final report Project code: Prepared by: P.PIP.0455 Teys Australia Date published: 10 June 2016 PUBLISHED BY Meat and Livestock Australia Limited Locked Bag 1961 NORTH SYDNEY NSW 2059 Teys Australia Food Solutions Knowledge Management for Innovation This is an MLA Donor Company funded project. Meat & Livestock Australia acknowledges the matching funds provided by the Australian Government and contributions from the Australian Meat Processor Corporation to support the research and development detailed in this publication. This publication is published by Meat & Livestock Australia Limited ABN 39 081 678 364 (MLA). Care is taken to ensure the accuracy of the information contained in this publication. However MLA cannot accept responsibility for the accuracy or completeness of the information or opinions contained in the publication. You should make your own enquiries before making decisions concerning your interests. Reproduction in whole or in part of this publication is prohibited without prior written consent of MLA.
Abstract Completing this project provided a framework on how to design a study tour, including information collation and ensuring alignment to company goals of converting the attained knowledge into intelligence as well as imparting insights to wider team who did not attend the study tour but can leverage both the results and have input into the design. The Knowledge Management project looked at how knowledge is captured and used with advancements trialled as a team involved in innovation. The main goals of the project were: To evaluate current knowledge sharing system and processes and determine whether the right mix of sources to deliver the right projects for a growth portfolio. To provide a learning framework for Study Tours that can enable assessment of indepth new business growth opportunities. Following the first study tour market visit and completed lessons learnt analysis, the project was design was changed with a desire to focus on specific focus areas using an alternative customer development interview, business model canvas and competitor analysis approach. In turn, the planned 2 nd and 3 rd study tours did not progress but the framework and preliminary information and conversion to insights from the study tour has continued to be of input to current business and innovation strategy development. Page 2 of 15
Executive Summary Teys Australia Food Solutions (TAFS), the value adding business of Teys Australia (TA), recently undertook a Strategic Review of its Innovation Portfolio, in order to identify key opportunities for investment to create new growth options for the business. It was highlighted that TAFS need to improve insights and ideation via a more structured approach in order to ensure that the right type of knowledge is utilised across their multi-business/disciplinary teams and that decision-making to underpin significant investment choices and innovation is optimised. This project developed a well-designed knowledge management framework applicable to wider industry dissemination in how to plan and execute building innovation capability across the business that inform new product, process and value chain design to grow red meat demand. Activities include scanning systematically for new knowledge and market insights that relate to innovation opportunities in product, process and packaging (including study tours); make sense of new knowledge as a multi-disciplinary, cross-business unit team; and inform strategic innovation decisions being undertaken within the business in a timely and meaningful manner. The decision was taken to not proceed with the remaining project and subsequent market study tours (and data collection) however an integrated Knowledge Management framework was successfully developed and adopted. This included using existing information and converting these insights into working business models and opportunity spaces. Page 3 of 15
Table of Contents 1. Project Objectives... 5 2. Approach taken to Study Tour... 6 3. Summary of Approach: Interviews & Process Review... 7 4. Baseline Knowledge Management Framework... 7 5. Preliminary Scan of Information Sources... 10 6. Lessons Learned from Study Tour... 10 7. Summary of Outcomes: Interviews & Process Review... 12 8. Outline of Team Workshop... 12 9. Recommendations for Go/No-Go... 13 10. Appendix 10.1 Appendix 1 Interview questions... 14 10.2 Appendix 2: Trip Report Summary... 15 Page 4 of 15
1. Project Objectives The specific objectives achieved were: Identify briefing and other information sources on R&D, technological developments and business model variations being used in domestic and international markets to service the red meat consumer, related to product, processing and packaging to connect to on a regular basis; Identify experts, groups and/or information sources in adjacent industries (such as retail or nonprotein foods) that may provide long range connections to stimulate new innovation opportunities; Develop knowledge sharing and sense-making techniques to support the multi-disciplinary group charged with development of value-adding innovations, including use of software tools or databases where appropriate; Develop structured methods for ensuring study tours are clearly linked to innovation priorities, and that opportunities for field-based knowledge gathering are undertaken in a systematic manner; The application of the knowledge management framework through structured study tour (initially 3 were planned) targeted at assessing key opportunities pre-identified (key findings from Strategic Portfolio Review P.PIP.0419). In particular understanding the approaches being taken by food solutions companies, primarily in Europe, to deliver innovative products (including processing and packing options) at scale to red meat consumers. Page 5 of 15
