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A	
  Radical	
  Approach	
  to	
  Forest	
  
Sector	
  Tune-­‐up	
  
Jari	
  Kuusisto	
  
SC-­‐Research	
  
University	
  of	
  Vaasa	
  
1	
  
Evolving	
  innovaAon	
  acAviAes	
  
•  InnovaAon	
  acAviAes	
  evolve	
  constantly,	
  
especially	
  over	
  the	
  last	
  few	
  years	
  Ame	
  
•  This	
  change	
  creates	
  both	
  challenges	
  and	
  
opportuniAes	
  for	
  firms	
  and	
  other	
  actors	
  
•  As	
  a	
  result,	
  there	
  exists	
  a	
  variety	
  of	
  ways	
  to	
  
develop	
  new	
  products	
  –	
  goods	
  and	
  services	
  
2	
  
Stable	
  development	
  mode	
  
•  Many	
  organisaAons	
  conAnue	
  to	
  follow	
  this	
  
–  They	
  rely	
  on	
  internal	
  capabiliAes	
  in	
  innovaAon	
  acAviAes	
  
•  This	
  is	
  a	
  mode	
  suitable	
  for	
  stable	
  environment	
  
•  Typically	
  
–  Focus	
  is	
  on	
  improvements	
  to	
  exisAng	
  product	
  lines	
  and	
  
processes	
  
•  Well	
  developed	
  R&D&I	
  processes	
  
–  Stage-­‐gate-­‐model,	
  V-­‐model	
  etc.	
  
3	
  
Iden%fy	
  
opportuni%es	
  
Gather	
  knowledge	
  
Basic	
  needs	
  /	
  and	
  
behavioral	
  pa<erns	
  
understanding	
  
Concept	
  /	
  idea	
  
Concept	
  
development	
  
Prototyping	
  
Tes%ng	
  
Market	
  launch	
  
From	
  idea	
  to	
  product	
  
•  What	
  is	
  our	
  offer?	
   •  How	
  to	
  develop	
  
goods	
  /	
  services?	
  
4	
  
Stage-­‐gate-­‐model	
  
•  InnvoaAon	
  acAviAes	
  follow	
  a	
  process	
  with	
  clear	
  
stages	
  
Ideas	
  
Needs	
  
Reguirements	
  
ProducAon	
  
5	
  
Stable	
  development	
  mode	
  
•  Challenges	
  
– Leans	
  too	
  much	
  on	
  firms	
  own	
  internal	
  resources	
  –	
  
limits	
  the	
  use	
  of	
  useful	
  external	
  knowledge	
  
– More	
  radical	
  ideas	
  never	
  get	
  far	
  in	
  the	
  formal	
  
R&D&I	
  process	
  
– Limited	
  room	
  for	
  prototyping	
  /	
  piloAng	
  
– Time-­‐to-­‐markets	
  tends	
  to	
  be	
  too	
  long	
  
– Rigid	
  process	
  places	
  innovaAon	
  acAviAes	
  in	
  too	
  
narrow	
  space	
  –	
  in	
  the	
  box	
  
•  Improvements	
  for	
  exisAng	
  products	
  
6	
  
Open-­‐	
  and	
  user	
  innovaAon	
  
•  Makes	
  use	
  of	
  resources	
  external	
  to	
  the	
  firm	
  
•  Ideas,	
  knowledge	
  and	
  innovaAons	
  are	
  traded	
  
in	
  and	
  out	
  of	
  the	
  firm	
  
– IPR:n	
  becomes	
  tradable	
  
•  Complements	
  and	
  partly	
  replaces	
  tradiAonal	
  
innovaAon	
  acAviAes	
  
– Can	
  be	
  much	
  more	
  effecAve	
  
•  Degrees	
  of	
  opennes	
  exist	
  
– Great	
  variety	
  of	
  operaAonal	
  modes	
  
7	
  
User	
  related	
  themes	
  
•  Users	
  consist	
  of	
  a	
  heterogeneous	
  group	
  of	
  actors	
  
–  User	
  communiAes	
  
–  Lead	
  users	
  
–  User	
  innovators	
  
–  ‘Ordinary’	
  users	
  etc.	
  
