The 21st Century’s KPI Think Resource...

The21stCentury’sKPIThinkResourceProductivity

OryZik

VPofAnalytics

June-2-2016

Agenda

 Resourcesandsystemthinking

 SustainabilityandtheCFO

 ResourceproductivityasaKPI

2

WhatwashisKPI?Productivity=Proteins/Resourceinput

3

Credit:OrinZebestCC-BY2.0

WhydidSapienswin?

4

Source:DieerstenMenschen,WeltbildVerlag,2000.ISBN3-8289-0741-5

HomoerectusSource:Westfälisches

Landesmuseum,Herne,Germany

 TheNeanderthalswerestronger Sapiencewonbecauseofconnectivity

30,000yearslater:wedominatetheplanet

5

 Stilltwoforces:connectivity+innovation Nosystemthinking

Source:geographical

Businessasusual,wewillneedthreeplanets

6

Source:GlobalFootprintNetwork

  Overconsumption  Climatechange

Brandshaveleverage…

7

FilmedJuly2010atTEDGlobal2010JasonClay:Howbigbrandscanhelpsavebiodiversity

JasonClay,WWFatTED2010

  Hundredsofcompaniescontrol70%ofcommodities

  Thebottleneckbetweenacomplexsupplychainandacomplexdistributionsystem

Supplychain

Distributionsystem

Agenda




9

“Thereisoneandonlyonesocialresponsibilityofbusiness-touseitsresourcesandengageinac7vi7esdesignedtoincreaseprofits.”

Source:universityofcolorado

10

Financialvs.Sustainability

“..ourlast,ouronlychancetoreachades7na7onthatassuresthepreserva.onoftheearth.”

Source:Kristenbaumlier

Thebigdisconnectofcheapoil

11

CSOCFO

Oil<$30/barrel

CO2>400ppm

Notgrowingasanoption

  Patagonia’s2011,NewYorkTimesad:“135litersofwater..warehousegeneratednearly20poundsofcarbondioxide..two-thirdsitsweightinwaste”  Ledto15%growtheversince

12

Sustainabilityreports:everybodyisbecominggreener(excepttheenvironment)

0

500

1000

1500

2000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

PubliccompaniesdisclosingtotheCarbonDisclosureProject

13

  Lackofdatastandards,confidentialityandvalidation  Littlesystem-levelinformation(~96%oftheproblem)

14

Modifiedbasedon:triplepundit

NocorrelationfoundbetweenCorporateSocialResponsiblyandfinancialperformance

Profitability

CorporateSocialResponsibilityscore

Agenda




16

17

Kme

ResourceproductivityEconomicgrowth

Kme

InflecKonpoint

Resourceuse

Kme2016?

ResourceProductivity= 𝑬𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝑮𝒓𝒐𝒘𝒕𝒉 ($)/𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆 𝒖𝒔𝒆 

Famousdecouplingexamples

18

Source:IBM

  Largesttaxicompanyownsnotaxis(Uber)  Largestaccommodationproviderownsnorealestate(Airbnb)

ResourceProducKvityroadmap

19

Valuecreation

Valuedestruction

ResourceproductivityCompliance

Avoidvaluedestruction

20

  Volkswagenlost$33billioninvaluationinlessthan2weeks

  Recallcost$16-$18billion

Productinnovation

21

Valuecreation

Valuedestruction

Compliance ProductInnovation

Resourceproductivity

Loweremission

Tesla’ssystemthinking

0 0.05 0.1 0.15 0.2 0.25

TeslaS(solar)

LexusES300

TeslaS(USgrid)

Teslavs.Lexus(kgCO2/mile)

22

  Chargedfromthegrid,TeslaandLexusareequivalent  Chargedwithsolar,Teslaisanorderofmagnitudebetter

ConnecKvity

23

Valuecreation

Valuedestruction


DataandConnectivity


Lowemission

Efficientroaduse

24

SystemInefficiency:TrafficSolution:“Outsmartingtraffictogether”

  Startedas"FreeMapIsrael”communityprojectin2006  $1.1billionacquisitionbyGooglein2013

BusinessModelInnovaKon

25

Valuecreation

Valuedestruction


DataandConnectivity


Lowemission

Efficientroaduse

Businessmodelinnovation

Carsofftheroad

26

Systeminefficiency:driverswithcarsandtimeSolution:Uber…

  FoundedinCaliforniain2009with$200,000seed  2015valuation~$62.5billion

SystemInnovation

27

Valuecreation

Valuedestruction


DataandConnectivity


Lowemission

Efficientroaduse


Carsofftheroad

Systeminnovation

Shared+electric+selfdrivingcar

Whowillreinventthesystem?

