Transcript DuPont Product/Presentation Title

Process Safety Management
Marketing Plan
Updated: August 17, 2011
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
2
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
3
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
Safety Resources Strategic Sweet Spot
Behavior-based
management &
system
consulting
Compliance,
Audit
Providers,
Basic skillbased tools
Operations
Risk Consulting
(PSM)
Unique DuPont position:
• Solutions combine PSM
expertise with behaviorbased, “culture-oriented”
approaches and basic skill
development
• Further differentiated by
our real-world, “owneroperator” experience
4
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
Safety Resources Strategy Summary
To grow our safety business by 2016 (to $250mm), by offering service solutions to business clients to create outstanding value in
reducing risk and saving lives and livelihoods. We will achieve this by aligning with emerging market and industry needs,
leveraging the power of the DuPont brand in safety, building upon our owner-operator experience and through leading edge safety
research.
Goals and
Aspirations
Grow from
$138mm in
2010 to
$250mm in
2016
Where to
Compete
DuPont Safety
Brand
Employee,
Process, and
Contractor
Safety
Accelerate
Growth in
Emerging
Regions
Thought and
Innovation
leader
How to Compete
Energy,
Construction,
Mass Trans,
Metal / Chemical
Processing
Capabilities To Win
Develop value propositions for specific market segments:
- Mature high performers
- Growing mid market players in emerging markets
Develop “sustain” phase offering
Develop offerings to support changing workforce
Thought
Leadership at
leading edge of
safety development
Fully Integrated
L&D support
program
Leader in
integrated PSM
Management
World class
methodologies
Merge training production capability into strategic
workforce capability development program
Develop in-house capability in
Talent acquisition
Learning & Development of client-facing teams
Workforce collaboration through knowledge management
Acquire deeper knowledge and content skills sets in PSM
disciplines
Develop change management capabilities and model
Develop validated field assessment techniques
Integrate modern instructional design into consulting
methods: coaching & facilitation
Acquire project management and contractor management
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experience and skills
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PSM Strategy
Strategy Statement:
To more than double the size of the PSM/ORM practice by 2014 (to $75mm), by
offering service solutions to business clients to assist them in managing their
operational risk to prevent process related injuries and incidents.
We will achieve this by leveraging the power of the DuPont brand in safety, building
upon our owner-operator experience in implementing PSM and applying our proven
management system and set of tools, technologies, training, and practices.
6
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PSM will drive 70% of DSR growth between 2011 and 2016
DSR 2011-2016 Revenue Objective ($MM)
250
237
250
13
67
170
153
17
2011
’11-’16 CAGR
Employee Safety
3%
Process Safety
25%
Contractor Safety
16%
2016
7
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
8
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
High-risk process industries will continue to drive PSM growth
Key Industries & Regions
Trends
• Increasing corporate
focus on risk mitigation
• Continued tightening of
regulations/enforcement
eg. OSHA NEP
program
• Greater societal
implications for major
incidents – e.g. Texas
City, Deepwater
Horizon
• Developing world is
further behind in
regulation, but
mitigation of
catastrophic failures
and asset losses are
often of primary concern
(over employee safety)
Oil and Gas,
Chemicals
• Support existing
customers (RIL,
Suncor, PRSI, CCRL,
CNPC, Husky, GALP,
Pemex, etc.)
