Danfoss focuses its efforts to increase innovation and entrepreneurship in its core businesses.

Innovative ideas and products must grow out of the core businesses to an even higher degree and benefit customers even quicker. This is why Danfoss now reorganises its corporate ventures function. Nine of 13 employees from the company Danfoss Ventures A/S have found new employment in the core businesses, while four employees have been made redundant. The Managing Director, Stig Poulsen, has decided to leave Danfoss. He will, however, remain at Danfoss’ disposal for a transition period, until he has completed his tasks at hand.

The company Danfoss Ventures A/S continues as a holding company that administers Danfoss’ shares in a number of external ventures. As part of the restructuring, the company also changes its name to Danfoss Development A/S.
 

The restructuring follows six months during which Danfoss has reduced its involvement in a number of external ventures and investment projects that are not directly linked to Danfoss’ business areas. For instance, Danfoss has reduced its share of ownership in Danfoss IXA A/S. Earlier this year Danfoss also completely withdrew from AquaZ A/S, which was subsequently refinanced by new investors. Danfoss continues as minority shareholder with board representatives in a limited number of venture companies.
 

According to Executive Vice President and CDO Nis Storgaard, this is about prioritising resources where they make most impact.

“The past few years’ development has sharpened our understanding of how important innovation is – but also of how important it is to prioritise investments where they make most difference. And for us this is in our core businesses that have the knowledge of customers and markets as well as the required competences to turn innovative ideas into good business,” Nis Storgaard says.

 

Entrepreneurs will still be nurtured

Innovation and entrepreneurship are still at the top of the agenda at Danfoss, which last year invested 4.8 percent of turnover, or approximately 1.2 billion DKK, in development and innovation.

Consequently, Danfoss will continue efforts to train more employees to become intrapreneurs in the annual Man on the Moon competitions. Danfoss will also continue to offer help and guidance to new, upcoming enterprises with initiatives such as Mads Clausen Entrepreneur Park and the Trusted by Danfoss program.