co dev communication guide

21/07/2014

INNOVATIO

NEVEREST

Co-Dev & Co-innovation

Communication Guide for SourcingC. VAYSSE - G. CHRETIEN – N. MICHEL

© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Presentation title - 28/04/2023 – P 2

TABLE OF CONTENTS

Collaborative innovation: what does it mean?

Why this guide ?

Co-Dev Process definition 4 steps

Co-Dev Governance & KPIs



Why this guide ?

The current Business Model based on a pure competitivity must be adapted to the Growth Business Model based on co-innovation.

Win-win attitude is key!Indeed, small players may be afraid with ATSA approach. The working relationship between the supplier and us must be well-balanced.

The co-innovation environment is complex and tripartite (the supplier, the internal engineering and the sourcing ). Tree different « métier » sensibilities must be taken into account to lead the Customer-supplier relationship.



Innovation Alstom Transport at a glance

130 ideas / y.Sharepoint

80% Sourcing players

ATSA R&D Budget <200M€ / y.

R&D Collaboration integrating at least 1 Supplier / year

18 collaboration / yearTotal of 120 projects

IDEAS Generation Product R&D Projects

ATSA NRC10% of 3,2 B€ /year

NRC<300M€

Supplier Co-Dev / year< 8 / year

Few Sourcing players

https://teamspace.alstom.com/sites/TrAlstomIdeaMgmtSys_Team/SitePages/Home.aspx



AT R&D Budget vs. Co-innovation

Total Sourcing costs (NRC (one off), Material, subcontracting)

(49) (37)

R&D Collaboration integrating

at least 1 Supplier

18 co-inno @ total 10 M€

Only 10/49M€ with Co-Dev contracts in place!



Why this guide ?

Examples of co-Dev



DMU Lint story – ATSA vs. PESA

Benchmark ALSTOM LINT vs. PESA LINK



• Within the last Tenders, we have seen that our main competitor is PESA with the product LINK.

• The product name LINK is very similar to LINT, and also the product concept is similar to LINT

• PESA is using on several components the same suppliers as Alstom– refer to matrix

• PESA has offered it‘s product much cheaper than Alstom (eventually dumping/entry price)

• PESA has won the 1st contract within Germany (12 TS for „Regentalbahn“)• Within Tender DMU Frame, PESA offered up to approx. 20% cheaper than

Alstom (precise feedback awaiting from Costing)• Due to the fact that PESA is using the same suppliers, we should analyze

our competitive advantage versus PESA (better prices,...).• Where does the supplier produces their equipment?• Is the supplier offering exactly the same equipment to PESA as supplied to

Alstom ?

Lint story – ATSA vs. PESA :



PESA LINK References:=> 31 Trainsets for Ceske Drahy (2 car version)=> 12 Trainsets for Regentalbahn (2 car version)



PESA LINK – Ceske Drahy



Main Suppliers on LINT & LINK



LINT vs. LINK conclusion

@TS level: 5 main Suppliers representing 50% of the TS cost. ATSA total NRC costs (DNK) leads to 2,7 M€ during 3y. dvt. >2011

@Power Pack level Link Power Pack integrates new improvement (gearbox Ecolife ZF) : low fuel consumption ATSA Power Pack Stage3b NRC costs leads to 400K€ during 3y. dvt. + 1,5M€ of Train validation cost

No co-dev contracts ATSA’s IP (exclusivity or royalties).

Double pain for ATSA: The DMU’s market price is getting down! New players are coming faster on the market with robust & validated solutions, in particular the traction system.

Co-Dev contracts constitute a way to create barriers of protection.



Customer contractual constraints / Maintenance

• Few example of customer contractT7 T8 de la RATP Dans l’article 18.2 Durée de fourniture des pièces de rechange « le Titulaire garantit que ses

fournisseurs ne sont pas liés par un contrat d’exclusivité et qu’il sera donc possible pour la RATP de s’approvisionner directement à la source du Titulaire »

AubagneDans l’article 9.10 Pièces de rechange «Pour les pièces hors fournitures exclusives du Titulaire,

celui-ci garantit que ses fournisseurs ne sont pas liés par un contrat d’exclusivité et qu’il sera possible au Maître d’Ouvrage, au terme du présent marché, de s’approvisionner directement chez ces fournisseurs »

TTNGVoir CCCG applicable article 45 PROVENANCE DES PIECES ET DES SOUS-ENSEMBLES - 45.2 - La SNCF a le

droit de commander des pièces et organes de rechange à tout fournisseur de son choix, sous réserve des stipulations des articles 27 (Confidentialité) et 29 (Propriété Intellectuelle).

Voir CCCG applicable article 45 PROVENANCE DES PIECES ET DES SOUS-ENSEMBLES - 45.1 – La SNCF doit recevoir la liste des couples produits fournisseurs et si non pénalité.

Voir CCCG applicable article 27 CONFIDENTIALITE et 29 PROPRIETE INTELLECTUELLE DES RESULTATS (notre contrat est sous régime 29.B de droits partagés entre les parties) et notamment : Le droit de reproduire ne porte pas sur les dispositifs, objets ou matériels qui, inclus dans le prototype, ou mentionnés sur les dessins ou les plans, n'ont pas été étudiés au titre du marché, ou pour lesquels le Titulaire a fait connaître qu'il ne possédait pas le droit de libre disposition.European law says it is forbidden to restrict the access to our supplier to

the final customer. Co-Dev contracts constitute a way to create barriers of protection.



