Bindaree Beef Group Young Food Innovator trainee (RnD4Profit insights2innovation)

Summary

The Food Innovators Program is an entrepreneurial and innovation capability building initiative built around the application of human centred design led innovation approaches that enables new customer value creation to be achieved through new value chain and business model design. Human centred design is a design and management framework that develops solutions to problems by involving the human perspective in all steps of the problem-solving process This program is specifically aimed at reaching a practical project conducted by the Food Innovators within their businesses to provide experience in design led innovation through live projects.

This project forms part of a broader program of work aimed at informing value chain innovation investments through the translation of market information into insights that inform innovation and growth strategies. The Project is part of the Insights to Innovation project. The ultimate objective of the Insights to Innovation Project is to develop new knowledge and deep market insights to inform more strategic innovation investment decisions (at both industry and value chain levels) which support high value growth initiatives which build demand for  agricultural food products in emerging export markets and market segments over the next 3-5 years.

The key elements of Design Led Innovation are:

• Consumer / Customer Value – Developing a deep understanding of who your consumer and customers are and what the meaning is behind their problem
• to allow you to better understand how you can both create and capture value for your organisation.
• Strategic Alignment – Ensuring that you align your business process, systems and products to your value proposition.
• Design and innovation is not just about the creation or new ideas, but ensures there is synthesis around a common problem and that all elements of the system are aligned to deliver value.
• Management Mindset – Design (thinking) recognises that problems and solutions in design are interwoven
• it requires an inquisitive and open mind set.

The program seeks to grow new networks and collaborative partnerships

Bindaree Beef Group (BBG) agreed to participate in the Young Food Innovator program which commenced in June 2016. At the time Bindaree Beef was an organisation undergoing rapid change. The group had recently undergone a merger of 3 businesses; Myola Feedlot, Bindaree Beef processing operation and the Sanger sales, marketing and trading business.The goal in merging the 3 businesses together was to create an integrated value chain that could continue to grow its programmed and branded business into both a domestic and export customer base. Under this transformation and through discussion with the MLA, BBG saw the opportunity to formalise an Innovation function within the business. Incentives were available through engaging with the MLA to participate in both the YFI program as well as the CISP program.

During this time the business also happened to be in the process of negotiating with an equity partner who would take a stake of the business in return for capital that would allow the business to grow. Unfortunately the deal with the first equity partner fell through and BBG went to the market to find another suitable partner. The deal with a Chinese owned investment company was struck in late 2017. Through the duration of the program the YFI participant was responsible for working with the MLA and AMPC to initiate and manage PIP projects. Projects engaged in included; PIP. 0540 (Dairy Steer feed research program) and PIP. 0554 (Interactive value chain research). BBG looked to further engage in with the MLA through innovation initiatives during the program, however tough trading conditions provided a barrier to access to capital to initiate projects.

The participant was involved in several innovation projects that were not eligible for innovation funding. The largest being the building of the business case to implement a $2 Mil spray chilling project which will seek to improve the red meat yield in the processing operation by an anticipated 1.5%. Beyond the capital projects as described above other major projects that were inititated included; the processing mapping of the processing operation (to be used as a basis for the business case for future capital projects) and the building of a financial modelling tool to better forecast, review and understand the profitability of the value chain.

It would be fair to say that the project work engaged in by the participant at BBG (as described above) was at a relative disconnect to the course content taught through the program (being primarily market and customer focused). For the teachings of the course to be properly leveraged by industry more work would be needed to clarify roles and responsibilities of the participant, the host company and the MLA. If the MLA is to consider future cohorts through similar programs, recommended that this needs to be clearly stated up front and not left to chance. There also needs to be further measures put in place to make sure that all parties are held to account for the outcomes of the program.

The Food Value Chain Innovators: Emerging Leaders Program is a sub-project within the RnD4Profit Insights to Drive Food Value Chain Innovation & Growth project and is aimed at developing the skill set of the Young Food Innovator trainees.  This second intake of participants will be Producers.  Group size totaled 17 people from Australia & New Zealand.  Program to run for 12 months -  1 July 2017 – 30 June 2018. A CMAand MDC project were set up to allow for travel and acocmodation expenses associated with these intakes and design of the program.