Fundamentals of Business Success: Welcome to the ...Fundamentals of Business Success: Welcome to the...

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Fundamentals of

Business Success:

Welcome to the Innovation Age

Jim BottomleyFebruary 7, 2018

My Saskatchewan Backgrounds Peat Moss -2001

s Saskatchewan Construction Ass’n - 2002

s Seed Growers - 2003

s Saskatchewan Industry & Resources

(Cluster Planning & Launches - 2003)

s Education – Regional Colleges - 2003

s Saskatchewan Rising: Managing Growth -2008

s Sask Tel - 2010

s Solvera Solutions – 2013

s Saskatchewan Professional Planners - 2016

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? ??

? ??

??The

Future

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Trend Areas

1. Technology

2. Economic

3. Social/Cultural

4. Demographic

5. Political/Legal

Technology is the lead-edge of change…

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Major World Economic Eras

1. Hunter Gatherers2. Agricultural Age (90% to 2%)

3. Industrial Age% of Jobs 1900 1951 1986 1999 2005 2008 2015

in Production 69% 53% 30% 15% 13% 11% <10%

4. Information Age

A whole new set of opportunitiesand challenges...

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The Life Science Revolutions Leukemia is actually 500 diseases

- moving to customization

s 1991 to 1996 – from 4,000 to 500,000 patent requests involving genetics – products coming now

s Cow genome sequenced in 2009

s Biosecurity / Traceability / $$$$

s Potential for large impact on

Beef Industry – Changing the HERD mentality… & New Products!

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The 5th Economy Is Coming…

The Age of InnovationA combination of…

¤ DNA – The Life Science revolution¤ Big Data evolving to predictive intelligence¤ Robotics & Process Automation in Blockchains¤ Nanotechnology & new lessons learned

Driven by Customization & New levels of Customer Collaboration

Big Opportunity 4 AdvancedManufacturing!

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Economic Success =

Technology X Resources

New Technology comes fromCollaboration, and now, new tools!

Maximum potential for innovation…

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s NEW specialized customer streams (think frozen pizza) :

- More classes in future?

sNiches + Ex: Grass-fed butter coffee

s Milk Protein Concentrates

s Amino acids for specific diets

Big Future Potential for Functional Foods:

NANO RESEARCH – NEW PRODUCTS

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Change results in bothopportunities and threats

+

_

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The key to managing change isdetermining how to react to it...

sActions to embrace opportunities

sActions to minimize or avoid threats

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Industry Transformation

s World markets - finding your fit (more options)

s New Methodologies:

-Internet of things –Complex Herd Mgt.Records

-More complex logistics – Traceability - $$$ ?

-New Technologies:mobile/remote/transforming

-Precision feed / health – Targeted treatment?

-Sustainability: biomass/wind/solar – Revenue?

s Consumer attitudes in flux and splintering

s Reducing costs – collaborative automation

s Big wins in client satisfaction possible –

interactive knowledge transfer - collaboration

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What business

are you in?

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Work

=

Meeting Needs

Success

=

Need Satisfaction

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FeaturessAny characteristic of a product

or service

BenefitssThe need(s) a feature meets

sCustomers are attracted to need satisfaction – Benefits!

sWhy choose one over another?

BETTER BENEFITS!

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Better Benefits:s Attract attention in the age of

information overload – drive branding

s Our reason for buying anything

s Drive motivation & investment

s Define the value of each step in a process

Better Benefit delivery

is our

collective and individual

reason for being

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Higher Prices Higher Profits

sBetter benefits support higher prices and better margins

sCommodities lack better benefits

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Evaluating an Opportunity

… Not Strengths/Weakness/Opp’s &Threats… Focus on needs first!

Is it on trend?- a need that is growing

Need Satisfiers identified?- define stakeholder groups /

need priorities / goals Better Benefits provided?

- solutions delivered in a better way than other options

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The Global Picture

s 7 Billion to 9 Billion by 2045 ?s 1 billion more people in middle class –

increasing demand for meat…- Asia opportunities: Increasing consumption

s Developed world pop. growth dependent in large part on level of women empowerment

s Land prices becoming a global standard

Saskatchewan Agriculture will greaterimpact the World!

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Agriculture:Sustainable Economic Driver

s Agriculture more potential than oil foradded value production – think water

s Awareness of climate change growings No magic bullet green solutions Solutions will involve many small

& big steps involving businessesand consumers

s Expect to be carbon aware; likelytracked and traded – revenue source?

