Innovation mindset drives value creation
Leading to product de-commoditisation and increased EBITDA.
Like many polymer resin producers, this dss+ chemicals client traditionally sold its products to converters as commodities, diminishing the products’ perceived value and forcing the company to compete mostly on price. We applied our innovation framework to shift the culture mindset, with a turnaround in terms of new idea generation and EBITDA from new products.
Challenge
Like many polymer resin producers, this dss+ client traditionally sold its products to converters as commodities, diminishing the products’ perceived value and forcing the company to compete mostly on price. At the same time, the Research & Development team was not focused on filling market needs; rather, it went where the chemistry led.
Our client’s leadership sought guidance to revert these trends, to help the organisation create greater value, differentiation, and opportunities for growth.
dss+ Approach
The dss+ team deployed our Innovation Management Framework, which deep dives into nine elements that can propel or hinder innovation, and builds internal capability to enable a market-focused business.
Thanks to this process, the client discovered potential markets, identified new end-user and manufacturing audiences, and aligned on a shared vision for innovation transformation across the leadership.
As part of the program, the client created a healthy pipeline of high-value, in-demand products, and as a result new ideas are continuously being prototyped, tested and launched.
A collaborative culture was nurtured across the Organisation. Technology, external networks and internal teams aligned along the fresh innovation-driven perspective, for more efficient, on-target outcomes.
Today, this resin producer goes to market with quality materials designed to meet a recognised need, and as a result no longer competes on price alone, but on quality and value.
Impact
x3: EBITDA from new products by shifting to a customer-centric, valueadd innovation culture.
x4: annual product launches
x500: ideas generated each year
x6: ideas entering the pipeline
-50%: time to market thanks to a new fail-fast, market-driven mentality
Overall, the company’ enhanced vision and capability around innovation have allowed it to thrive, even when faced with the challenges of the pandemic.