Grundfos. Innovation. what have we done and what have we learned. Lars R. Enevoldsen Group Vice President
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1 Grundfos Innovation what have we done and what have we learned Lars R. Enevoldsen Group Vice President
2 What we have DONE> What we have LEARNED> Where we are MOVING>
3 What is innovation?
4 Succes = f ( Fulfillment * Distance * Probability * Feasibility ) of customer of market needs acceptances
5 What does it take?
6 What does it take? Strategic Leadership is everything A burning platform Not only ideas but ideas that are transformed to new business opportunities Based on solid Insights A learning culture, a lot of structured experimentation and entrepreneurship Failure tolerant leadership <> a team that optimize learning per dollar spent A.m.m.
7 What does it take? Strategic Leadership is everything A burning platform Leadership Not only ideas but ideas that are transformed to new business opportunities Based on solid Insights Competences A learning culture, a lot of structured experimentation and entrepreneurship Culture Failure tolerant leadership <> a team that optimize learning per dollar spent A.m.m.
8 Building a culture for radical innovation
9 Recognizing opportunities
10 What often happens with large enterprises? Radical innovation
11 Grundfos in 26 6 years of successful development
12 Global Leader Less than % Of World market...
13 Differentiation with Sustainability & Product Performance But distance to competition becomes less
14 26 Innovation year getting to the next level of Innovation Management
15
16 Time to choose our future CO 2 and Climate Change Growing markets Growing middle class New technologies Population growth Urbanization
17
18 The Innovation Intent : The Grundfos dream In % of growth is coming from technology platforms not invented in 27 / of our turnover comes from other products than pumps We re still number in circulators We are specialists in selling directly to end-users We are experts in understanding user needs We are the first choice workplace for the best and brightest We have made Grundfos a truly global company! We employ 75, people Where is the new growth going to come from???
19 CO2 and Climate Change Population growth Urbanization Growing middle class Growing markets New technologies The FUTURE OPPORTUNITIES and our ability to grab them!
20 Innovation Intent and Innovation Platforms 225 Innovation Intent 225 Innovation Intent 26 26
21 Future Homes and Living in China
22 Zero Impact Buildings in USA
23 Rethink Decentralized Water Treatment
24 And what does it take
25 In fortissimo means mastering.. 25
26 Become Familiar with New Business Creation and deal with Uncertainties Build The Plane During The Flight
27 New Business Creation in a mature company - The desired model of New Business Creation
28 What we have DONE>
29 Opportunity Ranking Sheet - FHLC Future Homes & BIS Team - Add Names Here Living in China FHLC Grundfos Team Opportunity Ranking Sheet - FHLC Future Homes & # BIS Team - Opportunity Add Names Here Name Grade the Living Opportunity in China 2 FHLC Grundfos 4 5 Team 6 7 Total Rank # Rainwater Opportunity collection Name Grade the Opportunity Total Rank 2 Storm water Rainwater (run-off) collection collection 2 Storm Humidity water collection (run-off) collection 4 Water behaviour Humidity control collection products 5 4 Regulate Water overall behaviour water control consumption products 5 Grey water Regulate reuse for overall toilets, water washing consumption machines, 6 Grey water irrigation, reuse for cooling toilets, towers washing machines, 6Separate solids irrigation, from black cooling water towers irrigation and 7 Separate solids from fuel black water irrigation and 8 7 Large scale POE water fuel purification system 8 Domestic Large scale POU POE water water purification purification system system Complete Domestic domestic POU water water system purification delivering system safe, Complete hot and cold, domestic hard/soft, water pressurized system delivering water safe, hot and cold, conveniently hard/soft, pressurized water Automatic water conveniently tank cleaner 2 Automatic Energy water audittank cleaner 2 Comfort Energy audit audit 4 Energy behaviour Comfort control audit products 5 4 Energy Power behaviour broker control products 6 5 Information campaign Power on broker resource use 7 6 Information Small campaign hydro on resource use 8 7 Solar heating/cooling Small hydro 8 Energy extraction Solar heating/cooling from other sources 2 Energy Geothermal extraction heat from pumps other sources 2 Complete, pre-fabricated Geothermal heat bathrooms pumps with 2 integrated Complete, simple pre-fabricated water re-use bathrooms system with 2 Easily integrated attached plumbing simple water solutions re-use that system are 22 Easily attached visually plumbing pleasing solutions that are 22 Provide consultancy visually on renovation pleasing of old buildings 2 Provide consultancy (Water and on renovation HVAC) of old buildings 2 Landscape water (Water renewable and system HVAC) - Provide design, Landscape build water install, renewable operate services system - for Provide 24 landscape design, build renewable install, operate water system services for 24Water system landscape service renewable - design, build, water install systemand 25 Water operate system services service for - design, water systems build, install and BIM HVAC/wateroperate services Software for water + controls systems 26 BIM HVAC/water- Software + controls Opportunity Ranking Sheet - FHLC Future Homes & BIS Team - Add Names Here Living in China FHLC Grundfos Team Opportunity Ranking Sheet - FHLC Future Homes & # BIS Team - Opportunity Add Names Here Name Grade the Living Opportunity in China 2 FHLC Grundfos 4 5 Team 6 7 Total Rank # Rainwater Opportunity collection Name Grade the Opportunity Total Rank 2 Storm water Rainwater (run-off) collection collection 2 Storm Humidity water collection (run-off) collection 4 Water behaviour Humidity control collection products 5 4 Regulate Water overall behaviour water control consumption products 