Nordic marine innovation - Øyvind Fylling-Jensen

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From the Nordic Marine Innovation Conference in Oslo 25th of January 2012 by Øyvind Fylling-Jensen, managing director, Nofima

Title: Open innovation applicable in the marine sector?

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Nordic marine innovation - Øyvind Fylling-Jensen

  1. 1. Competition and Cooperation – Innovation as a driver for competitiveness in the Nordic Marine Sector Nordic Marine Innovation Conference - Oslo, January 25th 2012 Øyvind Fylling-Jensen, CEO Nofima AS OPEN INNOVATION – APPLICABLE IN THE SEAFOOD SECTOR? ©Gregory Colber25.01. ©Nofima/ØF-J/2012/NICE 1
  2. 2. Agenda• A few words on Nofima• Some words on innovation• Some words on open innovation• Some examples• Answering the question: Is open innovation applicable in the seafood sector?25.01. ©Nofima/ØF-J/2012/NICE 2
  3. 3. Nofima –Norwegian Institute of Food, Fisheries and Aquaculture Research• Established Jan 1 2008, with history dating back to 1931• Research, development and innovation partner for the food, fisheries and aquaculture industries with focus on industrial value creation along the value chain• Approx. 460 employees – Approx. 220 researchers • 75% with PhD – 220 Scientific papers and more than 500 industry reports in 2011 – Modern R&D infrastructure – Broad experience in EU projects• Turnover of NOK 474 mill (2010) (approx. 61 mill) (Non dividend policy)• Owned 56.8 % by the Norwegian State, 43.2 % by private-public interests ©Nofima/ØF-J/2012/NICE 3 25.01.
  4. 4. Innovation is needed in the seafood sector25.01. ©Nofima/ØF-J/2012/NICE 4
  5. 5. 25.01. ©Nofima/ØF-J/2012/NICE 5
  6. 6. Innovation is about creating new and sustainable growth over time Maturity Stagnation Growth New growth Start-up25.01. ©Nofima/ØF-J/2012/NICE 6
  7. 7. Innovation drivers Technology Price Market & & demand Costs25.01. ©Nofima/ØF-J/2012/NICE 7
  8. 8. There are many drivers for innovation in the seafood sector… • Profitability – New entrants – New products – New packaging – New channels – New processes – New technology • Consumer trends • Value chain power shifts • Procurement directives • Technology shifts • Legislation ©ØF-J • NGOs25.01. ©Nofima/ØF-J/2012/NICE 8
  9. 9. Health Convenience Indulgence Environment & taste25.01. ©Nofima/ØF-J/2012/NICE 9
  10. 10. Innovation is coming from different sources • Cost improvement • Other industries (meat, • Productivity/Efficiency gains poultry, ingredient etc.) • Process optimization • Cost reduction • Incremental improvements • Process innovation • Packaging Company Suppliers RTOs & Customers Universitiy R&D • Market demand • State of the art R&D • Product innovation • Disruptive technologies • Packaging • Breakpoints • Distribution • Branding25.01. ©Nofima/ØF-J/2012/NICE 10
  11. 11. Innovation takes place along the whole seafood value chain, but….Foto: EFF 25.01. ©Nofima/ØF-J/2012/NICE 11
  12. 12. The seafood industry is innovative!25.01. ©Nofima/ØF-J/2012/NICE 12
  13. 13. A lot of focus is on product development… Finance Process Product/Offering Delivery ProductBusiness Core Enabling Product Customer Network perform- Service Channel Brand model process process system experience anceVolume of innovationefforts over 10 years Source: Doblin - On Innovation Effectiveness, March 200503.02.2012 ©Nofima/ØF-J/2012/NICE 1325.01.
  14. 14. …but this is not creating the greatest value” Finance Process Product/Offering Delivery Product Business Core Enabling Product Customer Network perform- Service Channel Brand model process process system experience anceCumulative value creationover 10 years Source: Doblin - On Innovation Effectiveness, March 200503.02.2012 ©Nofima/ØF-J/2012/NICE 1425.01.
  15. 15. Therefore, the analysis of innovation has to include several dimensions: Business model & Service Geography Market Segment Channel Product & technology Finance Process Product/Offering Delivery ProductBusiness Core Enabling Product Customer Network perform- Service Channel Brand model process process system experience ance25.01. ©Nofima/ØF-J/2012/NICE 15
  16. 16. - which sum up to four opportunities for innovation Finance Product Process Distribution Source: Doblin - On Innovation Effectiveness,25.01. ©Nofima/ØF-J/2012/NICE 16 March 2005
  17. 17. Open Innovation25.01. ©Nofima/ØF-J/2012/NICE 17
  18. 18. Open Innovation is an important tool in the fragmented seafood industry • Risk reduction • Reduced cost of innovation • Increased innovation speed • Improved success rate • Broader access to ideas • Learning • Capability building • Competence sharing • Solving grand challenges together (i.e. salt, sugar, fat) • etc.. Cooperation in areas where competition is of lesser importance25.01. ©Nofima/ØF-J/2012/NICE 18
  19. 19. To create successful innovations you need an innovative mindset Courage to be Behaviour and Ability to synthesize and innovative Attitude put into action Ask questions Observe and learn Challenge the from others Think outside the Innovative business ”status quo” box opportunities Build and use Taking risks networks Try and failAdapted from Christensen et al, The Innovators DNA 25.01. ©Nofima/ØF-J/2012/NICE 19
