3 potentially fatal pitfalls for ag technology companies

Does your company have what it

takes to avoid 3 common and

potentially fatal pitfalls?

3 pitfalls that should keep you up at night

• Neglecting your

business model

• Failing to understand

that innovation is

really about change

management

• Forgetting that any

business is ultimately

about people who you

want to inspire

Photo: iStock

Pitfall 1: Neglecting your business model

unique value proposition =

product/service/ideology +

revenue/pricing/profit model

ability to generate

demand through

relationships

ability to serve the

demand through

sourcing/manufacturing

and distribution

product

innovation

Photo: http://www.josephegan.co.uk/Anamorphic-Typography

Photo: http://www.josephegan.co.uk/Anamorphic-Typography

Thomas Edison

understood.

Photo: Wikipmedia Commons

• An incumbent industry with much higher capitalization

• Infrastructure and regulation adapted to existing

technologies

• Close relationships between existing companies and

decision-makers

• Edison’s science was criticized as shoddy and

unworkable

• Disproportionate licensing fees and costs were levied

• The technology was immature and results variable

Compared to gas, electricity faced many of the

same barriers that new ag technologies face today

Photo: Klearchos

Cheap and practical substitute for

illuminating gas

Same wire brings power and heat

Run an elevator, sewing machine or

other electrical contrivance

Heat may cook your food

Electric Light Company

incorporated to develop any

electrical invention

Prototype demonstrated in financial district (near newspaper

offices)

Insisting on central power generation reduced upstream

innovation…

…but paved the way for extensive

downstream innovation

Edison explained

the unprecedented

benefits of

electricity…

Plans to run wires through gas pipes and light fixtures

Dim bulbs to mimic the

brightness of gas light

Now pointless lampshade

retained

Insisted on burying wires

Used meters to measure usage

despite no useful models

…at the same time he tried

to make it seem as familiar

as possible

1. Make it familiar enough to be understood and used.

2. Make it different enough that it is not constrained by the current

system.

3. Gradually unveil the potential of the innovation.

Edison’s lessons for successfully

introducing innovation

Pitfall 2: Failing to

understand that

innovation is really

about change

management

Photo: fcartoons.de

1 - “I don’t understand it”

Photo: iStock

2 - “I’m not

equipped to do it”

3 –

“I don’t

like it”

Photo: HubSpot

4- “I don’t like you”

Photo: Dr. Sophia Yin

Case study: Monsanto comes to Europe I don’t

understand it Solid technical arguments for the whys and wherefores of genetically

modified organisms for productivity and environmental reasons

I’m not

equipped Much of the technical know-how is built-in.

I don’t like it

The level of fear related to a series of food crises in Europe seems

to have been overlooked or underestimated. This was compounded

by a general level of risk averseness that is higher in most European

cultures than in the USA. There are strong cultural attachments in

Europe to traditional foods. Consumer and environmental groups

have a lot of political influence.

I don’t like

you

Like McDonald’s, Monsanto is a highly visible symbol of a certain

perception of the United States and its economic hegemony. Given

cultural differences, Monsanto’s excessive confidence in its

technology was taken by many as arrogance.

Speak to the whole person…

Pathos

Logos

Ethos

…and to all the people who

might influence your value chain

Companies at

this conference

are no exception

to the rule.

Source: Text analysis of websites of 32 companies attending the New Ag conference

Choices Strategy

Pitfall 3: Forgetting that any business is

ultimately about people

Feedback loop

Photos: www. http://centralastronomyclass.pbworks.com/ and windows2universe.org/

Stakeholders can

help you see new

possibilities

How

organic

farming

built a

brand on

ideology

Conventional agriculture

Sustainable

agriculture

Organic

agriculture

Myth of the idealized

agrarian past

Model: Cultural Strategy Group. Photo: NASA

Source: McKinsey and original research

10

4

10

7

18 How aligned is your

positioning with what

B2B customers want

to know?

17

13

15

3

21

1

11

1

Number of New Ag participating

companies that mention this

theme on their website (out of 32

analyzed)

Active listening can help protect you

from the 3 pitfalls

• When deciding whether to engage in social media many

companies overlook their potential for monitoring rather than

broadcasting

• Think about models of open innovation and

co-creation to broaden your perspectives

• Pay attention to cultural trends for hints at how

to improve your competitive positioning and

differentiate your company’s offerings

Photo: iStock

Kristen Sukalac

Consulting Partner

Prospero & Partners

kristen@prospero.be

@Ksukalac

fr.linkedin.com/in/kristensukalac/