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Publications / Case Studies

One of the World’s Leading Chemical Companies more than Doubles the Value of its Innovation Pipeline in a Mature Foam Product

Challenge

A global manufacturer of foam-based products wanted to adapt its low-cost strategy to new markets that demanded higher value-added foam-based solutions. This represented an opportunity to venture out into new application areas. However, the low cost, commodity mindset was still prevalent in the commercial arm of the company. A radical change was needed to achieve the new market positioning both in terms of “what to innovate on” as well as “how to innovate.”

Approach

By using Arthur D. Little's Innovation Management Health Check Test, the joint Client-Arthur D. Little team identified those priority areas that needed to change. Changes were made to the New Business Development Team and to its approach. This team launched an all out scouting expedition. Here is what was accomplished:

  • 13 important opportunity fields were identified using a broad range of creativity techniques along with the involvement of a large group of external experts
  • Hundreds of new project ideas were created in the three priority areas selected
  • The best ideas were tested in the market and transformed into good business cases
  • Implementation projects were launched for the best business cases

Value

The expected value of the New Business Projects pipeline more than doubled (over 100 million Euro’s). In addition, the company was able to triple the resources it invested in new business development initiatives. A new spirit and mindset started to emerge among the company’s experts. They are now better able to explore a broader field of opportunities and have frequent contact with the right customers and experts that they need to grow their business.

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