28

Valuecreation

Valuedestruction


DataandConnectivity


Lowemission

Efficientroaduse


Carsofftheroad

Systeminnovation

Shared+electric+selfdrivingcar

?

29

Whowillreinventthesystem?

Thedata:highpain/highgain

30

1985 2006 20091996

NavteqtoWaze~20years  NokiaacquiredNavteqfor$8.1billionin2007

Etak'sNavigator1985

  Identifyingsysteminefficiencies

  Sustainabiltycanbeservedimplicitly

  Primarydataleadstovalue,overtime

31

32

Valuecreation

Valuedestruction

Compliance

ValuedestrucKon

33

Valuecreation

Valuedestruction

ComplianceResourceproductivityProduct

Innovation

Sourceforalternativeproteins:LuxResearch,“WhooPea:PlantSourcesAreChangingtheProteinLandscape”

ProductinnovaKon

ThedistribuKonsystem

34

Valuecreation

Valuedestruction


InnovationDataand

ConnectivitySysteminnovation


Thesupplysystem

35

Valuecreation

Valuedestruction


InnovationDataand

ConnectivitySysteminnovation


Water

Energy

Land

Nutrients

36

Valuecreation

Valuedestruction


InnovationDataand

Connectivity

ITCompanies:IntegratedHardware,SoWware,DataandAnalyKcsonthefarmlevel

37

Valuecreation

Valuedestruction


InnovationDataand

Connectivity

Chemicalcompanies:rethinkbusinessmodels


Blockchainwillenablethe‘NaveteqofAg’

38

  Food,pesticides,herbicides,water,energy,etc.thatflowsthroughasupplychainwillhaveapermanent,unalterablerecording

  TheamountsineachSKUwouldhavea“stamp”goingbacktothesource

  Thiswillallowaccurateverificationofresourceusebyproductandcompany

Water EnergyLandNitrogenPhosphorousetc.

Decisionswithpublicdata

39

‘BeefParity’Proteinbenchmarkingusingconventionalbeef

40

  AverageUSindustrialscale,beefincludingherd-calf,stocker,andconcentratedfeedlotstagesforfinishingandprocessing

  Calculatedper1,000kgofunpackagedmealandnormalizebyproteincontentandthePDCAAS(ProteinDigestibilityCorrectedAminoAcidScore)

Herd-Calfphase

Corngrowth

1,000kgbeefmeat

finished

cattle

41

0.00

0.50

1.00

1.50

2.00

baseline

Beef-conventional

0.00

0.50

1.00

1.50

2.00

baseline

Beef-grassfed

0.00

0.50

1.00

1.50

2.00

baseline

Swine

0.00

0.50

1.00

1.50

2.00

baseline

Poultry

0.00

0.50

1.00

1.50

2.00

baseline

Salmon-netpen

0.00

0.50

1.00

1.50

2.00

baseline

Salmon-marinebag

0.00

0.50

1.00

1.50

2.00

baseline

Tuna

0.00

0.50

1.00

1.50

2.00

baseline

Dairy

0.00

0.50

1.00

1.50

2.00

baseline

Eggs

0.00

0.50

1.00

1.50

2.00

baseline

Soybeanmeal

0.00

0.50

1.00

1.50

2.00

baseline

Canolameal

0.00

0.50

1.00

1.50

2.00

baseline

Peameal

0.00

0.50

1.00

1.50

2.00

baseline

Algae

0.00

0.50

1.00

1.50

2.00

baseline

Cricketmeal

*NormalizedbyproteincontentandPDCAAS

Protein‘BeefParity’resourceproducKvitydashboard

42

9% 5%

GHGs$

Fossil$Fuels$

Labor$

Land$

Nitrogen$runoff$

Wate

r$

56%  Primarydatafromcricketfarms

  Saveabout90%oftheGHGemissionandhalftheenergy

  Focusonthermalsolutions

ResourceproductivityofcricketsAspercentageofbeefperunitofdigestibleprotein

Concentrate

feed

Corngrowthforfeed

Analyzethesupplychain

Identifyhotspots

Improve

SupplychainopKmizaKon–eggproteinexampleHowtoreducethedependenceonwater?

43

AlternaKvesuppliersAlternaKvefeed

Beaerwatermanagement

44

  Hedidnothavetothinkaboutthesystem

  Wedo!

  Identifysysteminefficiencies

  Thisiswheremoneywillbemade!

  Andsustainabilitywillbeserved

LuxResearchInc.100FranklinStreet,8thFloorBoston,MA02110USAPhone:+16175025300Fax:+16175025301www.luxresearchinc.com

Thankyou

[email protected] +16179433215

The 21st Century’s KPI Think Resource...

Documents

Transcript of The 21st Century’s KPI Think Resource...