Wanted! People with the Innovative Sustainable Fibre
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1 Wanted! People with the Innovative Sustainable Fibre Jean Hamel VP Pulp, Paper and Bioproducts Location: Date: Jasper May 31st, 2012
2 Organizations Suffering Paradigm Shift: ie Crushed By The Next Big Thing Dell Tablets replacing desktop and laptops Best Buy Customers now shop in store, take picture and order on-line Blockbuster Video on demand Nokia Stick to core business: cell phone, but missed intelligent phones RIM Ignoring Apple s iphone and Google s Android operating system strength Apple? Loosing it to Samsung s Galaxy? 2
3 Can Established Industries Predict Their Future? "But what is it good for?" Engineer at the Advanced Computing Systems Division of IBM, commenting on the micro chip, 1968 "There is no reason why anyone would want to have a computer in their home" Ken Olson, president and founder of Digital Equipment Corp, 1977 "With over 50 foreign cars already on sale here, the Japanese auto industry isn't likely to carve out a big slice of the US market Business Week, August 2, 1968 "640K ought to be enough for anybody Bill Gates of Microsoft,
4 You Find Life is Accelerating! Paradigm shift rate in our society now doubles every 10 yrs! What we can predict: Changes will be harder to predict Major changes happen more quickly It will happen Prediction & Model Newsprint Consumption in
5 The Economist, Schumpeter How Fujifilm Survived : Sharper Focus Fuji business changes in 10 yrs Profits from film: 60% basically nothing Revenues from digital imaging: 50% 20% Like Kodak 1980s realized photography would be going digital Continued to milk profits from film sales Invested in digital technologies Tried to diversify into new areas Controlled by the people from the profitable film division who were late to admit that the film business was a lost cause As late as 2000 Counted on a gentle 15 or 20-year decline of film Not planning for sudden free-fall 5
6 Why Fujifilm More Successful Than Kodak? Took the hard route of innovations Not only focus on increasing marketing and cost of actual business Added in-house expertise in new businesses Applied its technologies and expertise in new areas Nanotechnology to apply chemicals to facial skin cosmetics Photosensitive materials in fine chemicals and industrial materials Imaging in medical equipment Had longer-term vision and large investment Affecting short-term profitability Cannibalize oneself Focus on execution (not only strategy) Resisted looking for a magic wand 6
7 Electronic vs Print Communication? Speaking of electronic communication as just another demand variable (for printing grades) misses the point entirely Verle Sutton Tablet impact on pages printed is the most underappreciated cannibalization story (Morgan Stanly) Printing behavior structurally changing ipad owners print less at work & cancel print subscriptions Reduction in enterprise and commercial printing Will emerging countries skip the printing? Indiana schools teach children to type instead of handwriting (The Telegraph, May 2012) 7
8 World Interest in Printing Technology Dropped by 20% Over Last 4 yrs! Attendance Drupa is the largest tradeshow on printing technologies 8
9 Growing Markets for Forest Products? Actual: Tissue, Packaging, Fluff, Dissolving Future: Material, Chemical, Energy Caution: Emerging technologies can erode Canadian advantage Additives and pulp optimization Fibre modification chemistry Papermachine technologies Emerging fibre-derived materials: NCC, Filaments, Fibrils, etc Fast growing fibres modified through species selection and modification Ex: Eucalyptus with 12% less lignin = more cellulose per fiber 9
10 Product Development Create Products Innovation Means we will Create New Products with New Processes With What We Are Good At! New Markets Penetration Wood products Pulp Some Chemicals CNF NCC Lignin Sugars Energy Disassemble wood into components Process Development 10
11 Are there New Market Opportunities? (compilation by NRCan and Industry Canada, 2010) PRODUCTS GLOBAL MARKET POTENTIAL, 2015 (US$ billion) CAGR (%), (approximate) Green chemicals Alcohols Bio-plastic and plastic resins Platform chemicals Wood fibre composites Glass fibre market 84 63* Carbon fibre Revenues, Canadian forests product industry 500 Neg -, 0-2 to 2 References: Markets and Markets 2009 Global Renewable Chemicals Market The Freedonia Group 2009 World Bioplastics Industry Study 2548 Lucintel 2009 Global Glass fibre Market : Supply, Demand and Opportunity Analysis Acmite Market Intelligence 2010 World Carbon fibre Composite Market * CAGR (Compound Annual Growth Rate) for
