Discover why Open ILearn How Open Innovation can help you speeding up your R&D efforts

1. Sébastien Gourdon Open Innovation Director at SpecialChem sebastien.gourdon@specialchem.com Vinny Sastri President, Winovia LLC vsastri@winovia.com Open Innovation in Chemicals:How to Speed Up Your R&D Efforts with OI

2. Open Innovation: A Step-change in innovation Open Innovation: what is it exactly? Open Innovation in practice Open Innovation in Chemicals & Materials: The Goose that Laid Gold Eggs? Chemicals & Materials at the heart of Open Innovation Opportunity to make business SpecialChem Open Innovation Offer Offer presentation Case-study Open Innovation - Key Factors of Success Agenda 2

3. Open Innovation A Step-change in innovation 3

4. Historically, Innovation has been closed Innovation Made Within the Walls of Companies 4 Internal technology base Closed Innovation: Only based on internal R&D capabilities of a company

5. Open Innovation Definition Solve R&D Problems and Buy / Sell technologies Licence, spin out, divest Internal technology base Internal/external venture handling External technology to solve R&D problems External technology base Other firm´s market Our new market Our current market C 2002 Henry Chesbrough EIRMA SIG III, 2005-10-20

7. Partners

8. Concepts / Ideas

9. Processes / Methods

10. Suppliers

11. Customers to buy techno

15. Open Innovation in Chemicals & Materials The Goose that Laid Gold Eggs? 8

16. Chemicals at the Heart of Open Innovation Open Innovation in Chemicals & Materials: A Huge Opportunity! 9 $ $ $ YOU? $ $ $ $ Chemicals are used in almost all end-user markets… … AND almost all along the value chains 55% of Open Innovation RFPs are related to Chemicals & materials! Survey done by SpecialChem, end of 2010 On approximately 200 RFPs published on OI Platforms

17. Open Innovation: A Business Opportunity for You You can play on both sides! As a Seeker Monetize your dormant R&D Resuscitate dead R&D projects by involving external resources (sell techno, partner in JV…) Solve R&D problems Find solutions to technological problems with the support of people having already searched the same thing Scout innovative technologies Access suppliers out of your network and save time Market your technologies Find partners who could turn your techno in new products or penetrate new markets As a Respondent Make business with corporations out of your network ( i.e. large brand owners) Detect companies needing your help now License your technologies to organizations in new market for you Co-develop technologies / products in collaboration with large corporations 10

18. SpecialChem Open Innovation Offer 11

19. SpecialChem is: +450,000 Members Registered on SpecialChem / Omnexus Websites AN INTERACTIVE MARKETING AND BUSINESS DEVELOPMENT COMPANY FOR CHEMICALS & MATERIALS ACCELERATING GROWTH Company founded in 2000 Headquartered in Paris, France Locations in US / China / India >65 engineers & marketers Experience FROM the chemicals & client industries 12

20. SpecialChem is managing the largest Network in the world It is a Business Network, not academia SpecialChem Network is Chemicals & Materials only, all along the value chains It is a truly global Network, made of professionals from 5 continents We support your search of Solvers and Partners only We focus on Connectivity We offer very Competitive Pricing SpecialChem Open Innovation Offer Open Innovation Finally Simple & Effective 13

21. > 5,000,000 professionalsvisit our Chemicals & Materials websites every year > 450,000 registered and fully profiled chemicals & materials professionals:The world’s largest Network in chemicals and materials (January 2011) The Largest Network in Chemicals & Materials A Global Network, Covering a Wide Range of Chemicals Technologies 14

22. 15 A Network To Find Solvers & Partners Uniqueness of SpecialChem’s Network: 94% of Business Members Members who could market your chemicals for you Members who could buy your chemicals Members who could co-develop chemicals with you

23. A 4-Week Streamlined Process 2 A SpecialChem expert reviews it and gives green light for publication when framed correctly 1 3 Your RFP is communicated to the largest business Network in Chemicals and Materials Fill out your request into a ready to use RFP template 4 SpecialChem forwards you all proposals received SpecialChem Open Innovation Process Description

24. Case Study How SpecialChem Open Innovation Service Accelerated the Search of New Natural Fibers 17

25. Background: SpecialChem client is a multiple billions dollar specialty chemicals company (HQ in the US) Client has identified a growth opportunity to replace fiberglass-reinforced composites by natural fiber-reinforced composites Client does not master the technology allowing him to propose such natural fibers Objectives: Client wants to source natural fiber technology that can be used to fabricate composites Client needs a ready-to-use solution Client wants to introduce the first products within the next year. Challenges: Client is using Open Innovation Intermediaries for a long time to enrich its portfolio of technologies, but: Proposals are lab-scale solutions, too far from the market Cost per square yard and batch-to-batch consistency limits the proposals fitting client expectations Some proposals submitted have already been investigated by client and do not correspond Client’s Background, Objectives & Challenges Business Objectives Incompatible with Academia Networks 18

