Download - Lux Research Presentation - FINAL
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Business Confidential
Innovating for our Next 75 Years
Lux Executive Summit: Finding the Next Growth Networks
April 24, 2013
John Hillenbrand
VP & Chief Innovation Officer
Owens Corning:
Copyright © 2013 Owens Corning. All Rights Reserved.
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Business Confidential
• Background – a Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples – EcoTouch® Insulation and
EnergyComplete® Sealant
• Lessons Learned
Preview
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Business Confidential
Failed Experiment Leads to Glass Fiber Insulation
• 1930s – a tough time for all glass makers.
• Owens-Illinois began experimenting to find
new uses for glass, including glass block.
• In 1932, while developing a way to bond and seal the glass block, O-I engineers Slayter, Thomas and Kleist produced truly attenuated, fine, and long glass fibers.
• O-I CEO William Levis was a staunch supporter of the glass fiber project in the pioneering years.
• 1935 – O-I enters joint development with Corning Glass.
Games
Slayter Jack
Thomas
Dale
Kleist
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Owens-Illinois
Founded 1938
Our Brand Today
OC COMPANY CONFIDENTIAL – DO NOT DISTRIBUTE 4
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Business Confidential
A Heritage of Innovation
1940s, bomber
insulation
1960s, beta yarn
for space suits
2000s, wind blade
energy
1970s, cold-top
electric melter
1980s, fiberglass
mat for shingles
2010s, EcoTouch® insulation,
EnergyComplete® sealant
1990s, Advantex®
glass fibers
1950s, fiberglass
and Corvette
1930s, continuous
glass fibers
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Business Confidential
• Background – A Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples – EcoTouch® Insulation and
EnergyComplete® Sealant
• Lessons Learned
Outline
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Business Confidential
2013 – Owens Corning At A Glance • Founded in 1938, an industry leader in glass
fiber insulation, roofing and glass fiber
reinforcements
• 2012 sales: $5.2 billion
• 15,000 employees in 27 countries
• Fortune® 500 company for 58 consecutive
years
• Component of Dow Jones Sustainability
World Index
• Three powerful businesses, three valuable
franchises
• Insulation
• Roofing
• Composites
Business Confidential
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Business Confidential Composite Solutions Composite Solutions
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An engineered material system …
… resulting in unique attributes replacing traditional materials
+ Other Materials
• Resins
• Additives
• Filler
* Source: Owens Corning
Reinforcements
High Strength Lightweight Durable Non-Conductive
Non-Corrosive Longer Blades Up to 50% Lighter
than Steel Safety
Glass 95%*
Other
OC COMPANY CONFIDENTIAL – DO NOT DISTRIBUTE
What is a Composite?
Business Confidential 9
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Composites – Essential to Everyday Life
Glass Melting
Fiberizing
Sizing Chemistry
Mixing
Batch
Drying
Curing
Chopped
Fibers
Continuous
Fibers
Mats
Fabrics
Business Confidential
Our materials science, processes and products that customers turn into composite parts
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Business Confidential Building Materials The color PINK is a registered trademark of Owens Corning.
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Business Confidential
Solutions for Homes and
Commercial Buildings
Delivering benefits in energy efficiency, acoustics, and comfort
The color PINK is a registered trademark of Owens Corning.
Business Confidential 12
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Business Confidential
• Background – A Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples – EcoTouch® Insulation and
EnergyComplete® Sealant
• Lessons Learned
Outline
13
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Business Confidential
Sustainability – Macro Trends
• Massive opportunities in our markets
– Soaring interest in energy efficiency – public and private
– Consumer desire to achieve personal sustainability
– Green building and renewables demand
• Pink is Green® – key element of our business strategy
Population Growth
and Consumption
Climate Consciousness Energy / Water Use
and Availability
Scalable solutions needed to address these global challenges
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Business Confidential
Creating Competitive Advantage through
Sustainability and Innovation
• Sustainability – Meeting the needs of the present without
compromising the world that we leave to the future
• Innovation – Turning knowledge into value for our customers
and Owens Corning
• Open Innovation – Turning others’ knowledge into value for
our customers and Owens Corning
Source: Adapted from the U.N. World Commission on Environment and Development,
in its final document - generally known as the Brundtland Report (1983-1987)
The interdependency of sustainability and innovation
presents a significant value creation opportunity
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Business Confidential
Sustainability – Our Strategy
1. Greening our operations
2. Greening our products
3. Accelerating energy efficiency and renewables
penetration in the built environment
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Business Confidential
Becoming an Innovation Powerhouse Driving a Growth Premium and a Margin Premium for our Company
Strengthen and Renew our CORE BUSINESSES
Create New GROWTH PLATFORMS
Starts with TOP INNOVATION TALENT who love
to create and apply building science and
materials science with imagination and teamwork
that help our customers win
Be the preferred GROWTH PARTNER where our customers consider Owens Corning to be
the CLEAR INNOVATION LEADER in Building Materials & Composites
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Business Confidential
• Background – A Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples – EcoTouch® Insulation and
EnergyComplete® Sealant
• Lessons Learned
Outline
18
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Business Confidential
EcoTouch® Insulation with PureFiber® Technology
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Business Confidential
Green Without Compromise
Saves energy
58% recycled content (36% post consumer)1
99% natural materials (minerals & plant-based)2
Formaldehyde free
Multi-attribute environmentally preferable
Green is well defined, science based, and 3rd party certified 1 Certified by Scientific Certifications Systems to have a minimum of 58% recycled content with at least 36% post-consumer
recycled and the balance of pre-consumer recycled content.