Why this guide ?

Examples of co-Dev



Co-Dev Success stories – AGV Seats

- Results:

The results developed and obtained by the Supplier during the performance of this co-dev (Project Purchase Agreement and/or Orders) shall become the exclusive property of the Purchaser as and when they are developed.

- Business exclusivity :

5years dual exclusivity

- Royalties:

Before any Direct Sales or repair of Spare Parts or Equipment to any Third Party and assigned to the Project Train maintenance, the Supplier shall obtain a prior and written authorization from the Purchaser.In such case, the Supplier shall pay to the Purchaser an amount equal to fifth teen per cent (15%) of payment received for the Spare Parts or Equipment sold to Third Party, if not mutually agreed otherwise between the Parties.



- Results:

AT and KES will the co-owner of the solution (50/50).Technical gap between the supplier product and AT Lint

- Business exclusivity :

5years dual exclusivity

- Royalties:

KES shall pay to the Purchaser an amount equal to fifth teen per cent (15%) of payment received for the Spare Parts or Equipment sold to Third Party, if not mutually agreed otherwise between the Parties.

Co-Dev Success stories – Lint MRP Brakes



Traction R&D overview

Co-Dev Suppliers Final Customer

R or D?ToT?

Timing Investment Free For Tender IP Conclusion

Fly-Wheel

Williams none D

ToT: (indus with AUDI)

From 2007

1M€ No (<1y.)Type Test Validation

? No customer partnershipTechnology competitionDecreasing R&D Budget

STEEM Batscap (SC)

Adetel (final module)

RATP (Tramway)

R

(demo Techno)

2007 to 2010

1M€5 n/aNot a productEcopack

? Successful :Lead to demonstrate the energy saving during commercial service

ENERGYMETER

Moors none D

(indus)

From 2007

1M€ Yes YesCo-patentExclu Royaties

No HV competence @ Moors low TTMMoB decision: Ecometer@MicroelectricaAT Commercial strategy (2013 SNCF RFQ)

IP mgt: exclu <5y.

CPL CALYOS none R

(ToT: spatial)

From 2007

1M€ Yes-RRX

YesCo-patentExclu Royaties

Successful :Green cooling system -20%TCOTTM: 7y. / Customer needs?

Magnelis Arcelor Mittal

Tram Dublin R (demo Techno)ToT from Infrastructure

2011 (loco)

50K€ Indoor: YES

Outdoor: validation (Lessiviel products)

No

Tbd for outdoor

Successful :Loco saving: 4M€

Outdoor validation very challenging



TABLE OF CONTENTS




Co-innovation & Co-Dev

The railway industry is a high added value domain on which innovation is key.

In terms of innovation, the supplier partnership is determinant to : Reduce the Time To Market Avoid the unnecessary internal R&D if the solution exists

already Share the R&D cost with our partners Protect ATSA and the partner’s IP. Insert new solutions in our tenders to be attractive vs.

competitors (differentiation, exclusivity) Increase AT fees @ TCO level (captive parts)

Dealing with co-innovation aims to reinforce and consolidate our relationship with panel and non-panel suppliers.

Sourcing effort leads to:Internally collaborate with the ENG people and Product PL/Region to understand their issues Widely communicate to our partners to find the best players to fit with our concerns



Co-Dev & Co-innovation @ ATSA today

ONLY 8 Co-Dev / year: VERY LOW see slide#

Today’s Sourcing WoW: - NDA signature + PO @ site level. The innovation result is captured only by the supplier Our competitors benefits of our sucess (eg: Lint PESA)

Co-Dev :- Some R&D pgms (SCPT: new Traction chain; e-Transfo; CVS

ATAC (SiC et Transfo MF) of millions of Euro were launched without adapted contractual frame;

Opportunities: Pay attention to the importance of the co-DEV process Limitate the current Sourcing WoW and initiate the co-

dev process: (see Projects execution)



Go RFQ projects phase: Full Speed!

Deep dive on the Co-Dev opportunity thanks to the PSL & Contract Mgr

Project Name TSL / PSL Contract Mgr Legal Mgr NRC amount CommentsMetro Ryad FRANCO Amilcar Christophe Lacoste 5M€ Smart Metro Philippe Lambert Stefan Aulon R&D (projet Ryad)

Metro de Londres (3rail - less) Zoe Zhu

NSR Stephan Kuehn SCM SLZ TBA (Isis Piponnier acting)

SCM SLZ TBA (Isis Piponnier acting) 5M€ BAFO

RRX Holger Damm SCM SLZ TBA (Isis Piponnier acting)

SCM SLZ TBA (Isis Piponnier acting) 5M€ BAFO / focus T&C

Customer + JV Skoda

Ottawa (Citadis Spirit)

Philippe CARLIER et Rémi Alapetite

Anne Dye (Contract Mgr) Anne Deshaye 5M€

Citadis X05 Emilie Feuillat Delphine Boulogne

Metro Lille Olivier Lepetz Stefan Aulon GO ORDER

3UFC Christophe Beauvilain Delphine Boulogne

RER NG Benjamin Mortier Stefan Aulon

MP14 Beatrice Dubois Stefan Aulon tender (BAFO Juillet)

PRASA Bruno Florence JOUVE Agnes 11M€




Collaborative Innovation aims to develop the innovation thanks the partnership and not only the internal R&D contribution.

