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“Intrapreneuring” at Royal DSM 
Robert Kirschbaum, VP Open Innovation 
Eindhoven: December 11th , 2014
 Introduction to Royal DSM 
 Innovation 
Page 
- DSM Innovation Center 
- Open (Chesbrough) Model 
- Venturing 
- Stage Gate examples 
 Emerging Business Area’s 
- Bio Medical Materials 
- Bio Based Products & Services 
- Advanced Surfaces 
Learnings
Page 
DSM – understands change 
Coal Mining 
Commodity 
Chemicals 
Specialty 
Chemicals 
Life Sciences & 
Materials Sciences 
2
DSM at a glance* 
Page 3 
Sales 
~€10 billion 
EBITDA 
~€1.3 billion 
Global 
presence 
~24,500 
employees 
worldwide 
Listed at 
Euronext 
NYSE 
Share price 
quintupled 
in 25 years 
• DSM is a global Life Sciences and Materials Sciences company active in health, 
nutrition and materials 
• DSM delivers innovative solutions that nourish, protect and improve 
performance in global markets such as food and dietary supplements, personal 
care, feed, medical devices, automotive, paints, electrical and electronics, 
life protection, alternative energy and bio-based materials 
• 5% of Turnover and 10% of our people in R&D. 
Sustainability 
leader 
Top ranking 
Dow Jones 
Sustainability 
Index 
* 2013 numbers total DSM
DSM’s 
organization 
DPx Pharma POET-DSM 
Page 4 
Supervisory Board 
Managing Board 
Functional Excellence 
Shared Services 
Associates 
DSM Sinochem 
Pharma 
Nutrition 
DSM Food 
Specialties 
DSM Nutritional 
Products 
Performance Materials 
DSM 
Dyneema 
DSM Resins & 
Functional Materials 
DSM Engineering 
Plastics 
Corporate Staffs 
Polymer Intermediates 
DSM Fiber 
Intermediates 
DSM Innovation 
Center 
DSM Bio-based 
Products & Services 
DSM 
Biomedical 
DSM 
Advanced Surfaces 
LIFE SCIENCES & MATERIAL SCIENCES
Mission 
• Our purpose is to create brighter lives for 
Page 
people today and generations to come 
• We connect our unique competences in Life 
Sciences and Materials Sciences to create 
solutions that nourish, protect and improve 
performance
DSM in motion: driving focused growth 
People - Planet - Profit: creating value along three dimensions 
Page
Page 
DSM Innovation Center 
New Business Development 
EBA Biomedical 
EBA Bio-based 
Products & Services 
EBA Advanced 
Surfaces 
Business Incubator 
Enablers / Accelerators 
Excellence in Innovation 
CTO Office 
Licensing 
Venturing 
8
Page
Building an intrinsically innovative company 
20% 
Innovation Sales 2015 
@ ~5% higher Gross Margins 
Top Quartile 
McKinsey Innovation 
Benchmark 2012 
€1B 
Disruptive Platforms, 2020 
Page 10
FOR INTERNAL USE ONLY 
Page 
12
FOR INTERNAL USE ONLY 
Breakthroughs can be “Proudly Found Elsewhere”
Breakthrough versus Incremental Innovation 
The Balancing Act 
Innovation Center Business Groups 
Long term Vision 
Intrapreneurship 
Agility 
Medium term Vision 
Operational Excellence 
Lower risk 
Pilot plants 
Scaling-up 
Breakthrough 
Innovation 
Sustainable, Profitable Innovations 
Page 14
Managing the Portfolio across Levels 
Page 15 
Product new 
to DSM 
Market new to DSM 
“Adjacent Business” 
New to 
The World 
Emerging 
Growth 
Mature 
Decline 
Market life cycle 
Improved 
Product 
Disruptiveness 
1~1.5 yr 
Established Products 
and Business Lines 
1.5 – 3 yr 3 - 5 yr 5 - 9 yr 
New 
Platforms 
Break-Away 
New 
