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BEI J&J Partner of Choice

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End of Innovation Conference Keynote

a Partner of Choice through Supplier Enabled Innovation
By Janette Edelstein, Director External
Innovation and Chris Ryan, Director Innovation Sourcing: Johnson & Johnson
Janette began by harkening to the company's
values: 'Our goal is to be smart, focused, and purposeful, based on the J&J
Our global footprint requires that we go deeper
than a supplier relationship. We prefer to call our suppliers partners.
Johnson and Johnson has a strong legacy of
innovation'from band aids to baby shampoo.
The question for us was how to take this vital
culture of internal innovation and expand it to our partners on the outside.
With brands such as Aveeno, Johnson's Baby,
Band-Aid, Tylenol, Neutrogenea, Visine, and others'we need to keep the
innovation pipeline full'and there are many more solutions outside our organization
than inside.
Being a large organization that has a Pharma
bent, our consumer brands can speed us the access to market by looking externally.
How we do external innovation:
'We co-create with the world to accelerate new
consumer solutions.'
Discover | Design | De-Risk| Deliver is the
method J&J developed.
J&J has innovation centers handle the front
end of Discover. Market screening and Learning Plan Validations help the Design
end of the process. Partners/supplier-enabled innovation helps De-Risk and
Deliver, how we execute and take the solutions to the market.
Advanced Sourcing & Innovation: here's how we
enhance the value creation of supplier-need innovation. We try to think through
a Joint Value Creation to ensure world-class capabilities, build a
collaborative and performance-based partnership model, and manage the
relationship with key financial metrics with a 3-5 year view.
This way we can manage the pipeline while
speeding up the timelines. Projects can move forward.
External Innovation Mythbusters:
Innovation business models founded on strategic
areas and funded.
We need optimized resources based on capabilities
of partners'so it is a blend of internal and external.
Synergy improves efficiency'and makes
time-to-market faster.
Two case studies of this method are Band-Aid
and Neutrogena.
These partnerships enable us to launch in a year.
By leveraging partners' capabilities and development processes, we can get to
market faster. 'I want our partners to feel like they own these equities as
much as J&J does,' says Janette. The Neutrogena Light Therapy Acne Mask
empowers consumers to pay $40 to perform a treatment for which they would have
to pay much more and spend more time having this procedure performed at a dermatologist's
office. The Shower Care Band Aid meets a wound-care need for consumers'and is
something we didn't develop in house.
Partnerships aid our overall pipeline and
pipeline development, creating platforms for sustained innovation.
Key Focus Areas for External Innovation Business
Focused empowered teams (dedicated teams)
Quicker decision making
Process toolkit'clear expectations
Clear guidance on Strategy for External
Innovation scope
Better defined agreements for partnerships (aids
activation and efficiency)
 Michael Graber is the
managing partner of the Southern Growth Studio, an innovation and strategic
growth firm based in Memphis, TN and the author of Going Electric. Visit
www.southerngrowthstudio.com to learn more.

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FEI USA: Front End of Innovation

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