1. How to generate new projects and getting to the market Worshop/ Conference - Lisboa, June 21-23,2001 « Learning by Comparing US and European Experiences on INNOVATION AND COMPETENCE BUILDING » organized by: IST-Lisboa, IC2 inst. UT-Texas, PAPS, FLAD. Dr. C. G. Bienfait Direction Centrale Recherche et Technologie Solvay S.A. - Bruxelles

2. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Content Introduction Solvay's Organization for new projects New way to generate new projects Future development : 5th generation R&D - Corporate Venture group Conclusion 1 2 3 4 5

3. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Introduction  Innovation processes : how to expand ?  Links to "Critical Success Factors" (from R. Cooper - Mc Master University)  Managing Innovation (generally forgotten !)  Portfolio Management  Types of projects 1

4. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Innovation processes Core Competences PresentExtendedNew Present New MARKETS TECHNOLOGIES $ $ Innovative projects 1 Introduction Disruptive Projects

5. © June 2001, SOLVAY s.a C. BienfaitSOLVAY The 7 critical success Factors of R&T 1. Strategical choices 2. Programmes selection and management 3. Core strenghts (core technologies / core products) 4. Effectiveness (follow-up of results / measurement) 5. External awareness 6. Organization 7. Personnel 1 Introduction

6. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Managing Innovation (generally forgotten !) MANAGE PRODUCT DEVELOPMENT MANAGE TECHNOLOGY MANAGE INNOVATION Product actual platform Technology actual platform Idea generation Productdevelopment Technologydevelopment Concepts New projects & Future CREATE VALUE 1 Introduction

7. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Portfolio management Attitude : 4 F’s  Fluid and adaptable  Fuzzy goals  Focus sharpered  Flexibility 3 E’s  Enthousiasm  Expertise  Efficiency Ideas ConceptsProjects + Managing “Innovation” -Managing Product Development -Managing Technology 1 Introduction

8. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Types of Projects Risk Cost C B A ”New Values” “Extension BU” Protection of actual BU Product Platform C Technology Platform C Product Platform B Technology Platform B Product Platform A Technology Platform A 1 Introduction

9. © June 2001, SOLVAY s.a C. BienfaitSOLVAY 2 SOLVAY's Organization for new projects  New organization for R&T  Hybrid structure with R&T by BU and Corporate  Competences centers  New Business Developments (NBD)  New organization for generating new Businesses

10. © June 2001, SOLVAY s.a C. BienfaitSOLVAY NBD 3 NBD 2 Generating New Projects in SOLVAY DCRT R&T / SBU...1SBU...1 R&T / SBU...2SBU...2 R&T / SBU...3SBU...3 R&T / SBU...nSBU...n GENESIS Thematic Research Exploratory Research Projects NBD 1 2 Solvay's Organization for new projects

11. © June 2001, SOLVAY s.a C. BienfaitSOLVAY New Way to generate New Projects :  To develop "Existing Business"  To go faster to new projects and company's renewal = "Partnership" 3 "Partnership"

12. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Classical Way : Develop Existing Business R&D EngineeringManufacturing Design Project Management Standards Specialist Skills Product / Process Development Reactors Separation Materials Operations Asset Performance Environmental Impact Integration Process Improvement Technical Service Process Analysis Maintenance Overhauls Control Project Implementation Knowledge Base Enabling Skills Intellectual Property 3 New Way to generate New Projects

13. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Classical Way (including Market) R&D Markets Manufacturing Engineering 3 New Way to generate New Projects

14. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Going Faster and Better : Partnership R&D Markets Manufacturing Engineering Competitors New or existing Customers Engineering Groups Equipments Manufacturers University New Concepts EXTERNAL LINKS 3 New Way to generate New Projects

15. © June 2001, SOLVAY s.a C. BienfaitSOLVAY SOLVAY's Recent Developments : Few Examples R&D Markets Manufacturing Engineering "VENTURES" New or existing Customers EcoPhos New Sodium Percarbonate (Procter & Gamble) Pharma : Innogenetics Cadus Arqule R&D alliances Univ.Cust.Comp. Peptisyntha "PIPELIFE" (50% Solvay - 50% Wienerberger) "RESOL EUROPE" (50% Solvay - 50% Watco) VINYLOOP™ NEUTREC ® 3 New Way to generate New Projects

16. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Future development: going to the 5th generation R&D and the Company distributed system (Corporate Venture Group)  5th generation R&D -->“Corporate Venture Group” »(external perspective)  “Corporate Venture Group” in Chemical Industries: few ex.: »“DEGUSSA venture(CREAVIS)” »“CELANESE Ventures Gmbh” »“BASF Future Business Gmbh” 4

17. © June 2001, SOLVAY s.a C. BienfaitSOLVAY SOLVAY + EXPANDING VENTURES Summary Generating New Projects SOLVAY R&T OLD WAY Customer University PRODUCTS More Internal Development SOLVAY R&T + New Bus. NEW WAY EXISTING PRODUCTS More External Development in "Partnership" Customer University GLOBAL NETWORK New Concepts & Capability Competitors or other Companies 4 New Way to generate New Projects

18. © June 2001, SOLVAY s.a C. BienfaitSOLVAY Conclusion How to generate new projects : 1. Internal : having the right "Strategy" and following "Critical Success Factors" 2. External : going faster linking "R&T" new concepts from external resources (Universities, Customers, Competitors,...) with markets requirements from customers = "Partnership" in new projects  The reward will be "higher return" 5

19. © June 2001, SOLVAY s.a C. BienfaitSOLVAY

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