Role of Effective Collaboration & Partnering in Technology Development – a Case Study

Ibrahim A. Abba Research & Development Center

Saudi Aramco

GPCA Research & Innovation Summit | Thursday March 13, 2014

© Copyright 2014, Saudi Aramco. All rights reserved.

"Companies cannot grow through cost reduction and reengineering alone... …Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results”

…Davila & Colleagues

Collaboration is a process where multiple parts of an organization or partnerships work together toward a set of common goals

Progressive view of collaboration-> knowledge management centric to innovative centric

Collective intelligence trusted networks input diversity Hard data & knowledge strong connection collaboration weak connection collaboration

What do we know? what does my community know? can anybody help here?

[Ref: Deloitte Report]

How do you decide on an effective

collaboration engagement?

Multiple models…

…to be successful, should consider these key elements

Partner long-term with invested human resources from all and access available innovation capacity through academia, consortia, etc,

•Technical expertise

•Resource development or seconding

•Technology and knowledge transfer

•Talent acquisition

• Sustained relationships

•National agenda

• Strategic fit

•Readiness to collaborate

•Willingness to form local multilateral relations

•Network value

•Proximity to markets

•Best in class in field(s) of interest

•Multiple capabilities

• IP sharing

• Strong academic/admin structure

•Commercialization

Structural Capital

Relational Capital

Human Capital

“Shared Aspirations”

…Realize value of synergy thr’…

Through careful apriori prioritization and positioning of research portfolio

R&D Leader

• Lead domain

globally and

allocate

significant in-

house resources

R&D Catalyst

• Catalyze global

R&D via active

management

and funding

Buyer

• Acquire

technologies

R&D Partner

• Engage in

research

together with

other partners

("one among

many")

High

Strategic

impact

Low

Low High

Requirement / ability to differentiate

Strategic impact

• Economic benefit

• Increased reputation

• Contribution to National Agenda

Requirement to differentiate

• Scarcity of R&D/Technology

availability

• Uniqueness

• Company expertise in domain

Collaboration/partnership intensity can vary - R&D domain role directionally determines form of partnership

Maximum

Propylene

Yield

Reaction

Conditions

Proprietary

Catalyst

Unique

Reaction

System

Case study: High severity fluid catalytic cracking technology development

HS-FCCTM

Worldwide partnership in innovation with invested human capital from all

0.1 BPSD

pilot at KFUPM

Kingdom of Saudi

Arabia

1996

-2001

Technology Development Progression Academia played critical role in establishing foundation

0.1 BPSD

pilot at KFUPM

Saudi Arabia

1996

-2001

30 BPSD

Demonstration plant

in Ras Tanura, Saudi Arabia

2001

-2004

Technology Development Progression Demonstrated by industrial partners

0.1 BPSD

pilot at KFUPM

Saudi Arabia

1996

-2001

30 BPSD

Demonstration plant

in Ras Tanura, Saudi Arabia

2001

-2004

3 000 BPSD

Semi-commercial unit

in Mizushima, Japan

2007

- 2013(14)

Technology Development Progression Scaled-up to semi-commercial size by industrial partners

0.1 BPSD

pilot at KFUPM

Saudi Arabia

1996

-2001

30 BPSD

Demonstration plant

in Ras Tanura, KSA

2001

-2004

3 000 BPSD

Semi-commercial unit

in Mizushima, Japan

2007

- 2013(14)

2011-

2012

30 000 BPSD

Commercial unit

preliminary evaluation

Courtesy of

Chiyoda

Corporation

Ch

iyo

da

Technology Development Progression Completed preliminary commercial evaluation

0.1 BPSD

Pilot at KFUPM

Saudi Arabia

1996

-2001

30 BPSD

Demonstration plant

in Ras Tanura, KSA

2001

-2004

3 000 BPSD

Semi-commercial unit

in Mizushima, Japan

2007

- 2013(14)

2011-

2012

~ 30 000 BPSD

Commercial unit

preliminary evaluation

x300 X100 X10

Ch

iyo

da

FEED underway for

commercialization

Technology Development Progression FEED underway for commercialization

Propylene Yield %wt

HS-FCC

HS-FCC, a new member to the family

High-olefins catalytic cracking technologies

DCC

Resid to Propylene

High Olefins FCC

Heavy Resid Light Resid VGO High H2 content VGO

25

23

21

19

17

15

13

11

9

HSFCC technology demonstrated over a wide range of feedstock

HS-FCC technology presents opportunity for refining-petrochemicals integration

HS-FCC™

Steam Cracker

FEED

Polymer Grade

Ethylene

Polymer Grade

Propylene

LCO

Slurry / CLO

Fractionator & Gas Recovery

C3

Splitter

HCN

C2-

LCN Recycle

C4’s

C8-C12 Olefins

C4 Paraffin-rich Cut

C3 C4 LPG Treatment

& Separation

~

~

C4 SHU

Propane

Aromatics Complex ParamaX

Hydrogen

Paraxylene

Benzene

Orthoxylene

HS-FCC Unit Petrochemical Integration

Main Products

PolynaphthaTM

Naphtha Splitter

Gas Purification

FlexEne™

Concluding Remarks

Identify individual organizational strengths that can yield synergy and leverage available capital and human resources.

Set targets that are common to each organizations interest yet are noncompeting.

Establish clear relationship governance model – committee, task force, periodic dedicated meetings, enabling:

knowledge and know-how transfer, frame work on IPRs, etc

Crowd source – targeted technology quests, online, etc.

…the three Ts

Three important success factors for delivering successful R&D

Teaming

Technology

Talent

…the three Ts

Role of Effective Collaboration & Partnering in Technology Development – a Case Study

Ibrahim A. Abba Research & Development Center

Saudi Aramco

GPCA Research & Innovation Summit | Thursday March 13, 2014