• Increase emphasis on
Upstream O&G
• Focus on national oil
companies, growth
companies with
proven reserves, and
JV’s
• Serve market created
by US OSHA’s
Chemicals National
Emphasis Program
Non-traditional, high
risk process
industries
Regions with plentiful
resources and where there
is new process industry
investment
• Mining and Metals
Processing
• In A/P: India, China,
Indonesia, Malaysia and
Vietnam
• Power Generation
• In EMEA: Central
Europe (Caspian Basin,
Poland, etc.), Russia and
CIS, Middle East (AbuDhabi, Kuwait, Saudi
Arabia and Qatar),
Pakistan and SubSaharan Africa
• In LA: Mexico and Brazil
• In USC: Canada
9
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The addressable competitive market for Safety Consulting is
$3.2B with PSM representing about $1.9B
• Detailed Market Research by KIA in
Q1 2011 has identified substantially
greater revenue opportunity in the
PSM space
DSR Addressable Market
($3.2B)
$1.23bn
Employee &
Contractor
PSM
$1.93bn
• Total safety consulting ‘addressable’
market remains even larger as many
potential clients “do-it-themselves”
• Addressable competitive market now
estimated at $3.2bn – with PSM
representing nearly 2/3
Source: Kennedy Information Advisors
10
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Detailed Analysis by KIA of the PSM Addressable Market has
identified new players in both PSM and overall Safety Consulting
Comprehensive List of Firms
PSM Revenue
Employee & Contractor Safety
Total
DNV
$
105.0
$
56.0
$
161.0
DuPont
$
24.0
$
114.0
$
138.0
ERM (Environmental Resources Management)
$
61.0
$
74.0
$
135.0
Bechtel
$
42.0
$
82.0
$
124.0
ABS Consulting
$
90.0
$
33.0
$
123.0
Shell Global Solutions
$
85.3
$
23.5
$
108.8
Bureau Veritas
$
85.0
$
20.3
$
105.3
Deloitte
$
51.0
$
47.4
$
98.4
Jacobs Engineering
$
50.0
$
45.0
$
95.0
ABB
$
87.0
$
-
$
87.0
Aon Consulting
$
30.0
$
55.0
$
85.0
Fluor
$
19.0
$
60.0
$
79.0
Siemens
$
35.0
$
40.0
$
75.0
Hima Paul Hildebrandt GmbH
$
45.0
$
25.0
$
70.0
Allianz
$
60.0
$
60.0
Source: Kennedy Information Advisors
Emphasis on Contractor/Construction Safety & embedded within project work
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11
Competitive Insights
1. Of Top 15 overall safety consulting players, DuPont is 2nd largest, but 14th largest in
PSM revenues
2. None of the specialist behavioral safety competitors – BST, JMJ etc – make the top
15
3. Significant number of EPC players – revenues estimated for services performed
within larger major projects. Aligns with our CSM/Cap Effectiveness practice
4. In PSM, insurers are significant players, one, Aon has made a specific strategic move
to provide consulting support for PSM improvement. Others, Allianz, Marsh, Liberty
Mutual etc appear more opportunistic
5. DuPont, together with Shell, remain as one of the few owner operators, but the
acquisition of CoreMedia by Caterpillar – although small – validates the attractiveness
of the service offer
12
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
13
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PSM Services Continuum
Services Business
Competency
What To Do
“Assisting clients
manage their
operational risk to
prevent process
related injuries and
incidents.”
Process
Innovation /
Renovation
Focus Areas
1.Integrated PSM Mgt
Systems
2.Operational Discipline
3.PSM Performance
Management
 Best Practices
Workshops
 Assessments /
Benchmarks
 Corporate PSM
Strategy
Development
Help Build
Help Run
Plan / Design /
Development
Operations
Support &
Implementation
 Governance and
Organizational
Design
 PSM Design
 Facilitate PSM
Standards/Procedur
es/Processes
 Organizational
Development
 Expert Skills
Augmentation
 Delivery Execution
Partnering
Help Sustain
Continuous
Improvement
 PSM Audits
 Operating
Discipline
Assessments
 Learning and
Development
curriculum
 Asset PSM
Improvement Plan
Development
Decision Makers
VP Level: Ops, Plant
Mgr, COO
Influencers
 Technology Mgr
 Engineering Mgr
 Dir of Safety or Op
Risk Mgt
14
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PSM Offering Statement
The Process Safety Management (PSM) offering from DuPont
Sustainable Solutions is a proven, multifaceted and comprehensive
process that helps organizations manage their operational risk to:
Prevent process-related injuries and incidents
Sustain right-to-operate status and positive reputation
among all stakeholders
Achieve sustainable improvements in business continuity,
asset productivity
15
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PSM Value Proposition
Promise: A proven managing system to enable sustainable improvements
in process safety and to avoid loss of life, property, business and
environmental image
Target Audience:
• Decision Makers-COO & VP level in Ops, Plant Management
• Decision Influencers: Dir of Safety or ORM, Technical and Engineering
Management
Differentiation:
• Owners and operators of high hazard processes all over the world with
200+ years of experience
• A complete, integrated management system for PSM at corporate and site
levels
• Technical knowledge and content, linking behavioral elements of
employee safety as a foundation for effective PSM
16
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PSM Value Proposition – cont.