Source: © 2012 INPI - Innovation collaborative et propriété intellectuelle




Collaborative innovation: what does it mean



L’innovation collaborative : un terme, plusieurs réalités




IP strategy guidelines:

Propriété Intellectuelle:1. Apports du background de la PME/Start-up et du

background du partenaire industriel/grand groupe2. Apports financiers du partenaire industriel/grand

groupe et dans une moindre mesure de la PME/Start-up grâce à des financements publics, européens (types OSEO, H2020…) ou fonds privés

3. Partage de la PI issue de la collaboration (répartition à déterminer)

4. Copropriété sur les brevets à parts égales (ou en fonction de l’apport respectif de chacune des parties : humain, matériel, financier) (à déterminer)

5. Frais de dépôt de brevets et gestion des brevets (partage des frais ou prise en charge intégrale par le partenaire industriel/grand groupe ?) (à discuter).

6. Frais de procédure en cas d’action en contrefaçon ou tout autre litige (partage des frais ou prise en charge intégrale par le partenaire industriel/ grand groupe ?) (à discuter)



IP Strategy guidelines: Right to exploit industrially and commercially ?

Exploitation:Si les deux parties exploitent => droit d’exploitation gratuit ou pas pour chacune des parties dans leur Domaine respectif défini préalablement (ex: accord sur une zone geographique pour une application donnée)

Si seul le partenaire industriel/grand groupe exploite la technologie : paiement de redevances à la PME/ Start-up à un taux fixé entre les parties ab initio ou au moins une fourchette de taux (à discuter avec le partenaire)

Si seule la PME/Start-up exploite la technologie : paiement de redevances au partenaire industriel/grand groupe à un taux fixé entre les parties ab initio ou au moins une fourchette de taux (à discuter + partenaire)

Captive Market : « No Direct Sales allowed from Vendors to our Direct Customers »Agility: Be the first to take advantage of new technologies & royalties



The Commodity Manager is a Business developer

In R&D mode:ATSA Co-innovation:

win/win pour AT and the partnerEarly stage discussion with the partnerSourcing strategy - Business development

In Project mode :ATSA Co-Dev:

1€ of NRC spend: for which reason?How to protect AT from their competitors, their markets?TCO: How to get some profits @ 40years? Captive market…Improve sustainable sourcing (ecovadis)



TABLE OF CONTENTS

CVA – Technology Road-Map

Confidential

CONFIDENTIALTraining on Commodity Strategy – 2013 - P 34

Be differencing through innovation is a must for Alstom…

Capture Internal Innovation Needs @ PL level, what are the main drivers (Techno Road-map)?

Challenge / reinforce our partnership with strategic suppliers ? (LP innovation?)

Benchmark / investigate other sectors technology to anticipate needs. (State of the Art), Market analysis)

A

B

C

E

D

Identify & Collect Market /Supplier Innovation ideas /roadmap…

Collaborate at very early stage on the supplier Techno Road-Map (Bottom -up approach)

F

Facilitate the co-development approach/process (win/win approach)

Alstom Key questions

Market & Supplier mapping

Confidential


Platform

Product

Business (competitors / sector)

Needs assessment Strategy mid/long termIMPACT PANEL

• What are current product needs ? Versus customers, market , competitors ?

• How will evolve the needs regarding the commodity?

• Is there any potential impact on my segmentation, Risk analysis ?

• What about current strategic levers used ? Are they still adapted ?

• What about make or buy approach along supply chain (function to system)

• What is the potential impact on my current strategic positioning ? Risk to increase the risk ? Be nice ?

• What will be the IP strategy to protect ATSA & facilitate collaboration with suppliers ?.

• What is the new Technology impact on the current panel versus existing supplier capabilities ?

• Are they able to answer to our concern, do they have the right know how ?

• Are they already working on in their innovation roadmap ?

• Do I have the right relationship to secure proper cooperation (opportunistic vs collaborative ?) with my suppliers

• This innovation need is an opportunity or a risk for my Panel stability ?

• What about market benchmark and alternative suppliers .

Understanding of Platform / Product / business needs & strategies is key to know what will be the future requirements/ tendency how will have an impact on your panel /commodity strategy

• Identify main Key techno levers

• Establish the state of the Art of present and future techno.

• What about the QCD impact?

• Technology Benchmark Analysis?

• What is the Supplier Competitor strategy at train level?

• Supplier strategy & market share?

