Managing Automation - September 2007 - (Page 38)

ESSIVE MANUF PROGR IGH ACHIEVERACTURING H 2007 GLATFELTER In a major transformation of its product development process, the specialty paper producer now derives a majority of its sales from new products. INNOVATION MASTERY B Y B E T H S TA C K P O L E company facts or more than 100 years, Glatfelter comfortably enjoyed its niche as a small, regional supplier of commodity paper products, holding court east of the Mississippi. With the late 1990s came the era of globalization and specialization, however, and Glatfelter’s tried-and true-formula — like that of many small paper mills — came under fire as larger companies began to trample on its terrain. Glatfelter cast a hard look at its options. CEO George H. Glatfelter and the board eventually settled on a sur vival plan to reinvent Glatfelter as a specialty paper provider and join the others on the road to globalization. In GLATFELTER 1998, Glatfelter acquired Germany-based Schoeller & TOTAL REVENUE/EMPLOYEES: $968.4 million (2006)/3,800 employees Hoesch GmbH & Co., which expanded the company’s opLOCATION: York, PA erations into Europe and the INDUSTRY: Specialty papers and engineered products specialty paper market. The CEO: George H. Glatfelter deal also set in motion a maPROJECT LEADER: Scott Mingus (for new product jor transformation ef for t, development portion) dubbed CLEAR, that includPROJECT NAME: CLEAR (The “A” stands for: ed an overhaul of Glatfelter’s Accelerate New Product Development as Primary new product development Engine for Growth) (NPD) processes in a quest CORE TECHNOLOGIES USED IN PROJECT: to facilitate growth. Sopheon Accolade Glatfelter’s accomplishROI/BUSINESS BENEFIT: By transforming its new ments in this transformation product development process, Glatfelter now derives effort have earned the com53% of its total net sales, on average, from new products. In 2006, the company generated more than $500 pany the High Achiever million in sales from new products out of total sales of award in Innovation Mastery nearly $1 billion. The company has also achieved a 25% in Managing Automation’s reduction in the average time required to get a new 2007 Progressive Manufacproduct to market and a 55% reduction in the number turing awards program. of new product failures. “Companies with equip- ment of our size were going out of business trying to compete with the big boys,” says Scott Mingus, Glatfelter’s global director of product development, who came on board in July 2001 to lead the “A” piece of CLEAR, which stands for “Accelerate new product development as a primary engine for growth.” “Faced with commoditization of our core product lines and declining business in our traditional markets, we began to rethink aspects of our research and development strategies and practices,” he says. “It was apparent that long-term growth and profitability would depend on creating new, commercially viable products with enduring customer appeal.” To pull off its metamorphosis, Glatfelter had to get far more aggressive about inventing new grades of paper. The company had historically not prioritized innovation and product development, having only a handful of sales and technical folks focused on the problem. In addition, product development processes were not standardized; rather, each business unit ran its own effort, which resulted in little cross-pollination of ideas and even fewer new product introductions — typically only one or two per quarter. In fact, at the time, new products accounted for only 10% to 15% of Glatfelter’s portfolio of paper grades — not a suitable benchmark for a company looking to define itself in the vanguard of specialty paper providers. “Too few people in the company were involved in new product development; a couple of scientists and a few sales guys drove it,” Mingus says. “In reality, we needed the company’s operations, finance, purchasing, and senior leadership — along with the technical and sales people — involved in new product development. We needed to make it a business function, not a technical function.” ma September 38 2007

Table of Contents Feed for the Digital Edition of Managing Automation - September 2007

Contents Take 1 Europe’s Automation Chiefs Upbeat on ’08 Business Prospects Vendor Coalition Pushes Human Element of SOA Wireless: Users Still Approaching with Caution One Year Later, IBM Shows Plan for MRO’s Maximo Study: More Work Needed to Lure Next-Gen Talent Executive Q&A Notes Cover Story: 2008 Companies to Watch Special Report: The 2007 Progressive Manufacturing High Achievers Progressive Manufacturer of the Year Business Model Mastery Innovation Mastery Customer Mastery Supply Network Mastery Data & Integration Mastery Education & Training Mastery Operational Excellence Mastery Leadership Mastery Transformation: Orchestrating the Multi-Tier Supply Network Integration: The Timeless Quest for Accurate Data Industries: Maintenance No Longer on Schedule Product Scan Advertiser Index Next

Managing Automation - September 2007

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