WP5 Innovation Management (IM) Prof. dr. Erik Jan Hultink Dr. ir. Ellis van den Hende Delft University of Technology

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1 WP5 Innovation Management (IM) Prof. dr. Erik Jan Hultink Dr. ir. Ellis van den Hende Delft University of Technology Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management

2 What is collaborative innovation management and why is it important? How can different stakeholders work together to exploit promising novel technologies in ways that deliver bene9its to consumers? Case Studies Collaborative innovation management research in the food sector what (collaborative) innovation models do Dirms use what do Dirms hope to achieve with collaborations and what obstacles do they experience? Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 2

3 Best achieve superior results Best Rest new product successes 63% 49% incremental product successes 70% 62% radical product successes 59% 42% new products / sales (5 years) 34% 22% new products / prodits (5 years) 37% 26% CPAS- NL Hultink et al Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 3

4 Best closely follow technological developments best rest Regularly follow up on technological developments for a complete breakthrough Regularly follow up on technological developments Occasionally follow up on technological developments % Technology is not an important issue %% CPAS- NL Hultink et al Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 4

5 Stage- Gate Model (Cooper) Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 5

6 Factors determining success in new food development (Stewart- Knox and Mitchell) Research: 127 standard and reduced- fat food product cases Outcomes: Original products are more successful than me- too products Products developed in collaboration with suppliers and research centers tended to be more successful Retailer involvement important to uncover consumer needs but ultimately manufacturer remains responsible to make sure the recipe is good Food technologists are crucial for recipe development Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 6

7 Best better manage new product relationships between Dirms best rest They work harmoniously together They like each other They trust each other They are safsfied with each other They have a bond They are similar Never Virtually always CPAS- NL Hultink Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 7

8 Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 8

9 Open innovation (Chesbrough) Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 9

10 Open innovation Bill Joy, Founder Sun Micro Systems Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 10

11 Four types of contributions to open innovation openness selection process anyone can join crowd e.g., idea boxes, challenges company consults experts communities e.g., open source coalition of experts e.g., co- branding initiating company company and partners ownership Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 11

12 Examples of facilitating companies openness selection process anyone can join crowd e.g., idea boxes, challenges company consults experts communities e.g., open source coalition of experts initiating company company and partners ownership Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 12

13 Why would one engage in OI Chesbrough 2006 Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 13

14 Chesbrough 2006 Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 14

15 Coalition of experts openness selection process anyone can join crowd company consults experts communities coalition of experts e.g., co- servicing, licensing initiating company company and partners ownership Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 15

16 Thus, recognition of opportunities for collaborations But the more the merrier? A lot of collaborations in all phases of the innovation process? It all depends on the project and the context of the company (Lazzarotti and Mancini 2014) What are the implications for food companies? Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 16

17 Open Innovation tools OI scorecard crowdsourcing (Blohm et al) WFGM framework (Slowinski) Model of the sourcing process (Chatterji 1996) Phase model (Tepic et al 2013) 10- step guide (Tolhurst and Brown 2013) Sharing is Winning (Traitler et al) Knowledge supplies (Bellantuono et al) Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 17

18 The Want Find Get Manage model: Four phases of OI relationships Slowinski and Sagal 2010 Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 18

19 RECAPT promising novel technologies Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 19

20 30+ interviews product manufacturers, technical and scientidic service suppliers, machinery manufacturers, ingredient suppliers, sales agents Various company sizes, various countries Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 20

21 New product development 1 TECHNOLOGY DEVELOPMENT Technology development lab / pilot scale process 2 NEW PRODUCT DEVELOPMENT Technology up- scaling and / or Technology application optimization 3 MARKET INTRODUCTION Experimentation Development Manufacturing Commercialization Solution generation

22 Example case: active packaging A pilot conducted in the UK proved that the shelf life of raspberries increased from 5 to 10 days, and for strawberries from 4 to 8 days 50% reduction of in- store waste Double- digit sales growth For one product the in- store waste decreased by 95% Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 22

23 Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 23

24 First applications: various (mixed) vegetables, cheese, Dlowers OEM suppliers Sales agents / licensees Solution generation W F G M Development In house manufacturing W F G M Trial Commercialization Experimentation Sales agent / licensee University Product manufacturers University Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 24

25 The Chasm (Moore) Innovative High- Tech Product The Early Market? The CHASM The Mainstream Market Technology Enthusiasts Visionaries Pragmatists Conservatives Skeptics

26 The starting point of open innovation success is a clear understanding of what assets the Dirm requires to accomplish its growth objectives. Slowinski and Sagal 2010 Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 26

27 Crossing the Chasm Solution generation Experimentation TSS W F G M Development Subsidy provider OEM and machinery suppliers In house manufacturing W F G M Retailer Trial Sales agent Growers Sourcing company Sales agents / licensees Commercialization Early system adopters Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 27

28 Diverse product manufacturer s needs Sell fresh products in new markets Meet retailer s questions for less waste and point of difference over competition Offer unique product recipes Cheaper distribution Meet sustainability goals of the company Increase awareness and acceptance of the new technology Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 28

29 Technologies provide extended shelf life and better ingredients Retailer benedits: cost savings; fresh products stay fresh for a longer time access to new, (and fresh) products new sales negotiations no need to freeze improved product portfolio suiting consumers needs Consumer benedits: fresh products no additives healthier products Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 29

30 Reasons for collaboration 1 TECHNOLOGY DEVELOPMENT 2 NEW PRODUCT DEVELOPMENT 3 MARKET INTRODUCTION University TSS Machinery/software supplier Retailer Agents / Licensees Experimentation Development Trial Manufacturing Commercialization Solution generation

31 Technology innovation collaboration Want New technology capabilities that give product manufacturer access to a new ingredient, packaging, or process Acquire with partner Develop internally Test and purchase Purchase TECHNOLOGY DEVELOPMENT NEW PRODUCT DEVELOPMENT COMMERCIALIZATION Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 31

32 WANTS sought capabilities Example: Sell fresh soup in new markets: extended shelf life is desired while maintaining fresh taste and experience Wants: New technology capabilities that give product manufacturer access to a new ingredient/ process/ or packaging Decision for developing/buying/partnering to acquire the capability depends on: Technology (customer needs, social norms, retailer attributes) Product category, technology maturity, IP wishes, type of process, time goals, and costs (ROI, daily operations) Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 32

33 Technology innovation collaboration Want non - food food Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 33

34 Technology innovation collaboration Want WANT: Initiation >> decide on sought capabilities and get full internal commitment to the objectives and terms of a possible alliance Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 34

35 Technology innovation collaboration Find FIND: Partner selection >> Who to select Image Existing networks and fairs Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 35

36 Technology innovation collaboration Get GET: Formalization >> What kind of collaboration it will be Perceptions of risk and IP ownership Multiple roles within NPD project Trials Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 36

37 Technology innovation collaboration - Manage MANAGE: Implementation >> Implement all agreements of the alliance, coordination of activities. Non- food and food speci]ic knowledge Project management importance Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 37

38 Conclusion Evaluation >> Process and goal performance evaluation How can different stakeholders collaborate to exploit novel promising technologies Retailer and Consumer Acceptance of Promising Novel Technologies and Collaborative Innovation Management 38

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