(Supplier Market Intelligence)

Mandatory slide ( New)

Confidential

CONFIDENTIAL

Alstom Innovation strategy Challenges

Climate change Congestion Aging Society Oil scarcity & Energy reduction

IndividualizationUrbanization & Population Growth

Increasing Norms & Regulations Be connected

Confidential

CONFIDENTIAL

7 axes of innovation and a transverse one

Dat

a m

anag

emen

t

A- More energy efficient railway systems

B- An advanced maintenance

C- Improve railway system sustainability and footprint

D- New mobilities

E- More fluid design cycles for performances, cost saving and time to market

F- Take advantage of the evolution of technologies in telecom & digitalization

G- Take advantage of the evolution of technologies in automation

Confidential


Innovation key drivers have to be defined by axis

Potential Innovation drivers

Customer Priority (High ,Medium , Low)

L

A- EnergyB- Maintainability

D – New mobility F- Take advantage of the evolution of technologies in telecom & digitalization

See the AT Techno Road-Map to identify potential innovative drivers.Select and prioritize in the XL file.

Axes

Mandatory slide (New)

Confidential


Innovation key drivers have to be defined … eg. glazing

Potential Innovation drivers

Customer Priority (DRL)

(High ,Medium , Low)H

L

LL


D – New mobility F- Take advantage of the evolution of technologies in telecom & digitalization

1.2.1. Reduce RS mass: Introduce ultra light material

2. Facilitate the window assembly

4.2. Improve the confidentiality areas and the passenger experience

6.5 Connect object through the windows6. Inform passenger (infotainment)

See the AT Techno Road-Map to identify potential innovative drivers.Select and prioritize in the XL file.

Axes

H

H

EXAMPLE

Confidential


Focus on the Innovation drivers to differentiate our offer…

Innovation drivers

• Witch part of the

Sub-System or component will be affected?

- New process or new Technology (disruptive or rupture) will occur?

- Techno road-map?

Sub-Systems / components impact

… according to the priority defined previously …

Innovation BenefitsCurrent / tomorrow Pathway Challenge / TRL#

B- Maintenance


D – New mobility


Mandatory slide ( New)

Confidential


Focus on the Innovation drivers to differentiate our offer…

Innovation drivers

• Witch part of the

Sub-System or component will be affected?

- New process or new echnology (disruptive or rupture) will occur?

- Techno road-map?

Sub-Systems / components impact

… according to the priority defined previously …

Innovation BenefitsCurrent / tomorrow Pathway Challenge / TRL#

New SPD Technology to improve the passenger and driver experience

Smart windows: variable opacity

Opportunity to reduce our HVAC consumptions and improve passenger experience

Co-dev between Vision Systems & StGobain & ATSA

Market priceCustomer / AffairTRL8

Ultra-light glass:

Current glass from 3mm to 1,6 or 2,1 mm

Reduce the windows weight of 40% up to 800kg/TS

Co-dev between ATSA & StGobain

Customer / AffairTRL8

Window Car-Body assembly:

VERI SystemGLASS GLUED on CarbodyGLASS SCREWED

5h vs. 15mn Co-dev between ATSA & StGobain

Customer / AffairTRL8Bended vs.

straight geometry

Benchmark at Translohr

5h vs. 15mn Co-dev between ATSA & StGobain

Customer / AffairTRL9Techno not mature (TRL6)

B- Maintenance


D – New mobility


EXAMPLE

Confidential

CONFIDENTIAL

Product Sheet:

Describe main principle and expected benefits..

PRINCIPLE

STATUS OF OUR INVESTIGATIONS

• Key statements

Optionnal ( New)

Picture

• QCD aspects

Confidential

CONFIDENTIAL

Product Sheet: HEATING GLASS

To heat throught a film the space between the 2 layers of a double glass unit.

To have a coating to limit as much as possible the heat losses outside the trains.

Main advantage:Passenger experience: To improve comfort

by removing the cold felt by passengers near the windows

PRINCIPLE

• HVAC’s consumption’s reduction compensates the power‘s consumption to heat the glass

• Extra cost of 55 k€ per TS (based on RGV)

• Next step: To define a Target Cost (How much an operator can value

this option on its price ticket for 1st class for instance)

STATUS OF OUR INVESTIGATIONS

• Saint Gobain has delivered a prototype based on a 3UFC Windows

• A first study has been performed on Avelia (VHST Double Deck) including the potential saving for HVAC consumption.

EXAMPLE

Confidential

CONFIDENTIAL

Choice of future contract with the degree of maturity of the technology (TRL)

The intellectual property rights resulting from a research collaboration may vary depending on:

1. The respective contributions of each party (human, material, financial etc.)

2. The technology maturity level provided by the supplier

3. The degree of maturity reached by the demand of the market.

To select the type of contract to put up with the start-up or supplier, large group may rely on a measurement system with two inputs:

• 1st level:

TRL measurement system (technology readiness level) for assessing the maturity of a technology (components, materials, devices etc.) before integrating into a system or subsystem.

It is noteworthy that up to a certain level of TRL scale (level 6/7), the French Research Tax Credit (CIR) is applicable.

Thus, a low TRL correspond more to a cooperation agreement and a high TRL to a co-development agreement

• 2nd level:

DRL (Demand Readiness Level) that assesses the degree of maturity reached by consumer demand of the market.

