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Think, Act, Adapt & Innovate like a Startup!
Food & Drink Business Live!Thursday 13 August 2015
“…large companies’ size and culture make disruptive innovation extremely difficult”Steve Blank and Bob Dorf (2012) The Startup Owner’s Manual
Introducing Dermott @
Dermott Dowling is Managing Director @Creatovate Innovation & International Business Consultancy.Dermott has over 18 years experience building brands and businesses in Asia Pacific, Australasia and UK, with time spent at leading consumer goods companies including Fonterra, Foster’s and Lion Dairy & Drinks.Belief the only sustainable business growth is organic, driven by innovation and international business.Creatovate works with a diverse range of clients from startups & independent family owned businesses to fast growth multinationals.
Innovation & International Business Consultant
THINK
• Scan the environment – what’s out there already working?
• Look for problems – what’s bugging customers?
• Map the value chain – what can we take out? Where can we fit in?
• Design & rapid prototype• Test & experiment• Align & adapt• Measure & monitor
Not easily done in isolation
Tools to help you think1. Business Model Canvas – sketch out your hypotheses
Source: Osterwalder(2013)
Business model canvasNespresso
Source: Osterwalder(2013)
Business model canvasHypotheses
Source: Blank, 2010 & Osterwalder(2013)
ACT – Tools to help you do something2. Customer Development Models – ‘get out of the building’
Source: Blank, 2010
ADAPTBusiness model iteration
INNOVATE
• Venture Capital – Over $570m in food
companies in the past 5 years in US alone
• Private Equity & Venture Capital 2014 (AU)
– Consumer goods and retail $154m 6% total investment 14 companies 9% number of companies invested.
Who is doing it? How? What can we learn?
Source: WSJD 2014, AVCAL Yearbook, 2014
INNOVATE
• Nestle– Inventages EUR$150m in 38
companies• Tate & Lyle
– £25M VC fund & an active £30 million investing £1-2 million per tranche
• Coca-Cola Founders– 19 co-founders, 10 countries, 9
startups partnering with co-founders/startups to provide scalability
Venturing – Who is doing it?
Source: AVCAL Yearbook, 2014
INNOVATE
• Dishd.com.au– Frozen meals to you
• Kogan Pantry– Groceries to you
• Marley Spoon– Fresh Meal Solutions to you
Digital Disruption in Australia
INNOVATE
• Challenge(s)– Sub-culture of a startup within a large business– Patience– Consumers want whole of shop/meal solutions– Inventory / demand / supply chain management– Response from incumbents
• Specials and Supply restriction• Patience
– Go in eyes wide open
Learn from the disruptive innovators
Innovate
• Why do it?– Demand and/or contribute back to your community– Grow into adjacent verticals
• Advantages– Scale– Data analytics
• Australian eCommerce market maturity– 5 to 10 years behind the US
• Australian eCommerce supply chain maturity– Challenging for chilled B2C
• Omni channel could be a red herring – economics vastly different between off-line and online
Learning from the disruptive innovators
Innovate
• Suppliers– Demand and willingness to supply is there
• Price leadership– Consumers have been trained to expect deals online– Brands matter online and deep cut discounts bring traffic!
• Groceries– Last to take-off– Online suits small, expensive, commodity driven categories
• Wastage– Consumers care about h/hold and supermarket waste– Expect their food in the same condition they find in store at their door
Learning from the disruptive innovators
Established businesses are in danger of not being able to adapt quickly enough, while nimble start-ups fail due to their inability to scale. Tomorrow’s business winners will be the ones who know how to combine the two.
– David Butler, Coca-Cola’s Vice-President of innovation and entrepreneurship.
Forbes, Feb 2015 http://www.forbes.com/sites/andrewcave/2015/02/10/how-coca-cola-turned-its-ship-around-and-how-your-business-can-too/
Where is the magic in the middle?
References & Bibliography
http://businessmodelalchemist.com/tools AVCAL (2014) Australian Private Equity & Venture Capital Association Ltd Blank, Steve (2010) Crisis Management by Firing Executives – There’s A Better Way Nov, 18. http://steveblank.com/category/customer-development-manifesto/page/2/ Blank, Steve (2013) Why the Lean Start-Up Changes Everything, May, Harvard Business ReviewDanielle Gould (2014) Food & Ag Investment Sources Explode in 2013 http://www.foodtechconnect.com/2014/01/02/food-ag-investment-sources-explode-2013/ viewed on 11/8/2015Kowitt, B (2015) Special Report: The War on Big Food Fortune May 21.Montgomery, M. (2015) How The Tools Of Venture Capital Are Revolutionizing Food July 14 ForbesOsterwalder, A. Pigneur, Y. Bernarda, G. Smith, A. (2014) Value Proposition Design Wiley.Osterwalder, A (2013) A Better Way to Think about Your Business Model Phillips, E. (2015) Food ‘Accelerators’ and the $10 Bag of Pasta The Wall Street Journal Jan 6.
Resources
References & Bibliography
Kolodny, L (2014) Will Investors Still Back Food Startups As Competition Heats Up?Wall Street Journal July 25.http://coca-colafounders.com/ http://www.coca-colacompany.com/innovation/http://www.iamdigital.com.au/2015/02/coles-woolies-vs-kogan-pantry.html
Resources
