P.PIP.5006 - FIE Development and Implementation of Collaborative Innovation Strategies program (Stage 1)

Summary

The purpose of this project is the development and implementation of a Stage 1 Collaborative Innovation Strategy between Fletchers International Exports (FIE) and Meat & Livestock Australia. Stage 1 will be integrated into the company's overall business strategy and will include measurable performance indicators which identify the contribution of innovation to the bottom line and achievement of key business objectives. Ultimately the innovation strategy will contribute to Fletcher’s long-term profitability, competitiveness and sustainability. As a result of MLA’s support for this program, the broader industry benefits of increased innovation adoption and supply chain capability will be achieved.

Objectives

The objectives of the third-party independent review were initiated to evaluate the impacts of a Collaborative Innovation Strategies Program (CISP) for an Australian meat processing company. This was achieved by:
1. Identifying the extent to which the plant has added value to the Australian value chain through the CISP program.
2. Providing insights on opportunity areas that could be further developed by the plant under the new Co-Innovation program.
3. Identifying areas of weakness in the Stage 1 program resulting in missed opportunities including the recommendations on how to engage differently in the future for increased benefit to the plant and industry.
4. Report on the three-year CISP program including:
a. overall achievement against agreed innovation priorities
b. quantified benefits of the innovation program
c. key innovation systems implemented
d. methodologies used
e. key innovation case studies and lessons learnt.

Key findings

The review found that there was a significant difference in what was originally planned in the innovation strategy compared with what was executed. Operational efficiency projects became the focus of the CISP. Environmental and livestock projects gained limited traction because of the emphasis on operations.

Analysis of the 22 projects found that 55% of projects were very or extremely successful, with 23% being unsuccessful. Many of the unsuccessful projects were terminated during the CISP.

Benefits to industry

MLA's support for this program will achieve the following benefits for industry:
- Generic tools and approaches to building enterprise and supply chain innovation capability and achieving innovation outcomes will be disseminated to the broader industry as agreed.
- Better understanding of the critical issues impacting on the competitiveness of the processing industry that will be extended more broadly to other enterprises within the industry as agreed.
- New technologies and new scientific knowledge (arising from projects within the FIE/MLA Innovation Program) which will be commercialised and/or disseminated for the benefit of the broader industry as agreed.

MLA action

A revised relationship management and innovation resource structure (i.e. different from Stage 1) for both Fletchers and MLA will need to be developed to manage the expanded program, and the role of the joint Fletchers/MLA Executive Steering Committee in providing strategic direction will be further defined.

Future research

The plant needs to increase the capability of its staff to successfully implement the CISP. To this end it is recommended that the plant engages in an innovation working group with diverse capabilities stretching across the value chain. This working group should also establish a system for identifying and prioritising potential projects against key metrics. The system should plan and track innovations through the pipeline, proposal, prototyping and commercial stages and should also facilitate detailed performance reporting.

This project is linked directly to P.PIP.0442 where two innovation managers were hired for Fletcher International Exports Pty Ltd.