The Power of Innovation
Ram Ramakrishnan
May 15, 2014
2014 Eaton Corporation. All rights reserved.
Topics for today’s conversation…
•1 Megatrends…the opportunity
•2 About Eaton…our innovations
•3 Innovation effectiveness
2014 Eaton Corporation. All rights reserved.
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The challenge and opportunity
- As world population continues to grow, by 2050
Year
Pop.
1804
1bn
2012
7bn
2025
8bn
2050
9bn
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3
Our focus on megatrend brings drive and
urgency to our work
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Then there is the IoT / Industry 4.0…
Source: Frost & Sullivan
2014 Eaton Corporation. All rights reserved.
5
Topics for today’s conversation…
•1 Megatrends…the opportunity
•2 About Eaton…our innovations
•3 Innovation effectiveness
2014 Eaton Corporation. All rights reserved.
6
Powering businesses worldwide
for over 100 years
We help the world use
electrical, fluid and mechanical
power more safely, efficiently,
reliably & sustainably
• Customers in more than 175 countries
• 2013 sales of $22 billion
• 50% of sales in the U.S.
• Approximately 102,000 employees
• Key Research Locations in Southfield, MI; Eden
Prairie, MN; Menomonee Falls, WI; Pune, India;
Shanghai, China; Prague, Czech Rep.
2014 Eaton Corporation. All rights reserved.
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Committed to
doing business right
• One of Corporate Responsibility Magazine’s 100 Best Corporate Citizens,
2008-2013
• One of only 11 S&P 500 companies named to both the Carbon Disclosure
Leadership Index and Carbon Performance Leadership Index in 2012
• Ranked among Fortune magazine’s World’s Most Admired Companies
• Ranked among world’s top sustainability performers in NASDAQ Global
Sustainability 50 Index
• One of Ethisphere magazine’s World’s Most Ethical Companies, 2007-2013
• Cited in China’s Business Watch Magazine’s China Green Company Top 10
and Fast Company Top 100
• Named a Thomson Reuters Top 100 Global Innovator for achievements as
one of the world’s most innovative companies (2011-2013)
2014 Eaton Corporation. All rights reserved.
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Our Electrical business provides solutions
for the entire power system
Data centers
Industrial
Utility
2014 Eaton Corporation. All rights reserved.
Commercial/
Residential
MOEM
9
Our Industrial business is a leader in the
management of mechanical and fluid power
Aerospace
Hydraulics
Truck
Automotive
Hydraulic Systems
Power & Controls
Transmission
Valvetrain
Fuel Systems
Fluid Conveyance
Clutch
Supercharger
Conveyance Systems
Filtration
Hybrid
Fluid Connectors
Fuel and Powertrain
2014 Eaton Corporation. All rights reserved.
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Demand Manager for Army Force Provider
- We improve personnel safety & efficiency of micro-grids
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11
Our high pressure hydraulic systems
- Saves 1 metric ton of weight from each plane
2014 Eaton Corporation. All rights reserved.
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We are in data centers…
- Facebook “Like Eaton”
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We supercharger engines to deliver more
power with less fuel
2014 Eaton Corporation. All rights reserved.
14
Topics for today’s conversation…
•1 Megatrends…the opportunity
•2 About Eaton…our innovations
•3 Innovation effectiveness
2014 Eaton Corporation. All rights reserved.
15
Inventions are prerequisites for innovations…
2011–2013
..but not sufficient
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Innovation defined
Despite the
myriad of
innovation
definitions out
there, we have
identified the key
elements and
further defined
what it means
for our
organization.
Ref:
Research & Technology
Executive Council®
…is something new or different The introduction of something new; a new idea, method, or
device.
- Merriam-Webster Dictionary
…takes on a broad scope
New products, services, business models, customers and
markets, methods and processes, etc.
- Corporate Executive Board Research, et al.
…involves process
Innovation is the process that translates knowledge into
economic growth and social well-being.
- Australian Research Council
Process by which an idea or invention is translated into a good
or service for which people will pay.
- BusinessDictionary.com
…yields commercial impact
The successful exploitation of an idea that adds value to the
customer and commercial return for the creator.
- Chris Beswick, The Road to Innovation
Innovation is “Monetizing Valuable Novelties”
2014 Eaton Corporation. All rights reserved.
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The “climate of innovation”
Collectively,
people,
environment,
and processes
drive our ability
to innovate
effectively.
PEOPLE
Innovation
Effectiveness
ENVIRONMENT
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PROCESS
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A few of our recent “open innovation”
partners in academia….
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…and our government partners
US DOD
Department of Defense
Corporate
Research
Technology
US DOE
Department of Energy
US DOT
Department of Transportation
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We are connecting our teams to tap the “Pof1”
- Leverage NineSigma to tap the “power of the crowd”
Branded
Engage Community
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NineSigma Expertise
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Close with some thoughts on innovation
- We believe…
Innovation is “monetizing valuable novelties”
Innovation is “different from invention”
Innovation is “a business process”
Innovation is “intentional”
Chance Favors the Connected Mind*
*Steve Johnson – Where do good ideas come from…
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