Sustainability

Innovation Management

Innovation and Value Creation

Key Performance in 2O23


676  Innovations

Submitted to the contest

148  Entries  9259  million Baht

Innovative products,. service and process improvement that create economic value

598  Innovations

Innovative products, service and process improvement that create economic value

Key Progress in 2O23


24-hour vegetable garden near you project



Online to Offine (O2O) business platform development and expansion with digital technology project

"ALL PharmaSee" application development for health-conscious individuals


Public, private, and educational sector cooperation in seciety and environment development and innovation projects

Significantly Affected Key Stakeholders


Supporting the SDGs


SDG 1 End poverty in all its forms everywhe

1.2 Eradicate extreme poverty for all people everywhere

SDG 3 Ensure healthy lives and promote well-being for all at all ages

3.3 Achieve universal health coverage, including financial risk protection, access to quality essential health care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all

SDG 8 Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all

8.2 Achieve higher levels of economic productivity through diversification, technologicalupgrading, and innovation, including through a focus on high-value-added and labour-intensive sectors
8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
8.5 Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

Performance Against Goal


2O3O Goal

20%

Income from products and services innovation and new businesses including process innovation

Progress against goals

Performance Summary 2O23

Innovation Value

Research and Development

Contest Entries Submitted

Award-winning Entries

    2021 2022 2023
Cumulative number of innovators
9158
12520
16507
Cumulative number of patents
15
16
16
Cumulative number of petty patents
8
10
15
1472  persons

Research and development personnel

45.34  million Baht

Budget for research and development

Risks and Opportunities


In an era where innovation and technology developments occur continuously, consumer lifestyle and needs shift with focus on products and services readily and conveniently available. Consumers thus opt for increased product purchases through online channels. Therefore, innovation and technology developments to keep pace with changes is critical towards increased commercial competitiveness and business operations within the retail industry. However, conducting business online also affects the value of products or services of existing businesses which leads to “Digital Disruption”, a potential cause of human rights violations in terms of employee redundancy due to certain business sector closures. Therefore, the retail industry requires resilience in innovation and technology development to maintain capabilities and satisfy conventional consumer needs and increase business competitiveness within the online marketplace. The Company is cognizant of innovation development significance, a main factor in assisting increased quality and adding value to products and services, and the corresponding promotion of good health among consumers entailing rights to appropriate standards of living depicted from food, clothing, housing, medicine, and public services. The development and promotion of innovation within the production process additionally adds sustainable economic value to the organization.

Management Approach


The Company aims to constantly develop and innovate as a means for perpetual competitive vantage in addition to operational capability and agility as a precaution to technological transformations. With notable alterations being shifts in consumer purchasing patterns through online purchases of products and services, the promotion of various research and technologies to elevate organizational innovations in becoming an innovation management leader in future requires implement of specified frameworks and operating guidelines are highlighted in the following text.

CP ALL Innovation management Framework

Innovation Research and Development

The Company endorses research development and food innovations which cultivates customer well-being, adds value to products for market competitiveness, and organizational growth while benefitting society and the environment. The Company currently operates 2 technology and innovation centers.

Food Technology Center operated under the Office of Product Development and Quality Assurance, CP ALL

In conducting educational work and producing food management innovations inclusive of food safety management and quality control, proper hygiene and good health, food supply chain framework balancing which takes into account environmental factors, academic advice provisions for entrepreneurial product quality development, main functions are described as follows:

  • Establish quality assurance measures, which uphold product safety standards, throughout the food chain from upstream processes until consumer delivery
  • Develop environmentally friendly packaging, a sustainable development initiative based on Circular Economy concepts involving every product life cycle process to ensure consumer safety, prevent and reduce negative environmental impact, and supports proper waste management
  • Develop industrial-scale compatible food recipes and production processes for Company brand food, beverages, and agricultural produce, which complies with nutrition and food hygiene principles to satisfy customer needs
  • All Food Tech Center establishment to provide product and raw material development services, advice and solutions to interested parties and entrepreneurs as a means to increase food production standards, and numerous food product analysis and assessment services. The mentioned services include Sensory Evaluation through senses assessment utilizing international academic principles to ensure new products sold in 7-Eleven stores satisfy customer needs, microorganism analysis, chemical tests, and residual tests for food, water, and agricultural products

Impacts and Benefits

63  personnel

research and development

590  research

research and development outcomes (SKUs)

15.06  million Baht

research and development budget

Food Innovation Research and Development Center to CP FoodLab Co., Ltd.

