Innovating as an SME: A Case Study of Raynor Foods PRESENTED BY: TOM Æ HOLLANDS FIFST CS C I BS C (HONS) INNOVATION AND TECHNICAL DIRECTOR FOOD SCIENCE AND INNOVATION DEPARTMENT RAYNOR FOODS LTD UNITED KINGDOM
Presentation Outline • Brief introduction to Raynor Foods • What is Innovation? • Innovation as a process • Innovation types • Constraints and considerations • The role of the team • Case study examples and key takeaways
• Raynor Foods – established 30 years ago • Both factories located in Chelmsford, Essex (Birthplace of the Radio) • 2 nd Generation Family Business • National and International Award Winning Innovations • Manufactures extensive range of Food to Go products. • International consultancy wing, consulted in Austria, Italy, Spain, Saudi Arabia, Israel and others.
Our understanding of innovation KNOWLEDGE FOSTERS SUCCESS
What is Innovation? “Exploitation of new ideas” DTI, UK. ”Implementation of products or product delivery processes with new or significantly improved characteristic” Oslo Manual “Introduction of new products, methods of production, new markets, new sources of supply and new forms of organisations” Schumpeter (1934) “Innovation is change that creates a new dimension of performance.” Peter Drucker
Definitions • Describes the process • Describes output of the innovation process • Output is new or significantly improved – which has value! • Firms innovate to improve performance i.e. reduce cost and/or increase demand • Failure to innovate leads to loss of market share and jeopardises growth prospects.
Innovation IT’S A PROCESS!
Innovation Inputs ➢ All resources the firm invests in innovation activities (De Massis et al, 2014) . ✓ People ✓ Networks (people wise) ✓ Skills & Knowledge ✓ Locations/land/premises ✓ Financial ✓ Technologies ✓ Machines ✓ Time ✓ Trust…. ? Openness to risk
➢ Innovation activities (Gellynck et al, 2007) . Innovation Activities ✓ Training - embedding new skills and knowledge into the business. ✓ Job swaps – releasing naivety ✓ Desk rotations – sharing naivety and problems ✓ Classic brainstorming – ideation methods ✓ Classic R&D ✓ Reciprocal keyperson business exchange ✓ Horizon scanning – attending conferences, lecture, summits, tradeshows ✓ Problem hunting ✓ Mindmapping ✓ Future gazing – what is and what could be?
Innovation Outputs ➢ All innovation outputs (OECD, 2005) . ✓ Outputs have tangible (e.g. profit) and/or intangible effects (e.g. reputation) (Gellynck et al, 2007) . ✓ Outputs are new or significantly improved. ✓ Outputs can be categorised into domains; ➢ Product innovation ➢ Process innovation ➢ Market innovation ➢ Organisational innovation ✓ Output domains cascade into subcategories e.g. product innovations could be new goods, services or ideas. (Avermaete et al, 2003) ✓ Outputs of earlier innovations become inputs for future innovations . (Avermaete et al, 2003, Stone et al, 2008)
Innovation process is dynamic and iterative
PRODUCT INNOVATION PROCESS INNOVATION (1) Good (1) Technology (2) Service (2) Infrastructure (3) Idea ORGANISATIONAL INNOVATION MARKET INNOVATION (1) Marketing (1) Exploitation of territorial Areas (2) Purchasing and Sales (2) Penetration of market segments (3) Administration (4) Management (5) Staff policy • (Avermaete et al, 2003 )
Innovativeness INNOVATION 1 (NEW PRODUCT) INNOVATION 2 (NEW SERVICE)
Innovativeness Transformational ❖ Challenging to measure, but important ❖ Competencies required typically increase with innovativeness ❖ Value creation typically increases with Breakthrough innovativeness ❖ Degree of innovativeness linked to higher performance ❖ Relationship between the degree of innovativeness and the number of Incremental benefits, across a number of areas (e.g. food safety, quality etc.). ❖ i.e. higher innovativeness = more holistic benefits
Incremental ➢ Small and meaningful improvements ➢ Collectively improvements are significant ➢ Extremely common ➢ Assist in extending product/service life cycles ➢ Improves profitability ➢ Typically low risk ➢ Small number of benefits ➢ Vast majority (in food) are; ✓ ‘New’ and ‘improved’ recipe formulation ✓ Me 2 ✓ Packaging change ✓ Provenance ✓ Process enhancements
