Advanced Marketing and R&D:Summary of Results

IRI Annual Meeting5/07/07Ron Cotterman (Sealed Air)

Alan Fusfeld (Fusfeld Group) SMEPamela Henderson (New Edge) SME

Jonathan Leder (Novozymes)Carl Loweth (John Deere)Tony Metoyer (Boeing)

Advanced Marketing and R&D5/8/07

Research Methodology

1. Survey 33 companies, known for innovation Participants in B2B and B2C, emphasis on B2B High-level executives from corporate and individual divisions Company size – $500 million or greater

2. Panel discussion from top innovative companies greater depth on findings from survey

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Advanced Marketing and R&D5/8/07

Levels of Success and Satisfaction

Fully satisfiedBreakthroughLEVEL 4

Somewhat satisfiedSome BreakthroughLEVEL 3

Somewhat satisfiedIncrementalLEVEL 2

Not satisfiedExisting/Minor ImprovementsLEVEL 1

SatisfactionSuccess

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Advanced Marketing and R&D5/8/07

Stimulating Breakthrough Innovations Highly innovative companies implement:

Formal Organizational Structure Divisional and corporate level NPD teams Systematic idea-generation processes

Qualitative Market Research Processes Adopt qualitative methods to discover unmet needs Engage customers in ongoing validation Involve both marketing and technology

Corporate Culture of Innovation Balanced portfolio of marketing and technology ideas Leadership actively models teamwork Frequent and varied reward system Employee creative time for new product ideas

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Advanced Marketing and R&D5/8/07 8

Advanced Marketing and R&D5/8/07

Panel discussion participants

Alan Ayers, Energizer AAMartha Collins, Air Products MCSteve Lerner, Praxair SLAlan Fusfeld (moderator)

Advanced Marketing and R&D5/8/07

How are your companies organized for radical new product innovation? Organized at corporate level

corporate development officeglobal marketing leadershigh level involvement: Directors, VPs, CEOs,

CTOsnot all risk is focused on individual SBUs

Worldwide focus and scopeAdapt new technologies to individual markets

Advanced Marketing and R&D5/8/07

How do you find big new market opportunities? Extensive VOC systems Close contact with end-users Sample to learn (not always to sell) Lead user analysis Organizations with full-time responsibility

for identifying trends and how to participate

Advanced Marketing and R&D5/8/07

How can you develop a collaborative culture between R&D and Marketing? Technical managers part of business teams Shared goals and metrics Shared training in customer focus techniques, e.g., VOC

common language and methods Lots of communication and meetings Joint visits to customers, and strategy sessions Cascading goals translated into personal goals “Wear bifocals” Corporate culture of innovation

awards success breeds success

Advanced Marketing and R&D5/8/07

In summary

Close cooperation between commercial and technical organizations at all levels, from corporate strategy formation to customer visits

Organizational culture of innovationstarts from the topaligned goals frequent rewardsstructured for innovation