bringing innovative technology to market - … · bringing innovative technology to market: ......

Managing Technology for Growth and Profitability

Bringing Innovative Technology to Market: Linking R&D, Engineering and Manufacturing

Dr. James Rekoske – CTO and VP of R&D


Agenda

• Introduction

• Components of R&D Effectiveness

– Building and Maintaining Alignment

– VPD™ – A Technology Delivery Framework

• Open Innovation as a Multiplier

• UOP Innovation Example

• Conclusions


We Are Honeywell

Managing Technology for Growth and Profitability 3

Home and Building Technologies

$39.3Bin sales for 2016

53%of sales outside U.S.

• ~1,300 sites, ~70 countries

• More than 129,000 employees

• Morris Plains, N.J. headquarters

• Fortune 100

• NYSE: HON

Safety and Productivity Solutions

Aerospace Performance Materials and Technologies


UOP Lines of Business

Managing Technology for Growth and Profitability 4

Solutions powered by strong R&D and continuous innovation

A century of experience in refining, petrochemicals and natural gas

Renewable Energy & Chemicals

Innovative solutions that make customers more efficient and profitable

Technology to make fuels and chemicals from renewable sources

Technology solutions and equipment for refineries and

petrochemical plants

Technology solutions and equipment for natural gas

and hydrogen

Connected Performance Services

Software delivered as a service to improve customer outcomes

Enables the chemical reactions that make fuels

and petrochemicals

Catalysts, Adsorbents & Specialties*

Gas Processing & Hydrogen*

Process Technology & Equipment*


A Century of Innovation

1914: Dubbs Cracking Process

1938: High Octane Aviation Gasoline

1949: Platforming™ Process

1953: Synthetic Zeolites

1957: Zeolites for Catalytic Cracking

1960s: Technologies for Unleaded Gasoline

1968: Biodegradable Detergents

1970s: Automotive Catalytic Converter

1970s: Parex™ Process

1990: Oleflex™ Process

2003: First National Medal of Technology

2006: Green Diesel Technology

2008: MTO, Uniflex™ and Green Jet™ Fuel

2012: Acquired Thomas Russell and Callidus

2014: UOP Celebrates 100 years

2014: Second National Medal of Technology

2016: ISOALKY™ ionic liquids alkylation

2016: Connected Performance Services

For more than 100 years, UOP has developed technology andbusiness solutions for the world’s leading oil and gas companies

Today: UOP licenses more than 70 processes and 300 catalysts to 6,000 refineries and plants

R&D Effectiveness and Sustained Alignment with key stakeholders in the value chain of Technology Delivery

31 out of 36refining technologies

in use today were

developed by

UOP


Agenda

• Introduction






• Conclusions

Managing Technology for Growth and Profitability Managing Technology for Growth and Profitability

Key Elements of R&D Effectiveness

• HS&E Excellence

• Strategic Alignment

• Talent (hiring & retention)

• R&D Capabilities

• Open Innovation

• Regional R&D Investment

• Work Processes & Enablers

• IP Management


The Importance of Strategic Alignment

NPD Alignment: The state where all aspects of the new product delivery process (strategic, business, functions) have common focus, interdependent metrics and are actively facilitating mutual success.

Symptoms and Effects of poor alignment:

• Working on wrong projects

• Unbalanced project portfolio – across products, across horizons

• Missing your growth goals

• Long cycle time to completion

• Missing delivery date and exceeding budget

• High COPQ (cost of poor quality)

• Missing customer’s CTQs (critical to quality) or OTTR (on-time to request)

• New products are not “fit for purpose”

• Frustrated and de-motivated staff

Failure to have a strategic alignment will have a negative impact on organization’s growth


Execution:

• List long-term (3-5 years) strategic objectives

• List corresponding objectives – 1 year

• Tie R&D objectives to specific initiatives

• Align initiatives to metrics (KPIs)

• Assign primary and secondary owners to each initiative to clarify accountabilities

• Create second and third level targets for each primary initiative

• Establish Management Operating System (MOS). Address issues and take action

Strategy Deployment Techniques: An “X-Matrix” Example

Strategy execution process to align business and functional strategies with transparent accountabilities

CEB Research and Development Council - 2010

Incre

ase

Rev b

y x

x%

Reve

nu

e In

cre

ase

by $

10

0M

Conduct VoC

HP

R&

D D

ir

Refinin

g M

ktg

Dir

Primary Responsibility Secondary Responsibility

Charter team. Low hanging fruits

Increase HP Rev by xx% w/o M&A


Governance Structure

Growth Board

Growth Management

Team

Exploratory

Projects

Key Roles

• Process owner• Approve new focus areas/platforms• Cross-SBU prioritization decisions • Nurture new businesses• Quarterly decision meetings

• Recommend Focus area/platform • Project selection decisions • Project leader mentoring• Monthly checkpoint meetings• Portfolio management

Membership

• CEO• VP Strategic Marketing• VP R&D• SBU VPs

• SBU BD Directors• Strategic Marketing Director• Research Sr. Director• Development Director • S&A Sr. Director

Improve commitment & alignment for major growth investments.Commitment has the highest impact on innovation success

Technology

Platforms

Growth Focus

Area Projects


VPD™: Velocity Product Development

ScopingProductConceptSelection

Develop-ment

CommercialDemo

ProductLaunch

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Gate 1 Gate 3

Scale-upApproval

Gate 4

Post LaunchReview

ProductLaunch

Approval

Gate 5

IdeaScreening Development

Approval

Gate 2

ProjectSelection

ExPAC

PAC 3PAC 1PAC 2

Project Teams

Team Leaders

ExPAC

PAC 3PAC 1PAC 2

PAC 3PAC 1PAC 2

PAC 3PAC 1PAC 2

Project Teams

Team Leaders

PACPAC

PAC

EPAC

Idea Generation

Stages• Structured project phases representing increasing levels of investment

• Pre-defined technical and business activities in each phase

• Established tools provide consistency

• Pre-defined deliverables for each decision point

Gates• Formal reviews by a cross functional teams of senior leaders

• Success criteria for passing each gate are established in advance

• Each gate represents a Go/Stop decision

A Business Process – Stewarded by Technology


The Value of Connections

R&D

EngineeringManufacturing

• Effective technology delivery requires strong interdisciplinary connections between customers, R&D, Manufacturing and Engineering