•  InnovaAon	
  processes	
  take	
  many	
  forms	
  and	
  shapes	
  
–  E.g.	
  tradiAonal	
  R&D	
  and	
  open	
  innovaAon	
  
•  RecogniAon	
  and	
  understanding	
  of	
  user	
  needs	
  
–  Needs,	
  latent	
  needs,	
  future	
  needs	
  
–  New	
  ways	
  to	
  idenAfy	
  and	
  explore	
  user	
  needs	
  
•  Design	
  
–  Design	
  is	
  an	
  important	
  innovaAon	
  plaborm	
  
–  Strategic	
  design,	
  user	
  centric	
  design…	
  
•  Enabling	
  technologies	
  
–  Etc.	
  
8	
  
SC-­‐Research	
  	
  
•  Explores	
  and	
  maps	
  innovaAons	
  and	
  value	
  
creaAon	
  from	
  user	
  perspecAve,	
  across	
  the	
  
forest	
  sector.	
  	
  
•  SystemaAc	
  scoping	
  of	
  the	
  research	
  topic	
  will	
  
lead	
  into	
  more	
  structured	
  understanding	
  and	
  
improved	
  problem	
  definiAon.	
  	
  	
  
•  Such	
  steps	
  are	
  important	
  in	
  creaAng	
  new	
  
insights	
  into	
  the	
  forest	
  sector	
  innovaAon	
  
potenAal.	
  	
  
9	
  
SC-­‐Research	
  	
  
•  User	
  perspecAves	
  as	
  a	
  systemaAc	
  way	
  to	
  
idenAfy	
  and	
  analyse	
  innovaAon	
  and	
  value	
  
creaAon	
  opportuniAes	
  across	
  the	
  forest	
  
sector.	
  	
  
– different	
  types	
  of	
  users	
  and	
  their	
  exisAng	
  /	
  
potenAal	
  roles	
  within	
  the	
  forest	
  sector	
  value	
  
networks.	
  	
  
•  Users	
  perspecAve	
  is	
  a	
  novel	
  approach	
  and	
  it	
  is	
  expected	
  
to	
  highlight	
  a	
  range	
  of	
  new	
  type	
  of	
  value	
  creaAon	
  
opportuniAes.	
  
10	
  
SC-­‐Research	
  	
  
•  Broad	
  innovaAon	
  perspecAve	
  	
  
– covering	
  products,	
  services,	
  processes,	
  
organizaAon,	
  markeAng,	
  actors’	
  roles	
  and	
  
relaAons,	
  norms,	
  and	
  values	
  as	
  potenAal	
  sources	
  
for	
  innovaAons.	
  	
  
•  Economic	
  gains	
  represent	
  only	
  one	
  aspect	
  of	
  
value	
  creaAon	
  	
  
– In	
  the	
  user	
  context	
  four	
  funcAonal	
  systems	
  
economy,	
  culture,	
  regulaAon	
  and	
  policy	
  are	
  
recognised	
  as	
  potenAal	
  drivers/barriers	
  of	
  
innovaAon	
  and	
  value	
  creaAon.	
  	
  
11	
  
The	
  very	
  un-­‐scienAfic	
  story	
  line	
  
16.11.2012	
  
Jari	
  Kuusisto	
  
12	
  
13	
  http://webspace.ship.edu/cgboer/maslow.html
Maslow	
  hierachy	
  of	
  needs	
  
14	
  
Hunting, collecting wild
berries
Forestry, paper, firewood,
building, tar
Country houses, recreation
Development towards
intangible value creation is a
strong trend and it concerns
even activities that used to be
on the bottom of the needs
hierarchy
15	
  
Hunting, collecting, wild
berries picking
Forestry, paper, fire wood,
building, tar
Summer houses, recreation
Forest industry got
stuck in the bottom
of the needs
hierarchy?
16	
  
Move towards intangible value
creation is hardly happening:
-  Paper industry moves out of
Finland
-  Paper machinery production
is moving overseas as well
-  How to renew the industry?
-  New raw materials
-  Applications, goods,
services…
-  Medicin, cosmetics
?
17	
  
