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 mirjana.prica@fial.com.au
w www.fial.com.au
32