Applications 
and Adjacencies
BioBased: EcoPaXX® Engine cover 
Trends 
Reducing carbon footprint 
Metal replacement 
Bright Science 
70% bio-based engineering plastic 
Superb surface appearance 
High thermal resistance up to 250 C 
Brighter Living 
Reduction of 40% of the CO2 emissions 
compared to conventional polyamides 
Mercedes A class 
© 2014 DSM. All rights reserved
Innovation successes aren’t just luck…
Standardized work process for project execution: 
the ‘Project Management Process’ 
Decision 
to Scale-up 
Phase 3 Phase 4 Phase 5 
Final 
Review 
Transfer to Running 
Business phase 
(Commissioning, 
Market launch and 
Full Scale 
Production) 
Idea 
Generation 
phase 
Decision 1 Decision 2 Decision 3 Decision 4 
Business Feasibility 
phase 
(Market demand 
/opportunity) 
Development 
phase 
(Market and 
Technology 
development) 
Scale-up and 
Validation phase 
(Engineering, Procure-ment 
and Construction; 
Validation) 
Initial 
Screening 
Decision 
to Develop 
Decision to 
Launch 
Decision 5 
Phase 1 Phase 2
FOR INTERNAL USE ONLY 
Why do we need Open Innovation? 
DSM 
99.9996% 
of world 
population 
outside 
DSM! 
Networks 
needed!
FOR INTERNAL USE ONLY
FOR INTERNAL USE ONLY 
Networks make Open Innovation work 
Fuzzy Front End 
Interaction 
/ Synthesis 
Market Scouting / Business Intelligence 
Licensing 
In Venturing 
Spin in 
Joint 
Business 
Developments 
Intellectual Asset Management 
Acquisitions 
Licensing 
Out 
Spin out/off 
Divestments 
R&D services 
(Chemelot) 
Competence Development, Technology Intelligence
Innovation is like a parachute… 
‘Chemistry connects People’
Innovation is like a parachute… 
It works much better when 
Open! 
‘Chemistry connects People’
Open Innovation at Chemelot 
Page 
Start up 
SME 
Knowledge 
sources
Page 
Isolation is a not-winning option
Page 
Stating the obvious: 
just bigger is not enough !
The game is getting more and more complex 
Page
Alliances, M&A, JV, Venturing, JDA …. 
Page 
We need to add new 
dimensions to game. 
We need to experiment. 
And learn from a few mistakes.
DSM Venturing : How to mitigate risks?
FOR INTERNAL USE ONLY 
Corporate Venturing 
A win-win situation is the objective 
34
DSM Venturing – Corporate VC of DSM 
DSM Venturing - Mission 
DSM´s competence center for external (VC) 
participations aimed at boosting innovation & growth 
Window to the world 
Explore new emerging markets, technologies and products in order to 
enhance DSM´s product portfolio, technology toolbox and business model's 
Strategic value 
Add value internally and externally through facilitating strategic co-operations 
with start-ups 
Financial return 
Create value by investing in and divesting start-up companies
When to invest in the startup life cycle? 
High 
High 
Low Low 
Emerging 
Technology Proof of principle Commercialization Expansion 
Time 
Venture Capital 
Public/PE 
Grants 
"Angels" 
Sales 
Investment & Risk 
Financing 
gap 
Risk 
Investment 
amounts 
Sales 
DSM Venturing
Portfolio snapshot May 2014 
Nutrition (Bio)medical BioBased Other
Page 
Gate 1: New Business Creation 
Fuzzy Front End 
Licensing 
In Venturing 
Spin in 
Gate 1 
Joint 
Business 
Developments 
Acquisitions 
Licensing 
Out 
Spin out/off 
Divestments 
R&D services 
(Chemelot) 
Gate 2
1981: We need €’s for a strong fiber “lab-line” ! 
