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INNOVATION BEYOND PRODUCT DEVELOPMENT. AGENDA . Wilson’s Country Brief History Few Milestones Wilson’s Country The Innovations Beyond Product Development Business Learnings During innovation process. COMPANY PROFILE. Established 1980’s by Angus Wilson (CEO) Initially prepack potatoes
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AGENDA • Wilson’s Country • Brief History • Few Milestones • Wilson’s Country • The Innovations Beyond Product Development • Business Learnings • During innovation process
COMPANY PROFILE • Established 1980’s by Angus Wilson (CEO) • Initially prepack potatoes • Wilson’s Country brand for retail sector • PRODUCT INNOVATION – Garden Potatoes • Processed potatoes early 1990’s • Peeled potatoes for food service sector • Fresh Fruit & Veg processing early 1990’s • Retail and Food Service Sector • 1995 – moved from home farm to a commercial unit • 2001 – what will future look like and where will we be ? • Rationalisation of sites and activities • 2004 - exit from veg processing • 2005 – operations all to one site • 2009 – exit from fresh fruit processing • 2010 – focus on prepack & peeled potatoes
FEW MILESTONES • 1980’s & 90’s only packed Wilson’s brand potatoes • Spar, Stewarts, Supermac, Wellworths • 1994 Supply to M&S • 1996 Supply to Tesco Metro • 1997 Supply to MSVC • 2000 Wilson’s Brand first TV campaign • 2005 Investment of £5million in new site • 2008 Supply to Dunnes Stores • 2009 Supply to Asda • 2009 Pilot programme for Investors in Innovation • 2010 Packing of Bartlett Rooster Brand • Today • £17 million turnover • Just under 100 employees • Handling 1000 tonnes of potatoes per week • Wilson’s Country brand recognised as Ireland’s leading brand • Widespread presence in multiples / independents across Ireland
INNOVATION • Definition • “There are probably as many definitions of innovation as the number of supposed experts on the field around the world”.
INNOVATION • Definition • “Change that creates a new dimension of performance”. Peter Drucker
INNOVATION • Definition • “Innovation does not relate just to new product that would come into the marketplace. Innovation can occur in processes and approaches to the marketplace. David Schmittlien
INNOVATION • PRODUCT • How is it presented to your business for use? • What you do with it? • What do you do with non-conforming product? • PROCESS • Working of the product through the business • Waste streams generated from your process • MARKETING • Place • Price • Promotion • Presentation
INNOVATION • MARKETING • Presentation of Product - late 2009 • PROCESS • Working of product through the business • Peeling potatoes – Sept 2010 • Waste streams from production • Water – current project
MARKETING • Market research in 2008 / 09 identified that just under 50% of consumers did not purchase their potatoes with their main shop • Embarked on a process of why • Reason clearly • Presentation • Format • Launched a new packaging format • Product still the same • Place the same
Total NI Potato Performance 52 w/e 16 May 2010 – Value is down in the NI potato market as people limit the amount they purchase.
How are Wilsons growing?52 w/e 16 May 2010Growth is coming from new shoppers returning more frequently and putting more volume in the basket as well as attracting new shoppers to the brand
MARKETING SUMMARY • A successful innovation • BUT • This packaging format was industry standard 20 years ago! • Does innovation always mean re-inventing the wheel? • Lesson • Continually respond to the market needs ahead of your competitor
PROCESS - peeling • Background • Peeled potato volume sales increasing • Introduce additional shifts • Great news • more sales • better utilisation of assets • Division evolving as sales evolve • Division operationally becoming very busy • Know the time to • “step back out of the trees to see the forest” • Evolution has a time and place but can lead to INEFFICIENCY and the need for REVOLUTION
PROCESS - peeling • So what happened? • Process started at European exhibition Feb 2009 • Reviewed Equipment that is available • Company visit to GB business May 2009 • To build general knowledge – some equipment • Company visit to German business Sept 2009 • Very similar to our business scale and working the new equipment • Order placed Feb 2010 • Installation Sept 2010
PROCESS - peeling • Fully integrated computerised system • Peeling • Optical sorting • Re-peeling • Sizing • Cutting option • Washing
PROCESS – peelingSUMMARY • Successful Innovation • Contingency into business • Labour saving • Yield gain • Better product • This was new innovation to us but :- • technology was proven in other markets • Lesson • Revolution sometimes better than Evolution
PROCESS – waste stream • Water • Business uses a lot and discharges a lot • Money £120,000 / yr approx • Considered options around recycling • Conventional • Not so conventional • Electro coagulation
PROCESS – waste stream • EC Benefits v Conventional • On paper • Not as capital intensive • Smaller footprint • Less running costs • Ability to recycle 75% of our water • About to go live
PROCESS – waste stream • Success yet to be determined • Technology new to market • Technology new to business • Unknown territory • Business risk increased • Forward looking to a new way • Invention more than innovation
Another Innovation • Variation on a Pritt Stick
LEARNINGS BUSINESS BUY IN
1. OBJECTIVES • Someone will need time to think and review • What are you currently doing ? • How are you currently doing it? • Where are you wanting to get to ? • Is there another way ? • Can we do it better ? • Time to visit other companies / exhibitions • INNOVATION WILL NOT HAPPEN • By itself • In 5 minutes on a Friday afternoon
2. OUTCOME • Is the business prepared to :- • Implement the findings • Or is it just an exercise • The norm may be challenged • Take a calculated risk • Innovation or Invention • Know the reasoned goal / benefit • Clarity around before and after • Spirit MUST be there
3. IMPLEMENTATION • Capex may be required • Change in custom and practice • Consequences • People Issues • Customer Issues • The way we do things • Clarity around the objective / goal
4. MONITORING • Clarity around starting point • Clarity around innovation • Measurement • Deliverables • Know when to change tack • Know when to stop
SUMMARY • You need someone with “that” skill set • If you don’t have it, procure the skill • Provide a culture / space for the process • Put on business agenda • Support process at every step • Communicate the progress • Be prepared to change norms • Have clarity around the end goal • Be prepared to say stop • CELEBRATE THE SUCCESS
INN0VATION THANK YOU FOR LISTENING