2 Made with a minimum of 99.4% by weight natural materials consisting of minerals and plant-based compounds. 20
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Business Confidential
EcoTouch® Insulation commercial
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Business Confidential
Accelerating Energy Efficiency and
Renewables Penetration in Buildings
41% Buildings
28% Transportation
31% Industrial
22% Residential
19% Commercial
Energy consumption by end-use sector
Source: Whole House Air Infiltration Study by
Dr. Gren Yuill, Penn State University 22
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Today’s homebuyers
are looking for
comfort and energy
efficiency. Give
them both with
EnergyComplete®
flexible air sealant.
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Business Confidential
EnergyComplete® Sealant
– Building Science Expertise
Trouble spots for air leakage*: Owens Corning has identified the most
important areas to seal – including three
where creating a gasket is key:
EnergyComplete® sealant forms a gasket
in these areas, reducing air leakage.
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Source: Whole House Air Infiltration Study by Dr. Gren Yuill, Penn State University
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Business Confidential
EnergyComplete® Sealant
– Machine
•Easy to maneuver
•Easy to set up
•Easy to clean
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Business Confidential
EnergyComplete® Sealant
– Simple Applicator
•Ergonomically designed
•Wide range of settings
•Lays down perfect bead
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Business Confidential
EnergyComplete® Sealant
– RESULT$
Blower door measurements were evaluated
for 800 homes of a top builder. For each
home, the target was:
98% of homes with EnergyComplete® sealant
passed, compared to 80% of homes sealed
with conventional caulk.
5 BASED ON THIS
STUDY, CONVENTIONAL
CAULK PRODUCTS ARE
MORE LIKELY TO FAIL A
BLOWER DOOR TEST THAN
ENERGYCOMPLETE®
10x ACH50
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• Background – A Heritage of Innovation
• Owens Corning Today
• Interdependence of Sustainability and (Open) Innovation
• Recent Examples – EcoTouch® Insulation and
EnergyComplete® Sealant
• Lessons Learned
Outline
Business Confidential 28
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• When you engage and enroll your customers early and often,
you just might learn something.
• You can never know too much about your customers, the value
chain, and the competitive landscape.
• Listening to your customers is necessary but not sufficient; you
bring power to the relationship through an imaginative
understanding of their needs.
• And when it comes to being regarded as an industry leader,
the only voices that really matter are those of your customers.
Lessons Learned – Customers
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• Partnerships are about access, not control.
• A thoughtful and well-written Joint Development Agreement may
be worth the effort versus a simple Confidentiality Agreement.
• Your initial attraction to a partner might be their unique technology
or channel access, but lasting partnerships are built on a
foundation of mutual trust and cultural compatibility.
• Find partners who can contribute to multiple growth opportunities.
• For truly business-critical initiatives, demand a dedicated team
and dedicated leader (a.k.a. supervising executive) – and ensure
your partner(s) is/are equally committed and resourced.
Lessons Learned – Partnerships
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• If you’re not the first to market, you’d better commit to be the best.
• Know your limitations and face reality.
• Open Innovation is neither free nor easy – and don’t expect it to
take only one big success for everyone to “get it.”
• To maximize the impact of an innovation, there’s no substitute for
real science – particularly science that has IP protection.
• Don’t underestimate the challenges of bringing a new-to-the-world
solution to the market.
• If you believe you’re a commodity, you’re right. There are plenty
of opportunities to innovate and differentiate versus competition,
even in the category you created 75 years ago.
Lessons Learned – Organization
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Business Confidential
Thank you
The Pink Panther™ © 1964-2013 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning. ©2013 Owens Corning. All Rights Reserved.