5Grey water Regulate reuse for overall toilets, water washing consumption machines, 6 Grey water irrigation, reuse for cooling toilets, towers washing machines, 6 Separate solids irrigation, from black cooling water towers irrigation and 7 Separate solids from fuel black water irrigation and 8 7 Large scale POE water fuel purification system 8 Domestic Large scale POU POE water water purification purification system system Complete Domestic domestic POU water water system purification delivering system safe, Complete hot and cold, domestic hard/soft, water pressurized system delivering water safe, hot and cold, conveniently hard/soft, pressurized water Automatic water conveniently tank cleaner 2 Automatic Energy water audittank cleaner 2 Comfort Energy audit audit 4 Energy behaviour Comfort control audit products 5 4 Energy Power behaviour broker control products 6 5 Information campaign Power on broker resource use 7 6 Information Small campaign hydro on resource use 8 7 Solar heating/cooling Small hydro 8 Energy extraction Solar heating/cooling from other sources 2 Energy Geothermal extraction heat from pumps other sources 2 Complete, pre-fabricated Geothermal heat bathrooms pumpswith 2 integrated Complete, simple pre-fabricated water re-use bathrooms system with 2 Easily integrated attached plumbing simple water solutions re-use that system are 22 Easily attached visually plumbing pleasingsolutions that are 22 Provide consultancy visually on renovation pleasing of old buildings 2 Provide consultancy (Water and on renovation HVAC) of old buildings 2 Landscape water (Water renewable and system HVAC) - Provide design, Landscape build water install, renewable operate services system - for Provide 24 landscape design, build renewable install, operate water system services for 24Water system landscape service renewable - design, build, water install systemand 25 Water operate system services service for - design, water systems build, install and BIM HVAC/wateroperate services Software for water + controls systems 26 BIM HVAC/water- Software + controls Opportunity Ranking Sheet - FHLC Future Homes & BIS Team - Add Names Here Living in China FHLC Grundfos Team Opportunity Ranking Sheet - FHLC Future Homes & # BIS Team - Opportunity Add Names Here Name Grade the Living Opportunity in China 2 FHLC Grundfos 4 5 Team 6 7 Total Rank # Rainwater Opportunity collection Name Grade the Opportunity Total Rank 2 Storm water Rainwater (run-off) collection collection 2 Storm Humidity water collection (run-off) collection 4 Water behaviour Humidity control collection products 5 4 Regulate Water overall behaviour water control consumption products 5Grey water Regulate reuse for overall toilets, water washing consumption machines, 6 Grey water irrigation, reuse for cooling toilets, towers washing machines, 6 Separate solids irrigation, from black cooling water towers irrigation and 7 Separate solids from fuel black water irrigation and 8 7 Large scale POE water fuel purification system 8 Domestic Large scale POU POE water water purification purification system system Complete Domestic domestic POU water water system purification delivering system safe, Complete hot and cold, domestic hard/soft, water pressurized system delivering water safe, hot and cold, conveniently hard/soft, pressurized water Automatic water conveniently tank cleaner 2 Automatic Energy water audittank cleaner 2 Comfort Energy audit audit 4 Energy behaviour Comfort control audit products 5 4 Energy Power behaviour broker control products 6 5 Information campaign Power on broker resource use 7 6 Information Small campaign hydro on resource use 8 7 Solar heating/cooling Small hydro 8 Energy extraction Solar heating/cooling from other sources 2 Energy Geothermal extraction heat from pumps other sources 2 Complete, pre-fabricated Geothermal heat bathrooms pumpswith 2 integrated Complete, simple pre-fabricated water re-use bathrooms system with 2 Easily integrated attached plumbing simple water solutions re-use that system are 22 Easily attached visually plumbing pleasingsolutions that are 22 Provide consultancy visually on renovation pleasing of old buildings 2 Provide consultancy (Water and on renovation HVAC) of old buildings 2 Landscape water (Water renewable and system HVAC) - Provide design, Landscape build water install, renewable operate services system - for Provide 24 landscape design, build renewable install, operate water system services for 24Water system landscape service renewable - design, build, water install systemand 25 Water operate system services service for - design, water systems build, install and BIM HVAC/wateroperate services Software for water + controls systems 26 BIM HVAC/water- Software + controls From Idea to Business Opportunity Themes Opportunity Hypotheses Down Selection Focus for Validation => 26 => 8 7 => 8 6 => => 5
30 Language on Radical Innovation and New Business Creation Radical Innovation takes something different to our well known processes. We have to learn to work with the phases: Discovery: Evolve from an idea to opportunity to Business Concept as a candidate for Incubation. Incubation: Based on a learning plan, systematic reduction of market, technical, resource and organizational uncertainties by experiments in the marketplace. Acceleration: Accelerate promising new businesses.
31 What we have LEARNED
32 It takes a new tool box: new processes new terms
33 It takes talented people: more experimentation more entrepreneurship more partnerships
34 Innovation paradigms and timeline.. Product & Technology Innovation Quality & Cost agenda Integrated development Distributed development Branding + Venture arm Radical & Incrementel Innovation in same org Nerd Team worker Specialist & Entrepreneur Holistic Intrapreneur High degree of Vertical integration Partnerships & Open innovation
35 * * * Succes = F ( Fulfillment Distance Probability Feasibility ) of customer of market needs acceptances Radical innovation Within a strategic intent Innovation takes: > Leadership > Competences > Culture
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