Confidential

CONFIDENTIAL

DRL vs. TRL

Confidential

CONFIDENTIAL

DRL vs. TRLDemand Readiness Level

Level Description

1 Sensation or feeling of a lack

2 Identifying a specific need

3 Identification of expected features of the new product or service

4 Qualification of expected features

5 Identification of systemic skills (including project management)

6 Getting adequacy of expected functionalities with the skills needed to build the answer

7 Definition of skills and resources needed

8 Identification of experts with relevant skills

9 Construction of the response to the need expressed by the market

9 Actual system proven through successful mission operations.

8 Actual system completed and qualified through test and demonstration.

7 System prototype demonstration in an operational environment.

6 System/subsystem model or prototype demonstration in a relevant environment

5 Component and/or breadboard validation in relevant environment

4 Component and/or breadboard validation in laboratory environment

3 Analytical and experimental critical function and/or characteristic proof of concept

2 Technology concept and/or application formulated

1 Basic principles observed and reported

Level Description

Technnology Readiness Level



TABLE OF CONTENTS

Co-Dev Process definition 4 steps:



Process definition Co-dev: 4 steps#1: Characterization of the need

#1Caracterisation

of the need

Selection Supplier

ContractNegotiation

ContractExecution

Collaboration“PUSH”

To Supplier Partners

Collaboration“PULL”

From Supplier Partners

InformThe suppliers of the middle terms opportunities, the innovation thematics and our market perception.

Facilitate the appropriate supplier R&D disclosure

Present to his key-suppliers the middle term CM strategy

Precise The Project Management and their associate milestones to achieve an innovative programme (TRL).

Visit Innovative suppliers and invite them to share with appropriate ATSA actors.

Launching specific competencies calls :Pacte fournisseurs (Portals), the « Pôles de Compétitivité » (i-Trans, SYSTEMATIC …)

Organize :• Some Engineering Watch Meeting with our LP

suppliers (eg: Thermo King, Lucchini…) to detect some innovation.

• some Tech Day with some external laboratories (CEA etc…)

Facilitate the bottom-up exchange with the supplier

• Tacking into account the spontaneous proposals.

• Simplify the non-panel relationship (audits) & PO launching

• Define the entry-point @ ATSA level for non-panel (ad-hoc) suppliers and to stream the demands.



#2: SUPPLIER SELECTION

Mapping Co-innov_co-Dev

#1Caracterisation

of the need

#2 Supplierselection

ContractNegotiation

ContractExecution

CM role The CM enlarges the RFQ to non-panel suppliers

He activates in and out of the railway sector

If necessary, he facilitates mergers between companies He uses the 2 XL tools in relationship with the strategy

of the commodity



#2: SUPPLIER SELECTION - Supplier Rating Matrix

Supplier Mapping

#1Caracterisation

of the need


ContractNegotiation

ContractExecution



#2: SELECTION DES DEV. - Co-Dev Selection

#1Caracterisation

of the need


ContractNegotiation

ContractExecution

Feuille de calcul Microsoft Excel



#3: CONTRACT NEGOTIATION

#1Caracterisation

of the need


#3Contract

Negotiation

ContractExecution

CONTRACT NEGOTIATION Rules and clauses• Stakeholders establish contractual rules for cooperation and development of

innovation which leads or not to the serial stage. The DFQ qualification milestones are clearly defined and communicated.

• Intellectual Property Strategy is in line with the policy of commodity defined by the upstream CM (see below).

• The Intellectual Property Strategy is submitted to the supplier.• Temporary economic dependence may be considered by the CM.• CM alert innovative suppliers on IP issues / Technology Transfer and ensure that

they can eventually use legal advisory structures for these aspects..

Commitments• CM ensures that contracts facilitate the development of suppliers(win/win).• The contractual terms are defined accordingly :

- Live accompaniment by a contribution of human resources (experts, scientists, engineers) and / or training.

- Financial support, DFQ Process (planning), industrialization and homologation (with a third party?)

Duration• The parties agree to sign long-term contracts (Development phase + supplying

phase) (TRL #).• The contract must be signed before the start, at least, the IP strategy was

submitted and accepted by the supplier



#3: CONTRACT NEGOTIATION – IP Check-list

#1Caracterisation

of the need


#3Contract

Negotiation

ContractExecution

1 /What are the key milestones of technical, technological and industrial maturity deliverables R & T audited by the big account? - In "Build to Spec“ mode (build to specifications) - In "Build to Print“ mode (design / construction from design / technical specifications) - In "Design and Build“ mode (design and construction) - In providing "COTS" (Commercial Off The Shelf)..

2 /What is the value added in terms of contribution of the supplier to obtain the result? - For the specification of the requirement, the solution - To carry out the solution - For technical validation, functional - For after-sales- ...

3 / What are the limits of liability of the supplier?

4 /What information is needed for each of the parties and how they access it to make, use, exploit deliverables of the contract? - According to the phases of industrial life? - On what life is and what?

5 /What are the agreed transfer know-how or predict (TOT, offsets, ...)

6 /What are the rules of confidentiality?

7 / What is the nature of expected results? Concept, algorithm, demonstration, model, prototype, COTS ...

8 /What areas of exclusivity on the use and exploitation of the results? - In which markets? - For how long?