• Connections are best established through regular rotations of some personnel

– Organizational Balance: some “long and

deep” experts, some “generalists”

• Rotations, communication are complicated by geographic distance

The UOP ModelRegionalization of Technical Services, Engineering, R&D and ManufacturingClose to our customers = faster, more robust NPD


UOP Regional R&D

• Deploy resources to grow where our customers are

• Increase customer interaction

• Provide faster response

• Better understand customer needs

• Access talents, ideas and capabilities, and accelerate commercialization

• Key roles: – Establish business driven engagements

– Develop / demonstrate new technology

– Develop regional solutions

– Support sales and Tech Service Scouting

• Strengthen sustainable relationship

• Position UOP as the “Partner of Choice”

Integrated global work force aligned with regional strategies

Technology GlobalizationUnited States India China

Middle East

• India – Guragaon

• China – Shanghai, Zhanjiagang

• ME – Dhahran Techno Valley

• SEA – Penang, Malaysia

Almost 50% locatedoutside the US


Agenda

• Introduction






• Conclusions


Manage

Implement & manage formed agreements and

relationships

Want

Identify capabilities and resources we need to

meet our strategic objectives?

Find

Locate and evaluate needed

resources?

Get

Establish processes to

access selected resources?

New product meeting Market & customer needs

Create

Value

Based on Roche Pharmaceutical Model

• Corp Goals

• VoC

• Mkt Trends

• Regulations

• Competition

• Emerging Tech

The “Open Innovation” Model @ UOP

• Road Mapping

• Gap Analysis

• Collaboration Formation

• Other agreements

• Scouting

• Networking

• Collaboration Imp & Management

• Portfolio management

A structured approach to leverage external capabilities to speed up commercialization of new profitable ideas that will satisfy customer needs and market requirements.

Business Strategy

Project


Collaboration Formation ProcessBased on “The Strongest Link”, Gene Slowinski & Mathew Sagal

Achieve InternalConsensus

Approach Potential Partners

Conduct ResourceFit Assessments

Finalize PartnerSelection

Negotiate Agreement

Inputs

• Strategic Plan

• Gap Analysis

• Partner request

Collaborations are doomed to failure without internal consensus

Quickly Walk away as friends if there is no strategic fit

Resources complimentary? Available? Outsourcing?

It is painful to recover from selecting the wrong partner

Outputs• Framework Document

• Agreement

• Implementation Plan

Charter Formation Team

• Identify needs / business case

• Confirm collaboration is the best alternative

• Draft collaboration framework document

• Get input from stakeholders

• Resolve internal disagreements

• Identify potential partners

• Discuss framework document

• Assess strategic fit – Go / No Go decision

• Execute NDA

• Evaluate capabilities of potential partners

• Assess resource fit

• Confirm strategic & resource fit of partner

• Review framework doc with stakeholders

• Resolve IP RTU and commercial terms

• Negotiate legal Agreement


Long History of Open Innovation at UOP

Technology Field Partners

SRC Uniflex Slurry hydrocracking of heavy residual oils Canmet, many others

Ecofining Green diesel from vegetable oils and animal fats Eni

Hydroprocessing Removal of sulfur & nitrogen from gasoline, diesel, etc. Albemarle

MTO Methanol to olefins Norsk Hydro, Statoil

Olefin Cracking Cracking of heavier olefins to ethylene & propylene Total

Catalysts Manufacturing various proprietary UOP catalysts Fushun

EBOne Liquid-phase alkylation of benzene to ethylbenzene Lummus

SMART Dehydrogenation of ethylbenzene to styrene Mitsubishi, Lummus

Phenol Cumene peroxidation to phenol and acetone Sunoco

Cyclar Conversion of LPG to aromatics BP

Hydrocracking Cracking of heavy oil with sulfur & nitrogen removal Unocal

SHP Various selective hydrogenation applications Huels, Degussa

Aluminas Manufacturing various amorphous Al2O3 products La Roche

Tatoray Transalkylation of toluene, A9 to xylenes Toray

Sulfolane Liquid-liquid extraction of aromatics Shell

Udex Liquid-liquid extraction of aromatics Dow

Representative list of successful, non-confidential collaborations:


Agenda

• Introduction






• Conclusions


The UOP/Inovyn Advanced MTO Process

0

10

20

30

40

50

C2= C3= C4= C5+ C1-C5Paraffins

Coke +COx

SAPO-34

ZSM-5

% Y

ield


Technical and Commercial Success

• Since deployment at Wison Clean Energy in 2013, MTO technology has expanded dramatically

• By 2020, nearly 20% of the worlds propylene will come from on-purpose processes like MTO and Oleflex

• In the next 5 years, China will invest more than $100 billion in additional coal to chemicals processing through MTO

Wison Nanjing MTO Plant Construction – July 2013


Summary

• Robust business processes are need to ensure strategic alignment of all functions involved in your NPD process

• Deployment, communication of the strategy is an essential and often overlooked element

• Governance is not the goal – keep your processes agile

• People are your most critical asset – design your organization to promote their development

• Open Innovation, properly deployed is a true Multiplier

• Success can be transformational


Thank youwww.gpca.org.ae

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