2. Approach taken to Study Tour Study Tour 1 was completed over a period of two weeks and encompassed the following: Visits to five European countries the United Kingdom (England and Wales), Germany, Denmark and the Netherlands Meetings/ site visits with nine production/ processing companies Meetings/ site visits with four retailers Attendance at one international trade fair Anuga FoodTec 2015 in Germany Information was gathered during the visits/meetings using three approaches, which included: Open questions Biggest recent successes for your business Key enabling technologies and processes including sorting and distribution Key talent e.g. automation specialists Major trends you see including the impact of online Main risks and business model threats: emerging competition, cost pressures Specific questions Are you supplying exclusively into supermarkets or are other types of customers important for you? Impact of changing supermarket deli formats? Major customers - do you consider them to be long-term partners? Depth of innovation pipeline: do you generate new ideas or does your customer determine new product/range concepts? We will be visiting retail stores while here: what new products of yours should we keep an eye out for? In-depth questions What have been the major surprises for you as the business has changed? What do you know now that you wish you'd learned earlier? Which competitor do you most admire? Why's that? Page 6 of 15
3. Summary of Approach: Interviews & Process Review In order to review the current systems and process utilised by TAFS to support the structured collection, dissemination, interpretation and analysis of information and insights to inform innovation decisions, interviews were held with 7 key internal members of the TAFS team as follows, in May 2015: A semi-structured depth interview technique was utilised, involving a dedicated interviewer and a dedicated note taker, to maximise the value of the discussion and the accuracy of records. A Briefing Overview and key questions for the interviews was developed and circulated to all interviewees at least one month prior to their session. Interviews were held individually, either faceto-face, or by phone. A series of workshops were undertaken to provide background regarding source and scope of information and seeking and collating key themes and presenting findings, along with roles and responsibilities pre, during and post visits. 4. Baseline Knowledge Management Framework As part of the design of the pre-study Trip Workshop One, various academic sources were citied in order to define knowledge and to approach the preliminary development of a knowledge management framework with sound, best practice methodology. Knowledge definitions: Knowledge, by definition, has been categorised into explicit and tacit knowledge. Explicit knowledge (structured) is formal and systematic, which means it is also easily communicated and shared. Examples of explicit knowledge within TAFS could include; meat cuts and product specifications, scientific formulas, recipes, software systems etc. Tacit knowledge (unstructured) is highly personal and therefore not so easily expressed best described by Michael Polanyi, We know more than we can tell. Tacit knowledge is ingrained in an individual s action and particular context, for example, a specific skill, profession, particular technology or product, or the combined activities of a workgroup or team - i.e. the TAFS multidisciplinary team - or subject-matter-experts. Core capabilities (or competencies) are a collective learning, a coordination and integration of knowledge and skills across an organisation. Dynamic capabilities the constant need to develop new capabilities or competencies in a dynamic environment. Dynamic capabilities require that organisations establish processes that Page 7 of 15
enable them to change their routines, services, products and even markets over time (see horizon three (H3) in Figure 1 below). New Markets & Customers Existing H2: Existing capability - new knowledge (market knowledge) New domestic channels and markets New business models H1: Existing knowledge and capability Market penetration Same thing done better Incremental NPD Existing H3: New knowledge - dynamic capabilities Strategic diversification through growth options H1.5: Existing knowledge - new capability New value propositions for existing clients New categories New Products/ Value Proposition Figure 1: TAFS Knowledge and Capability mapped across the Balanced Portfolio With regards to capturing knowledge relating to innovation - innovation can perhaps be better understood as a process in which TAFS identifies and defines problems and then actively develops the new knowledge to solve those problems. Mapping a knowledge framework: Categorising and benchmarking organisational knowledge allows greater access to knowledge throughout an organisation. A knowledge map is a catalogue of existing intellectual resources both tacit and explicit knowledge, which can be charted against companies broader business objectives. Completing the knowledge mapping process was achieved by: 1. Identifying existing knowledge and skills and creating a knowledge inventory. 