melhorando a competitividade na indústria da carne

Lauren Sammel Associate Principal Scientist Kraft Foods-Oscar Mayer

MercoAgro September 20, 2012

• Competitiveness -of, involving, or determined by competition

• Competition – the act or process of competing

• Compete - to strive consciously or unconsciously for an objective (as position, profit, or a prize) : be in a state of rivalry

Ability and performance of a firm, sub-sector or

country to sell and supply goods and services in a

given market

Ability and performance of other firms, sub-sectors or countries in the same

market.

in relation to

• Oscar Mayer – The company

• Oscar Mayer Finding a Better Way Vision

• Open Innovation Introduction

• Examples of How Oscar Mayer uses Open Innovation as a Tool for Competitiveness

• The company was founded in 1883 by Oscar F. Mayer in Chicago, Illinois

• 1919 – Headquarters move from Chicago to Madison WI

• 1981 - General Foods acquires Oscar Mayer

• 1985 - Altria, which Kraft is a part of, acquires General Foods

• 2007 - Kraft splits from Altria

• 2012- Kraft splits into Kraft Foods Group and Mondelēz International

• American meat company owned by Kraft Foods known for its cold cuts, hot dogs, bologna, bacon, and Lunchables products

• 12 brands with more than $1 billion in revenue • 70+ brands with more than $100 million in revenue • 40 brands over 100 years old • 80% revenue from #1 share positions

Major North American grocery company • Approximately 80% of its revenues from categories in which it has #1

market position • Highly-competitive retail presence • Strong innovation pipeline • Significant scale across categories

Worldwide leader in global snacks • #1 Biscuits, #1 Chocolate, #1 Candy, #2 Gum • Leading market shares in each major region of the world • Strong presence in fast-growing developing markets and instant

consumption channels • Strong stable of global and local brands

1. Columbia, MO – hot dogs 2. Coshocton, OH - bacon 3. Fullerton, CA - Lunchables 4. Newberry, SC – sliced deli meats 5. Kirksville, MO – bacon, sliced deli meat 6. Davenport, IA – sliced deli meat, Lunchables 7. Madison, WI – hot dogs, sliced deli meat 8. Woodstock, IL - pickles

• We found a better way to use simple ingredients to improve our food and became the first brand to offer a complete line of meats that have:

• No artificial preservatives • No artificial flavors • No artificial color

• By using simple ingredients such as celery juice, half of our new products will have no artificial preservatives in 2012

• Sodium reduced by 20% across our portfolio, by end of 2012 • Our goal is to have 20% of our portfolio made with no artificial

preservatives by 2015

Oscar Mayer Selects = Competitiveness

Competitiveness requires Technology

Technology requires Open Innovation

• Leveraging the capabilities and expertise of others to deliver noteworthy and distinctive innovation

• Model that assumes for businesses to advance their technology they can and should use

• External ideas as well as internal ideas

• Internal and external paths to market

Competition is fierce in today’s world - requires companies to

develop innovative products with short development times

Goals unattainable by single companies are attainable when

companies join forces

The world is a vast pool of resources.

Easy access with internet

• Define strategy and priorities

• Decide which projects or parts of projects to execute outside

• Decide how and where to execute outside

Want • What external skills, technologies, or resources

Find • How will these critical external resources be found

Get • How will the resources be accessed

Manage • How will the new partnership be managed

*Source-Reinventing Corporate Growth (Gene Slowinski, 2005)

• The skill, technology, resource required for innovation that will result in competitiveness • Make-Develop a technology internally with internal resources (Closed)

• Buy-Purchasing or in-licensing a technology that already exists in the market (Open)

• Partner-Create a technology by joining forces with external resources through a strategic alliance (Open)

• A Want needs to be

Clearly defined and understood Prioritized Communicated

Want Brief

• Many different forms exist

• Should contain at least:

• Business opportunity

• Technical needs

• What is already known

• What is in scope

• Ideal solution

• Solution must have

• Budget and timeline

When done well it is the essential element of problem solving

• Going about finding a solution

• Great ideas are everywhere and can be

hidden in other industries and countries

• The challenge is uncovering the ideas

Small Firms

Internet Search Engines

Universities

Start-ups

Government Large Firms

Customers Vendors

• Partners of choice • Have internal structure that allows for creating and maintaining high quality

relationships

• Can make decisions fast and efficiently

• Supports team members and provides them with the tools they need to perform well within the framework of the partnership

• Can identify disputes early and handle in an effective manner to resolve quickly

• Have a history and reputation as an excellent partner to work with

Resource Fit

Shared Value Creation

Strategic Fit

• Employee Networks • Internal and external to the company in Industry, Academia, and

