presenter: edye fox abrams vice president, business ......applications. they have been selling into...

ChemQuest Group

Presented By:The ChemQuest Group, Inc.

CONFIDENTIAL© Copyright 2018, The ChemQuest Group, Inc. All Rights Reserved

INNOVATION RESEARCH INTERCHANGE SPRING NETWORK 2019

How to Find New Product Development and Innovation Opportunities

Internally…and to Know When You Need to Go Outside of Your Walls

Presenter: Edye Fox AbramsVice President, Business Development

CONFIDENTIAL© Copyright 2018, The ChemQuest Group, Inc. All Rights Reserved 2

Edye Fox Abrams

• Former Co-Owner Fox Industries, Inc. a niche supplier of protective coatings and concrete repair materials

• Career has been deeply involved on guiding clients towards external product development solutions

• Current Vice President, Business Development of The ChemQuest Group and ChemQuest Technology Institute, a business strategy and external product technology company with deep roots in specialty chemicals

Background


ChemQuest Technology Institute is a business strategy firm and solution provider of external technology services through our experienced subject matter experts

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The main keys to a successful innovation strategy:

• Defining the Innovation Strategy• Culture of Creativity• Motivating Teams• Prioritization


Defining Innovation Strategy

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Assumption: You already have a solid business strategy that encourages your organization towards innovation.

Fact: Innovation strategy must be tightly linked to business strategy.

• How does your company define Innovation or New Products?

• Is there an area where an outside resource could help steer your direction or improve your knowledge?

• Solving problems that exist…solving problems that don’t exist yet


Culture of Creativity

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A company culture that does not reward risk-taking is a company that can’t be innovative.

• Where does creativity fit in your Innovation Agenda?

• Define the principles that will guide the path:• Curiosity• Conversation• Consideration

• ”Culture relates to people, strategy relates to business” – Mike Marchand, Michelin


Teamwork

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Innovation requires input from all business disciplines – marketing, sales, finance, procurement, operations and of course R&D.

• How do you build an Innovation team or Community of Practice (CoP)?• Do you have a cross cultural team to help you understand commercial gaps?• Does your team include diversity – of age, culture, sex and subject matter expertise?

• Do you seek input from everyone on the team to help you identify opportunity?

• Does your company routinely encourage new hires for innovation teams from outside your discipline?

• Does your team address fear?

• Cohesive teamwork, in which judgment is avoided and entrepreneurial spirit is rewarded, is essential.


Prioritization

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Which projects warrant attention?

• Can you execute projects using a process designed for speed but balanced with diligence?

• Do you put a time-limit on innovation products that directly correlates to market activities?

• When is time up?

• Considerations:• Regulatory• Specification Cycle• Production• Market Acceptance

CONFIDENTIAL© Copyright 2018, The ChemQuest Group, Inc. All Rights Reserved 8

Can you innovate alone?

• Especially when incremental change isn’t good enough…

• When thinking outside of the box is essential to success

• When the information that drives your success is beyond the customer you know so well


Why are some companies reluctant to use external

resources?

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• Some companies get stuck on NIH…not invented here syndrome…

• Some companies assume that outside providers will want to own the IP they develop…

• Some companies fear the word “consultant” because they assume their expertise is based on a bunch of

MBA’s and not from real field experience.

• Some companies think if you’re not working in the same industry daily, you can’t understand that

industry’s needs.


What external resources are available?

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• University R&D programs• National Labs• Matchmaking organizations• Expert networks• Open Innovation platforms• ChemQuest Technology Institute


O&G Industry Example

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• An O&G company is frustrated by their unanswered request for product innovation to support their owned assets in the area of coatings, adhesives and sealants.

• Currently the vendors who are manufacturing these products control the maintenance intervals and expense involved in applying these materials by nature of owning the formulations and manufacturing the materials.

• Can they go outside the box and work with an experienced external group to develop materials to solve their operating needs?

• Will their vendors be willing to manufacture a product NIH?

• Is the O&G company’s culture open enough to face this potential battle head-on?

• For at least one global oil and gas company, the answer is yes.


Polymer Industry Example

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• There are some companies operating in corporate structures that run lean.

• These companies have great expertise and technical know-how in their own technologies, but they often lack deep knowledge of their customer’s customer…which leaves them dependent on their direct customer for this knowledge.

• These companies don’t want to carry the operational and financial burden that would be required to develop deep knowledge throughout the entire value chain in multiple application spaces.

• Because of this, they know they will seek external expertise to fill this gap. Their challenge is finding the best resource to fill each specific need.


Industrial Mineral Company Example

• An industrial mineral company has expertise in dry powder products which can be used in construction applications. They have been selling into this market for decades on a global basis.

• A university sponsored R&D effort indicated the product's binding and quick curing benefits could be incorporated into a coating formulation, but the university and mineral company lacked coating formulation expertise.

• Also missing was an understanding of the potential market value, and a vision of how the market value chain operated.

