1 Collaboration and Value Networks as the Future for Innovation 2 Overview 1. The Food and Beverage Industry and FIAL 2. Innovation and collaboration – Some research 3. Current FIAL collaborations 4. Lessons learnt and next steps 3 Australian Food & Beverage Facts 1. Australia’s largest manufacturing sector at 23.5% of manufacturing and contributing $24B (2013) to the economy 2. Employs > 200 000 in manufacturing with significantly more when agriculture is included 3. 13000 manufacturing companies, mostly small – medium companies (SME) 4. High business churn (2011-2012 Food) • 1794 entries • 1554 exits 5. Government objective to double manufacturing by 2050 4 Food and Beverage Stakeholders Research & Development (Academia, research institutes) International markets Retailers & others T&L Industry internal capability to deliver Networks Industry associations T&L SMEs MNEs T&L Industry associations Retailers & others T&L National market Retailers & others Suppliers to manufacturers/producers/retailers T&L Transport and logistics 5 Some Dynamics Shaping the Industry Wealth of intellectual capital and resources which are not being fully utilised to deliver maximum return for the industry Collaboration is key to bridging the geographical dispersion of the industry Consumer desires/needs/wants are evolving rapidly and products/services need to keep up 6 Some Dynamics Shaping the Industry Focus on incremental innovation (safer and less costly) and not newto-the world innovations Disconnect and lack of cooperation between researchers, education institutes, industry and other support services which restricts their innovative capacity / market opportunities 7 Some Dynamics Shaping the Industry Growing individual disposable wealth in Asian Countries Increasing availability of imports and ability to export 8 Some Dynamics Shaping the Industry Depletion of natural resources & population growth Ageing population 9 Capability/Skills Gaps Impacting Innovation • Packaging Technology – there is no packaging course in Australia, and companies are continuing to downsize inhouse packaging skills • Food Safety – with fewer students and changes in focus to courses, there is less understanding of food safety with small companies often without technical support in-house or access to • Food Technology – combining science and engineering appears now to be largely learnt on the job. Few pilot plant facilities exist and few in-company placements for students • Project Management – basics of how to be efficient and take an idea to market seem to be confined to pockets within the industry • Commercialisation – how to scale up from an idea to reality and gain the science that supports capability • Business Strategy – ability to work on the business to stay relevant and sustainable vs being good at business today 10 Innovation ©2014 ARC Advisory Group Presentation title | Presenter name 11 Innovation Presentation title | Presenter name 12 Connectedness Hargraves Institute 2013 13 13 Connectedness Hargraves Institute 2013 14 14 Entrepreneurs and inventors are no smarter, no more courageous, tenacious, or rebellious than the rest of us — they are simply better connected Andrew Hargadon How Breakthroughs Happen—The Surprising Truth About How Companies Innovate, Harvard Business School Press, 2003. 15 Innovation Catalysts Invisible in the formal structure Powerful through their networks 16 What you get from mapping Innovation Catalysts • Ideas only become valuable once implemented – Innovation Catalysts turn ideas into action • Innovation Catalysts aren’t self appointed. Use peernomination to reliably identify the real Innovation Catalysts. • Analyse the nominations and determine the reach and influence of Innovation Catalysts • Investment in those people who are most influential in their business unit or location / business unit Who are the Innovation Catalysts here? Hargraves Institute 2013 17 Business v Researcher Measures and Drivers 18 Who are the Innovation Catalysts here? Hargraves Institute 2013 19 Innovation – a network of collaborators Jean François Lacoste-Bourgeacq Presentation title | Presenter name 20 The internal part of the Innovation “Connectome” Beyond people availability and their relevant expertise in the delivery of innovation, the following additional features shall be considered: • Creative thinking • Balance of right-brain, left-brain (analysis & intuition) • Organizational and innovation management skills • Resilience • Execution skills: Turning ideas into viable products and services • Flexibility • Customer sensitivity • Networking & teamwork skills • Turning ideas into new businesses • Entrepreneurial skills, self-starters • Political savvy Neuronal Innovation – the Next Big Thing After Open Innovation By: Jean François Lacoste-Bourgeacq 21 Networks Across Australia 22 Innovation and the community • Companies are widely perceived as prospering at the expense of the broader community • Companies must take the lead in bringing business and society back together….. Yet we still lack an overall framework for guiding these efforts, and most companies remain stuck in a “social responsibility” mind-set in which societal issues are at the periphery, not the core. • The solution lies in the principle of shared value (emphasis added), which involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center. We believe that it can give rise to the next major transformation of business thinking. • Creating Shared Value by Michael E. Porter and Mark R. Kramer • Harvard Business Review Jan 2011 23 Ways of Behaving to Achieve Outcomes Communicative and sharing – of information and knowledge Optimistic, energetic and passionate - about the future of the industry 24 Ways of Behaving to Achieve Outcomes Consultative – to enhance and support the skills in the industry Outcome focused – for industry success Accountability – to each other and the industry 25 Ways of Behaving to Achieve Outcomes Integrative and transparent – to establish an environment of trust and collaboration Encouragement – of active participation and contribution 26 Project- SME Solution Centre Technical services and technology access and capability, coupled with technical or business training to address a technical challenge or innovation to provide commercialise outcomes for SMEs • One size doesn’t fit all but combined options and capabilities give wider opportunity for engagement and support • Geographic location has enhanced reach and influence to engagement • Currently 10 projects in consideration or progress from Tasmania to Cairns covering new horticultural crops to development of new processing technology 27 Project – Collaborative Ring Workshop® Using a peer learning format developed in the US, a group of companies share challenges and solutions • Pilot workshops have been run in several Australian cities where companies were asked to share 2 challenges each with peers from industry, with at least one challenge being export related • For every challenge, there were 2.5 - 4 solutions generated by peers >$10m in potential savings and/or new revenues • Next steps are ongoing connectivity to continue business support and develop local clusters 28 Innovation Catalyst Program® FIAL Food Futures – A Catalyst Approach Tested with 15 Food companies – delivered >$15M in value Increases the success by empowering businesses through sharing information and building capability over a 6 month duration Understanding current performance and identify where to focus to: Develop people Build new capabilities for the future Access new information and contacts FIAL is supporting: 12 Clusters with 1 cluster per state Cluster – 20+ companies 15 scholarships in each state for SMEs 5 companies recruited from large companies Open to all companies in the Australian Food & Beverage sector 29 Lessons Learnt • Multiple solutions are needed to support the range of opportunities • New ventures can create strange bedfellows that need time to learn and work smoothly together • Start working together assuming positive intent and mutual benefit • Key leaders are always needed but can’t be the only drivers • While its not always equal in capacity, everyone brings benefits and capabilities that are needed by the group 30 Next Steps • Form broader, more virtual clusters of practitioners that share learnings and benefits • Continue to foster the connections from the Collaborative Rings and catalyst clusters • Complete a base line survey on industry reward for thought change in collaborations and clusters • Develop additional options for connection and champion cluster initiators where practical 31 Thank you FIAL Team t +61 3 9479 6043 e [email protected] w www.fial.com.au 32
© Copyright 2024