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The heat of innovation: Strix plans for global growth(From:http://www.efqm.org/en/newsletter/).
July, 2010
For the past thirty years, Strix has benefited from strong margins and good sales growth, based on its technological leadership and close customer relationships. The company has taken great care of its intellectual property rights: extending and defending patents on its inventions and careful management of licensing agreements around the world. In a recent legal case early in 2010, Strix made history by winning a patent infringement case against two local Chinese companies in a Beijing intermediate court. This decision was applauded by commentators outside China, many of whom share the opinion of the CEO of Strix, Paul Hussey, that the case could mark the beginning of a new era in business relationships with China.
“We protect our intellectual property vigorously and, as a matter of principle, will fight for it around the world. That’s not just about defending our own business: it is also a powerful signal to our customers that we protect the technology they depend on, and have licensed from us, to ensure that their brands remain distinct.”
Innovation is now the centre piece of Strix’ strategy for renewed growth.
“When you have more than 50% share of any market, it is going to be increasingly expensive to gain additional percentage points of share.”
“Back in 2008 my management team and I decided to focus the company’s energy toward growth in new product markets. There was a large and under-utilised potential for innovation within the company: we had many great ideas, engineering competence and access to the development teams at our major customers. Rather than restrict our energy to serving the thermo-electrical control business within one segment – principally electric kettles – we could apply our know-how to other segments which could benefit from similar technologies. Worldwide sales of electric kettles (a growing business itself, particularly in markets like the USA and China) represents about 75 million units a year. By considering how we can serve markets such as steam irons, pressure cookers, hot water dispensers and coffee makers, we increase our potential market to around 550 million units a year”.
The company defined three levels of innovation, each representing a greater level of investment in research and development and associated with higher risk:
“Heartland” – technologies and markets close to what the company does today, but where a breakthrough in performance can be achieved either in terms of cost, speed or size.
“Adjacencies” – new markets where Strix technology can provide a significant improvement in performance – for instance in steam cookers, or irons.
“Disruptive” – where innovations from Strix can lead to radical new ways in which a product is used, opening up new market potential for Strix’ OEM customers.
Instigated only two years ago, the Strix ‘Ideas to Innovation’ (or ‘i2i’) programme is generating an increasing number of new products. Designed to scout both internally and externally for sources of profitable innovation, the i2i programme consists of a series of rigorous stage gates through which ideas must pass before they are approved for investment and further development. In 2008, only ten ideas were passed through the programme. In 2009, 129 ideas entered the i2i pipeline, but only nine of these received funding. At the current rate, 2010 will surpass 2009.
“We partner with our customers on determining attractive new ideas, and to some extent with our suppliers. We also finance some research projects at universities and competitions at business schools. But the majority of these ideas come from our own people.
Of our total non-manufacturing staff of 250 about 75 of these are engaged in development activities, such as R&D and marketing. It’s a big commitment for a company of our size.”
“In our 4 step development process, we do most of the R&D ourselves, before passing to a market test with mock-ups of the proposed new product. In the third stage we test feasibility of manufacturing and commercialisation. Finally we evaluate the most appropriate partners with whom to take it to market. 93% of ideas, based on our 2009 experience, don’t make it all the way through to market.”
Entering the recession in 2008 in a strong and stable position, Strix is now firmly on the path to growth, driven by the potential of the new markets it is addressing:
“I would say that for many businesses one of the biggest risks is complacency. Even in a business like ours, with a distinct core technology, changes in customer needs can happen quite dramatically and potentially threaten the survival of the company. Strix is somewhat exceptional in adopting change before we are forced to do so.
One of our core strengths has always been in capturing value through our development, patenting and licensing processes. Added to this, we are now improving our innovative capacity: stepping up our value creation.”
Water filter brand Aqua Optima has partnered with The One Foundation to launch a range of One Water fridge jugs and long life water filter packs.
July 1, 2010
When consumers buy an Aqua Optima One Water product they will generate a donation to help fund Playpump clean water systems in Africa.
The Playpump is a children’s roundabout designed to pump water from deep underground. As children spin on the roundabout, fresh, clean water is pumped from a borehole into a storage tank for use by the whole community.
