The Electrolux Group Jan Brockmann Chief Technology Officer Capital Markets Day Charlotte, November 20, 2014
Overview • Innovation strategy • Modularization • Global Product Innovation • The Internet of Things: Communicating with consumers throughout a product’s lifecycle 2
Innovation is a key part of our strategy Operational Innovation excellence Profitable growth People & Leadership 3
Innovation cornerstones • Price premium, • Price value/Gross profit premium/Qualifying in • 70% preference rule segment • Product/ Accessories & • Alignment with purpose Consumables/Services • Leverage our heritage • Connectivity Consumer • Open Innovation Value Sustainability • Brands/ Adjacencies Proposition Modularization Cost & Quality • Global Operations • Robustness • Basic product • Productivity expectations • Speed to market • Continuous • Customization of improvement platforms 4
Three key targets 2015 Variant and cost reduction through modularization Reduce the time Increase investment in from innovation innovation to launch by -20% -30% +50% 5
Investment in Innovation; R&D spend 2010 2015 SEK 2.1bn SEK~3.2bn 6
More innovation and world-class quality Warranty and R&D spend in % of net sales – Electrolux Group % 3.0 3.0 Warranty 2.5 2.4 2.4 2.0 R&D Spend 1.9 1.5 2009 2014 2015 Forecast 7
23 Best in test winners and 32 Design awards 8
Overview • Innovation strategy • Modularization • Global Product Innovation • The Internet of Things: Communicating with consumers throughout a product’s lifecycle 9
Module 1.0 plans completed- execution ongoing Food preparation Food preservation Dish care Fabric care Accessories & Consumables Cross Electrics & Electronics product line Packaging Product line Door specific, but similar Body Cavity Interior Tub Drive train Cooling system Internal air flow s. Basket/Racks Hydraulics Hob Cooling system Hydraulics/Filtration Wash group Product line specific Lid Ice and water Spray system Work top Compartment Heat pump Control II Drying group 11 module areas 9 module areas 9 module areas 11 module areas 10
Modularization 1.0 to 2.0 From cost saving to market growth and market agility MODULARIZATION 1.0 MODULARIZATION 2.0 Market Product Manufacturing Product Category Product Platform Performance Parts Module Module Area IE Front loaded Architecture Manufacturing Step Washing machine PRODUCT COST SAVINGS (Focus DM) PRODUCT COST SAVINGS (DM and DL) Automation, Design for Automation and COMPLEXITY REDUCTION Assembly INNOVATION ENHANCEMENT 11
Movie Modularization
Modularization creates a new efficient way to configure products Customer Variants Module Variants Performance steps Cavity Control Cooling Compartment Hob Door panel system Induction Cooled Pyro BG Cooled door Storage Fan Active cooling Warmer Radiant Full glass BG + F.Ctrl No cooling Standard Solid Steel inner F.Ctrl Grill Interfaces Gas Pyro No compartment Gas Integrated control Gas Fan Gas Standard
Modularization creates a new efficient way to configure products Control Cooling Cavity Hob Door Compartment panel system Induction Pyro Cooled BG Cooled door Storage Fan Active cooling Warmer Radiant Full glass BG + F.Ctrl No cooling Standard Solid Steel inner F.Ctrl Grill Gas Pyro No compartment Gas Integrated control Gas Fan Gas Standard
Modularization improves time-to- market and capital efficiency Examples: Top- and bottom freezers, global Product development Lead project Time Capex 100% 100% Thailand Module development Product development 2 nd wave Time Capex Latin America 85 % 80% Product development 3 rd wave Time Capex Thailand II, 80 % 70% (North America) 15
Benefit from modularization (direct cost only) Modularization 2.0 Modularization 1.0 SEK 1.5bn Direct material Direct material and labor Identified Realized Ongoing Potential 16
Overview • Innovation strategy • Modularization • Global Product Innovation • The Internet of Things: Communicating with consumers throughout a product’s lifecycle 17
Rapid global product development in Fabric Care Launch Launch Launch planned planned EU/MEA NA CHINA Launch potential SEA / ANZ Launch coming LA >2 MILLION UNITS DEVELOPED IN 3 YEARS IN 7 MARKET REGIONS Mass front load washing machines and dryers with same product architecture, same manufacturing principles, same modular exterior and interior concepts, differentiated 18 dimensions, design elements and offer line-up
Consumer relevant innovation in Mass+ Laundry Our solution – New Electrolux Group Mass range High capacity Save and Manage Ease of use / time simplicity 30’ @ 30 ° wash Intuitive “step by step” A+++ Up to 10kg load user interface XXL door Quick wash option XXL drum 20 min refresh Delay start, Finish in, Finish at 19
Filling a market space by leveraging our professional heritage Professional laundry Domestic laundry Semi-Professional laundry market Customers : • Small hotels and B&B • Restaurants • Small cleaning and laundry companies Life cycles 30,000 Life cycles 2,500 Low capacity Cost competitive High cost Life cycles 7,500
Global product architectures in Food Preservation- Fuel growth / innovation Launch Launch step 2 coming Launch EMEA NA CHINA Launch THAI/APAC Launched/ Launch step 2 coming BRA 5 MILLION UNITS DEVELOPED IN 3 YEARS IN ALL REGIONS 21 Bottom- and Top Freezers with same product architecture, same manufacturing principles, same modular exterior and interior concepts, differentiated dimensions, design and offer line-up
Flexdoor execution AEG premium EMEA
Flexdoor execution Frigidaire mass NA at retail
Overview • Innovation strategy • Modularization • Global Product Innovation • The Internet of Things: Communicating with consumers throughout a product’s lifecycle 24
Lifetime business through direct dialogue using connected products Connected products – Todays` appliance business structure sales and aftersales integrated Sale of products Aftermarket sales (service, consumables) Net sales Net sales Net sales Gross margin Gross margin Gross margin % of registered % of registered % of registered consumers consumers consumers 0 50 100 0 100 0 50 100 Relatively low incentive for product Registration prerequisite Service calls, direct selling registration for operation 25
NEW CONNECTED OVEN
Connectivity demonstration
Our connectivity strategy 3 PHASES OF CONNECTIVITY DEVELOPMENT Electrolux 2015/2016 main products Single solutions for single appliances We will integrate with these solutions One ecosystem but not launch an Electrolux solution per brand/company Not Electrolux Preference + + Open standards connecting We expect open standards to prevail everything + Electrolux Approach
We want to communicate with the multiple connected home devices Image courtesy of the AllSeen Alliance 29
Electrolux premier member in the biggest smart home alliance + Premier Members Community Members 30
Wrap-up Investment in innovation leads to • Expansion of gross margins • More products consumers prefer – differentiated by brand • Opening up of new business models – connected products Operational excellence will be accelerated through Modularization 2.0 Electrolux builds also on strong alliances to lead megatrends in the industry - AllSeen => Strong glocal innovation and operations model unmatched by any competitor in the industry 31
Recommend
More recommend
