opportunitiesGroundbreaking innovation

Wow effectSustainabilityOptimization

New channels explorationEnhance consumer experienceInnovation in communication

Open innovation – Inno cells organization

INNO CELLS

Autonomous open units, to seek radical and incremental innovation at a cross and cross functional level

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Inno cells

How: imagination + application + autonomy

Who: leaders+ intrapeneurs+ contributors

What: cross functional + international + open teams

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INNOVATION STRATEGY OUTLINE

1. READY MEALSINTERNAL TEAM

Famous cooksInnovation agenciesGraphic designersFundació AlíciaOther FMCG companies

ino

ut

Find concepts, technologies, packaging, uses, so as to define a powerful new product range and achieve a new radical and incremental innovation for this category at a cross and BU level. Build the category as a new strategic category based on expertise in opportunity and development.

INNO CELLS: members and mission

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MKT ITALY

MKT AFRICA

FINANCE

EXT. FACILITATOR

EXT. PLANNER

TRADE ITALY

R&D PACKAGING

CONS. INSIGHTS SPAIN

R&D

EXT. DESIGNER

SALES HOLLAND

EXT. COOK

INNO OFFICE

Inno cells

People: +200Workshops done:4 challenges5 inno event12 open innovation17 inno cells

Mònica Mateu. Innovation Office GBST. mmateua@gallinablancastar.com22

1. DEFINE SCOPEOriginal challenges

Additional challengesSpecific Challenges

Where should we get inputs from?

2.WHERE TO LOOKOur employees/customers

Tech search/inno brokers/trade shows. Mintel/ Euromonitor, Datamonitor.

Small businesses and new successful products. Discovering opportunities in advanced countries.

4. DEVELOP ACTIONSDevelop inside?Copy?Purchase?

Partner with?

Setting up a scouting/open attitude + focus+ procedure to constantly be on the lookout…and bring it in through

the Inno Place

3. PROCESS INPUTSDefine and prioritize.

Disseminate/polinizationDecide where to take action

Innovation radar

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Technology and packaging

Studied projects: 87

Selected projects: 43

Test projects: 26

Negotiation projects: 12

Final phase projects: 5

.

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Prosumers

GBST TeamJennyMR

PaulMkt

AlisonR&D

MarcusMkt

Juan

Verena

Itziar

Tiago

Experts

Semiologysts

Chefs

Retailers

Communication agencies

Solving challengestogether

we have started co-Innovating together in an engaging way, iterating with consumers along the process though website platforms

Open innovation. Co-create with consumers

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Inno place

Strategic approach

Inno inspiration and tools

Employees Inno Portal

Ideas/projects/b plans

Customers/ ecosystem

Inno Training

Inno Strategy for growth: challenges

Intranet based

Inno Place. Collaborative innovation with employees

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Thank you

Innovating for growth….challenging but not….

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Gràcies!

Mònica Mateummateua@gallinablancastar.com

Tel. (+34) 93 364 2021Mobile. (+34)686.15.72.39

www.gallinablancastar.com