18	
  
Adapted 7 level
Hierarchy of
Needs diagram
based on
Maslow's theory
Biological and Physiological needs
basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.
Safety needs
protection, security, order, law, limits, stability, etc.
Aesthetic needs
beauty, balance, form, etc.
Cognitive needs
knowledge, meaning, self-awareness
Esteem needs
achievement, status, responsibility, reputation
Belongingness and Love needs
family, affection, relationships, work group, etc.
Self-
actualization
personal growth
and fulfilment
© design alan chapman 2001-7 - adapted by persons unknown based on Maslow’s Hierarchy of Needs
Not to be sold or published. More free online training resources are at www.businessballs.com. Sole risk with user. Author accepts no liability.
19	
  
Adapted 8 level
Hierarchy of Needs
diagram, based on
Maslow's theory
Biological and Physiological needs
basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.
Safety needs
protection, security, order, law, limits, stability, etc.
Aesthetic needs
beauty, balance, form, etc.
Cognitive needs
knowledge, meaning, self-awareness
Esteem needs
achievement, status, responsibility, reputation
Belongingness and Love needs
family, affection, relationships, work group, etc.
Self-actualization
personal growth, self-fulfilment
© design alan chapman 2001-7 - adapted by persons unknown based on Maslow’s Hierarchy of Needs
Not to be sold or published. More free online training resources are at www.businessballs.com. Sole risk with user. Author accepts no liability.
Transcendence
helping others to self-actualize
Higher order needs keep
expanding, more classes
ets..
Unexploited business
potential and
opportunities
Broad	
  perspecAve	
  to	
  innovaAon	
  
Down	
  side	
  
InnovaAon	
  ≈	
  everything	
  goes!	
  
20	
  
Broad	
  innovaAon	
  perspecAve	
  
•  Framework	
  for	
  understanding	
  complex	
  and	
  
systemic	
  innovaAons	
  
– 	
  	
  
Eight types of innovation ...
o  Products
o  Processes
o  Marketing
o  Organisation
o  Roles
o  Relations
o  Norms
o  Values
... across four functional systems:
o  Economy
o  Culture
o  Politics
o  Law
Source; adapted from Parsons, 1976; Hochgerner, 2011
Broad	
  innovaAon	
  perspecAve	
  
•  Success	
  depends	
  on	
  
– All	
  8	
  types	
  of	
  innovaAons	
  that	
  
are	
  relevant	
  
–  Across	
  four	
  funcAonal	
  systems	
  
•  Complex	
  innovaAons	
  need	
  to	
  work	
  on	
  all	
  
of	
  these	
  areas	
  to	
  be	
  successful	
  
•  Highly	
  relevant	
  perspecAve	
  to	
  
– Service	
  innovaAons,	
  and	
  
– Public	
  sector	
  innovaAons	
  
Eight types of innovation ...
o  Products
o  Processes
o  Marketing
o  Organisation
o  Roles
o  Relations
o  Norms
o  Values
... across four functional systems:
o  Economy
o  Culture
o  Politics
o  Law
Source; adapted from Parsons, 1976; Hochgerner, 2011
Forest	
  worlds	
  
Biomass
Open data
Experiences
Forest	
  worlds	
  growth	
  potenAal	
  
Open data
Experiences
Biomass
Examples	
  
•  Tailored	
  sale	
  of	
  an	
  individual	
  log	
  
–  Pick	
  up	
  a	
  specific	
  tree,	
  fall	
  it,	
  transportaAon	
  with	
  the	
  user,	
  e.g.	
  musical	
  
instrument	
  manufacturer	
  can	
  pick	
  and	
  choose	
  most	
  suitable	
  trees,	
  the	
  
same	
  applies	
  to	
  professional	
  carpenters	
  
–  Price	
  differenAaAon;	
  fiber	
  Amber,	
  logs,	
  special	
  wood…	
  
•  Everyman's	
  right	
  
•  Changing	
  world	
  and	
  value	
  creaAon	
  
–  What	
  rights	
  all	
  ciAzens	
  have	
  to	
  exploit	
  privately	
  owned	
  forests?	
  
•  Finnish	
  ciAzens	
  
•  Foreign	
  ciAzens	
  
	
  
	
  
Examples	
  
•  Forest	
  nature	
  as	
  a	
  place	
  providing	
  recreaAonal	
  experiences	
  
•  E.g.	
  ’Park	
  of	
  silence’,	
  silent	
  environment	
  experience	
  
•  Nature	
  tourism,	
  bear	
  watching	
  etc.	
  