Page
FOR INTERNAL USE ONLY 
Dyneema contributes 
to Sustainability 
Page 41
Gate 2: New Business Planning 
Page 
Fuzzy Front End 
Licensing 
In Venturing 
Spin in 
Gate 1 
Joint 
Business 
Developments 
Acquisitions 
Licensing 
Out 
Spin out/off 
Divestments 
R&D services 
(Chemelot) 
Gate 2
1991: We need true commitment for survival ! 
Page
Stanyl contributes to Sustainability 
Page 
Stanyl (polyamide 46) 
turned out to be the 
best value-proposition 
as high temperature 
resistant LED-Lamp 
holder 
LED technology will use only 10% electricity
The Intrapreneur’s “10 commandments” 
1. Come to work each day willing to be fired 
2. Recruit a strong team 
3. Ask for advice before resources 
4. Forget pride of authorship, spread credit widely 
5. When you ‘bend the rules’, keep the best interest of the 
company and its customers in mind 
6. Honour your sponsors 
7. Underpromise and overdeliver 
8. Be true to your goals, but realistic about ways to achieve 
them 
9. Remember, it is easier to ask for forgiveness than for 
permission 
10. Do any job needed to make your project work, regardless of 
your job description 
Page
Intrapreneurs play to win ! 
Page 
Play to win means: 
• Start small, but think big 
• Develop what is needed 
• Address new customers 
• Optimizing reward vs. risk 
• Place the eggs in many baskets 
• Fail often to succeed sooner 
• Long term gains 
• Effectiveness 
• The Exploratory “WoW” 
 Poker game
Top managers tend to… play “not to lose” 
Page 
Play not to lose means: 
• Big volume markets 
• Develop what you can 
• Serve current customers 
• Minimizing risk 
• All eggs in one basket 
• Right first time, never fail 
• Short term gains 
• Efficiency 
• The Exploiting “WoW” 
 Chess game 
Play to win means: 
• Start small, but think big 
• Develop what is needed 
• Address new customers 
• Optimizing reward vs. risk 
• Place the eggs in many baskets 
• Fail often to succeed sooner 
• Long term gains 
• Effectiveness 
• The Exploratory “WoW” 
 Poker game
 Introduction to Royal DSM 
 Innovation 
Page 
- DSM Innovation Center 
- Open (Chesbrough) Model 
- Venturing 
- Stage Gate examples 
 Emerging Business Area’s 
- Bio Medical Materials 
- Bio Based Products & Services 
- Advanced Surfaces 
Learnings
DSM Biomedical 
Page 
Page 49
Open Innovation in practice 
Page 
Internal Innovation 
Licensing 
R&D Alliances & Cooperations 
Scientific Advisory Board 
& other Consultants 
Mergers & Acquisitions 
(Joint) Venturing
Page 
52 
DSM Bio-based Products & Services 
Eco+
Biomass as a source of fermentable sugars 
Plant cells 
Lignin 
Cellulose Hemi-cellulose 
Glucose 
Xylose 
Arabinose 
Glucose 
Galactose 
Mannose 
Biomass 
© 2014 DSM. All rights reserved
Inspired by Nature – Xylose Isomerase 
• C5 Yeast 
• Conversion of Xylose and Arabinose 
• Increased yield of EtOH
Corn Stover Feedstock 
PAGE 57 
Page
Emm5e8tsburg, September 3rd, 2014
Current major Biomass Ventures 
• Cellulosic bio-ethanol 
• Renewable diesel 
+ 
• Bio-Succinic
DSM Advanced Surfaces 
Confidential
Anti Reflective Coatings 
Market 
• Demand for anti-reflective (AR) coated solar 
cover glass is growing strong 
• AR coatings are expected to become standard 
Value proposition 
• KhepriCoat® AR coating provides an 
improvement of PV module efficiency of up to 
up to 4% due to reduction of reflection of the 
sunlight on the solar cover glass 
Glass substrate 
Coating 
(approx 100 nm) 
air 
glass 
KhepriCoat®
Same sun, more power 
KhepriCoat® anti-reflective (AR) coating technology for solar glass 
• Rooftop Project at DSM with 365 modules coated 
with Khepricoat® 
• 1MWp project in India start of construction Q3/13 
• 4,75MWp project in Belvedere New Jersey
FOR INTERNAL USE ONLY 
Key Take Aways 
• Venturing improves the power to select options 
• Open Innovation : A tool to rejuvenate your business 
• Partnerships mitigate innovation risks 
• Partner with an open mind; dare to share 
• Construct Alliances based on complementarity 
• Focus on the Grand Challenges 
Page 65
FOR INTERNAL USE ONLY 
Velox speed record attempt
FOR INTERNAL USE ONLY 
Questions ? 
