Milliken & Company
Insight into Innovation and New Business Development
©2010 Milliken, Private & Confidential
Innovation and IP. Conference. May 1st 2015
Example of an Innovation Pipeline Model*
Ideal Final Result - A Holistic View of End-to–End Innovation
* With Kind Permission
www.innovation-framework.com
2
Example of an Innovation Pipeline Model*
The Role of Teams & IT Management Tools
New Product Blueprinter
I2M
Qmarkets
Creax
ADEPT
* With Kind Permission
LaunchStar®
www.innovation-framework.com
3
Strategic Opportunity Framework
Analysis Framework
Developing Sustainable Innovation
• Defining the Opportunity
Idea Pipeline
“Open” Networks
Internal Ideas
(Business alignment – Campaigns)
Screen
− Finding
• Segmentation & Targeting
− Framing
• Defining/Proving business case
A
− Winning
C
Box MODEL
Model
33 BOX
− Scaling
• Delivering long-term value to
Milliken
B
Finding
Scaling
Create
H2
H3
Develop
Winning
H1
Win in the Market
©2014 Milliken 4
Milliken Innovation Process Model
Process philosophy relies on sound project management principles and
progressive elaboration as a function of project phase.
Ideation
1
Ideas &
Insights
1A
Incubation
Market or
Technical
Development
1B
Laboratory
Product
Development
Validation
2
2A
Pre-pilot
Product
Development
2B
Commercial
& Market Pilot
3
Commercialization
3
Launch & Replication
~$50 – “Testing” “Scaling”
$100+ MM
PHASE:
GATES
During the phase you
do the project work
following project
management
principles
Gates are decision
points to advance the
project, stop it, or
recycle if information
is missing
“Mature”
H3 H2 H1
~$10 MM
Win in
the Market
Time
©2014 Milliken 4
i2m – Doing the Right Projects Right!
Marketing Alignment




Market assessment
Business investment
thesis, expected ROI
Product needs/benefit
requirements
Validated hypothesis
connected to strategy





Preliminary marketing
hypothesis & “soft launch”
marketing plan
Competitive landscape
Alpha customer identification
Value proposition
Business investment case




Value proposition and refined 
investment-level business case 
Alpha customer validation
Alpha customer commitment
Market activation & “hard
launch” marketing plan
Market activation dashboard
Product line strategy
Where to compete?
How to Win?
Increased Confidence & Conviction
©2014 Milliken, Private & Confidential
©2014 Milliken 5
Strategic Opportunity Framework
Four Key Questions
Over a series of stages & gates, knowledge and conviction around four key
business-facing questions should advance…….
Gate 1A
Gate 1B
Gate 2A
Gate 2B
Gate 3
1. What is the problem to be solve
and what is it worth to Milliken
to solve it?
2. Where do we plan to play?
3. How do we play to win?
4. How will we activate and scale
up the opportunity?
Conceptual Hypothesis
Working Hypothesis
Strong point-of-view
Complete
Refining / additional knowledge
©2014 Milliken 7
Strategic Opportunity Framework
Market Analytics
Over a series of phases and gates, conviction and knowledge advances
Four key Questions
1A
Strategic Marketing Analytics
1B
Gates
2A
2B
3
Defining the Opportunity
What is the problem to
be solve and what is it
worth to Milliken to
solve it?
Unmet needs
Unique insights
Addressable market
Milliken opportunity size
Market mapping
Segmentation and Targeting
Where do we plan to
play?
Market segmentation
Value chain & leverage points analysis
Buying process
Competitve environment analysis
SWOT / positioning
Defining our approach to Win
How do we play to
win?
Value chain analysis
Key behavior changes required for adoption
Value proposition
Pricing strategy
Channel strategy
Application development approach
Delivering value to Milliken
How will we activate
and scale up the
opportunity?
Conceptual Hypothesis
Market activation plan
Marketing communications plan
Offer enhancing actions
CRM - sales funnel
Product management plan
Working Hypothesis
Strong point-of-view
Complete
Refining / additional knowledge
©2014 Milliken 8
Strategic Framework
Market Sizing
Systematic approach to determining the target market size and
opportunity …
TOTAL MARKET
Addressable Market
Target Market
(prioritized segments)
Opportunity Space
(within prioritized space)
Defined market space
Portion of market we can
address (aligns with technology
and value proposition)
Choice on prioritized place
to play!
Forecasted space, amount
of prioritized space that
can be won!
9
Innovation Framework
Market Sizing
Knowledge and conviction on size of the opportunity will progress across
phases and gates……
Progression on defining opportunity for Milliken
1A
1B
Gates
2A
2B
3
Total Market Estimation
Addressable Market
Target Opportunity / Prioritized Space
Entitlement / Milliken's defined opportunity size
Sales Forecast
Conceptual Hypothesis
Working Hypothesis
Strong point-of-view
Complete
Refining / additional knowledge
©2014 Milliken 10
Innovation & Our Strategic Go-to-Market Framework
Upstream Marketing: Creating Value & Competitive Market Advantage
•Segmentation & Targeting
•Segment attractiveness
•Fit with company / SWOT
•Positioning
• Discover customer needs
• Competitive intelligence
• Market dynamics/drivers
• ID addressable markets
insights
Innovation Pillar
• Execute GTM plans
• Salesforce engagement
• Lead management
• Transactional pricing
• CRM
• Customer Experience
• Product Line Management
• Measurement
Selection –
Segmentation
& Targeting
(where to play)
H3
Deliver
value
(play to win)
Op Ex
Pillar
Strategy
H2
Core
Go to
market
plans
Pillar
NPD, M&A
Define the
market/
opportunity
• Value chain analysis
• Value prop/messaging
(how to play)
• Product portfolio design
& development
• Value pricing
• Brand strategy
• Channel strategy / route to mkt.
• Integrated Communications
Downstream marketing: Delivering Value & Achieving Competitive Market
Advantage
©2014 Milliken 11
Summary
 See Innovation from a holistic perspective
 Use teams & Innovation Management
IT tools to improve efficiency & develop
insight & knowledge
 Stage Gating adds discipline to the NPD
process
 Innovation process is aligned and embedded
with the Strategic Development Framework
* With Kind Permission
www.innovation-framework.com
12
Milliken & Company
Insight Into Innovation and New Business Development
Q&A
©2010 Milliken, Private & Confidential
Innovation and IP. Conference. May 1st 2015