Next Generation Bio Innovation 2025

Reframing bio- innovation for differential customer value To better position bio-innovation for widespread commercial success, a transformative shift in mindset re-centred around value creation is needed. Bio-innovations have been historically categorized as either drop-in replacements or entirely novel products. While framing the value chain contribution of bio-innovation in this way can be useful, it emphasizes a process-centric view rather than the value created. To reframe bio-innovation around value for the customer, four broad areas of value creation can be highlighted: bio-derived, bio-improved, bio-superior and bio-disruptive products (see Figure 3). Reframing bio-innovation in terms of differential customer value created, relative to the production system approachFIGURE 3 Sour ce: World Economic Forum analysis, Bioeconomy Community inputPRODUCTION SYSTEM APPROACH CUSTOMER VALUEBio-superior pr oducts Bio-impr oved pr oducts Bio-pr oduced pr oducts that ar e fundamentally new, representing entirely new use cases not pr eviously available, driving customer behavioural changeBio-pr oduced pr oducts withenhanced core functionality relative to existing options demonstrating differential value to customers in a given use caseBio-pr oduced pr oducts with similar functionality as existing options but demonstrating greater customer value through sourcing and productionReplacement of existing products with no perceived differential customer value (a dr op-in r eplacement)Bio-derived pr oductsBio-disruptive pr oductsNovel production approaches Process replacement Limited added valueHigh value Note: With higher customer value, a wider variety of production system approaches may be employed, but will be biosolution-specific, and is not articulated here. Next Generation Bio-Innovation: Delivering Commercial Value 6