133.8 Km/Hour !
Slide 68 
BRIGHT SCIENCE. BRIGHTER LIVING

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Robert Kirschbaum (DSM) - The balancing act between radical and incremental innovation (and the role of intrapreneurs)

  • 1. “Intrapreneuring” at Royal DSM Robert Kirschbaum, VP Open Innovation Eindhoven: December 11th , 2014
  • 2.  Introduction to Royal DSM  Innovation Page - DSM Innovation Center - Open (Chesbrough) Model - Venturing - Stage Gate examples  Emerging Business Area’s - Bio Medical Materials - Bio Based Products & Services - Advanced Surfaces Learnings
  • 3. Page DSM – understands change Coal Mining Commodity Chemicals Specialty Chemicals Life Sciences & Materials Sciences 2
  • 4. DSM at a glance* Page 3 Sales ~€10 billion EBITDA ~€1.3 billion Global presence ~24,500 employees worldwide Listed at Euronext NYSE Share price quintupled in 25 years • DSM is a global Life Sciences and Materials Sciences company active in health, nutrition and materials • DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials • 5% of Turnover and 10% of our people in R&D. Sustainability leader Top ranking Dow Jones Sustainability Index * 2013 numbers total DSM
  • 5. DSM’s organization DPx Pharma POET-DSM Page 4 Supervisory Board Managing Board Functional Excellence Shared Services Associates DSM Sinochem Pharma Nutrition DSM Food Specialties DSM Nutritional Products Performance Materials DSM Dyneema DSM Resins & Functional Materials DSM Engineering Plastics Corporate Staffs Polymer Intermediates DSM Fiber Intermediates DSM Innovation Center DSM Bio-based Products & Services DSM Biomedical DSM Advanced Surfaces LIFE SCIENCES & MATERIAL SCIENCES
  • 6. Mission • Our purpose is to create brighter lives for Page people today and generations to come • We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance
  • 7. DSM in motion: driving focused growth People - Planet - Profit: creating value along three dimensions Page
  • 8. Page DSM Innovation Center New Business Development EBA Biomedical EBA Bio-based Products & Services EBA Advanced Surfaces Business Incubator Enablers / Accelerators Excellence in Innovation CTO Office Licensing Venturing 8
  • 10. Building an intrinsically innovative company 20% Innovation Sales 2015 @ ~5% higher Gross Margins Top Quartile McKinsey Innovation Benchmark 2012 €1B Disruptive Platforms, 2020 Page 10
  • 11. FOR INTERNAL USE ONLY Page 12
  • 12. FOR INTERNAL USE ONLY Breakthroughs can be “Proudly Found Elsewhere”
  • 13. Breakthrough versus Incremental Innovation The Balancing Act Innovation Center Business Groups Long term Vision Intrapreneurship Agility Medium term Vision Operational Excellence Lower risk Pilot plants Scaling-up Breakthrough Innovation Sustainable, Profitable Innovations Page 14
  • 14. Managing the Portfolio across Levels Page 15 Product new to DSM Market new to DSM “Adjacent Business” New to The World Emerging Growth Mature Decline Market life cycle Improved Product Disruptiveness 1~1.5 yr Established Products and Business Lines 1.5 – 3 yr 3 - 5 yr 5 - 9 yr New Platforms Break-Away New Applications and Adjacencies
  • 15. BioBased: EcoPaXX® Engine cover Trends Reducing carbon footprint Metal replacement Bright Science 70% bio-based engineering plastic Superb surface appearance High thermal resistance up to 250 C Brighter Living Reduction of 40% of the CO2 emissions compared to conventional polyamides Mercedes A class © 2014 DSM. All rights reserved