“Aqua Optima is delighted to join forces with the One Foundation to provide clean water systems for Africa through the sale of the Aqua Optima One Water range which in turn improves the quality of water for our consumers” said Mark Finnie, Group Marketing Director for Strix Limited, the manufacturers of the Aqua Optima brand.
Aqua Optima One Water products will be available from Robert Dyas, Wilkinson, Amazon, Lakeland, Dunelm Mill, Ocado and selected Asda stores from July.
Duncan Goose, Founder of Global Ethics and The One Foundation commented, ‘Consumers are increasingly looking for a purchase that makes them ‘feel good’ and our portfolio delivers that, like no other. In the team at Aqua Optima we’ve found a committed and motivated partner who are helping us change thousands of lives in Africa. It is great news for the retailer as well. To date, our retail partners have funded hundreds of projects in Africa and impacted hundreds of thousands of lives.’
Aqua Optima is the water filter brand manufactured and marketed by Strix Limited. Launched in 2005, Aqua Optima is a fast growing consumer brand offering a range of domestic water filter jugs and filters to deliver purer, better tasting water.
For more information about Aqua Optima please visit www.aqua-optima.com
The One Foundation is the brainchild of ‘social-entrepreneur’ Duncan Goose, who was
recently awarded European Entrepreneur of the Year by the Credit Suisse (7,000 companies
across Europe took part). Duncan left his advertising role in 2004 to set up Global Ethics Ltd,
an organisation whose primary remit is to raise funds by manufacturing and marketing
products with all profits going towards humanitarian projects in developing countries. To date
Global Ethics has raised over 4millionGBP and funded over 420 PlayPump water systems;
these are children’s roundabouts, which pump clear water from deep underground into
storage tanks while kids have fun spinning on the PlayPump merry-go-round; as well as over
84 HIV projects and 12 vegetable gardens respectively funded by the sale of ethical One
branded products.
To find out more about One, join the campaign and help make a difference, visit
www.onedifference.org
Beijing Court Affirms IPR Challenge; Awards 9.1 Million RMB in Damages
February 1, 2010
Strix Ltd., the world’s leading manufacturer of electric kettle controls, has won landmark patent infringement suits against two kettle control manufacturers in China, Zhejiang Jiatai Electrical Appliance Manufacture Co., Ltd and Leqing FaDa Electrical Appliance Co., Ltd. The two companies were convicted by the Beijing No. 1 Intermediate People's Court in December 2009 of patent infringement after the court ruled that Strix’s patent (ZL95194418.5) on its electric kettle control remains valid and that the companies were found to have produced, offered to sell and sold controls based on Strix’s technology.
The ruling by the Beijing No. 1 Intermediate People's Court is a landmark decision as the size of the damages is unprecedented, despite attempts by other plaintiffs to seek larger compensations in the past. The Court fined Zhejiang Jiatai Electrical Appliance Manufacture Co., Ltd 7.1 million RMB and Leqing FaDa Electrical Appliance Co., Ltd 2 million RMB and ordered the two companies to stop producing and selling the controls.
While the majority of the damages were imposed on the control manufacturers, the court also ordered two kettle manufacturers, Zhongshan WeiLing Electrical Appliance Co., Ltd and Zhongshan Shunlong Century Electrical Appliance Co., Ltd, who were also involved in the case, to pay substantial damages and to stop the production and sale of two models of electric kettles containing those controls.
“The ruling of the Beijing No. 1 Intermediate People’s Court is a victory for intellectual property protection in Mainland China and highlights the importance the Chinese judiciary places on protecting the intellectual property rights of companies no matter where they are based. This is important for China as it continues to establish its position in the global trading system,” Paul Hussey, CEO of Strix Ltd. said.
He added that, “This ruling is also a positive trend for innovators based in China as more technology is created and patented here. Higher standards of intellectual property protection will encourage new innovation and support China’s bid to further enhance its position as a global design centre, not just a manufacturing hub. It is equally important for other countries to respect the intellectual property rights of Chinese companies so that Chinese innovators are also protected when their technologies are exported and introduced in other parts of the world.”
One Billion Controls Celebration
July 2009
A celebration of the manufacture of Strix’s one billionth control as held at The Nunnery in Douglas, Isle of Man on 1st July, and the event brought together past and present directors, employees, customers and suppliers from around the world; a suitably international event for a company with a global presence in more than 100 countries worldwide.