Government

• Beyond area of expertise

• The Internet • Wealth of information and leads for investigation

• Current Suppliers • Supplier challenges

• Open Innovation Partners • Your Encore

• NineSigma

• Innovia Technology

• And many more

• Process for negotiating a mutually acceptable agreement

• Involves cross-functional teams

• R&D, marketing, procurement, legal, manufacturing

• Requires planning and collaboration

• Must identify and share value between partners

What not to do

• Negotiation guide • Project description with deliverables

• Roles and responsibilities of each team

• Length of partnership and termination guidelines

• Confidentiality

• Intellectual property and right to use

• Field of use and exclusivity

• Often most challenging part of Open Innovation Framework for researchers • Training and practice essential

• Discussions and negotiations should occur before legal documents are drafted

Intellectual Property

• IP can be used in multiple ways to create value for all

• It is not necessary to own IP for competitive advantage

• Rights to IP patents can be licensed and defined by: • Field of use

• Time

• Territory

• Royalty or royalty free

• Establishing and maintaining working principle so both parties work and act as one team • Managements’ roles

• Researchers’ roles

• Sharing of information formally and informally

• Problem resolution

• Defining and managing technical needs and challenges

• Monitoring and evaluating external activity

• Negotiation of agreements

• Leading and managing projects or portions of projects with external development

• Inventing Delicious Framework • We innovate by integrating the competencies and best

practices of Knowledge Management, Open Innovation and Intellectual Property into the technology development process

• Derived from the business strategy

• Review make, buy, ally and differentiate needs

• Develop Open Innovation Needs list

• To do well must have

• Devoted resources

• Cross functional buy in

• Continuous process

Technology Needs

No Artificial Preservatives

Sodium Reduction

Simple Ingredients Consumers Recognize

www.kfcollaborationkitchen.com

www.kfcollaborationkitchen.com

• Expanding our Supplier network to drive innovation and competitiveness

• Supplier Innovation Summit 2011 • Identified new partnerships to drive

growth

• 45 participating companies

• 110 Kraft participants

• 35 Open Innovation needs

• Defining the Problem

• Identification of the aims and goals of the QuickScan

• Key Findings and Trends

• Highlights important findings and current picture of the developing landscape

• NineSigma Mind Map

• High level view of the search areas and technology groups

• Identify trends

• Highlight specific capabilities

• Find commonality/areas of overlap

• Specific Technology Examples

• Options for pursuit and further consideration

• Long term food safety partner

• Partner of choice

• Strategic Fit

• Resource Fit

• Create shared value

Oscar Mayer’s Strengths: • Consumer based insights • Experts in the chemistry of our food systems • Applications of ingredients in our food

systems • High standards for product quality and food

safety • Leadership and scale – lead the way in

implementing new ingredients like Lactate in the 1990’s

• Regulatory insight on final products especially USDA expertise

• High volume/long term customer

Purac’s Strengths: • Fermentation • Downstream processing • Food safety modeling • Ingredient solubility modeling • GRAS and USDA approval of ingredients • Specification development and scale up

of ingredients • Scientific/research depth • Proven long term partner

• University of Wisconsin-Madison •Close proximity • Strategically aligned • Meat Color • Food Safety • Lipid Oxidation

•Bi-Annual research reviews and information sharing •Member of the Food Research Institute

• First brand to offer a complete line of meats that have: • No artificial preservatives • No artificial flavors • No artificial color

• Half of new products in 2012 will have no artificial preservatives • 20% sodium reduction across our portfolio by end of 2012 • 20% of portfolio made with no artificial preservatives by 2015 • Continued evolution using simple everyday ingredients people

trust

Step into your consumer’s worlds, listen and observe with open minds

• You will find competitive insight

Inspire those that you work with to dream

• Allow for thinking and playing outside the normal workplace constraints

• Rules and attitudes of organization can inhibit innovation

Create an innovation strategy

• Have a vision to work for and people will surprise you

Embrace the global research community

Encourage and incent employees to build both their internal and external networks within and

outside our industry

Build skills in:

• Program management

• Partner orchestration

• Problem definition

• Relationship management

Optimize internal and external resources to

• Have the right talent at the right time

• Develop technical strategies to deliver strategic plans

• Share risk outside your organization

• Accelerate innovation

View and treat external companies/universities as partners not adversaries

Think about your profit assets differently

• Manage IP portfolios to create numerous streams of value

• “Many corporations are modern dinosaurs. They can choose to adapt to new challenges in front of them” –The Open Innovation Marketplace

*Source-The Open Innovation Marketplace (Alpheus Bingham and Dwayne Spradlin, 2011)