9 / What is the use and operation to be made by the general account of the results, internally and externally?

10 / What are the compensation granted? - Financial / future contracts / various aid / ...

11 / What is the policy for the protection of inventions arising from co-innovation between the parties?



#3: CONTRACT NEGOTIATION

IPD-WMS-001 - Instruction for Intellectual Property Strategy Definition in Technical Partnerships

#1Caracterisation

of the need


#3Contract

Negotiation

ContractExecution

DEFINITION OF THE PRINCIPLES OF INTELLECTUAL PROPERTY (Intellectual Property

Strategy)

Agreement on the following points is systematically sought in regards of the intellectual property:

Clarify in advance with a common legal vocabulary • The benefit of any intellectual property created in partnership• The contributions of each• Rights to use and further exploitation (licensing, sub-licensing)

Define precisely and in a balanced way Property and rights associated with prior knowledge (Background)

belonging to the parties before signing the contract generated or acquired by the parties during the execution of co-dev but

not in the contract licensed by third parties but whose use is essential to the execution of the

Co-Dev.. Property and rights associated with new knowledge (Results / Foreground)

Results created or developed by one party as part of the implementation of co-dev

Developed jointly by the parties within the framework of the implementation of co-dev



#1Caracterisation

of the need


#3Contract

Negotiation

ContractExecution

#3: CONTRACT NEGOTIATION – IP Agreement

Agreement color

• Ownership of the Results resulting from the Co-dev,• Property of IPRs resulting from the Co-dev,• Right of use and industrial & commercial exploitation of

the Results and IPRs.



#1Caracterisation

of the need


#3Contract

Negotiation

ContractExecution

IP Matrix Result

#3: CONTRACT NEGOTIATION – IP Matrix Result



#1Caracterisation

of the need


#3Contract

Negotiation

ContractExecution

#4: CONTRAT EXECUTION - Support and Performance indicators

CONTRACT EXECUTION (QCD) Performance indicators:In a context of co-innovation, the CM assesses both: the maturity of the itself innovations with ad hoc standards or

indicators, such as: indicators such as TRL (Technology Readiness Level)

The supplier "industrial" maturity to prevent further introduction of innovation in production: Crossing the (pre) qualification milestones during the R&T phase Keeping corresponding quality plans Type Indicators "SRL" (Supplier Readiness Level): measuring the industrial capacity of the supplier to master the technology in question

Launch the Supplier system audit with SQD dpt

Supplier support ATSA (CM / ENG) implements the contractual assistance. The Parties shall develop follow the project according to the co-

innovation results.

Post-contract management Protection of IPRs by Results Confidentiality/ Publications Royalties in / out Infringement



TABLE OF CONTENTS

Co-Dev Governance:



Sourcing Product & Strategy Director role for Co-Dev

Establish at ATSA level the list of key innovative suppliers used or identified by the internal parties :

• Sourcing Domains and Regions• PL Directions (Strategy, Industrial, R&D)

Monitor and supervise the co-innovation process and best practices by :• Monitoring the Innovation Supplier Dashboard (reporting / appropriate audits)-see KPIs• Putting in place the adequate RACI and governance • Accelerate the Co-Dev partnership among the Sourcing community • Complying with TRL milestones and R&T maturity• Participate to the ATSA’s Innovation Board as Sourcing Innovation referent to:

Arbitrate MoB decision: Be the sourcing voice Promote new solutions out of the market: Idea generation process from the Sharepoint Manage the Sourcing Innovation Committee on a bi-Monthly Basis Propose and push Sourcing R&D programs (i.e. Captive parts program)

Facilitate the contact with the suppliers in open-innovation mode. • Suppliers (in/out panel), internal organization • External partners public or private.

Meet the innovative supplier managers to deal with : • Middle term and long term vision of the Business

Approve / Support the growth and development of appropriate key suppliers :• Synergy @ group level / Competitivity pole• Implement relevant programmes based on policy-relevant suppliers groupings• Eventually support the supplier initiative in terms of resources, technical or financial aids.



Mapping de fournisseurs potentiellement innovants

Un train plus capacitaire et confortable

- EADS (Astrium) : pièces en composite (allègement)

- EXPLISEAT : sièges légers

Un train consommant moins

d’énergie- ADETEL : convertisseurs

statiques- BOLLORE : batteries

LMP- CALYOS : Capillary

Pumped Loop (natural cooling)

- MERSEN : cercles de phase, busbar, connexions de puissance

- NEXTER : SSPC, convertisseurs

- NEELOGY : capteurs à effet Néel

- NEXANS : câblages spéciaux

- MORSE : compteurs d’énergie

- LIEBHERR : pompe à chaleur

- SAFT : batteries

HUTCHINSON : composites, super-isolants, isolants acoustiques

Un train nécessitant moins de maintenance

(incl. CBM)- HONEYWELL :

capteurs- SLPV : revêtements

spéciaux (anti graffitis/glace)

- ARVENI : capteurs piezzo- électriques

Un train qui adresse de nouvelles mobilités

- IBM : Smart Cities- OLEDCOMM : Lifi- ACTIA : Pacis- Acteurs des

télécom : 4G

SAINT-GOBAIN : vitrages légers, isolations thermiques/acoustiques

IRT SYSTEM X

SYSTEMATIC

ITE SUPERGRID

IFSTTAR

CERTESENS

UNIVERSITE DE NANCY (CRAN)

I-TRANS

UTC CompiègnePONTS ET CHAUSSEES

UNIVERSITE DE VALENCIENNES

Railenium

FOR INFORMATION



Co-dev: Players

One single process for all type of Co-dev

PlatformMarketing

External Funding

Accountable: Sourcing

P&S

Legal SCG

CMSourcing

Legal IP

ENG



Co-dev: Roles and Responsibilities (RACI).

