Innovate-it

Makhteshim Agan
Our Path to Global Leadership
Dec 2012
Makhteshim Agan’s History - Adapting Strategy to Change
It is a story of vision, determination and
success. Growing from a small company
to a global leading player.
Makhteshim Agan’s history
adapting strategy to change
40’s-50’s
 Agan Chemical Manufacturers was founded (1945)
 Makhteshim Chemical Works was founded (1952)
70’s
 Chemistry and technology
80’s
 Building regulatory capabilities and expanding global presence
90’s
 Acquiring and establishing distribution networks in key European
countries and Latin America
 Merging Makhteshim and Agan (1997); public listing (1998)
2000’s
2010now
 Broadening product portfolio through acquisitions
 Expanding & leveraging market access: Latin America,
Europe, US, APAC
 Entering the Non Crop market segments




New organizational structure
MAI WAY project
Transformational merger with ChemChina
Marketing orientation
33
Crop Protection Industry Is Sizeable
Ag Chem industry revenues– 1999-2011
CAGR
$ billion
+2%
51.5
9%
46.1
32.1
4
32.0
38.8
29.9
29.4
4.1
4.2
4.2
31.2
35.4
36.1
4.7
4.9
35.6
5.9
7.1
5.2
4.5
28.1
27.8
25.8
25.2
26.7
1999
2000
2001
2002
2003
Decline
5.9
6.3
5.4
40.5
Sources: Phillips McDougall
44.2
5.7
+7%
-3%
43.7
30.7
31.2
30.4
2004
2005
2006
Recovery
37.9
38.3
2009
2010
45.2
43.5
2011
2013
33.4
2007
2008
Acceleration
Acceleration
4
The seventh largest company in the
overall industry…
2011 Agrochemical sales, $ billion
Large Scale RBC
Off patent
10.2
9.0
0.2**
5.8
4.6
3.6
*2010 results, ** Non-Agro Sales
Source: MAI Analysis
2.9
2.5
2.1*
1.6*
1.6
1.5
1.5
1.0
0.65*
5
MAI’s Global Manufacturing Footprint
Poland (Rokita)
US (Bold-Tifton)
US (Bold-Ocilla)
Spain (Aragro)
US (CSI-Houston)
Italy (Kollant)
South Korea (JK)
Greece (Alfa)
India (Gujarat)
Mexico (Bravo)
Israel (Agan)
Israel (Makhteshim)
Columbia (Proficol)
Brazil (Milenia –
Londrina)
Brazil (Milenia –
Taquari)
Synthesis
Formulation
6
Our Unparalleled
Off-patent Global Footprint
HQ
Production
Plant
Formulation
Plant
Subsidiary
Sales
Sales in over 120 countries
More than 40 subsidiaries in close to 30 countries
7
Business Structure
Chairman
Yang Xingqiang
President & CEO
Erez Vigodman
Deputy CEO
Chen Lichtenstein
Global Finance
Aviram Lahav
Europe
Ignacio Dominguez
Northern
Europe
Souther
Europe
Americas
Shaul Friedland
USA
(Ag)
Brazil
Israel
Global Resources
Eli Abramov
Latin America
Global Products &
Marketing
Yoav Zeif
Canada
APAC, Africa & Israel
Ran Maidan
Environmental
Solutions
Africa
Asia
Pacific
Global HR
Amos Rabin
Global Legal & CSR
Michal Arlosoroff
Global Strategy
Innovation & BI
Dani Harari
Global Corporate
Communication
Rony Patishi-Chillim
Novel Technologies in
Agriculture
Uri Shani
8
Innovation in
MAI
Strategy Division
Dec 2012
MAI Business Innovation
MAI Innovation:
Culture and work
processes which
nurture new
ideas, creativity &
entrepreneurial spirit,
and translate it all into
economic value
Vision: Developing dynamic Innovation*
which supports creating simplicity in agriculture
Culture change
Policy and
framework
preparation
New
resource
allocation
Innovation
personnel
Budget
Managerial
attention
Cultural focus
Advanced
trainings
Structural
changes
Policy
Third party
collaborations
and M&A
Infrastructure building
*Dynamic Innovation: Cumulative innovation which creates new generations of solutions that deliver
business outcomes and high impact on performances.