12 Market For Bioproducts Is Growing To Fill Society Needs! GLOBAL MARKET POTENTIAL FOR DIFFERENT BIO-PRODUCTS FROM FOREST BIOMASS (Billion US$) Bio-energy, bio-chemicals, fiber composites Conventional forest industrial products References: Heat, power, bio-fuels, bio-gas: FAO, 2010 and IIASA, 2010 Green chemical products: NRCAN and Industry Canada, 2010, and Consulting Reports, Building with wood and living with wood: FPInnovations 2010, and Nilsson & Goodison, 2010 Conventional forest products: FAO, 2008, and Nilsson & Goodison,
13 What Does This All Mean? We face accelerated paradigm shifts Electronic Tablets: impact on all printed communication worldwide We have opportunities Growing needs of energy, chemicals, materials and products We can build on advantage of wood fibers? High value-added products Integrate value-added production and energy with existing facilities Build on technology and IP Be there first! We need people with new competencies, expertise, flexibility and quick adaptability to innovates 13
14 Where Are Those People? Generation Y (Millennials): A World Workforce World Population and Generations Generations Population Gen Y Gen X Baby Boomers Traditionalists Population (Million) % of World Population 1, , , , % of the world s workforce in 2025 (13 years away!) 14
15 Understand Who Is Generation Y? Digital, Connected and Social Need connection, constant multi-tasking A trend-setting group Like to live in big centers Challenging Great expectations from workplace: Meaningful work and balanced life Expectations for advancement, salary and for a coaching relationship with their manager Frequent feedback at the push of a button Seek to participate as equals in the workplace Argumentative and negotiators Scarce Only 40% of whom are employed full-time Limited loyalty to an employer Will be highly sought after Transformational They know that getting a job is about being innovative and working across fields Pictures from FreeDigitalPhotosnet 15
16 New Processes, New Products, New Markets! Is This Attractive for The Millenians? Non-traditional fields Nanotechnologies, Bio-sourced Chemistry, Biorefinery, Biomaterials, Bioenergy, Printed Electronics, Hybrid-Chemistry, Sustainability, LCA, etc Development of greener specialty chemicals and materials Focused on innovation and its management Linked with other industries Multi-Disciplinary teams required Research + Technical + Engineering + Market + Financial Large investment for the transformation: R&D Demonstration projects (Joint Ventures) Fast track projects 16
17 We, In Canada, Are Training This Resource NSERC Forest Sector R-D Initiative 300 Graduate students being trained - 8 Networks, - 27 Universities - 20 Professors FPI researchers 17
18 Value-added nanoproducts Integrated decision-aid models for the Canadian forest sector Decision-support tools and business networks models for integrating the whole value chain Expand wood and wood-based products use in building construction Renewable fuel ethanol and chemicals from lignocellulosic biomass High value-added paper and packaging that incorporate biologically active chemicals for a range of applications Developing green products based on wood fibre to replace fossil-fuel based and other non-renewable products Produce a variety of valuable chemicals and materials from lignin 18
19 Role of FPInnovations Worked with NRCan, NSERC, FPAC to create alignment on common strategy to get on the route of sustainability With NRCan Major investment on Transformative Technologies in Biorefinery, Biomaterials and Value Chain Optimization developing processes and products Transforming the organization: Realigned all programs Developed an accelerated innovation process Management of Innovation Developing expertise on lignin, sugars, cellulose, extractives 56 new people since 2007 with new expertise (12 Post Doctoral Fellows) 19
20 Wanted! People With the Innovative Sustainable Fibre Attract the people: The new generation is up to the challenges Focus on Innovations: New products and New markets Tap on the growing needs Develop strategies and execute Go for it now! 20
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