•  Health	
  tourism	
  
•  Open	
  data	
  -­‐	
  	
  virtual	
  forests	
  ja	
  (Metla,	
  Metsäkeskus,	
  Maanmipl.)	
  
•  Finland	
  holds	
  extensive	
  forest	
  data	
  –	
  data	
  innovaAon	
  (?)	
  
–  Virtual	
  terrain	
  /	
  see	
  Google	
  Street	
  View	
  
•  Game	
  scenerys	
  in	
  ‘real’	
  woods	
  
–  Virtual	
  space	
  for	
  eco	
  tourists	
  
–  ExisAng	
  laser	
  scanning	
  providing	
  3D	
  image	
  of	
  forest,	
  measuring	
  of	
  logs..	
  
–  Tracking	
  of	
  logs	
  –	
  sustainability	
  serAficates	
  
–  Distant	
  follow-­‐up	
  of	
  forest	
  development	
  –	
  new	
  type	
  of	
  serAficate	
  
Examples	
  
•  Intangible	
  value	
  creaAon	
  –	
  the	
  user	
  perspecAve	
  
•  Biomass	
  in	
  the	
  future?	
  
•  New	
  ways	
  to	
  use	
  paper	
  and	
  board:	
  packaging,	
  furniture,	
  design	
  objects..	
  
•  Paper	
  as	
  a	
  media,	
  what	
  is	
  the	
  future	
  scenario?	
  
•  Raw	
  material	
  for	
  medical	
  industry	
  and	
  food	
  industry?	
  
•  Renewable	
  energy	
  
•  Sustainable	
  building	
  materials	
  
User	
  perspecAve	
  to	
  value	
  chain	
  /	
  network	
  
UPM	
  
Fiber	
  processing	
  
Labels	
  
Packaging	
  
Raw	
  material	
  	
  
suppliers	
  
Packaging	
  	
  
Firms	
  
E.g.	
  TetraPak	
  
Atria	
  
Food	
  processing	
  	
  
industry	
  
Retail	
  	
  
industry	
   Consumer	
  
•  Consumers and end users as a target / starting point?
•  Leapfrogging value chain can take UPM type of firms closer
to the end user – co-creation with food processing industry
•  Food processing industry has in-depth knowledge on
consumers

