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STAYING AHEAD OF THE GAME THROUGH INNOVATION; OPEN INNOVATION
DR JONATHAN HAGUE
VICE PRESIDENT OPEN INNOVATION
UNILEVER GLOBAL R&D
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OUR COMPANY
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EUROPE
● €13.6 BILLION
TURNOVER
● 2.6% UNDERLYING
VOLUME GROWTH
● 26% OF GROUP
TURNOVER
ASIA/AMET/RUB
● €22.4 BILLION TURNOVER
● 3.0% UNDERLYING VOLUME
GROWTH
● 42% OF GROUP TURNOVER
THE AMERICAS
● €17.3 BILLION
TURNOVER
● 0.4% UNDERLYING
VOLUME GROWTH
● 32% OF GROUP
TURNOVER
2015 TURNOVER = €53.3 BN
UNILEVER REACH
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FAMOUS FOR MANY OF THE WORLD’S FAVOURITE BRANDS
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MAKE SUSTAINABLE LIVING COMMONPLACE
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OUR VISION TO DOUBLE THE SIZE
OF OUR BUSINESS,
WHILST REDUCING
OUR ENVIRONMENTAL
FOOTPRINT AND
INCREASING OUR
POSITIVE SOCIAL
IMPACT
POSITIVE SOCIAL IMPACT
DOUBLE THE
BUSINESS
REDUCE ENVIRONMENTAL
FOOTPRINT
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3 BIG GOALS BY 2020 ● HELP MORE THAN
1 BILLION PEOPLE IMPROVE THEIR HEALTH & WELL-BEING
● HALVE ENVIRONMENTAL FOOTPRINT OF OUR PRODUCTS
● ENHANCE THE LIVELIHOODS OF MILLIONS OF PEOPLE
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2x THE RATE OF
GROWTH
50% OF UNILEVER’S
GROWTH
MORE
PROFITABL
BRANDS WITH A POWERFUL PURPOSE ENJOY
SUSTAINABLE GROWTH
SUSTAINABLE
LIVING
BRANDS
SUSTAINABLE LIVING
PURPOSE
SUSTAINABLE LIVING
PRODUCTS
= +
SUSTAINABLE LIVING BRANDS HELP GROW OUR BUSINESS
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238,000 WOMEN WITH
ACCESS TO TRAINING &
SKILLS
800,000 SMALLHOLDERS
HELPED & TRAINED
55% SUSTAINABLY
SOURCED
397 MILLION HELP TO IMPROVE HEALTH & HYGIENE
-2% WATER -12% WASTE
+4% GHG UNDERLYING
SALES GROWTH
+21%
MAKING PROGRESS 2010-2014
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INNOVATION IN OUR COMPANY
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INNOVATION IS IN THE HEART OF THE STRATEGY
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INNOVATION GROWING THE CORE BUSINESS
Iron-fortified
Knorr Cubes
Lifebuoy with
Activ Naturol Shield
Dry Spray
Aerosol Deodorants
Cooking ingredients up
>50% in 5 yrs in
emerging
markets
15% growth in 2014 Launch in
US in 2015
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35%
2013
INNOVATION DELIVERING RESULTS
Stronger Pipeline Bigger
innovations
More Benefits
2013 Now 2013 Now
+20% +30%
Incremental Turnover
In the funnel
Average project
size
45%
Now
% Projects using
New Technologies
75% of Innovations are Margin Accretive
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OPEN INNOVATION
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OUR CHALLENGE
POSITIVE SOCIAL IMPACT
DOUBLE THE
BUSINESS
REDUCE ENVIRONMENTAL
FOOTPRINT 2012 2013 2014
1450
1500
1550
1600
1650
1.8
2.3
2.8
2004 2006 2008 2010 2012 2014 2016
Unilever R&D Spend % Turnover
Ambition remains
High
R&D Spend falling
In Real Terms
Global R&D Spend up
- Biotech
- Advanced materials
- ICT
Global Gross R&D
($Bn)
*Source Battelle Global R&D forecast 2014
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MAGNIFYING THE IMPACT OF R&D
Digital R&D
High Throughput
Modelling and
Simulation
Fit to win
Organization
Sharper Category
Innovation Choices
Partnership and Open
Innovation
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OUR OPEN INNOVATION MANDATE
Strategic
Science
Group
Categories HC, PC, Foods, Refreshments
Program
Owners
Open
Innovation
Team
Drives
capabilities
Scouting / Technology Intelligence
Deal Architecture
Cross Unilever Strategic Partnerships
IP Agreements Processes and IT
Training
New Capabilities
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OPEN INNOVATION IMPACT
30
50
70
90
2008 2010 2012 2014 2016
% Deliverables OI Enabled
OI Reliant 54%
Not Reliant
46%
0%
0%
Pipeline Incremental Turnover Reliant on Open Innovation
We have saturated our program
Open Innovation (as we define it) is fully embedded
Focus Now ; Simpler, Faster, More Networked, More Digital, More
Leverage, More Value
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WHAT’S WORKED FOR R&D
Partner to Win Science Grid
Innovation Ports Site Ecosystems
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PARTNER TO WIN - THE CO – CREATION MODEL Targeted Encapsulation
Unilever
IP on fabric
molecular surface
recognition
Partner
IP on Fragrance
Capsules
Fragrance Design
Winning high performing
fragrance encapsulates
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SCIENCE GRID - THE MULTIPLIER EFFECT
World Leading > £ 200 M
Million Investment in
High Performance
Computing
Data Analytics
£ X M
Real world applications
Of In Silico First - € Billions
In potential value creation
Translational R&D
Computer Aided
Formulation
Unilever’s spend
accesses a
capability that is
multiple times our
investment
Commercial impact
In Unilever and to
UK PLC Is CRITICAL
to Hartree
Optimiser
Engines
Virtual
Engineering
Processing
Factory Line
Optimization
Virtual
Engineering
Packaging
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SITE ECOSYSTEMS CO - INVESTMENT FOR SCALE
Centre for
Materials
Discovery
Micro
Biorefinery
High
Throughput
Formulation
Centre
Advanced
Manufacturing
Centre
Materials
Innovation
Factory
2016 Operational
Over £130 Million invested in Next Gen Capabilities by Unilever and
its Partners
Open Facilities – UK Government has contributed > £20 Million
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WHAT’S NOT WORKED FOR R&D
Submissions Portal for unsolicited
product ideas
> 2,000 since launch
Nothing of substance
An Independent New Business
Unit Aimed at Radical /
Disruptive technology Innovation
Incubation Investment horizon too
long + uncertain
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THE FOUNDRY
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OUR PLATFORM FOR
COLLABORATING OUR FRAMEWORK FOR
EXPERIMENTATION ENABLING OUR BRANDS &
FUNCTIONS TO PIONEER
foundry.Unilever.com
@UnileverFoundry
COLLABORATING WITH INNOVATORS TO MAKE SUSTAINABLE LIVING COMMONPLACE
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A framework for experimentation
Pitch – Pilot - Partner
The Brief The Pitch
The Pilot The Partnership
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4500
+ applications
received
350+
mentors registered
25+
brands involved
$20m+
invested into pilots
100+ startups piloted
48+ start-ups being
scaled-up
Still at the beginning of the journey
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THE LAST WORD ….
Foundry Overview film:
https://youtu.be/MpZGN3vu7wU
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THERE’S NEVER BEEN A BETTER TIME TO CREATE A BRIGHTER FUTURE
THANK YOU