• They needed real world subject matter experts to help them evaluate and understand the complex market and technology they could influence

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Seek Others with the Best Knowledge

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Can’t I just rely on my customer for feedback?

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• Will they be open with their data?

• Will the data they provide be able to be made public?

• Can the data be certified to be independent 3rd party?

• How fast will they provide feedback?

• How vulnerable will you be if you provide early stage non-optimized products?

• How confidential will your results remain?


What are the benefits of finding an external partner like CQTI?

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• The ability to work with an expert

• The ability to work in confidence, to show your warts without fear of judgement

• The ability to receive a multi-disciplinary evaluation and solution

• No IP concerns – all IP is yours

• Real world business knowledge, not solely research based

• Expedited answers and feedback

• Decision point based agreement

• Independent 3rd party evaluation


What are the benefits of finding an external partner like CQTI?

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• We work at the edge of commercialization…

• We integrate market strategy with product development

• And then insure the product is feasible from every angle


The path forward belongs to you and your company.

Know you don’t have to solve every challenge alone.

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• Practice established in 1976

• A global business strategy and external technology development firm with focus and expertise specific to the Specialty Chemicals markets

• Consultants and Technical Staff: ~100

• Full portfolio of services, with 100% being proprietary work on behalf of clients

Deep Industry Knowledge – Extensive Industry Relationships – Decades of Industry Experience

Introduction to ChemQuest


Experienced senior managers from major manufacturers,

business owners, and senior technical managers including

48 Ph.D. chemists

Our people understand the challenges of driving and

managing growth in changing markets.

With a minimum of 25-years experience in Specialty Chemicals

Our

Ros

ter

ChemQuest – Who We Are…


ChemQuest – Who We Help

Core client base represents full spectrum of value chain

• 50% raw material suppliers

• 35% manufacturers of formulated products

• 15% end users, financial institutions and trade associations


Deliver distinctive, thorough, actionable, confidential and professional work and support our clients in every aspect of sustained, profitable growth, including:

• Business Strategy –Portfolio Value Creation, Strategy Development & Execution

Management of Complexity and Change

• Continuous Improvement –Decision and Risk Analysis, Operational Efficiencies

• Mergers, Acquisitions & Divestiture –Buy Side Advisory, Due Diligence & Integration

• Technology & Application Development –ChemQuest Technology Institute

ChemQuest – What We Do


ChemQuest - Markets & Industries ServedSpecialty Chemicals

• Additives• Adhesives & Sealants• Ag Chem• Paint, Coatings & Varnish• Colorants & Pigments• Elastomers• Home Care• Industrial & Institutional Care• Inks• Lubricants• Mining• Personal Care• Pharma• Plastics & Composites

End Use Markets

• Assembly & Durable Products• Automotive & Transportation• Cleaners • Construction• Consumer/DIY• Cosmetics• Detergents• Infrastructure, Protective & Marine• Laundry Care• Mining• OEM• Packaging• Refinish & Aftermarket• Sun, Skin and Hair Care


Raw Material Suppliers

A better understanding of the numerous potential market applications of their product(s).

• A better understanding of the value of their molecule and products in the market.

• A resource to develop and test starting formulations and test them for a variety of end-use applications.

• Better visibility and interaction with end users

Formulators

A better understanding of how various raw materials can improve their product’s performance and cost.

•Exploration of new raw materials.

•A better understanding of new market applications for existing formulas.

•Access to conditions that mimic the performance of their product in the manufacturing setting. (Perfect process before trying it on customer’s line.)

End Users (Market)

Products with reduced cost, improved performance, less environmental impact, less energy usage, and/or improved manufacturing throughput.

•Third-party evaluation of different products.

•Customized formulations for specific performance and cost requirements.

•Access to testing facility simulating manufacturing conditions to test products and develop SOPs (to avoid production shut-down).

The Needs – Segmented Value Chain


Our Value Chain Solution

Raw Material Suppliers

A better understanding of the numerous potential market applications of their product(s).

• A better understanding of the value of their molecule and products in the market.

• A resource to develop and test starting formulations and test them for a variety of end-use applications.

• Better visibility and interaction with end users

Formulators

A better understanding of how various raw materials can improve their product’s performance and cost.

•Exploration of new raw materials.

•A better understanding of new market applications for existing formulas.

•Access to conditions that mimic the performance of their product in the manufacturing setting. (Perfect process before trying it on customer’s line.)

End Users (Market)

Products with reduced cost, improved performance, less environmental impact, less energy usage, and/or improved manufacturing throughput.

•Third-party evaluation of different products.

•Customized formulations for specific performance and cost requirements.

•Access to testing facility simulating manufacturing conditions to test products and develop SOPs (to avoid production shut-down).

ChemQuest Technology Institute providescustom services for each component of the value chain


THANK YOU

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For additional information please contact:Edye Fox AbramsVice President, Business [email protected]

presenter: edye fox abrams vice president, business ......applications. they have been selling into...

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