“picking the right product” colin billiet nano-porous solutions limited (formerly group chief...

“Picking the Right Product”

Colin Billiet nano-porous solutions limited

(formerly Group Chief Executive of the domnick hunter group plc)

14th May 2010

Building Profitable Growth Through Product Innovation

Basics

• Know your core technologies and competences• Know your customers and markets• Show commitment from the top – Board level• Make Product Innovation a cornerstone of your

business growth strategy• Maintain investment through the economic cycle

Technology and Innovation

• Maintain a healthy level of investment in core technologies

• Recognise and value your know how! • Insist on novelty in new designs (Patentable

features)• Aggressively target reduced manufacturing costs

while adding benefits – typically 30% is achievable• Measure new product sales and Patent filings

– e.g. % of annual sales introduced in last 3 years

Customers and Markets

• Fully understand customers needs• Demonstrate how your products will contribute to

their growth and profitability• Work in partnership and share the rewards• Develop strong synergies - most customers appreciate

this approach • Innovation is a ‘door opener’• New technology is also a ‘door opener’

Leadership

• Must be from the very top - CEO• Do not delegate responsibility• Set tough goals – usually achieved• Define what is a new product• Leverage existing technology and competence• New technologies need lots of investment• New technologies also a champion

New Products

• Listen to the customer• Identify the real requirement• Imagine the possibilities• Follow your instincts

- do not blindly follow market research• Ensure buy-in from all concerned

- advise/inform/get ownership- get feedback an avoid surprises

Example of New Product Innovation

New modular desiccant compressedair dryer – patents pending

• New innovation possible despite market maturity

• Sold on new innovation and simplified design – elimination of many system components

• Integral inlet and outlet filtration• Everything in the box to get started

- cables, brackets etc.

Before ...

...After

Flexibility

• Modular construction allows machine builders to utilise their own controls.

• Future proofed for other applications

A. Air dryer module

INNOVATION

Identified opportunities

A.£300kB. £2mC. £100kD. £500kE. £500kF.£100k

TOTAL £3.5m

B.Air dryer range

C.Variant

D. Variant

E.Variant

F.Variant

Product road map

Example of New Technologynano-porous adsorbent hollow fibre technology

• 75% energy saving• 80% space saving• 70% weight saving• Competitive price position• Patents pending

• Addresses a market sector where existing technology is unsuitable (£100m annual sales potential)

• Enables heat regeneration in small high volume applications – regeneration time reduced from 8 hours to 2 minutes

Old technology vs. New

New adsorbent heated hollow fibre•Low pressure loss•Fast kinetics•Any orientation•Unaffected by vibration•Very low thermal mass•Low energy consumption

Granular technology•Uneven bead size•Suffers from channelling, by-pass, high pressure losses and attrition•Effected by orientation and vibration

Rewards from sustained innovation

• Organic growth is the lowest cost/risk to expansion• Retention and growth with existing customers is high• Profitability is higher as a result • Ability to gain new customers is enhanced – many

large companies no longer have the ability to innovate• Motivational for employees – high retention• New technology is a longer term investment for future

prosperity – when the ‘cash cow’ is exhausted• It is a journey, not a destination

Thank you for your time

Any questions?