Webinar: KLM Royal Dutch Airlines:
A Lean Approach to Open Innovation
Innovation Masters Series
October 21, 2014
Rogier van Beugen, KLM
Geoff Carss, Imaginatik
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Why the Innovation Masters Series?
 Hear about innovation best practices from real-world practitioners
 Advance the state of the art of innovation discipline
 Share your perspectives and learn in a “community” setting
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The Age of
Innovation
Today’s leading
companies
excel at both
Operations and
Innovation
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Innovation
Programs
Imaginatik works
with clients to
build Innovation
Programs that
unlock new levels
of innovation
maturity.
Innovation Maturity Framework
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Sustainable
Innovation
Competence
The core
elements of a
mature
enterprise-wide
sustainable
innovation
competence
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Today’s speaker
Rogier van Beugen
Director of Innovation, KLM Royal Dutch Airlines
Rogier is the Director of Innovation at KLM Royal Dutch Airlines. Over
the past decade, Rogier has held a number of leadership roles at KLM
Royal Dutch Airlines. The focus of the past three years has been
organizational change, including innovation. Rogier is responsible for
stimulating employees to be innovative and optimizing innovation by
bringing in external ideas and inspiration.
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KLM’s innovation strategy & the Green Aruba Challenge
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
Introduction to Air France KLM and the aviation industry

Innovation Strategy @ KLM

Open Innovation endeavors
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Air France-KLM is a global leader in air transport
with more than 77 million passengers and €25.5 billion in revenues in 2014
KNOW
HOW
FLEET
MODERN,
FUEL
EFFICIENT
NETWORK
& HUBS
BRANDS
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Airline traffic will double in the coming 20 years
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Industry characteristics
 Core business unchanged since foundation in 1919
 All Competitors have access to same suppliers (OEM’s)
 Highly cyclical, commoditized industry
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Competition = Battlefield
 Compete where all competitors have the same ‘hardware’
 Where costs are everything
 Where all competitors share (roughly) the same business model
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The world around us is changing rapidly with many potential game
changers impacting our industry…
Exponential Change
Aging population
Urbanization /
Megacities
Migration
Generation X,Y,Z
Digital Natives
Changing
workforce
Digitization &
Internet of Things
Automation &
Robotics
Energy
game changers
Networked
organization
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Big data analytics
Re-shoring
Emerging economies/
Rise of middle class
Imbalanced
population growth
Transparency &
Trust
Personalization
& Choice
3D Printing
Environmental
concerns
Globalization &
State Capitalism
Security
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Sources of innovation
Use knowledge & Capabilities
 Enhance products & services
 Improve processes
 Develop skills
Find value outside
 Other industries
 Technology Developments
 Startups
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Key elements of KLM’s innovation strategy
Competences
Programs
(Cross company,
multi department)
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Venturing /
Open Innovation
Startup Scouting
BioFuels
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Big Data
Business Model
Innovation
Robotics
KLM is a leader in sustainability, which is recognized by its unique WWF
partnership & 8 year consecutive number 1 position in the DJSI
8 times #1 sector leader,
4 times #1 super sector leader
KLM targets and measures:
Climate action Plan follow up:
• From 2007 carbon neutral growth with enablers on low, mid and high
impact level, including offsetting.
• Partnership WWF 2008- 2012 and renewed to 2015, including biofuels:
• 20% CO2 savings in 2020 and 1% biofuel in 2015.
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Open Innovation plays a key role in KLM’s innovation
approach
Connecting Knowledge & Resources
Reducing Costs & Adding New Revenues
Divestures
Spin-offs
Revenues
New Revenues
Licenses
Own market
revenue
Own market
revenue
0
Internal
development
cost
Internal &
external
dev. cost
Cost & Time savings from
leveraging external
development
Costs
Closed Innovation
Our main OI challenges
KLM Engagement
Strategy & frameworks
Internal Open Innovation
Culture
Technology Scouting
Specific competencies
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Open Innovation
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Corporate Venturing
KLM’s Green Aruba Challenge
 Why did we do it / why Aruba?
 The partnership KLM-ARUBA
 What did we do?
 What was the response?
 Selecting the winner
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Why Aruba?
But we wanted to do more… biofuel flights can go
anywhere
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Green Aruba: world-wide recognized ambition
Richard Branson:
“Aruba will set the lead for all other
Caribbean islands”
Source: TedX Binnenhof 31 march 2014 - Global challenges Dutch solutions
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Mike Eman, Prime Minister of Aruba
about Green ARUBA:
” We looked for a development where
we could connect growth and
progress to wellbeing of our society”
Building an entrepreneurship challenge
 The objective: help Aruba reach their goals through entrepreneurship
 The prize: launch of their business on Aruba (parallel to launch of biofuel flights)
 Activating the Dutch and Aruban ‘green’ startups to contribute
 Using the combined KLM and Aruba networks
 Finding the best innovations and supporting them
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The partnership Aruba - KLM
 Dividing the effort
 Feet in both continents
 KLM main organizer of the challenge
 Aruba facilitator of the prize (launch of 2 x 2 weeks, stay on Aruba)
 Commitment from Aruba to help bring the winner but also other
submissions forward
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Using Innovation Central as the platform
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The selection process
50 +
solutions
e.g. 10 good
idea’s
Top 5
concepts
Winner
takes off
3 weeks
April 7th
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KLM
Team
2 wkn
April 28th
Online
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Dutch
Jury
Jury
2 wknon Bonaire
May 2nd
Offline
May 17th
Offline
1st selection will be done online by expert team
comparing pairs of concepts
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Semi finals; Dutch expert jury
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High profile jury in the finals
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And the winner is…
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The results
 50 (proper) submissions
 Strong top 20
 Excellent top 5
 Great reception on Aruba, in media but also among relevant partners
both in NL and on Aruba (government, airport etc.)
 3 from top 5 have started business
 Very positive perception; internal and external
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The winner has successfully launched!
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