OPEN INNOVATION @ WHIRLPOOL WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 1 COMPANY OVERVIEW EUROPE REGION • ~$3.2B Sales • 12,000 Employees NORTH AMERICA REGION • ~$9.6B Sales • 29,000 Employees ASIA REGION • ~$900 M Sales • 5,000 Employees LATIN AMERICA REGION • ~$4.7B Sales • 25,000 Employees WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 2 EVERY ROOM … EVERY HOME … EVERYWHERE Clothes revitalization Room air conditioning Dehumidifiers Air coolers BEDROOM(S) KITCHEN / DINING OUTDOOR GARAGE Grills Cooking centers Storage Appliances Workstations Flooring Refrigeration Dishwasher Cooking Ventilation Portables Cookware LAUNDRY ROOM Washer, dryer, sink Clothes revitalization Laundry storage solutions BASEMENT Storage Water filtration WHIRLPOOL CORPORATION CONFIDENTIAL HVAC Freezers 13 April 2015 Air treatment OPEN INNOVATION @ WHIRLPOOL 3 WHIRLPOOL GLOBAL OPEN INNOVATION CONTEXT COMPETITIVE ENVIRONMENT IS FORCING TO INNOVATE THE WAY WE INNOVATE KNOWLEDGE DISTRIBUTED & INTERCONNECTED TECHNOLOGICAL CHALLENGES Rapid evolution of technological trends OPEN INNOVATION OPEN INNOVATION Difficulties to master internally all the competences / technologies needed Leverage external resources to increase the productivity of AD & XP internal resources. AD = Advanced Development: Whirlpool R&D department XP = Cross Products categories: internal R&D categories that serve different product categories WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 4 OPEN INNOVATION ORGANIZATION AND SKILLS ORGANIZATION SKILLS Open Innovation Leader Business Analysis Cross category accountable to manage Open innovation projects of all research categories Open Innovation team manages also publicly funded projects Open Innovation reports to VP of research and development WHIRLPOOL CORPORATION CONFIDENTIAL Project Manager Tech Scouter EMEA Public funding Strong technical competences Business skills are required to consider different value proposition Administrative roles are required, mainly for public funded projects 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 5 OPEN INNOVATION PROCESS AD Product cat and X Product Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C • Actively network externally to scout, identify, access and evaluate new technology opportunities with potential to advance AD/XP strategies • Develop partnerships with key center of excellence both industrial & academic • Transfer technologies to AD and XP groups Network Partnerships Transfer WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 Partnership Management • Leverage Public Funding Opportunities to support R&D initiatives Public Funding OPEN INNOVATION @ WHIRLPOOL 6 OPEN INNOVATION PROCESS: INTERNAL GAP AD Product cat and X Product Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C Partnership Management Consider knowledge needs Evaluate external opportunities to cover the needs Many solutions are already there find it! WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 7 OPEN INNOVATION PROCESS: TECH SCOUTING 1/2 AD Product cat and X Product Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C Partnership Management CROWDSOURCING Scouting Tools IP Scan, OI networks, Intermediaries (Ninesigma, innocentive), Leverage existing Network Crowdsourcing can represent an opportunity for tech scouting WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 8 OPEN INNOVATION PROCESS: TECH SCOUTING 2/2 AD Product cat and X Product Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C Partnership Management TECHNOLOGY FORUMS Scouting Tools team of Whirlpool people expert in a field and working allover the world – who meet to discuss a specific technical competency area to achieve alignment around IP Scan, OI networks, Intermediaries (Ninesigma, innocentive), Leverage existing Network Leverage the knowledge of your employee WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 9 OPEN INNOVATION PROCESS: OPPORTUNITY ASSESSMENT AD Product cat and X Product Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C Partnership Management Potential drivers to be considered: Impact of the collaboration on innovation pipeline (both in terms of ideas and project), Speed of execution Access incremental resource Knowledge generated Expected business returns. Different indicators should be considered to evaluate external opportunities Different skills required to take into account different aspects WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 10 OPEN INNOVATION PROCESS: OPPORTUNITY MANAGEMENT AD Product cat and X Product Understanding of internal knowledge needs Tech Scouting Opportunity assessment with internal PP Seedbed into C2C Partnership Management Link Open Innovation initiatives to your innovation processes Apply Project Management to manage partnerships WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 11 OPEN INNOVATION: KEY LEARNINGS TOP MANAGEMENT COMMITMENT MAKE OPEN INNOVATION VISIBLE: ad hoc organization provided with different skills MAKE OPEN INNOVATION WORK: ad hoc and tailored process CONSIDER WHAT ALREADY EXIST: Importance of tech-scouting DEMONSTRATE THE VALUE OF OPEN INNOVATION ACTIVITIES THROUGH APPROPRIATE METRICS LEVERAGE PUBLIC FUNDING OPPORTUNITIES WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 12 OPEN INNOVATION AND PUBLIC FUNDING Publicly funded projects (e.g. 7th framework program) represent an embryonic form of Open Innovation since they force firms to collaborate for achieving innovative outcomes. However they present pros and cons. PROS Stimulate long term research Force multinational collaborations Possibility to obtain financial support to “your” research projects CONS Rigid rules in the consortia creation Risk to pursue a “financial” strategy Management of projects is complex • Publicly funded projects can constitute an interesting trigger for Open Innovation • Publicly funded projects present some drawbacks that need to be managed WHIRLPOOL CORPORATION CONFIDENTIAL 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 13 OPEN INNOVATION: RESULTS Participations to several publicly-funded projects from 2009: Technology district for the innovation in food processing and preservation WHIRLPOOL CORPORATION CONFIDENTIAL Creation of strategic partnerships in different knowledge domains: Energy Motors Materials Electronics Creation of strategic partnerships with a leading academic institution : 13 April 2015 OPEN INNOVATION @ WHIRLPOOL 14