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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
Trend Areas
1. Technology
2. Economic
3. Social/Cultural
4. Demographic
5. Political/Legal
Technology is the lead-edge of change…
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...
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 / $$$$
s Potential for large impact on
Beef Industry – Changing the HERD mentality… & New Products!
The 5th Economy Is Coming…
The Age of InnovationA combination of…
¤ DNA – The Life Science revolution¤ Big Data evolving to predictive intelligence¤ Robotics & Process Automation in Blockchains¤ Nanotechnology & new lessons learned
Driven by Customization & New levels of Customer Collaboration
Big Opportunity 4 AdvancedManufacturing!
Economic Success =
Technology X Resources
New Technology comes fromCollaboration, and now, new tools!
Maximum potential for innovation…
s NEW specialized customer streams (think frozen pizza) :
- More classes in future?
sNiches + Ex: Grass-fed butter coffee
s Milk Protein Concentrates
s Amino acids for specific diets
Big Future Potential for Functional Foods:
NANO RESEARCH – NEW PRODUCTS
The key to managing change isdetermining how to react to it...
sActions to embrace opportunities
sActions to minimize or avoid threats
Industry Transformation
s World markets - finding your fit (more options)
s New Methodologies:
-Internet of things –Complex Herd Mgt.Records
-More complex logistics – Traceability - $$$ ?
-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
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!
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
Higher Prices Higher Profits
sBetter benefits support higher prices and better margins
sCommodities lack better benefits
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
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!
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 [email protected] 22
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)
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?
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
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 ?
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?
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
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
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
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
Success
…comes through
Collaboration
Through the Supply Chain
Consumer through to Producer
Rooted to a Region
Better Benefit Goals Drive the Vision
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!
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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