  20. 20. A process of opening and concentration D i • Analysis • Observations v Analysis & • Interviews e Analysis insight as Innova- • Challenge the & basis for Business Selection tion truth r Synthesis Insight idea opportunities portfolio • Look to other industries g generation • etc. i n g i d e a s25.01. ©Nofima/ØF-J/2012/NICE 20
  21. 21. Open Innovation alters the borders of the firmClosed Innovation Principles Open Innovation Principles• The smart people in the field work for us • We need to work with smart people inside and outside the company• To profit from R&D, we must discover it, • External R&D can create significant value, develop it and ship it ourselves internal R&D is needed to claim some portion of that value• If we discover it ourselves, we will get it to the market first • We don’t have to originate the research to profit from it• The company that gets an innovation to the market first will win • Building a better business model is better than getting to the market first• If we create the most and the best ideas in the industry, we will win • If we make the best use of internal and external ideas, we will win• We should control our IP, so that our competitors don’t profit from our ideas • We should profit from other’s use of our IP, and we should buy others’ IP whenever it advances our business model Source: (Chesbrough, 2003) 25.01. ©Nofima/ØF-J/2012/NICE 21
  22. 22. Open Innovation is all about combining nine dots with four lines without lifting the pen?25.01. ©Nofima/ØF-J/2012/NICE 22
  23. 23. Important points to remember in the process1. Know the decision boundaries2. Ask the right questions3. Select the right people4. Divide to smaller groups5. Keep everybody informed and aware of expectations6. Narrow down the ideas ©ØF-J7. Keep speed in the following process8. Know when to close for own value creation25.01. ©Nofima/ØF-J/2012/NICE 23
  24. 24. A systematic approach to value added seafood through research, development and innovation (RDI) Action points •------------------ WS •------------------ Industry •------------------ Compile •------------------Pilot •------------------ &WS Prioritize •------------------ WS •------------------ R&D •------------------ •------------------ Trend workshops •Researchers List RDI trends by •Industry representatives • Probability Prioritize and implement •Alone and toghether • Importance the RDI strategy25.01. ©Nofima/ØF-J/2012/NICE 24
  25. 25. The seafood sector has to move from the traditional development model…. The selected projects are developed in own company Some projects are repositioned from ”no-go” to Creative phase Realization ”go”25.01. ©Nofima/ØF-J/2012/NICE 25
  26. 26. … to a model were different strategies lead to increased value creation Existing, external companies are developing the Innovation project Innovation projects are developed within the company ”Spin off” – projects are developed with new players Creative phase Realization25.01. ©Nofima/ØF-J/2012/NICE 26
  27. 27. In the seafood sector open innovation is a good tool.. Large differences in RD&I capacity:• Very few large corporations with own R&D• The industry is characterized by: – Fragmented value chain – SMEs with low R&D capability – Low R&D spending – Cooperative R&D financing• High focus on product innovation, but – Nine out of ten introductions fail in the market• High focus on process innovation as this historically renders more value25.01. ©Nofima/ØF-J/2012/NICE 27
  28. 28. Arcimboldo25.01. ©Nofima/ØF-J/2012/NICE 28
  29. 29. Value chain comparisons • What can producers of pelagic fish learn from other value chains for food? • Comparison with chicken, potatoes and coffee • 4 competitors in the group • Very different regarding resources and position – Different lessons learned25.01. ©Nofima/ØF-J/2012/NICE 29
  30. 30. Learning from other industries – The poultry industry25.01. ©Nofima/ØF-J/2012/NICE 30
  31. 31. Nye bearbeidede produkterFoto: Marine Harvest 25.01. ©Nofima/ØF-J/2012/NICE 31
  32. 32. Developing the sushi market for retail • Sushi is a growing trend – But still a restaurant phenomenon (at least in Norway) • Starting a project to develop the retail market – Along with producers, distributors, retailers25.01. ©Nofima/ØF-J/2012/NICE 32
  33. 33. Competitor process benchmarking • 1999-2000: comparing the production processes of two producers of frozen fillet • Very similar firms (from the outside) • Both equally convinced that the competitor would have the most to learn… • Both had lessons to learn!25.01. ©Nofima/ØF-J/2012/NICE 33
  34. 34. Technology innovation NIR sorting of NIR sorting of salmon household waste (fat & colour)25.01. ©Nofima/ØF-J/2012/NICE 34
  35. 35. 25.01. ©Nofima/ØF-J/2012/NICE 35
  36. 36. Thank you for your attention Acknowledgements: Norwegian Research Council NICE EU FWP 6&7 FFL FHF Contact address: Audun Iversen Hilde S. Mortvedt ofj@nofima.no Astrid Nilsson Jens Petter Vold Cell: +47 917 48 21125.01. ©Nofima/ØF-J/2012/NICE 36

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