Next Generation Bio Innovation 2025

Beyond the customer: Production system value is fundamental to unlocking value-chain transformation Bio-innovation can create differential product value that is transformative both for consumers and in how businesses create value through production systems. Bio-enabled approaches must also be deployed in existing production systems and value chains in a way that is commercially more attractive and/or offers increased resilience (e.g. by competing on cost or improving supply chain resilience) (see Figure 4). Production systems enhancement plays different roles in overall commerciality FIGURE 4 Sour ce: World Economic Forum analysis, Bioeconomy Community input— Reduce cost — Enhance efficiency and resilience — Transform production models — Create new value chain links— Create customer value — Raise market profile — Stimulate demand — Reduce cost — Enhance efficiency — Improve resilienceLimited added customer value Pursuit of enhanced production system value in supplying existing pr oducts Simultaneous pursuit of high value and low cost to ensur e commer cial viability PRODUCTION SYSTEM V ALUEBio-impr oved Bio-superior Bio-disruptive PRODUCTION SYSTEM V ALUEPRODUCT V ALUE Bio-derivedPRODUCT V ALUEBio-differentiated products/servicesExisting products/services For existing products, bio-enabled approaches such as precision fermentation, can be used to create competitive bio-derived substitutes where production system value is the primary driver for adoption. Attributes including improved supply chain efficiency, cleaner or safer production processes and sustainability benefits provide important advantages to businesses. Furthermore, while the customer may perceive little additional value in the end-product from such attributes, corporations may achieve broader profitability and gain a business advantage through production transformation and technological innovation.16 Next Generation Bio-Innovation: Delivering Commercial Value 9