Innovation

Value Chain Boundaries

Impacts of this topic reach Argos’ procurement processes and the supply chain.Suppliers
Impacts of this topic are evaluated throughout all Argos operations.Argos
Impacts of this topic reach our industrial and/or retail clients.Clients
Impacts of this topic reach our communities, authorities and other individuals of the society.Society

Our management approach

Added value to the company

Innovation is how the company maintains its competitive advantage and strengthens the value perceived by customers, shareholders, and employees. Through a long-term commitment to a structure and culture of innovation, we seek to develop leading products and services that satisfy changing and emerging customer needs. Also, innovation as a strategic priority for Argos merges with our core activities and enables processes to achieve industry cost leadership, new business models and more sustainable value proposition.

Added value to society

Our innovation program develops products, services, and processes that focus on unmet needs in the market, the well-being of our customers, the use of natural resources, and the strengthening of our supply chain and of the communities in which we produce and sell our products.

103-2 Initiatives, commitments, and policies


Sustainability, Environmental and Energy Policies.

Strategy-driven targets to achieve innovation outcomes.

R&D Technology Roadmaps.

R&D partnerships with domestic national and international academic institutions and government entities.

103-2 Governance


Innovation Committee

Chief Innovation Officer (CINO)
Innovation Manager, Alternative Resources Manager, R&D Manager, New Business Manager

Regional Directors / Mentors

Argos Center for Innovation, Medellin, Colombia

2016 performance

  • We achieved 6% alternative fuel heat consumption substitution with used tires on line 2 of the Rioclaro plant in Colombia. The substitution on this line reached historic levels of nearly 11% between September and December.
  • We increased the use of alternative raw materials.
  • We launched the Emerging Business Opportunities (EBO) Program.
  • We carried out five innovation challenges in our cement plants in several countries, including over 400 employees and resulting in more than 200 ideas with associated savings of over USD 4 million.
  • Development of four new products: Advanced Concrete, Microcement, Roadbinder and Masonary Cement.

Upcoming challenges

  • To advance R&D milestones in the use of Supplementary Cementitous Materials (SCMs) to further reduce CO2 footprint and production costs.
  • To focus in the Ideaxion model in order to strengthen our innovation culture and the quality of the ideas from all employees.

A-IN1 Total amount of innovation investment


In 2016 we invested over
11 million
dollars in innovation.

A-IN4 Amount of Savings derived from the implementation of innovation initiatives

COP
USD
Use of supplementary cementing materials
5,606,813,207
1,836,397
Admixture optimization
924,640,501
302,847
Production process efficiency
4,529,267,589
1,483,469
Organizational excellence
180,534,405
59,130
Use of alternative fuels
492,000,000
161,145
Total
11,733,255,702
3,842,988

A-IN3 Amount and % of income from innovation by regional

COP million
USD million
Innovation as a percentage of revenue
Total revenue from innovation
Colombia
518.3
169.8
20.0%
Caribbean and Central America
139.3
45.6
8.3%
USA
690.9
226.2
16.3%
TOTAL
1,348.6
441.7
15.8%
Exchange rate: 3,053.16 COP/USD

A-IN2 Number of innovative ideas


Received
2016294
2015411
2014112
2013146

Approved
201654
201561
201438
201358

Validated
201633
201533
201425
201319

Implemented
201620
201519
20149
201331
2016 – 2017 Goal tracking
···
· We moved foward on the commencement of Caltek, Argos’ new business that will commence limestone production at its own industrial facility in Colombia.
· Commercial operations in Colombia Region of four new products: Advanced Concrete, Microcement, Roadbinder and Masonary Cement.
· We made progress on Greco’s concrete recycling operations in Colombia.
· We began the use of alternative fuel in the Newberry, USA and in the Cartagena, Colombia plants.
· We moved foward on the implementation of the EBO model.
2018 – 2025 Goals
  • We will increase our revenues attributed to innovation products and services, new channels/businesses, or new business models to 20%.
  • We will achieve a 18% of heat generation from the use of alternative fuels.
  • We will be able to use 7% of alternative materials in the production of cement and 3% in the production of concrete.
  • We will fully develop and embed innovation culture throughout Argos’ geographical footprint.

 

Case Study

The Innovation Wave

Case Study

Ultra High Performance Concrete