Reasons to Believe:
• Extensive internal PSM expertise recognized by Industry recognition
• Proven results in delivering improved PSM performance with external
clients
• Routine interactions and applied experience with senior leadership on
PSM systems, performance and continuous improvement
17
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Strengths and Unique Attributes
• A manufacturing company and brand recognized as a leader in Safety with specific
PSM responsibilities, operating systems and leadership practices
• Extensive internal PSM technical expertise, experience, and systems in developing,
maintaining and improving PSM
•
Extensive PSM management and technical consulting experience and capabilities
with external clients
• Routine interactions and applied experience with senior leadership on PSM systems,
performance and continuous improvement – translational capability to engage leaders
and connect to PSM
• Ability to engage with and influence PSM within other manufacturing companies across
the supply chain (raw materials , products, distribution)
• Actual experience in PSM training and mentoring for executive leaders (internal and
external clients)
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Capabilities to win
• DuPont Brand and Safety Leadership directly transfers to PSM
• Knowledge and ability to apply tools of PSM; essential for interpretation of PSM
Studies results and configuration of Software Solutions
• Ability to articulate the simplified, de-mystified value proposition
• Gifted, capable, experienced, practical people (delivery) MI, PHA,
• Knowledge sharing and collaboration; key to introduction of new PSM Training Offering
• Solutions Design; essential to move client from assessment phase to envision, plan
and implementation phases which brings a ~20X revenue multiplier
• Regional capabilities: ME (Weak), CIS (Weak), Brazil and Mexico (Med), India and
China (Strong), Canada, US, (Strong) W. Europe (Med)
19
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
20
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Segmentation
Market Segment Selection Criteria
• High risk industries with focus on Major Incident prevention
• Significant operations: equipment, people sensitive and capital intensive
• Growing areas with money to spend
• PSM applicability
• Ability for DuPont to capture more share due to our combination of content, approach
and owner-operator experience
21
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PSM/ORM Industry Potential & Development
Relative
Mkt Attractiveness
Hi
O&G
Healthcare
Utilities
Phase I Development
Rail/Mass Trans
Metals Processing
Phase II
Food
Chemicals
Mining (sub-s)
Mining (open)
Hospitality
Lo
Lo
Relative Business Strength
Hi
22
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4 Target Industries with significant operational risk from PSM-type
incidents
Applicability of Potential Offerings by Industry
Leadership and
Management
Systems
Training
PSM Software
Services
PSM Studies /
Analytics
Oil and Gas
H
H
H
H
Chemicals
H
H
H
H
Metals & Mining
H
H
M
M
Power
Generation
M
H
M
L
23
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Target Market Segments
Target
segment
Description
Needs
Rationale
Chemicals
Core segment, High hazardous,
small & med-size players,
Understand concepts but need
support on “how to do it” and
establish procedures to protect
from loss of expertise due to
aging workforce
Core business, recognized leader, can leverage existing
relationships, brand strength, previous work in WPS to extend to
PSM
Oil and GasUpstream and
Downstream
Core segment, small & Med
independents, NOCs, in
developing regions where
reserves exist and investment
occurring (India, China, Russia,
ME)
Understand concepts but need
support on “how to do it”, need to
establish operating discipline
Extensive client experience to be leveraged, strong DuPont
brand credibility, no established PSM management system, less
regulated but wanting to play in global economy so PSM is
critical to growth
Power
Generation
New growth area – power
generation from traditional
sources – primary coal fired
thermal power plants
Understand concepts but need
support on “how to do it”, need to
establish operating discipline,
need help to adapt PSM
principles to specific Industry
dynamics
PSM applicability and meets other selection criteria as noted, can
leverage existing relationships, brand strength, previous work in
WPS to extend to PSM
Metals
Processing
New Growth Area
Understand concepts but need
support on “how to do it”, need to
establish operating discipline,
need help to adapt PSM
principles to specific Industry
dynamics
PSM applicability and meets other selection criteria as noted, can
leverage existing relationships, brand strength, previous work in
WPS to extend to PSM
24
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Segment Strategic Intent and Goals
Segment
Where we are
Strategic Intent
Where we want to be
Value Proposition
Chemicals
Recognized PSM
SME, growing
awareness of
commercial offering
(“I didn’t know
DuPont did this!”)