2. Analysing how the current skills are being utilised, and any skills or knowledge missing (knowledge/skills gaps). Workshop One: In order to define an approach for the first Study Tour undertaken in March 2015, a workshop was facilitated by nominated service providers, with the primary goals as follows: To introduce the wider TAFS team to the project To solicit input on questions/topics for the first study tour To define and agree upon critical success factors for first study tour Page 8 of 15
To introduce two micro-skills (Interviews and After Action Reviews) To agree upon focus areas for subsequent workshops It emerged in the Workshop that it may be useful to map TAFS knowledge practices against the three horizons model as shown in Figure 2 below. Figure 2: Portfolio Balance through time Current customers Figure 3: Portfolio Balance Scope of Innovation for TAFS Page 9 of 15
When the three horizons are defined for the current strategic context at TAFS, a good balance of innovation and knowledge activities could be achieved through the distribution of effort and focus as shown in Figure 3. From a specific knowledge and capabilities perspective, this could translate to the mapping shown in Figure 1. This preliminary framework was planned to be further developed over time on the basis of specific data gather through subsequent study tours and internal interview and gap assessments prior to project termination. 5. Preliminary Scan of Information Sources Preliminary scanning of technology and new product information sources to determine extent and scope of knowledge environment was initially undertaken from an internal perspective, via interviews with members of TAFS. In later stages the project was to seek to identify external potential knowledge sources through the identification of experts, groups and/or information sources in adjacent industries, specifically in retail and non-protein foods. Internal interviews: The purpose of these discussions was to identify TAFS current knowledge management processes and practices as they relate to all types of innovation as shown in the preliminary framework (Figure 1). TAFS team members were then interviewed in a semi-structured depth format with additional scope provided for any further relevant topics or issues the interviewee wanted to raise (see Appendix 1 for list of questions). 6. Lessons Learned from Study Tour As a result of this trip TAFS acknowledge that Study Tours to Europe (and the United States) are critical in order to understand innovative technologies, business models and new business segments that will deliver growth for their business and its customers. Key focus areas during the Study Tour included: The size of the prize Margin Risks Key capabilities e.g. technical (automation), forecasting, development chefs The role of partnerships Distribution/logistics primary constraints Enabling technologies Other key investments Page 10 of 15
An example is shown below of the detailed notes taken during the first Study Tour, including a structured post-visit review process known as the After Action Review (AAR). All notes were recorded in a custom-designed Note application developed specifically to support the knowledge management requirements of the Study Tour: Figure 4: Excerpts of Detailed Study Tour Notes A summary is provided below of some of the insights and recommendations derived from the detailed information obtained during the thirteen structured site visits and five in-market (retail) investigations: New insights gained: Targeted investment and dedicated business models provide the greatest opportunity for long-term growth and profitability through innovation and new product development (e.g. DEFCO, Denmark and Danish Crown Horsens). Substantial investment is required to play in the pre-pack case-ready space (filling/ slicing/ packing) specifically with regard to new and innovative packaging formats. Major sustainability projects are evident in all food processing manufacturing sites (visited) in Europe. Snacking solutions is an emerging growth segment across all meat categories. Category growth opportunities for customers can be supported by strong positioning of a centre-of-plate (COP) range.. Hilton s approach to crate management provided insight into manufacturing and labour processes which was a key deliverable/expectation of retail partnership Page 11 of 15