  • 17. Standardized work process for project execution: the ‘Project Management Process’ Decision to Scale-up Phase 3 Phase 4 Phase 5 Final Review Transfer to Running Business phase (Commissioning, Market launch and Full Scale Production) Idea Generation phase Decision 1 Decision 2 Decision 3 Decision 4 Business Feasibility phase (Market demand /opportunity) Development phase (Market and Technology development) Scale-up and Validation phase (Engineering, Procure-ment and Construction; Validation) Initial Screening Decision to Develop Decision to Launch Decision 5 Phase 1 Phase 2
  • 18. FOR INTERNAL USE ONLY Why do we need Open Innovation? DSM 99.9996% of world population outside DSM! Networks needed!
  • 20. FOR INTERNAL USE ONLY Networks make Open Innovation work Fuzzy Front End Interaction / Synthesis Market Scouting / Business Intelligence Licensing In Venturing Spin in Joint Business Developments Intellectual Asset Management Acquisitions Licensing Out Spin out/off Divestments R&D services (Chemelot) Competence Development, Technology Intelligence
  • 21. Innovation is like a parachute… ‘Chemistry connects People’
  • 22. Innovation is like a parachute… It works much better when Open! ‘Chemistry connects People’
  • 23. Open Innovation at Chemelot Page Start up SME Knowledge sources
  • 24. Page Isolation is a not-winning option
  • 25. Page Stating the obvious: just bigger is not enough !
  • 26. The game is getting more and more complex Page
  • 27. Alliances, M&A, JV, Venturing, JDA …. Page We need to add new dimensions to game. We need to experiment. And learn from a few mistakes.
  • 28. DSM Venturing : How to mitigate risks?
  • 29. FOR INTERNAL USE ONLY Corporate Venturing A win-win situation is the objective 34
  • 30. DSM Venturing – Corporate VC of DSM DSM Venturing - Mission DSM´s competence center for external (VC) participations aimed at boosting innovation & growth Window to the world Explore new emerging markets, technologies and products in order to enhance DSM´s product portfolio, technology toolbox and business model's Strategic value Add value internally and externally through facilitating strategic co-operations with start-ups Financial return Create value by investing in and divesting start-up companies
  • 31. When to invest in the startup life cycle? High High Low Low Emerging Technology Proof of principle Commercialization Expansion Time Venture Capital Public/PE Grants "Angels" Sales Investment & Risk Financing gap Risk Investment amounts Sales DSM Venturing
  • 32. Portfolio snapshot May 2014 Nutrition (Bio)medical BioBased Other
  • 33. Page Gate 1: New Business Creation Fuzzy Front End Licensing In Venturing Spin in Gate 1 Joint Business Developments Acquisitions Licensing Out Spin out/off Divestments R&D services (Chemelot) Gate 2
  • 34. 1981: We need €’s for a strong fiber “lab-line” ! Page
  • 35. FOR INTERNAL USE ONLY Dyneema contributes to Sustainability Page 41
  • 36. Gate 2: New Business Planning Page Fuzzy Front End Licensing In Venturing Spin in Gate 1 Joint Business Developments Acquisitions Licensing Out Spin out/off Divestments R&D services (Chemelot) Gate 2
  • 37. 1991: We need true commitment for survival ! Page
  • 38. Stanyl contributes to Sustainability Page Stanyl (polyamide 46) turned out to be the best value-proposition as high temperature resistant LED-Lamp holder LED technology will use only 10% electricity
