Innovation in Urban Agriculture Luc SCHUITEN
Summary 1. Definition and goals for companies 2. Different types of innovation 3. Innovation throughout the value chain 4. Different actors for different innovation needs 5. Levers to innovate in urban agriculture
Summary 1. Definition and goals for companies
1. Definition and goals for companies First definition: Oslo manual OECD (Oslo Manual) : « The introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics. » Until 2005, innovation was considered as « implemented technologically new products and processes, and significant technological improvements in products and processes ». But innovation is not just technical… After 2005: « An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organization method in business practices, workplace organization or external relations. » http://ec.europa.eu/eurostat/documents/3859598/5889925/OSLO-EN.PDF
1. Definition and goals for companies Invention vs Innovation Invention : creative idea which helped to develop a new product, process, a new method, previously unknown. Innovation : every innovation is built on the basis of an invention which takes its place in the market and which has an impact on society and on the economy. When we talk about innovation, it is always an economic approach. From the early phases of the innovation process, the economic impact assessment (turnover generation) and social (job creation) can position its business model in the long term. Indeed, innovation allows companies to keep or achieve a leading position in its market, to go to new markets (Blue Ocean Strategy), to responding to new uses by changing its range… Organisations agility : through listening to its ecosystem, analysis of weak signals, of trends, companies can evolve their business and be more confident to innovate. This approach allows to assess the risks related to the proposed change. Many tools like prospective studies, economic watch newsletter, exhibitions visits... allow to understand these changes and make the decision of changing.
1. Definition and goals for companies Strategic vigilance point : What kind of protection do you need to your innovations? According to your strategic goals, choices in terms of intellectual protection and control of your innovations will be different. In one case, rather oriented technology, intellectual protection of innovations ensures competitive advantage on the market. In another case, more oriented to social innovations, the inclusion of stakeholders in the functioning of the model ensures its sustainability and co-creation approach often results in open models. The fact of business on the service to users. http://www.ruaf.org/ua-magazine-no-28-grow-city- innovations-urban-agriculture
1. Definition and goals for companies According to the source of innovation, the objective in terms of intellectual property may be different. This table illustrates several examples of innovations according to their location and according to the strategic choice of protection that has been made. This table comes from the magazine UA Magazine no. 28 - GROW the City. Innovations in Urban Agriculture - December 2014 by RUAF. http://www.ruaf.org/ua-magazine-no-28-grow-city-innovations-urban-agriculture
1. Definition and goals for companies Why to innovate in Urban Agriculture? Urban agriculture is not new but demographic and economic challenges encourage reconciliation between production areas and consumption areas. This means inventing new technical models to produce in the cities and new business models more sustainable. Produce in an environment constrained like the city requires to innovate on the technical, social, organizational, marketing and institutional plans. These constraints are of different natures: - access to land surfaces, with acceptable prices and quality to produce. - access to resources, including water resources is access, access to resources, - waste management and risks of contaminants, - Quality management throughout the chain to ensure food security These constraints can be reasoned by a circular economy approach and innovations…
Summary 2. Different types of innovation
2. Different type of innovation Product, service or usage innovation Organisational or procedural innovation Sales and marketing innovation Business model innovation Technological innovation Social innovation Next generation innovation – BPIFrance 2015
Product, service or use innovation The project introduce a new product, a new service or a significant improvement in the nature of an existing product or service, its functionality or the way it is used*. -A new product or service satisfies a need , solves a problem or create a new market -A product or service revision entails improvements to features, performance, ease of use, quality, appearance… -A new usage for an existing product, service or technology enables clients/users to perform new functions that meet different needs or provides clients/users with a different experience https://vimeo.com/127910 New use oriented smart jar 916 New virtual garden mobility New product + new service service *Next generation innovation – BPIFrance 2015
Process and organisational innovation This kind of innovation introduce a new design or production process, or unprecedented changes to the organization and management of the company, or in its process, logistics or suppliers relations management - Procedural or process innovation : implementing technical tools to improve productivity and quality, make the company more responsive… - Organisational innovation : work organisation with all the stakeholders of the company - Managerial innovation : information diffusion, power and control : based on employee autonomy and open innovation in the company Next generation innovation – BPIFrance 2015
Process and organisational innovation Blue economy as inspiration to innovate The analysis of the life cycle of a product, the use of waste resources, the integration of the value chain can create virtuous models, both in economic terms but also environmental and societal. https://youtu.be/1af08PSlaIs 3.26’
Sales and marketing innovation This kind of innovation introduce a new way to present, marketed, set the price or manage customer relationships. - branding, positioning, marketing and promotion -Packaging and presentation -Sales and distribution methods, channels and forms -Pricing levels, models, degree of customisation -Customer relations content, channels and quality ultra fresh delivery service Next generation innovation – BPIFrance 2015
Business model innovation The project is based on a new cost or revenue structure. It’s a new way of making money. - Based on costs : cost saving, cost generation, cost recovery - Based on incomes : revenue generation, profit maximisation - Disintermediation – reintermediation : outsourcing or insourcing of skills, process ... -the functionality economy : do not sell products but their use - Open models – free models - Blue Ocean models : how to capture hitherto nonexistent markets? Portfolio diversification Next generation innovation – BPIFrance 2015
Business model innovation A tool to innovate by business models Canvas: www.businessmodelgeneration.com A way to describe its current business model, its business model envisaged and see what changes to implement, evaluate investments. With this tool, you can describe your product’s value proposition and everything you will need to succeed in producing. Link to module 5
Technological innovation The project rely on new technology development and/or integration, or the significant advancement of existing technologies. -Superior performance -New technology development FOR -Better price-performance ratio -Existing technology enhancement LIKE -Entirely new usages -Original combination of largely advanced technologies Philips Plant light Next generation innovation – BPIFrance 2015
Social innovation The project respond to poorly-satisfied or unmet social needs. Or create novel social relationships or collaborations. Social innovation include a social or societal mandate in their purpose, or be social in their practice. It create new social relationships or collaborations in which innovations ar co-produced by citizens, governments and market parties. - Target disadvantaged and vulnerable groups: make fresh food for customers with low incomes -Include social challenges such as integration of employees in the business model – co-creation -Include all the stakeholders in the decision process -Include users in every step of the project -Offer to share the added value of the project Next generation innovation – BPIFrance 2015
Key factors of success Innovation results from a co-construction a multidisciplinary wealth An Integration of different stakeholders And beware of choice concerning intellectual property Innovation must be Open, Agile, User centered
Open innovation To be positioned in its ecosystem and observe all stakeholders (upstream and downstream). Create an ecosystem for innovation in project teams. Next generation innovation – BPIFrance 2015
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