CP Foodlab Company Limited conducts innovative research in food technology through basic and applied research to tackle challenges, provide solutions, and satisfy modern consumer demands. In addition, the committed central agency role entails information collection for research and development, testing center activities to support product development research and food engineering efforts for CP ALL, Charoen Pokphand Group and designated companies both domestically and overseas, and various activities as follows:

  • Phase II research and development of active ingredients in spray products for relieving inflammation in the mouth and throat from holy basil extract oil in collaboration with the Herbal Product Innovation Expert Center, Thailand Institute of Science and Technology Research (TISTR), adds value to basil. With the objective to assist farmer income generation, a prototype cosmetic product was developed in the form of a mouth and throat spray and is projected for development into cosmeceuticals for relieving inflammation in the mouth and throat in the future
  • Research and development of ready-to-eat foods tailored for each age group (Food for Age Group) aims to provide enhanced age specific nutrition, inclusive of nutritional supplements for infants and young children, etc

Impacts and Benefits

13  personnel

research and development

8  research

research and development outcomes (SKUs)

16  million Baht

research and development budget

Value-Added Innovative Products

The Company promote as well as elevating SMEs innovation development and continuously seeking new products responds to changing and diverse customer demand, add value and promote business growth. In 2O23, outstanding innovative products were as follows:

Deliciousness in one box, salad roll scale-up project

Research teams develop salad roll production process to ensure consumer satisfaction of the mentioned healthy product while increasing shelf-life through implementing proprietary post-harvest technology to maintain salad vegetable freshness and Only at 7-Eleven flour soaking formula to maintain dough softness. Additional usage of raw materials free from pathogenic microorganisms enables a product shelf life of up to 5 days, ensures a product maintaining cleanliness, convenience, and safety for consumption, and assists in farmer income generation and increased SMEs production standards.

Objectives and goals

Customers

Increase product variety, increase consumer choice

Company

Increase sales of Ready to Eat product group

Farmers

Promote and generate income for farmers, raise national agricultural capacity

Project benefits

frome  2  days to  5  days

Increase product sales opportunities through extending shelf life

frome  36  branches to  7987  branches

Increase sales outlets

140  million Baht per year

Added value from project totaling in 2023

Innovation Concept

Search, select, control

Determine suitable agricultural areas/select quality raw materials/maintain supervision as scheduled



For raw material standardization

Technology

Pre-Cooling/Cutting Techniques/Hydro-Cooling/Reduce Microorganisms/Increase Cell Strength/Reduce Browning/Modify Atmosphere

For maintained vegetable freshness

Innovation

Dough varieties/dough components/dough soaking agent




For dough sheet softness and moisture retention

Skills and techniques

Trimming/Raw material placement/Dough chilling/Rolling/Temperature control




For product quality control

Results and benefits

Economic impact

  • Increase salad roll sales
  • Increase sales outlets
  • Product diversification

Social impact

  • Generate income for farmers
  • Create careers for community members
  • Raise production standards

Environmental impact

  • Thai people consume quality produce and become healthy
  • Increase and develop sustainable agricultural land

Economic value

  • Increase salad roll sales by over 1OO million Baht per year
  • Increase sales outlets to 7,987 branches

Social value

  • Generate income for farmers totaling 4.5 million Baht per month
  • Project participation by 265 farmers