  • 39. The Intrapreneur’s “10 commandments” 1. Come to work each day willing to be fired 2. Recruit a strong team 3. Ask for advice before resources 4. Forget pride of authorship, spread credit widely 5. When you ‘bend the rules’, keep the best interest of the company and its customers in mind 6. Honour your sponsors 7. Underpromise and overdeliver 8. Be true to your goals, but realistic about ways to achieve them 9. Remember, it is easier to ask for forgiveness than for permission 10. Do any job needed to make your project work, regardless of your job description Page
  • 40. Intrapreneurs play to win ! Page Play to win means: • Start small, but think big • Develop what is needed • Address new customers • Optimizing reward vs. risk • Place the eggs in many baskets • Fail often to succeed sooner • Long term gains • Effectiveness • The Exploratory “WoW”  Poker game
  • 41. Top managers tend to… play “not to lose” Page Play not to lose means: • Big volume markets • Develop what you can • Serve current customers • Minimizing risk • All eggs in one basket • Right first time, never fail • Short term gains • Efficiency • The Exploiting “WoW”  Chess game Play to win means: • Start small, but think big • Develop what is needed • Address new customers • Optimizing reward vs. risk • Place the eggs in many baskets • Fail often to succeed sooner • Long term gains • Effectiveness • The Exploratory “WoW”  Poker game
  • 42.  Introduction to Royal DSM  Innovation Page - DSM Innovation Center - Open (Chesbrough) Model - Venturing - Stage Gate examples  Emerging Business Area’s - Bio Medical Materials - Bio Based Products & Services - Advanced Surfaces Learnings
  • 44. Open Innovation in practice Page Internal Innovation Licensing R&D Alliances & Cooperations Scientific Advisory Board & other Consultants Mergers & Acquisitions (Joint) Venturing
  • 45. Page 52 DSM Bio-based Products & Services Eco+
  • 46. Biomass as a source of fermentable sugars Plant cells Lignin Cellulose Hemi-cellulose Glucose Xylose Arabinose Glucose Galactose Mannose Biomass © 2014 DSM. All rights reserved
  • 47. Inspired by Nature – Xylose Isomerase • C5 Yeast • Conversion of Xylose and Arabinose • Increased yield of EtOH
  • 48. Corn Stover Feedstock PAGE 57 Page
  • 50. Current major Biomass Ventures • Cellulosic bio-ethanol • Renewable diesel + • Bio-Succinic
  • 51. DSM Advanced Surfaces Confidential
  • 52. Anti Reflective Coatings Market • Demand for anti-reflective (AR) coated solar cover glass is growing strong • AR coatings are expected to become standard Value proposition • KhepriCoat® AR coating provides an improvement of PV module efficiency of up to up to 4% due to reduction of reflection of the sunlight on the solar cover glass Glass substrate Coating (approx 100 nm) air glass KhepriCoat®
  • 53. Same sun, more power KhepriCoat® anti-reflective (AR) coating technology for solar glass • Rooftop Project at DSM with 365 modules coated with Khepricoat® • 1MWp project in India start of construction Q3/13 • 4,75MWp project in Belvedere New Jersey
  • 54. FOR INTERNAL USE ONLY Key Take Aways • Venturing improves the power to select options • Open Innovation : A tool to rejuvenate your business • Partnerships mitigate innovation risks • Partner with an open mind; dare to share • Construct Alliances based on complementarity • Focus on the Grand Challenges Page 65
  • 55. FOR INTERNAL USE ONLY Velox speed record attempt
  • 56. FOR INTERNAL USE ONLY Questions ? 133.8 Km/Hour !
  • 57. Slide 68 BRIGHT SCIENCE. BRIGHTER LIVING