The guests at the event included the Lieutenant Governor Sir Paul Haddacks and Lady Haddacks, IOM Chief Minister Tony Brown MHK and Education Minister Anne Craine MHK.
Congratulating Strix on its milestone achievement Chief Minister Tony Brown said he was proud of the company’s Manx foundations and its expansion across the globe to gain 70 per cent of the world kettle control unit market.
Mr Brown praised the company’s ‘innovation, enthusiasm and commitment to its employees’ and was a key part of the Island’s manufacturing sector and a demonstration of the Island’s diverse economy.
Paul Hussey, Strix’s CEO highlighted the company’s ‘global footprint’ as the world’s largest manufacturer of kettle control units, with a presence in the Isle of Man, United Kingdom, Belgium, Russia, China and Hong Kong, and a workforce of some 750 people worldwide.
Mr Hussey went on to attribute much of the success of Strix to its people and the company’s ‘relentless pursuit of innovation’ embedded in its culture, a combination that would see the wider application of the company’s skills leading to Strix being defined as ‘a global consumer technology solutions provider’.
‘Innovation is our lifeblood’, he said. ‘We’re not resting on our laurels. At Strix there is a constant flow of innovation and we’re always new seeking opportunities and global partners.’
Strix CEO Excellence Awards
July 2009
At the 1 billionth control celebration on July 1st, CEO Paul Hussey said he been ‘so impressed by the calibre of talent’ across the business that he was inspired to introduce the Strix CEO Awards for Excellence, ‘for those who have gone above and beyond the call of duty’.
The first three recipients to receive their awards from the IOM Chief Minister, Tony Brown were Vince Garvey, a Strix veteran of over 20 years and responsible for patenting 10 inventions; Ann Long, ‘a cornerstone’ of the Isle of Man manufacturing operation in Ramsey and Joe Szeto, based in Hong Kong, universally held in high regard for his commitment to customer service.
From the Isle of Man to the Sea of Tranquillity?
June 2009
Strix’s P72 and P76 cordless connection systems are being evaluated by engineers in NASA’s Robotic Hardware Systems in California and could be used in the US space programme. NASA are examining recharging solutions for use in their ATHLETE lunar rover prototypes, so in the near future Strix controls could be operating in zero gravity!
New HK Office
May 2009
Strix have announced the opening of a new sales office in Hong Kong. Located in the northwest of Hong Kong Island (in between Central and Sai Ying Pun), Sheung Wan or “Gateway District” is a historic area and the location where the British first entered and settled in Hong Kong.
The prestigious new office is positioned to be easily accessible to Strix customers and suppliers on Connaught Road West and is close to Sheung Wan MTR station and The Western Market stop of Hong Kong Tramways, as well as The Hong Kong-Macau Ferry Terminal in the Shun Tak Centre.
STRIX (H.K.) LIMITED,7/F, China Merchants Commercial Building, 15-16 Connaught Road West, Sheung Wan, Hong Kong.
Hot Cup launch is a great success
March 2009
The Breville Hot Cup, a fast heating single cup hot water dispenser is proving to be very popular with UK consumers. The combination of Strix’s innovative technology and Breville’s eye-catching modern design has made it one of the fastest growing appliances in the British Small Domestic Appliance market and more and more people are finding it the perfect way to make a quick cuppa. Listed by leading retailers, including Argos and Amazon, find out more about the product at www.breville.co.uk
New Chief Executive for Strix
November 2008
Paul Hussey was appointed Chief Executive Officer of Strix Limited, on November 1st, 2008. Paul splits his time between Hong Kong and the Isle of Man managing the global business that Strix engages in. Prior to Strix, he was Vice President Asia from 2005 to 2008, for Danaher Motion Control, a division of Danaher Corporation. He started his career in Tokyo as a Banker, working for the Long-Term Credit Bank of Japan, Limited, from 1989-2004. He then had various management roles working for AlliedSignal in the US, moving to Hong Kong in 1998, and was working at Vice President of Corporate Development for the merged entity of AlliedSignal – Honeywell up to his appointment to Danaher.
Paul received his primary degree, B.Sc. (Hons), from Trinity College Dublin, and his MBA, Cum Laude, from Thunderbird – the American Graduate School of International Management in the US
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