Reflections on Innovation, Science, and Society
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1 Reflections on Innovation, Science, and Society Klaus Lindpaintner CSO, Thermo Fisher Scientific 1 The world leader in serving science
2 So: What is Innovation? Is it technology? A sociocultural and socioeconomcal phenomenon based on technology Technology: essential, but not sufficient 2
3 Innovation Definition: Application of new solutions that meet new requirements, inarticulate needs, or existing market needs Requirements: A recognized (or unrecognized/anticipated) need, Competent people with relevant technology Financial support Attributes Sustaining: An innovation that does not affect existing markets. Evolutionary Revolutionary Disruptive: An innovation that creates a new market 3
4 4
5 Innovation Definition: Application of new solutions that meet new requirements, inarticulate needs, or existing market needs Requirements: A recognized (or unrecognized/anticipated) need, Competent people with relevant technology Financial support Attributes Sustaining: An innovation that does not affect existing markets. Evolutionary Revolutionary Disruptive: An innovation that creates a new market 5
6 Effective Innovation: Stakeholders Contribution Genius revolutionary Opportunities/Need for Public-Private-Partnerships Reduction to Practice sustaining Societal Change disruptive 6
7 Sustaining Innovation Evolutionary: An innovation that improves a product in an existing market in ways that customers are (+/-) expecting potential to add tremendous value Revolutionary (discontinuous, radical): An innovation that is unexpected, but nevertheless does not affect existing markets 7
8 Disruptive Innovation Innovation that creates a new market by applying a different set of values, which ultimately and unexpectedly overtakes an existing market. 8
9 Sustaining Innovation Evolutionary: Revolutionary (discontinuous, radical): 9
10 Disruptive Innovation 10
11 The notorious sigmoid curve 11
12 Surfing the curve keeping ahead of it 12
13 Sustaining Innovation creates value 13
14 Sustaining and Disruptive Innovation B.C
15 Disruptive Innovation creates Dilemmas 15
16 Sustaining and Disruptive Innovation B.C
17 before it creates value 17
18 Sustaining and Disruptive Innovation B.C
19 Relative prevalence of technology Life cycles of disruptive innovation Sailing Vessels Steam Ships Diesel Engines 19
20 Sustaining Inovatoin Extension 20
21 Disruptive Innovation 21
22 Can lessons be learned to surf the wave of Innovation? Hedging bets, balancing risks 1968: QEII launched as a steamship hindsight is 20/ : Diesel retrofit 22
23 Relative prevalence of technology Life cycles of disruptive innovation Sailing Vessels Steam Ships Diesel Engines 23
24 Innovation happens in many walks of life why focus on technology? 24
25 Technology innovation drives other innovation 25
26 Same raw material technology adds value Big Bang ca. 10,000 BC ca AD 26
27 Key Players in Research, Science, Innovation Academic Institutions Innovationdriven Industry Enablers -Scientific Instruments -Quality reagents and consumables -Informatics -Services 27
28 Science Enabling Companies: A 60B Industry 3 % 3 % 4 % 5 % 6 % 9 % 3 % 3 % 3 % 37 % Mol & Cell Biology Tools & Reagents Diagnostic and Clincal Supply Separations General Laboratory Disposables Microscopy and Surface Analysis Molecular Spectroscopy Atomic Spectroscopy Mass Spectrometry General Analytical Tools Lab Automation Materials Testing and Characterization Lab Equipment 9 % 15 % > 3B in annual R&D spending 28
29 Number of Publications in Nature-Science Family Critical Role of Innovation in Analytical Technologies New generation Mass Spectrometry technology (Orbitrap) Older generation MS technology Advances in instrumentation propel breakthrough science 29
30 World s Biggest Analytical Challenges Future Needs Small Sample Amounts Greater Resolution Complex Matrices Complicated Structures Better Sensitivity Large Sample Numbers Point Of Need Analysis Low Concentration Always ready Measurements Faster, Higher Throughput Ease of Use Lower cost position Generalist Workforce Needs at all levels of price and performance 30
31 Innovation does not happen in a vacuum Academia Universities, Research Centers, Hospitals Opportunities/Need for Public-Private-Partnerships Industry Enabling Production Logistics Society Funding, Regulatory, End-Users 31
32 Innovation in Health Care Academia Basic& Clinical Research Opportunities/Need for Public-Private-Partnerships Industry BioPharma Diagnostics Enabling Society Patients Providers Payors Patents 32
33 We Are the World Leader in Serving Science Global Scale* 50,000 employees in 50 countries $17 billion in annual revenues Unparalleled commercial reach Ranking of ~170 on Fortune 500 Unmatched Depth Innovative technologies Applications expertise Lab productivity partner Industry-leading Brands We enable our customers to make the world healthier, cleaner and safer 33 * Thermo Fisher standalone: 39,000 employees, $13B revenue, Ranked 220 on Fortune 500
34 Thermo Fisher Scientific Global Presence Note: As of December 31,
35 Diverse Customers, Product Mix & Geographic Reach Balanced and diverse customer base Strong recurring revenue mix Growing presence in emerging markets Healthcare Pharma & Diagnostics & Biotech 26% 25% Industrial & Applied 27% Academic & Government 22% Services 14% Instruments, Equipment & Software 30% Consumables 56% ROW 4% Asia- Pacific 17% Europe 25% North America 54% End Markets Products Geographies 35 Note: Revenue based on LTM through Q
36 Our Scale and Unique Depth of Capabilities Revenue Leading portfolio of high-value specialty diagnostic tests to improve patient care Specialty Diagnostics 23% Analytical Technologies 31% Laboratory Products and Services 46% Industry-leading offering to increase laboratory productivity Innovative technologies to solve complex analytical challenges 36 Note: Revenue based on LTM through Q Percentages calculated before inter-company eliminations.
37 Technology and Innovation Leadership: The World s One and Only Pan-Omics Provider Research and Discovery Production Applied Markets Specialty Diagnostics Protein sample prep Laboratory consumables Research chemicals Single-use bioprocess technologies Cell factories Food safety Environmental Biomarkers Transplant Microbiology Allergy Mass spectrometry Liquid chromatography Spectroscopy Cell biology Molecular biology reagents Sera and media Chromatography Forensics Animal health Cancer Infectious disease Next-generation sequencing q-pcr Capillary electrophoresis Unique ability to accelerate customer innovation 37
38 Continued Innovation is essential, because: If you prepare for tomorrow, tomorrow will come. If you don t prepare for tomorrow, tomorrow will come African proverb klaus.lindpaintner@thermofisher.com 38 The world leader in serving science
39 We Enable Our Customers to Make the World 39
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