Function Role RACI

Marketing (Platform)

Support Sourcing CM to validate the Business Case. CENG (R&D or project)

A technical engineer is responsible of the Technical specification, execution and deliverables.Manages the Design & validation phases of the Co-Dev.

RSourcing CM Manages the overall Business with the suppliers.

Manages the Business Case with Marketing dpt (market vision).Manages the Supplier Rating matrix and the Co-dev matrix selection.Give the GO for signature to the SCG VP;

R

Sourcing P&S Coordinates and boost the process within the SCG community.Be the Sourcing voice into ATSA innovation Board.Is responsible for the overall SCG strategy of the Co-dev and co-innovation.Act as a trouble shooter.

A

External Funding

Validates external funding request documents; CLegal IP Centralizes Transport Partnerships Disclosure and Contracts (IP

Strategy tool)Is responsible for the overall IP strategy of the Co-dev.Defines, implements & negotiates the IP Strategy.Co-Elaborates with SCG & Validates the Contract before signature.

C/R

Legal SCG Co-Elaborates with SCG & Validates the Contract before signature C

Platform Mgt Will always be informed during the process. I



Co-dev: Roles and Responsibilities

Transport Ext Funding and Co-Dev Signature Authorities:

• NDA : CM

• External Funding Convention (Responsible : D. Cadet ):

ATSA: Managing Director France (J. Wallut)

Ou (tbd)

ATT: ATT President (P. Le Goff)

• Co-dev Signature (Responsible : G. Chrétien) : ATSA:

• Engineering VP (P. Gosset)• SCG VP (O. Baril)

ATT:• IP Dir (G. Chrétien)



Partnerships: Global Process - Operational Level

Legal IP:

Innovation & patents

Pilot: • Expresses wish to open Co-

dev• Disclose the Co-dev with the

name of each player: sourcing, technical and Pilot.

SCG P&S : • Validates budget business

case and Co-dev Strategy with CM & ENG

Legal IP: • Defines & make evolve the

IP Strategy.• Co-elaborates the Contract

until signature.• Requests support to actors

as appropriate.• Capture, evaluation &

protect Innovation

SCG & Legal IP: • Manage after

Co-dev Contract

Sourcing P&S DirectorCM & ENG SCG P&S CM & ENG Legal IP & CM CM & Legal IP



Co-Dev Metrics & KPIs

Items Co-dev Metrics Terms

Contract execution / Exclusivity

#Co-Dev contracts with exclusivity vs #Total projects@NRC>100K€

monthly

ContractExecution /royalties

#Co-Dev contracts with royalties vs #Total projects@NRC>100K€

monthly

Innovation Number of ideas per months @ Sourcing Innovation CommitteeMake it happened

monthly

R&D 2015 #Co-Dev contracts / #Total Projects@NRC>100K€

yearly



Co-Dev Action plan

- Guide communication validation by oB - CM Training (2 sessions) from Sept,12th 2014 - SMART RM modification - Identify “GO-RFQ projects” with NRC (Ryad, Smart Metro, NSR etc…) - Select the potential co-dev within the “GO-RFQ projects” (each CM) - Launch the co-dev process accordingly with CM

www.alstom.com



« IPD-WMS-001 Instruction for Intellectual Property Strategy Definition in Technical Partnerships” :

AT R&D CollaborationDefinition :Common development between Alstom and at least one third Party (which could be/include an Alstom Supplier) in a way to develop a generic technology, product or solution or to create a new technology or product and may include an exploration phase to determine the viability of the product, technology, method, design or manufacturing, with joint investment and collaborative process.Collaboration Contracts are upstream in the R&D process and will expect partners best efforts to reach agreed upon targets AT Supplier Co-developmentDefinition : Common development between Alstom and a Supplier of Alstom in a way to develop a specific technology, product or solution, requiring significant integration into Alstom product or solution, with cost objectives, joint investment and collaborative process.Co-Development Contracts are downstream in the R&D process and will expect partners’ commitments on agreed upon targets.




Co-dev Process

All SS & Domains: Interiors, Doors Brakes Pwr Pack Metallic Traction Bogies Supplier Partners: in-out Panel suppliers, …Scope

Co-dev of a new technical solution Share NCR, low TTM

Co-dev for implementation of an existing technical solution where ATSA wishes to protect a competitive advantage.

Technical study.

R&D Collaboration with Universities/ Labos, Cie, …

Sourcing of an equipment or Technology or License

Sourcing of any service without need of competitive advantage being formalized.

What is in (gain of a competitive advantage) What is out

Focus on laying down the good base for efficient implementation.