Build off our client successes, leverage
the brand and our existing relationships
in Safety, establish position as Thought
Leader
Established as a
player in PSM
consulting
Tried and true, operating
discipline to sustain
improvements
Oil and Gas
Recognized PSM
SME, growing
awareness of
commercial offering
(“I didn’t know
DuPont did this!”)
Build off our client successes, leverage
the brand and our existing relationships
in Safety, establish position as Thought
Leader
Established as a
player in PSM
consulting
Tried and true, operating
discipline to sustain
improvements
Power
Generation
Not recognized as
PSM/ORM expert for
Power Generation.
Demonstrate ability to apply PSM
principles to Power Generation specific
Ops Risk management needs, leverage
Thought Leader position in Chem and
O&G
Codified, adapted
approach, ready to
scale. Recognized as
credible player in
Power Generation
Tried and true principles
adapted to clients’
specific industry dynamic
and issues
Metals
Processing
Recognized PSM
expert, opportunistic
engagements,
handful of “first of
kinds”
Demonstrate ability to apply PSM
principles to needs of Metals Processing
Ops Risk management, leverage
Thought Leader position in Chem and
O&G
Codified, adapted
approach, ready to
scale. Recognized as
credible player in Rail
Tried and true principles
adapted to clients’
specific industry dynamic
and issues
25
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
26
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
Key Market Issues
1. Lack of awareness that we have an offering in this area
2. DuPont's comprehensive approach is viewed as a lack of understanding of the client’s
unique situation
• Need to adapt our approach to the industry and client strategy (where the client is
in the journey)
• Most Customers lack the resources to integrate a “DuPont approach”
• Need to start with most urgent needs
3. Perceived to have missed an opportunity after the BP Texas City incident
• ...many companies came forward with their capabilities to help prevent incidents in
future, DuPont was noticeably absent
4. Different business challenge in process- (Chemicals, O&G) vs. non-process (Transit)
industries
• In regulated industries, PSM is an established discipline, so our goal is to establish
awareness of DSS as a player
• In non-regulated industries, there is no established discipline, so our goal is to first
create awareness about “low frequency, high impact” incidents and at the same
time, position DSS as a player
27
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
28
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
PSM Objectives/Marketing Strategies & Tactics
Objectives
•
•
Strategies
Tactics
Create awareness of PSM/ORM
Offering
1. Print advertisements & articles in Trade
Publications
2. Online content (DSS Website)
3. Search Engine Optimization
4. Presence at events
Attain $73 mn
in annual
revenue by
2014
Develop market through client
involvement and education
1.
2.
3.
4.
Speaking Engagements
White papers
Workshops
Case Studies
Establish DSS
as a Thought
Leader in
PSM/ORM
Position offering as flexible and
adaptable to specific segment
and client needs
1.
2.
3.
4.
Create global message platform
Develop collateral
Develop high interest offerings
Create sales tools
Support growth in new industry
segments and regions
1.
2.
3.
4.
Develop Industry specific messaging
Apply needs based segmentation
Support regional execution
Gather regional insights
29
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.