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Fortune130404

  • 1. A  Radical  Approach  to  Forest   Sector  Tune-­‐up   Jari  Kuusisto   SC-­‐Research   University  of  Vaasa   1  
  • 2. Evolving  innovaAon  acAviAes   •  InnovaAon  acAviAes  evolve  constantly,   especially  over  the  last  few  years  Ame   •  This  change  creates  both  challenges  and   opportuniAes  for  firms  and  other  actors   •  As  a  result,  there  exists  a  variety  of  ways  to   develop  new  products  –  goods  and  services   2  
  • 3. Stable  development  mode   •  Many  organisaAons  conAnue  to  follow  this   –  They  rely  on  internal  capabiliAes  in  innovaAon  acAviAes   •  This  is  a  mode  suitable  for  stable  environment   •  Typically   –  Focus  is  on  improvements  to  exisAng  product  lines  and   processes   •  Well  developed  R&D&I  processes   –  Stage-­‐gate-­‐model,  V-­‐model  etc.   3  
  • 4. Iden%fy   opportuni%es   Gather  knowledge   Basic  needs  /  and   behavioral  pa<erns   understanding   Concept  /  idea   Concept   development   Prototyping   Tes%ng   Market  launch   From  idea  to  product   •  What  is  our  offer?   •  How  to  develop   goods  /  services?   4  
  • 5. Stage-­‐gate-­‐model   •  InnvoaAon  acAviAes  follow  a  process  with  clear   stages   Ideas   Needs   Reguirements   ProducAon   5  
  • 6. Stable  development  mode   •  Challenges   – Leans  too  much  on  firms  own  internal  resources  –   limits  the  use  of  useful  external  knowledge   – More  radical  ideas  never  get  far  in  the  formal   R&D&I  process   – Limited  room  for  prototyping  /  piloAng   – Time-­‐to-­‐markets  tends  to  be  too  long   – Rigid  process  places  innovaAon  acAviAes  in  too   narrow  space  –  in  the  box   •  Improvements  for  exisAng  products   6  
  • 7. Open-­‐  and  user  innovaAon   •  Makes  use  of  resources  external  to  the  firm   •  Ideas,  knowledge  and  innovaAons  are  traded   in  and  out  of  the  firm   – IPR:n  becomes  tradable   •  Complements  and  partly  replaces  tradiAonal   innovaAon  acAviAes   – Can  be  much  more  effecAve   •  Degrees  of  opennes  exist   – Great  variety  of  operaAonal  modes   7  
  • 8. User  related  themes   •  Users  consist  of  a  heterogeneous  group  of  actors   –  User  communiAes   –  Lead  users   –  User  innovators   –  ‘Ordinary’  users  etc.   •  InnovaAon  processes  take  many  forms  and  shapes   –  E.g.  tradiAonal  R&D  and  open  innovaAon   •  RecogniAon  and  understanding  of  user  needs   –  Needs,  latent  needs,  future  needs   –  New  ways  to  idenAfy  and  explore  user  needs   •  Design   –  Design  is  an  important  innovaAon  plaborm   –  Strategic  design,  user  centric  design…   •  Enabling  technologies   –  Etc.   8  
  • 9. SC-­‐Research     •  Explores  and  maps  innovaAons  and  value   creaAon  from  user  perspecAve,  across  the   forest  sector.     •  SystemaAc  scoping  of  the  research  topic  will   lead  into  more  structured  understanding  and   improved  problem  definiAon.       •  Such  steps  are  important  in  creaAng  new   insights  into  the  forest  sector  innovaAon   potenAal.     9  
  • 10. SC-­‐Research     •  User  perspecAves  as  a  systemaAc  way  to   idenAfy  and  analyse  innovaAon  and  value   creaAon  opportuniAes  across  the  forest   sector.     – different  types  of  users  and  their  exisAng  /   potenAal  roles  within  the  forest  sector  value   networks.     •  Users  perspecAve  is  a  novel  approach  and  it  is  expected   to  highlight  a  range  of  new  type  of  value  creaAon   opportuniAes.   10  
  • 11. SC-­‐Research     •  Broad  innovaAon  perspecAve     – covering  products,  services,  processes,   organizaAon,  markeAng,  actors’  roles  and   relaAons,  norms,  and  values  as  potenAal  sources   for  innovaAons.     •  Economic  gains  represent  only  one  aspect  of   value  creaAon     – In  the  user  context  four  funcAonal  systems   economy,  culture,  regulaAon  and  policy  are   recognised  as  potenAal  drivers/barriers  of   innovaAon  and  value  creaAon.     11  
  • 12. The  very  un-­‐scienAfic  story  line   16.11.2012   Jari  Kuusisto   12  
  • 14. 14   Hunting, collecting wild berries Forestry, paper, firewood, building, tar Country houses, recreation Development towards intangible value creation is a strong trend and it concerns even activities that used to be on the bottom of the needs hierarchy
  • 15. 15   Hunting, collecting, wild berries picking Forestry, paper, fire wood, building, tar Summer houses, recreation Forest industry got stuck in the bottom of the needs hierarchy?
  • 16. 16   Move towards intangible value creation is hardly happening: -  Paper industry moves out of Finland -  Paper machinery production is moving overseas as well -  How to renew the industry? -  New raw materials -  Applications, goods, services… -  Medicin, cosmetics ?