7. Summary of Outcomes: Interviews & Process Review The data captured across all seven interviews was reviewed and common themes, strengths and weaknesses were identified. This assessment was summarised in Synthesis document which anonymises individual responses but still allows all participants to be exposed to an accurate picture of the collective team experience and insights. In addition, a mapping of the key knowledge processes and practices being undertaken by the TAFS team was developed into a diagrammatic representation shown in Figure 5. Interviews focused on three areas: mission critical knowledge knowledge processes; strengths and weaknesses Figure 5: TAFS Key Knowledge Processes Responses were reported based on seven sections derived from information nominated in the interviews: 1. Current Knowledge/ Capability 2. Knowledge Gaps 3. Seeking New Knowledge 4. Capturing/ Storing Knowledge 5. Sharing/ Accessing Knowledge 6. Innovation Workshops 7. Resources 8. Outline of Team Workshop The interview participants and nominated facilitator met as a group post the study trip to discuss the outcomes of the interviews, agree areas of mission critical knowledge, achieve consensus on the main areas of weakness in team knowledge processes, and agree recommendations for addressing these gaps. In preparation for the workshop, all team members were invited to review the interview synthesis and document any recommended additions or amendments, to be discussed as a group at the workshop. The outcomes of the workshop was intended to be a specific set of recommendations informed by the bottom-up interview process, aligned to the overall strategic context, and specific to the current business priorities and capability levels of the TAFS team. Page 12 of 15
One of the key recommendations from the team was for TAFS to better leverage best practice and use the lessons learned from its global (Cargill) network to drive innovative new segments for customers. Further, it was agreed that Study tours can provide greater opportunities to build international networks with best practice organisations. 9. Recommendations for Go/No-Go key findings A decision by Teys was taken not to proceed with the remaining Study Tours and the Integrated Knowledge Management framework project. However, as a result of the first study tour it was shown that the team was able to leverage market insight and scanning techniques with a more structured framework for pre and post planning to identify attractive opportunity growth spaces. A decision post this project has been taken by Teys to incorporate and act on the existing information and convert these insights into working business models and customer solutions rather than gather more data at this time. Further study tours may be appropriate in the future. A portfolio of projects was identified from the Europe Trip and work has already commenced to convert these concepts into commercial outcomes for both TAFS and their key customers. An example of one such project has been the Winter Centre of The Plate ranged that was launched in March 2016. Based on the sales to the end of June the range is expected to sell approximately 500 tonnes or $12.2m retail of red meat product in a year. Figure 6: Images of Winter Centre of Plate range developed post Europe study tour Another key strategic project has been to accelerate the ideation and concept development and testing process for new products and business models undertaken in design led project in collaboration with MLA Donor company (P.PIP.0479). Page 13 of 15
10 Appendix 10.1 Appendix 1 Interview questions Part 1: Mission critical knowledge Identifying key knowledge areas that are business critical now and in the future: 1. What are the top five must-know knowledge areas in the TAFS business? 2. Who currently has this knowledge (i.e. subject matter experts) - internally and externally? 3. How is knowledge communicated/ shared? It is easily accessible and/or discoverable? 4. How could the current knowledge sharing be improved? 5. How much confidence do you have in the knowledge that is shared (i.e. how is it validated, checked, managed)? 6. What do you consider to be the key priority areas in relation to gaining new knowledge? (What do you need to know but don t already?) Part 2: Processes Specific processes, which may be formal, informal or personal: 7. Do you actively seek out knowledge (internally or externally) that can benefit business objectives? If yes, how? 8. How do you record observations and capture knowledge that could be of use now or in the future? 9. How do you communicate or share new observations/ knowledge? 10. How is new knowledge shared/ communicated with you (and across the business)? 11. How do you learn from your own experiences at work, and/or from others? 12. What do you do with any new knowledge gained? 13. How do you pull together new or existing knowledge to make sense, draw conclusions and to identify opportunities? 14. How do you analyse and collate new knowledge and then use it to form opinions and inform TAFS decision making? Part 3: Summary 15. Overall, what do you believe are the strengths and weaknesses of current knowledge processes and practices within TAFS? 16. What other areas do you think should be considered when evaluating existing knowledge management practices at TAFS and across Teys? Page 14 of 15
10.2 Appendix 2: Sample of information from OneNote notebook used to support structured capture of information gathered during Study Trip Page 15 of 15