Open Innovation Best Practice at LRS. Dr Abigail Watts
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1 Open Innovation Best Practice at LRS 1 Dr Abigail Watts Abigail.watts@lrsuntory.com
2 Overview of LRS/Suntory The CTO My background Open Innovation 2
3 We have a long and proud history
4 A few interesting facts about LRS Suntory is the 3 rd largest non-alcoholic drinks business in the world LRS is 3rd biggest branded soft drinks supplier in the UK market We have two iconic British brands: Lucozade and Ribena. Our products have been around since the 1930s 200 field sales executives visit 30,000 outlets each month Our products are distributed in 98% of all outlets in the UK market We manufacture 50 million cases / 1.2 billion bottles per annum We supply our drinks to 31 markets globally We produce 176 different kinds of packs (up to 227 with promos) We have one truck loaded and dispatched every 20 minutes (10 minutes at peak times) 4
5 Today we are One team of 850 people, based across 3 sites, working across different functions with distinct cultures but common goals Stockley Park, UK (300) Coleford, UK (450) Dublin, Ireland (100) Manufacturing Research & Development Supply Chain Marketing Sales Manufacturing Supply Chain Marketing Sales Finance HR IT Facilities 5 5
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10 It is an exciting time to be at LRS New people and new organisation LRS created Jan 1 st 2014 after divestment from GSK for 1.6 billion. Suntory Beverage and Food Europe (SBFE) created in April 1 st 2014, includes Orangina Schweppes Group. We have moved from being a drinks company owned by a Pharma company to a drinks company owned by a drinks company. 10
11 The Suntory DNA gives us something unique Suntory DNA: Continued expansion of a business which is In Harmony with People and Nature without compromising the fundamental values of Yatte Minahare!, Sharing the Profit with Society and Coexisting with Nature. 2
12 How is LRS different/ unique? ICONIC BRANDS LRS Part of Global Soft Drinks Org Small Business Feel 12
13 We re in a transitional phase clear priorities and an evolving culture Transitional Work What our focusing areas are as a business How we will go about delivering those goals 13
14 The Central Technical Organisation in LRS and My Background
15 My Background Biology degree PhD in Biochemistry Abcam Ltd then PLC UCL Business PLC Canbex Therapeutics Ltd 15
16 What Does The CTO Function Do? The CTO incorporates R&D and other technical support roles: NPD, ARC, Quality, Regulatory and Technical information Over 40 heads ~14 Phds The primary purpose of our R&D group is to develop new products discover / create new knowledge about scientific and technological topics to uncover / enable the development of new products, processes, and services. 16
17 What Do The Teams In the CTO Do? The Applied Research and Claims team deliver a pipeline of technologies by generating new to world data; assimilate pre-existing data to create new or optimised product and claims opportunities; and search for technologies through Open Innovation. 17
18 What is Open Innovation? Looking outside the company for new ideas and ways to solve problems
19 In a world of accelerating change and widely distributed knowledge, companies cannot afford to rely entirely on their own research
20 Starting Open Innovation from scratch. Good awareness as GSK had a high profile OI scheme Setting a vision, mission and process Fitting with our existing process a stage gate process Working with colleagues across the globe Frucor, Suntory Innovation Centre, global portfolio. How do we assess new technologies and yet keep aligned with our strategy? Opportunity to create a best practice OI 20
21 Internal collaboration Trusted suppliers New partners and suppliers Adjacencies
22 Opportunities/Ideas/ Innovations Entrepreneurs The next big thing Start up companies SMEs Ingredients suppliers Academic inventors Universities Macro trends Consumer Insights Technology LRS is Innovation differentiators The Open Innovation Funnel permeable to new Ideas Inward innovation The stagegate process
23 Internal Wants/ Challenges RFP s Outward innovation LRS Want Find Get Manage
24 We launch new products with the consumer in mind SHOPPER DIGITAL/SOCIAL EVALUATE IN- MARKET PERFORMANCE TEST & LEARN IDENTIFY MACRO TRENDS UNDERSTAND CONSUMPTION & SHOPPING OCCASIONS NEED STATES & SHOPPER MISSIONS ABOVE THE LINE QUALITATIVE RESEARCH DEVELOP & TEST MARKETING CAMPAIGNS EXPLORE EARLY STAGE IDEAS BRAND EXPERIENCE TEST NEW PRODUCTS QUANTITATIVE RESEARCH 24
25 Innovation Stage Gate Process
26 The future? 26
27 27 Thank you for listening
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