International Opportunities Grow

sWhile per capita beef consumption peaked in the USA at 91.5 pounds per year in 1976 (2013 at 54 pounds)…

sConsumption where incomes rising show strong growth

sEx: China’s per capita meat

consumption up over 2.5 timesJimBottomley1@gmail.com 22

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The Information Beast Has Escaped the Zoo

s Microsoft Data predicts the world’s information data base will double every 7 days by 2020

s 24/7 communication accesss Info attacks us everywhere and

anywhere s +4,000 ad messages / daysWe’re Good at Tuning Stuff Out…

All communications must be clearer and focus on stakeholder needs…

Cat Food Markets:Sold by Need Priority

s Convenience – Dry brands

s Convenience & Taste – Semi-Moist

s Taste for the Cat – Canned brands

- tied to Love (Attitudes to beef?)

s Canned brands sell taste by:

- Flavours cats love best

- Meatiest / Tastiest gravy

- Tastiest w best nutrition (Kal Kan)

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It’s All About Perceptions

Effective reporting & communication strategiesare changing… often the wise and intelligentcompetes with the noisiest and persistent…

No antibiotics, hormones, chemical feed additives, GMO, no nitrates, free-range, grass-fed, barley-finished, certified humane, no cattle prods, no dogs that bite, no long periods in heat/cold, safe from disease, stress free, organic, green, natural, happy cows, lovely death…

Are these not opportunities?

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The Profit Lesson

sIt’s not just cost plus or a standard markup…

speople not only buy a product but also it’s story value… and how it makes them feel…does it fit their values?…impacted by how they are communicated with… & treated

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Better Benefits:

s Reflect a better way of satisfying a customer need priority

s Are the keys to establishing branding

s Should reflect the overall organization, but vary by type of service product or client

s Managing better benefit goals should drive the overall vision & planning & prioritization

TASTE

sOur least accurate sense

sMostly, taste conclusions are based on other considerations

sMemories/attitudes/situation

sTaste definitions exploding for the wine & beer industry

sThere are chili cook-offs

sWhy not regional BEEF OLYMPICS ? Could Taste Testing Pay ?

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Selling the Taste of Beef

s Let’s describe key taste characteristics:

s Tender / Aged / Juicy / Beefy / Rich / Savoury

s Succulent? Flavour bomb? Melt in Mouth? Others? Emotions experienced? Reactions?

s By grade A AA AAA Premium - Certified

s By breed? Purebred?... Certified Angus

s All senses? Aroma? Texture? For what cut? For what type of application? Recipe? Heritage?

s Consumer attitudes to the cow – Is there a range? Empathy for animals? Safety? Ethics?

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Air Water Land – All in BalanceGrain-finished (Barley) / Superior Cattle

Outstanding Eating Experience

Selling the Taste of Beef

Can your actions

affect the end taste?

Feed / Breeding / Landscape

Treatment / Aging / Cycles

Lifestyle / Knowledge

Heritage / Values

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Cowboy Sushi: Jasper

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s Better Benefits based on taste / story

- specialized / branded / value-based

s New markets: local / restaurants / farm gate / urban markets / specialty product

s Fusion foods – prepared meals?

s What specific health affects at the molecular level?! Can they be applied to other food products?

Beef Industry Opportunities

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Strategy for $$$$$

Moving from lowest price to providing

added-value ?

¤ Requires focused better benefit

strategies

¤ Involves providing specific

high-priority need satisfiers better

than competition… and proving it over

time… your sales “story” should

reflect this

¤ To better achieve need satisfaction

can partner with other businesses and other

community stakeholders

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Regional Innovation & Clusters: Ultimate Goals

s Develop new products and services which could be exported – creating high paying jobs & economic growth for the area

s Synergies for Cluster Partners

s Branding the region to attract investment, skilled labour and additional Cluster partners

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Success

…comes through

Collaboration

Through the Supply Chain

Consumer through to Producer

Rooted to a Region

Better Benefit Goals Drive the Vision

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Possible Collaborative Vision for Saskatchewan Agriculture

1.Vision: micro soil and weather conditions could determine depth planted for each seed with goal to increase yields

2.Capabilities: Soil Science, Agri-Knowledge, Advanced Manufacturing, IT interfaces

3.Could we make smart farm equipment for the world? Help solve world hunger!

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Developing a Compelling Vision

s Key is to identify the end goals of

collaboration, specifically the need

satisfaction potential – what is the better benefit impact ?

s How does an investment in time & $ impact needs in a better way?

s Can we be better? Can we increase exports – grow share? World class?

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YOU ARE…

WORLD CLASS !

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Here’s to your…

FUTURE

SUCCESS !!

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