executive briefing hutch ranck dupont

24 May 2010

Taking a customer focused, collaborative and open border approach to business and technology innovation

Hutch Ranck, Managing DirectorDuPont (Australia) Ltd

Taking a customer focused, collaborative and open border approach to business and technology innovationHutch Ranck, DuPont (Australia) Ltd24 May 2010

Topics

• Brief company background

• Centres of excellence

• Leveraging R&D – a market backed approach

• Commercialising product base across established and emerging markets

• Your questions


Background on DuPont


•To be the world’s most dynamic science company, •creating sustainable solutions essential to

•a better, safer, healthier life for people everywhere.

DuPont Vision


Teflon®Lycra® Kevlar®

Solae®

Soy ingredients

Tyvek®

Transforming from a successful technology driven chemicals and polymers company to a market driven, science based, sustainable materials company

QualiconTM

Food safetySorona®From corn

Pioneer Seed

PET bottles

DuPont: A history of Innovation

Lycra® is a trademark of Invista™, a subsidiary of Koch Industries


DuPont 2008 Worldwide Sales By Market

AGRICULTURE/FOOD29%

ELECTRONICS9%

MOTOR VEHICLES

20%

PLASTICS & CHEMICALS

9%

OTHER21%

$30.5 B CONSTRUCTION

MATERIALS12%

TEXTILES / HOME FURNISHINGS

5%


Creating centres of excellence for R&D capabilities


The Global Scope of DuPont R&D

Major R&D CenterMinor R&D Center

Hyderabad, India Shanghai, China

Meyrin, Switzerland

Wuppertal, Germany

Wilmington, USA

Johnston, USA

Wilmington, USA Johnston, USA Hyderabad, IndiaWuppertal, Germany Shanghai, ChinaMeyrin, Switzerland

• >5,000 Scientists and Engineers

• $1.4 B R&D Spend

• Over 50 R&D Centers, Worldwide

1903 1999 1999 20051987 2008


85%

Business Unit Portfolio

• SBU Funded

• Tied to 1-5 Year Goals

DuPont R&D: balancing short vs long term

Tota

l R&

D:

$1.4

Bill

ion

15%

Central Research Portfolio

• Corporately Funded

• Tied to Platform Strategies

• High Challenge / High Reward


More & Better Food

Sustainably- Sourced Materials

Safety & Security

Biotechnology

Molecular Biology

Functional Genomics

Cell Biology

Proteomics

Microbiology

Metabolic Engineering

Immunology

Fermentation

Food Chemistry

Nutritional Science

Crop Chemistry

Polymer Science & Engineering

Fluorine Chemistry

Fiber Science & Engineering

Regulatory Science

Materials Science

Particle Science

Surface & Colloidal Science

Nanostructure Control

Key Technical CapabilitiesDuPont Technology Directions

Alternate Energy

Energy Efficiency

ImprovedCommunication


Leveraging R&D – a market back approach


Market Driven Innovation in DuPont• Guided by Market Insight and

Market Foresight

• Common approach, differentially applied:

– Disciplined, data-driven, fact-based

– Sustainability focused

Relevance Uniqueness Commercialisation


DuPont Market Driven Innovation

• Customer partnerships accelerate the process.

• Co-developed and co-managed programs with customers yield best results.

• Resource commitments from each partner upfront are necessary for success.


Mega Trends/Growth Opportunities

• Unprecedented growth in developing countries

• Need for increased food production

• Drive for renewable energy and materials

• Demand for greater safety and security

• Desire for increased connectivity


Commercialisation across established and emerging

markets


An Innovation continuum

Top 75 Critical 50

CommercializationT = 0

CommercializationT = 0

T = +2yrs.T = +2yrs.

• Focus on reducing market & technical uncertainty • Focus on reducing

commercialization uncertainty

• Guided by aggressive launch plan

Launch hard

APEX

• Create options

• Guided by defined opportunities

Transform vs. improve • Guided by quantified

value proposition

Focus & drive

T = ~ -6yrs.T = ~ -6yrs. T = -2yrs.T = -2yrs.


Establishing the Discipline• Define the process

• Establish goals– 35% of revenue from products introduced in last 4 years

by 2010 (vs. a base of 22% from 5 year products in 2000)

– Defined by SBU

• Annual reviews by SBU - Data based, portfolio focused– Resource deployment

• Grow vs. sustain• Degree of focus on most strategically important

programs (T75/C50)• Technical/marketing collaboration

– Portfolio balance• H1 vs. H2 vs. H3• New vs existing market/technology

• Project by project execution (stage gate process)

MARKETFOCUS

Define & Screen Growth

Ideas

Assess the Market

Opportunity

Define the Offering Model

Developthe Offering

Plan the

Launch

Execute the

Launch


Building the culture

• Strong project leaders

• Resource for success (cross-functional)

• Focus

• Accountability

• Customer interaction

• Good tools and discipline

• Make Innovation a real priority

• Create growth culture

• Portfolio choices tied to overall strategies

• Provide focus (i.e. Top 10)

• Engage in the details

• Insist on straight talk

• Tolerate ambiguity

• Champion/ barrier-buster

Success = Leadership commitment + “Right” Projects + Strong Execution

Commercial Strategy

Real Market Insight

• Market focused organization

• Market expertise

• On-site insight

• Customer based problem definition

• Relevant and competitive technical skills

• Internal/external collaboration

• IP protection

• How to make money

• Launch plan

Technology Feasibility

Integration and iterationQuantified value proposition

+ +


600

1100

1600

2100

2000 2001 2002 2003 2004 2005 2006 2007 2008

Delivering results

US Patents Granted Annually

400

2000

495

2008

4000

8000

12000

$ m

illio

ns

2000

US Patents Filings

Sales From New Products >$10B

Strong momentum.

35%of total

2008

New Products Commercialised

774

2004

901

2008