11
Developing innovation requires
a wide perspective
Sources of
Innovation:
World
Agricultural market
AgChem Market
Suppliers and customers
All employees
Product and
Molecule
development
R&D
Novel
Technologies
leadership
Strategy
Division
leadership
P&M
Division
and Regions
leadership
GR Division
leadership
12
‘The new corporate garage’
Move over entrepreneurs.
Here come the INTRAPRENEURS
HBR Magazine, Sep 2012
The key stages of every
Innovation project in MAI
Identify
MAI
innovation
hubs
Develop
ideas
into
programs
Evaluate
value of
innovation
activities
Implement
across
MAI
Unlock MAI’s internal potential
Innovation Channels Across MAI
Identify
Develop
Evaluate
Implement
Innovation
Challenge
Innovation
Catalysts
Differentiation
Through Innovation
Ambassadors of
Innovation
Innovate-it
MAI Passion for
Innovation
Innovation in subsidiaries
Innovation Catalysts
Innovation Challenge
Innovate-It
Guidance & support of Strategy Division at every step
Launch
Develop & Evaluate:
Build Program
2012
Actual
Results
2013
Implement:
6 Months
Identify:
Select Key Issue
Agan LM
MABENO
Innovation challenge tool box
Innovation Challenge
Innovation Catalysts
Innovation and
creative training
Benchmarking:
Cross-reference in region
Market
Research
BizMine
Innovate-It
Best Practices
Internal & External
External support
& consultants
2013: Deeper penetration and
improved program
Innovation Challenge
Innovation Catalysts
Innovate-It
Local market
Makhteshim
MCW Ramat
Hovav
India
Australia
MANA
(Canada and
USA)
Romania
Improvements from 2013:
• Focusing on a theme prior to the workshop (rather than choosing one during
the workshop)
• More focus on the implementation stage than on the ideation activity
• Better coordination with other divisions and regions, already from the
planning stage
Innovation Catalysts
Training Innovation ‘go-to’ persons in each subsidiary
Innovation Challenge
|
Americas
Innovation Catalysts
|
Innovate-It
2012: Americas Innovation catalysts’
community was launched successfully
Innovation Challenge
Innovation Catalysts
Innovate-It
10 projects were
launched, after
being approved
by the Americas
region
management
Implementation
of projects
planned for 2013
http://connect.ma-industries.com/SiteAssets/Home.aspx
2013: Launching Innovation Catalysts
program in APAC and Europe
Innovation Challenge
APAC region (Singapore)
H1 2013
Innovation Catalysts
Innovate-It
Europe region (Zurich)
H2 2013
Innovate It: MAI’s outstanding
intrapreneurs
Innovation Challenge
Innovation Catalysts
Innovate-It
Innovate-It clip: http://connect.ma-industries.com/SitePages/InnovateIt%e2%80%8b.aspx
Creating a cultural change
through Innovate-It program
23
2013: Two additional rounds of
Application process
Innovation Challenge
Innovation Catalysts
Innovate-It
Strategy Division has created a structured process for Innovation
Champions to present their Innovation and to expose their ideas
Vision: Developing dynamic Innovation*
which supports creating simplicity in agriculture
Cultural Innovation channels
Across MAI: 2012-2013
Innovation impact on MAI:
Long term
Innovation
personnel
Budget
Managerial
attention
Cultural focus
Advanced
trainings
Structural
changes
Policy
Third party
collaborations
and M&A
*Dynamic Innovation: Cumulative innovation which creates new generations of solutions that deliver
business outcomes and high impact on performances.
25