  • 17. 17  
  • 18. 18   Adapted 7 level Hierarchy of Needs diagram based on Maslow's theory Biological and Physiological needs basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc. Safety needs protection, security, order, law, limits, stability, etc. Aesthetic needs beauty, balance, form, etc. Cognitive needs knowledge, meaning, self-awareness Esteem needs achievement, status, responsibility, reputation Belongingness and Love needs family, affection, relationships, work group, etc. Self- actualization personal growth and fulfilment © design alan chapman 2001-7 - adapted by persons unknown based on Maslow’s Hierarchy of Needs Not to be sold or published. More free online training resources are at www.businessballs.com. Sole risk with user. Author accepts no liability.
  • 19. 19   Adapted 8 level Hierarchy of Needs diagram, based on Maslow's theory Biological and Physiological needs basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc. Safety needs protection, security, order, law, limits, stability, etc. Aesthetic needs beauty, balance, form, etc. Cognitive needs knowledge, meaning, self-awareness Esteem needs achievement, status, responsibility, reputation Belongingness and Love needs family, affection, relationships, work group, etc. Self-actualization personal growth, self-fulfilment © design alan chapman 2001-7 - adapted by persons unknown based on Maslow’s Hierarchy of Needs Not to be sold or published. More free online training resources are at www.businessballs.com. Sole risk with user. Author accepts no liability. Transcendence helping others to self-actualize Higher order needs keep expanding, more classes ets.. Unexploited business potential and opportunities
  • 20. Broad  perspecAve  to  innovaAon   Down  side   InnovaAon  ≈  everything  goes!   20  
  • 21. Broad  innovaAon  perspecAve   •  Framework  for  understanding  complex  and   systemic  innovaAons   –      Eight types of innovation ... o  Products o  Processes o  Marketing o  Organisation o  Roles o  Relations o  Norms o  Values ... across four functional systems: o  Economy o  Culture o  Politics o  Law Source; adapted from Parsons, 1976; Hochgerner, 2011
  • 22. Broad  innovaAon  perspecAve   •  Success  depends  on   – All  8  types  of  innovaAons  that   are  relevant   –  Across  four  funcAonal  systems   •  Complex  innovaAons  need  to  work  on  all   of  these  areas  to  be  successful   •  Highly  relevant  perspecAve  to   – Service  innovaAons,  and   – Public  sector  innovaAons   Eight types of innovation ... o  Products o  Processes o  Marketing o  Organisation o  Roles o  Relations o  Norms o  Values ... across four functional systems: o  Economy o  Culture o  Politics o  Law Source; adapted from Parsons, 1976; Hochgerner, 2011
  • 24. Forest  worlds  growth  potenAal   Open data Experiences Biomass
  • 25. Examples   •  Tailored  sale  of  an  individual  log   –  Pick  up  a  specific  tree,  fall  it,  transportaAon  with  the  user,  e.g.  musical   instrument  manufacturer  can  pick  and  choose  most  suitable  trees,  the   same  applies  to  professional  carpenters   –  Price  differenAaAon;  fiber  Amber,  logs,  special  wood…   •  Everyman's  right   •  Changing  world  and  value  creaAon   –  What  rights  all  ciAzens  have  to  exploit  privately  owned  forests?   •  Finnish  ciAzens   •  Foreign  ciAzens      
  • 26. Examples   •  Forest  nature  as  a  place  providing  recreaAonal  experiences   •  E.g.  ’Park  of  silence’,  silent  environment  experience   •  Nature  tourism,  bear  watching  etc.   •  Health  tourism   •  Open  data  -­‐    virtual  forests  ja  (Metla,  Metsäkeskus,  Maanmipl.)   •  Finland  holds  extensive  forest  data  –  data  innovaAon  (?)   –  Virtual  terrain  /  see  Google  Street  View   •  Game  scenerys  in  ‘real’  woods   –  Virtual  space  for  eco  tourists   –  ExisAng  laser  scanning  providing  3D  image  of  forest,  measuring  of  logs..   –  Tracking  of  logs  –  sustainability  serAficates   –  Distant  follow-­‐up  of  forest  development  –  new  type  of  serAficate  
  • 27. Examples   •  Intangible  value  creaAon  –  the  user  perspecAve   •  Biomass  in  the  future?   •  New  ways  to  use  paper  and  board:  packaging,  furniture,  design  objects..   •  Paper  as  a  media,  what  is  the  future  scenario?   •  Raw  material  for  medical  industry  and  food  industry?   •  Renewable  energy   •  Sustainable  building  materials  
  • 28. User  perspecAve  to  value  chain  /  network   UPM   Fiber  processing   Labels   Packaging   Raw  material     suppliers   Packaging     Firms   E.g.  TetraPak   Atria   Food  processing     industry   Retail     industry   Consumer   •  Consumers and end users as a target / starting point? •  Leapfrogging value chain can take UPM type of firms closer to the end user – co-creation with food processing industry •  Food processing industry has in-depth knowledge on consumers