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Evolution from Orthodox Approaches to Open Innovation Study on Open Innovation Approaches in European Food

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Title: Evolution from Orthodox Approaches to Open Innovation Study on Open Innovation Approaches in European Food


1
Evolution from Orthodox Approaches to Open
Innovation Study on Open Innovation Approaches
in European Food Drink Companies
  • Dr Marian Garcia
  • Kent Business School, University of Kent

2
Overview
  • Background
  • Reasons for OI
  • How to execute OI
  • OI partners
  • Management challenges
  • OI Value
  • Future OI mainstream approach?

3
Study Objectives
4
Study Methodology
  • 1st Stage Case Studies
  • April Dec 2010
  • UK, Spain and Italy (Università Carlo Cattaneo
    LIUC/
  • University of Pisa)
  • In-depth executive interviews with
    RD/OI/Technical Team
  • Purpose Process Partners Performance -
    People
  • Document an OI project
  • 2nd Stage Pan-European survey
  • Launch in Jan 2011
  • Model relationships between OI and contextual
    performance variables

5
Companies Participating in the Study
SPAIN
UK
ITALY
6
Open Innovation common sense?
Gone are the days when we had all the
capabilities needed to innovate in the
market We all need "intellectual partners" to
solve our technological problems / to satisfy our
technological needs
Culturally our company has been very successful
as a closed business. All major innovation
developments were developed over 50 years ago
with internal skills. However, there is an
increasing realisation you do not have to
originate knowledge and ideas to profit from
them We would like to do everything by
ourselves, but it is not possible any longer
7
Drivers Molson Coors The Talking Can
  • Create brand value ? Escape commoditisation trap
  • Reinvigorate a declining category

? Retailers constantly wanting cheap deals
Thermochromic Ink Technology
? Consumers switching in and out of promotions
8
Drivers Milk Link Grip Strip
  • Consumer convenience ? freshness and ease of use
    for the consumer

Hook and loop technology to food packaging
Milk Link's Innovation Centre worked in
partnership with APLIX
9
Drivers Mars Colour Development
10
Drivers Uren - Juice Creations from Concept
to Launch
  • Development of new business models
  • Outsource expertises
  • New markets for juice ingredients - by turning
    knowledge and ideas into value

11
How to execute OI (l)
Brands, Marketing and Sales Team
Brand Innovation Briefs
  • Organisational Structures
  • Dedicated resource to manage OI vs. embedded
    within existing functions

Brands Innovation Team
Internal Development
Supply Chain Technical Team
Commercial Innovation Team
Open Innovation Steering Committee
In-house Technological Knowledge
Knowledge Gaps Technology Roadmap
YES
NO
Innovation Partners
12
How to execute OI (II)
  • Organisational Structures
  • OI implementation team

The Open Innovation Team as a Culture Change Agent
13
How to execute OI (lll)
  • Management Mechanisms
  • Need for an efficient process to identify,
    evaluate, value and contractual acquire external
    technology

14
Who are companies working with?
  • COST
  • VALUE CREATION
  • CO-DEVELOPMENT

Suppliers/ Strategic Partnerships
Trusted suppliers
New suppliers
Learning Networks
WANT
Competitive Innovation Marketplace
Companies
Universities
Research Institutes
Basic Research
Applied Research
Long Term Strategy
Scouting Networks
Medium Term Strategy
NGOs
Consumers
FIND
WANT
CO-CREATION
WANT
15
Open Innovation Platform
Methodologies for the design, evaluation and
validation of functional products For the
prevention of cardiovascular disease and Alzheimer
Mix Production Raw materials selection Raw
materials adequacy Storage
Development of funcionality valiation tools (CV
AZ) in vitro no celular celular ?-ar
rays omics- in vivo test in animals
Profiling of Raw Materials
Mechamims Biomarkers Bioactive principles
Process effect
Reformulation
Food-mix profiling
In vitro Digestion bioavailability
In silico
Introduction of mix into different food
matrices Biscuits, ice-creams, confectionery,
meat, dairy products, cereal products,
chocolates...
Process effect
Food-mix-matrix profiling
Funtionality evaluation in humans Pre-interventio
n study Interventiona study in humans
16
Management Challenges (I)
  • Leading cultural change
  • Top management endorsement
  • Key stakeholders support ? OI effective
    implementation
  • - see the world as their technology base
  • - external innovation are not seen as a threat
    BUT as a opportunity
  • Effective internal communication strategy ? what
    open innovation means to the company and the
    impact of such a new direction (focus on results)
  • Human factors culture, mindsets (more
    cooperative and less command and control),
    motivation, rewards

17
Management Challenges (II)
  • Relationship Building
  • Identify proper business reasons for engaging
    with open innovation.
  • Relationship building and trust ? requires time
    and commitment
  • Flexibility and openness
  • Working towards creating a true win-win scenario
  • Assigning key contacts to speed up initial
    assessment of opportunities
  • Alignment of cultures and expectations

18
Management Challenges (III)
  • IP Rights
  • Openness and Flexibility ? sharing the WANTS with
    partners
  • Avoids working from different understandings on
    the purpose, terms and priorities
  • Focus on making money out of partnership rather
    than ownership

19
Is Open Innovation delivering to companies?
  • YES!
  • Metrics ? Yes, need for metrics but...how to
    value trust, relationship development, .....

20
Future for Open Innovation
  • Is Open Innovation another fad?
  • Wait six months and management will be spewing
    the next set of consulting buzz words
  • Open Innovation has moved from curiosity and
    academic discussion to the driving force in
    RD/technological development
  • Open Innovation a potent approach to increase
    innovation capacity BUT needs own innovation
    processes under control - Adding a partner will
    be a disappointment for both parties (need for a
    framework)
  • Open Innovation is not restricted to large
    companies BUT SMEs might find implementation
    challenging

21
Thanks
Want to participate in the study? Dr Marian
Garcia m.garcia_at_kent.ac.uk
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