Co-Dev Success stories – AGV Seats - 1/2

Fourniture des Sièges Passagers par SupplierC Si les Résultats communs sont validés par ALSTOM selon l'Annexe 2, et sous réserve de la capacité d'industrialisation des Sièges Passagers par SupplierC, ALSTOM s’engage à s'approvisionner en Sièges Passagers, soit directement, soit indirectement par l’intermédiaire de ses fournisseurs auprès de SupplierC ou de son licencié, en Sièges Passagers issus du Programme et SupplierC ou son licencié s'engage à fournir exclusivement ALSTOM en Sièges Passagers issus du Programme destinés à être utilisés dans le Domaine d’Exploitation ferroviaire pendant cinq (5) ans pour une quantité de 25 000 Places (sous réserve de l'obtention de contrats correspondants avec des clients finaux).

EXPLOITATION COMMERCIALE DES RÉSULTATS TECHNIQUESExploitation des Résultats Techniques

Domaine d’Exploitation Ferroviaire On entend par domaine d’exploitation ferroviaire (ci-après désigné le « Domaine d’Exploitation Ferroviaire »), l’ensemble des activités industrielles relatives au développement, à l’ingénierie, à la fabrication, à l’installation, à la mise en service, à la maintenance et à la commercialisation de Sièges Passagers pour espaces voyageurs de véhicules de transport de passagers, lesdits véhicules étant du type véhicules ferroviaires (trains, tramways, régional ou métros à roues métal guidés par rail métal) ou guidés (matériels sur pneus) ou trolley (trolleys bus à roues métal guidées par rail ou autonomes sur pneus).



Exploitation par les Parties dans le Domaine d’Exploitation ferroviaire ALSTOM (et les Sociétés du Groupe ALSTOM) est seule libre d’utiliser et d’exploiter, directement ou indirectement, dans le monde entier, avec droit de sous licencier, l’ensemble des Résultats Techniques et des droits de propriété intellectuelle y relatifs dans le Domaine d’Exploitation Ferroviaire. ALSTOM sera en droit de fabriquer ou faire fabriquer les Sièges Passagers, objets des Résultats Techniques. SupplierC concède une licence, gratuite, mondiale, irrévocable et transférable, à ALSTOM (et aux Sociétés du Groupe ALSTOM) portant, notamment, sur :l'utilisation, la fabrication et l'exploitation, des Résultats Techniques et des droits de propriété intellectuelle associés, ainsi que sur un libre accès aux études et outillages développés dans le cadre de cette Convention et une libre utilisation desdites études et desdits outillages. SupplierC pourra demander à utiliser et exploiter tout ou partie des Résultats Techniques et des droits de propriété intellectuelle et/ou des outillages y relatifs sous réserve d'une licence accordée par ALSTOM. ALSTOM s'engage à examiner toute demande de SupplierC. Dans le cas où ALSTOM accorderait une licence, les conditions de cette licence seront à définir entre les Parties. D'ores et déjà les Parties se sont entendues sur le montant de la redevance qui sera établie entre 25 et 50 € par places à définir au cas par cas et révisable selon les éventuelles conditions tarifaires applicables au titre du contrat cadre. En tout état de cause, SupplierC devra obtenir l'autorisation préalable et écrite d'ALSTOM pour toute utilisation et/ou exploitation de tout ou partie des Résultats Techniques et des droits de propriété intellectuelle associés. ALSTOM s'engage à répondre à cette demande dans les trente (30) jours ouvrés de la demande de SupplierC sous réserve de l'accord mutuel des Parties sur les conditions de la licence qui sera accordée par ALSTOM. Toute demande de ce type devra, pour être recevable, rappeler les règles convenues, préciser son objet (client, quantités, type de matériel, durée, …) et inclure une copie de la présente convention. Exploitation par les Parties hors du Domaine d’Exploitation Ferroviaire ALSTOM (et les sociétés du Groupe ALSTOM) est seule libre d’utiliser et d’exploiter, dans le monde entier, avec droit de sous licencier, l’ensemble des Résultats Techniques et des droits de propriété intellectuelle et des outillages y relatifs hors du Domaine d’Exploitation Ferroviaire. SupplierC pourra utiliser et exploiter tout ou partie des Résultats Techniques des droits de propriété intellectuelle y relatifs sous réserve d'une licence accordée par ALSTOM. Les conditions de cette licence seront à définir entre les Parties. D'ores et déjà les Parties se sont entendues sur le montant de la redevance qui sera établie sera de 10€ par place Passager. . 7.4 Exclusivité de coopération La présente Convention étant conclue à titre exclusif, SupplierC s'interdît, pendant la durée de validité de la Convention, de conclure avec un Tiers un contrat ayant pour le même objet que la présente Convention, à savoir le développement, et éventuellement l’intégration ou l’homologation de Sièges Passagers en vue de leur utilisation ou commercialisation dans le Domaine d’Exploitation ferroviaire.

Co-Dev Success stories – AGV Seats - 2/2



Co-Dev Success stories – Lint MRP Brakes – 1/5




5 years Dual exclusivity AT/Supplier:

co dev communication guide

Documents