26. The efficiency of Open Innovation depends on: The quality of the Request for Proposal (RFP) framing The quality of the network receiving the RFP. Our innovation experts have designed a proprietary template for an RFP that forces Seekers to “get to the point” and give clear guidelines to potential Solvers or Partners. The process is simple and effective: Client completes the SpecialChem RFP template RFP is reviewed by SpecialChem experts – senior engineers with industrial background If client needs support to frame its RFP, an expert would assist. The Request For Proposal (RFP) Absolutely critical to success! 19

27. The Request For Proposal (RFP) From a Template to a well framed RFP (1) 20 He described why this search was important, why the opportunity behind was attractive

28. The Request For Proposal (RFP) From a Template to a well framed RFP (2) 21 Client was as specific as possible he indicated what could be explored… …and wrote black on white what he was not interested in receiving He highlighted priorities Client needs a ready to use solution (not an idea, not a concept)

29. Publication Towards SpecialChem’s Network Client’s RFP Communicated To Potential Solvers 22

30. Submitted Proposals Non-Confidential Responses Are Sent To SpecialChem 23

31. Submitted Proposals Non-Confidential Responses Gathered Through a Template 24 Business card to identify and contact the Respondent Uniqueness description to differentiate the solution from others Maturity description: is the solution far to the market? General description to understand what is the solution about What kind of business is the respondent ready to consider?

32. Submitted Proposals Example of Responses – enough information to contact, or not. 25

34. “Responses are very business-oriented”

35. “Proposals are mostly ready-to-be-used solutions”

37. Have access to the right network Use specialized networks instead of general network Network to be used depends on your search Privilege Business Network Academia does not work with the same time frame and motivation For short term needs and ready to use solutions, use business networks Plan time and resources Open Innovation is not a magic process! Without time and dedicated persons, it won’t work You need time to frame the RFP, to screen the proposals, to contact the respondents Adopt an open mind Be prepared to fight the Not Invented Here Syndrome Always look for win-win situations There are efficient ways to protect IP Key Factors of Success To Be Successfull with your Open Innovation Process, you must: 28

38. Focus on Effective RFP Framing Tips and best practices for an effective RFP Goal: Obtain qualified responses to Request For Proposals (RFPs) that will align with the Seeker’s requirements detailed in the RFP 29 Seekers Identified Need The competitive edge Effective Request for Proposal Qualified respondents Qualified respondents Qualified respondents Respondents

41. Provide enough detail

42. Non-confidential information only

43. You are not giving away your intellectual propertyQualified responses that meet your needs !

45. Market requirements, to

46. Product performance, to

47. Product Design, and finally to

48. Production ProcessesProduction To Manufacturing methods

50. A material, and/or

51. A process that will meet predefined market requirements. Production To Manufacturing methods

53. Buyer / Owner?

54. Co-developer?

56. Develop new concepts/ technologies?

57. Provide already-developed materials, additives, parts or components?

58. Manufacture the seeker’s proprietary technology / product?

59. Provide ideas or develop a new manufacturing method?33

60. 34 New product / technology New manufacturing process Money New product / technology Existing manufacturing process Existing product / technology New manufacturing process Existing product / technology Existing manufacturing process Time Be realistic with respect to timing of deliverables The more novel or complex the need - the longer the time & higher the budget

62. Novel coating material

63. Must be able to adhere to all surfaces including metals, ceramics, composites, plastics and wood

64. Has proprietary coating technology

65. Provides distribution channels35 Example of a Bad RFP Poorly written RFPs will generate poor responses

67. Adheres to polystyrene (peel strength of 1.5 to 2.0 kN/m))

68. Has a gloss of 100 – 120 GU

69. Is conductive with a surface resistivity of 104 – 105 ohm/sq

70. Can be sterilized by γ-radiation up to 7.5 MRads and retains 95% of its adhesion, gloss and conductivity

71. Should not contain any heavy metals

72. Must have the ability to be used on standard powder coating equipmentExcellent chance to obtain qualified respondents that meet your expectations detailed in the RFP 36

73. Example of Good RFP 37

74. Example of a Good RFP 38

75. Summary 39

76. Higher chance of success Largest Network Chemicals & Materials only Global Network Speed Simple on-line Process Size of the Network Business Business Network, not academia Cost effective Streamlined process Focus on connectivity Other source of revenue No risk We commit on results Summary Open Innovation Finally Simple & Effective 40

77. Thank You! 41 Sébastien Gourdon Open Innovation Director at SpecialChem sebastien.gourdon@specialchem.com Vinny Sastri President, Winovia LLC vsastri@winovia.com