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Jumping the S-Curve Examining innovation outside the food space
Food Matters Live 22nd November 2017
Dr Bryan Hanley, AgriFood Specialist, KTN
Outline • What is the S curve
• Types of growth – acquisition and transition
– Case studies
• Lessons to be learned
• Skills and opportunities
• A future scenario for the food industry
Importance of Innovation: Jumping the S curve
Importance of Innovation: Jumping the S curve
Importance of Innovation: Jumping the S curve
Company Original Business New Business
Nintendo Hand made playing
cards
Electronic games
Wrigley Soap powder Chewing gum
Nokia Paper mill Mobile phones
Hasbro Textiles Toys
Avon Books (door to door) Perfume
Xerox Photographic paper Ink, software,
scanners, printers
Monsanto Saccharine Pesticides
GE Light bulbs Gas engines, hybrid
locomotives, HD CT
scanners, ultra-sound
devices, chemical
sensors
Fortune Brands Cigarettes (Lucky
Strike)
Hardware, home
furnishings, golf clubs,
cabinets
DuPont Black gunpowder Polymer adhesives,
insecticides, fire
extinguishers, food
ingredients
Company Original Business New Business
3M Sandpaper Scotch tape, duct
tape, Post-It notes,
cleaning products
Shell Import/Export Oil, petrochemicals
Wipro (India) Vegetable oil then
consumer goods
R&D and IT consulting
services
LG (Lak-Hui Chemical
Industrial Company)
Hygiene and
cosmetics
Electronics white
goods
Gap Record store that also
sold jeans
Clothing
Starbucks Espresso makers and
coffee beans
Coffee
Suzuki Silk weaving loom
machines
Motorbikes
Tiffany Stationary Jewellery
Glaxo (New Zealand) Infant formula Pharmaceuticals
Distillers Company Scotch whiskey cartel Distillers Biochemicals
Mitsubishi Shipping line Multiple businesses
(semi or actually
autonomous)
Companies that Have Changed their Business Model
How do Companies Change?
• Case Studies
– BSA
– GSK
BSA
Birmingham Small Arms Company
• It was formed by a group of fourteen gunsmith (Birmingham Small Arms Trade Association) in 1861
• The War Office provided them with free access to technical drawings so they could mechanise small arms production
• They manufactured guns using machinery – which had interchangeable parts
Birmingham Small Arms Company • Bicycle production – 1881
• Motorcycles – 1910
• Cars – 1907 – 1912 – business failed
• Acquired Daimler – 1910
• Aircraft manufacture – 1920 – business failed
• Daimler sold to Jaguar – 1960: BSA cycles sold to Raleigh – 1957: Businesses liquidated 1977
Glaxo Smith Kline (GSK) • The original name for Glaxo was ‘Defiance’ and it was set up
by Joseph Nathan in 1873 as a general trading company. The
Glaxo trademark was first established in New Zealand in 1906 for dried infant formula.
• The company’s first pharma product was vitamin D (1924).
• Key contributing companies acquired include Allan & Hanburys (1958), BDH (1967), Burroughs Wellcome (1975),
Beecham and Smith Kline Beckman (2000)
Glaxo - Innovation
What went right – What went wrong?
• GSK
– Recognised growth areas
– Found the best
(available) and get it in house or by acquisition
– Failed fast and moved on
• BSA
– Started with an advantage then lost it
– Failed to recognise
major threats
– Fell in love with the
product so had multiple failures
Lessons for the Food Industry
Find the big challenges
Make sure you have the skills or can acquire them
Be prepared to be surprised
Know when things are not working
Four Key Points
Lessons for the Food Industry
Minimum BSc in Cell/Molecular Biology or relevant Biological Science, preferably accompanied by relevant practical experience either in academic or industrial environment. Interest and experience in immunology and bioinformatics would be highly desirable. Some experience in protein chemistry, biophysics and assay development/execution would be desirable but not essential. Proven track record of delivery within academic or industrial environment would be preferable. Excellent communication and interpersonal skills. Able to work both in a team and independently. Evidence of ability to develop networks to enable delivery.
•Degree or equivalent in Biology or a related subject area •Experience in molecular cloning, protein expression and purification essential •Experience in recombinant antibody technology desired •Ability to work as part of a team. •Ability to work on own initiative, manage time effectively and progress tasks concurrently •Excellent organisational skills and understanding of the importance of maintaining laboratory records •General proficiency with computers •A sound knowledge of laboratory safety. •Demonstrable communication skills
Position 1 Position 2
Two Big Challenges
• Obesity
• Cognitive Decline
Two Big Challenges
• The food industry gets blamed – but the
core business is about making things that
people want so much of that blame is
misplaced.
• The food industry has little control over
this problem.
• Does not jump the S curve – tries to apply
existing solutions.
• Current interventions do not work and it is
a chronic disease
• Solutions will be tied to whole systems
approaches and the food industry has the
skills base.
• Creates new opportunities and allows the
industry to jump into new areas with new
partners
Obesity Cognitive Decline
Cognitive Decline and Healthy Ageing • In 2015, over 46 million people lived with dementia worldwide, more than the
population of Spain. This number is estimated to increase to 131.5 million by
2050.
• The total estimated worldwide cost of dementia is US $818 billion, and it will
become a trillion dollar disease by 2018.
• If dementia care were a country, it would be the world’s 18th largest economy,
more than the market values of companies such as Apple (US$ 742 billion),
Google (US$368 billion) and Exxon (US$ 357 billion).
World Alzheimer Report 2015
Cognitive Decline and Healthy Ageing
• In 2010, an estimated 524 million people were aged 65 or over.
• By 2050, this number is expected to nearly triple to about 1.5 billion,
representing 16% of the global population
• An estimated 25-30 percent of people aged 85 or older have dementia.
• The prevalence of AD and other dementias is very low at younger ages,
then nearly doubles with every 5 years of age after 65
Growth in Dementia
65M
Cognitive Decline - Treatment
No significant new drug for Alzheimer’s has been approved in the past 14 years, despite massively expensive trials aimed at
tackling the disease. The failure rate (including anti-plaque therapies) is >99%
Cognitive Decline - Treatment
What is the Solution ?
Putative Process
Bacteria in the bloodstream
Local Inflammation Systemic inflammation
Bacteria in the brain
Local inflammation and plaque formation
Biofilm inside an amyloid plaque
An Opportunity for the Food Industry?
• Microbiome modulation (neural and oral pro and pre biotics)
• Control of inflammation
• Dietary factors that improve (or prevent loss of) cognition)
• Complementary to pharma interventions – same model systems and protocols
An Opportunity for the Food Industry?
• Huge commercial and societal benefit
• Food and the food industry as solution providers rather than problem causers
• Very cross-disciplinary – gets out of silos
• Development of ‘Nutritionable’ solutions in conjunction with ‘Druggable’ solutions.
Role of KTN • Analyse the information
• Identify key players and stakeholders
• Bring them together to develop a programme of work
• Define the benefit for UK companies and UK PLC
• Help in finding funding and finance
• (Dissemination and exploitation)
Consortium
• Academic – Dentist
– Clinical Psychologist
– Neurologist
– Natural Product Chemist
– Biomarker/Clinician
• Industry – Pharma
– Omics, modelling and testing
– Oral health
– Testing and monitoring
– Diet/health
Connecting people to drive innovation
Find expertise
Find markets
Find funding and finance
Why we connect you
“We deliver UK
economic
growth”