Breakthrough ➢ Breakthrough innovation benefits are both significant and multifaceted ➢ Multifaceted i.e. realised across a range of fields, such as quality, food safety, efficiency, sustainability ➢ Uncommon/Rare ➢ Disruptive to the market/industry ➢ Improvements have significant tangible and intangible benefits ➢ Innovation inputs are more demanding ➢ Ergo - Risks are higher ➢ They change the market landscape and consists of something ‘really new’
Transformational ➢ Exceptionally rare ➢ Transforms the way we live, work (and even feel!) ➢ Significantly disruptive – usurps and discontinues older technologies and ideas ➢ Innovation benefits are profound and both tangible and intangible ➢ Benefits are realised in many fields and disciplines and will not only benefit one industry or market. ➢ Transformational innovations spawn new markets and new opportunities for existing markets ➢ Often (but not always) significant and risky innovation inputs required.
Constraints and Considerations • Risk vs Reward = inputs greater than sum of parts? • Consumer acceptance – GM? • Cost (££ and reputation) • Knowledge, Skills and other non financial resources • Uncertainty • Time – detraction from direct value creation • Payoff – when will we benefit? • Current science limitations – Packaging and Ovens
Teams deliver innovation • Organisational Culture is paramount • Failure leads to increasing chance of future success (outputs become inputs) • Patience and trust • License to play - playfulness • Balanced teams – Belbin it • Education, exposure and experience; • New knowledge and awareness • Meet/Greet/Observe – horizon scan • New skills
Case Study Examples EXISTING AND IN DEVELOPMENT INNOVATIONS
Intense TM Tomatoes • The first UK sandwich manufacturer to use Intense TM Tomatoes • A non-GM tomato variety designed specifically for the food industry • This delivered a wide range of quality enhancements • Intense red colour • Rich flavour • Robust texture • Strong cell walls do not seep liquid when cut • 95% reduction in ‘soggy sandwich’ complaints • The plum shape meant yield increased by 8% • Tomato waste was reduced by 20% • 1:4 waste for normal MM Tomatoes • 1:24 for Intense • Cost us the same as standard tomatoes
Verity’s Grace • The first UK sandwich manufacturer to develop our own variety of lettuce • Process yields increased by 12% • Preparation reduced from 16 cuts to just two • 50% cost saving • Lettuce waste reduced by 20% • Elimination of white stalk and brown lettuce complaints • Aesthetically and nutritionally superior to Iceberg • Grown in greenhouses all year round (without artificial light) • Enhanced food safety • Named after Heather Raynor’s baby daughter, born the same time!
Cultural Change Programme – Organisational Innovation • Trust, Care and Respect • Ensuring our innovative supporting culture continues to grow and flourish • Upskilling our production operators to technicians • Flat structure, fully empowered teams to facilitate delivery • Ensuring higher needs of fulfilment and growth are attained by all staff
Project: Rosemary Gardens ➢ TO ASSESS THE FEASIBILITY OF INHOUSE MICRO LEAF AND HERB PRODUCTION ; • Salad cress • Rocket • Spinach • Flat and curly parsley • Chives • Coriander • Mint • Dill • Lettuce
Digital Transformation Project: Transform • Digital system development across all departments and functions. • Smart systems and workflow • Management by exception • Utilisation of AI assistants • Interconnectedness between all systems enhanced
Summary – to reflect on • Innovation is a process as well as an output • Different levels of innovativeness – related to number of benefits across multiple areas • Requires inputs and activities • Outputs of innovation activities become inputs for new innovation activities • Innovations open doorways to other innovation types • Teams deliver innovation • Investing in teams (inputs) is critical • Culture is the defining factor of success
Thank you for your attention Q&A
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