Environmental value

  • Increase and develop sustainable agricultural land totaling 200 rai

24-hour vegetable garden near you project (selected by the heart with attention to every process)

CP ALL utilizes technology and innovation to drive and create business opportunities through the introduction of fresh vegetable markets into 7-Eleven stores, an approach which entails vegetable selection from reputable sources, selection processes, and product trimming to appropriate sizes. The challenge of this method involves collection of various vegetables with different temperature requirements into a single freezer shelf alongside other products. To reduce the cost stemming from managing vegetable freezers, the team applied their knowledge of physiology, integrated post-harvest technological and active packaging innovations to assist with increased vegetable shelf life through reducing the respiration and transpiration rate (Equilibrium Modified Atmospheric Packaging: EMAP). The innovative technology preserves vegetable freshness throughout shelf life and enable deliver of vegetables which are fresh, clean, convenient, safe, and satisfy consumer needs 24 hours a day. Additionally, this approach enabled a reduction of over 3O% in food waste destined for landfills. Currently, fresh vegetables are available in 7-Eleven stores
with nationwide and generate sales of over 287 million Baht per year.

Create service innovations to deliver convenient experiences to consumers with digital technology (Digital Transformation)

Consumers behaviors have an increasing tendency to buy products and services by online channels. The Company therefore emphasizes technology development in tandem with digital technology application within retail business operations as a means to increase distribution channel diversity and facilitate potential for efficient and prompt business operations , for technological changes in a globalized society and meet the needs of consumers. In 2O23, outstanding projects were as follows:

Online to Offline (O2O) Business Platform Development continuation project

CP ALL develops a business platform "ALL Online," and the 7-Eleven application on mobile phones continuously. for customers, linking products and promotions meeting customers’ needs at all levels The project operates under the concept of:

  • Convenience to buy: allow choices to order products through a variety of channels, including offline, online, and delivery
  • Convenient to pay: allow choices to pay for products in both cash and cashless means
  • Convenience to receive: allow choices of receiving the product customers can order products in advance and choose to pick up the products themselves at 7-Eleven stores or get home delivery via 7 Delivery service

Furthermore, the Company has upgraded the online service by developing a membership system, "ALL Member," through the application as a communication channel and assessing customer satisfaction along with giving special benefits to members. Currently, there are over 16.67 million members in the system. The outcomes of the customer satisfaction survey can be used to plan and develop more efficient products and services for customers in the future.

Lotus's further develops online shopping platforms and launches Lotus's SMART App, an application which increases customer convenience through combining online shopping and rewards into one platform alongside artificial intelligence (AI) integration to assist with big data analysis and processing. The platform creates coupons, discounts, promotions, special privileges, and recommend products which meet tailored needs of individual customers through connected Omni-Channel offline and online purchasing. The mentioned approach strengthens Lotus’s O2O business by leveraging over 2,4OO branches nationwide as product delivery fulfillment centers. The new reward program, My Lotus's, is designed for an easier experience in customer experience in utilization, collecting, and exchanging rewards, more worthwhile, faster, and more suitable to one’s needs. The whole operation omits sending statements and coupons to customers’ houses-essentially an environmentallyfriendly procedure by reducing wasting paper resources for 1OO% of the operation.

Continuous development of the “ALL PharmaSee” application

The eXta Plus Pharmacy in CP ALL Public Company Limited has developed the “ALL PharmaSee” application as a continuous project by providing health advice and medication from more than 3OO pharmacists free of charge. Access is Via online chat / video calls 24 hours a day. To grant health-conscious individuals’ access to “Easy and convenient” health services with health education services, search for Exta Plus drug stores nearby or alternatively the ALL PharmaSee application, a Pharmacy Council certified platform providing remote pharmacy services.

Innovative financial services within community proximity

Counter Service Company Limited, part of the CP ALL business group, develops innovative technology which provides a wide range of services to the public and upgrades financial transaction systems for both cash deposits and withdrawals. For instance, the “Transfer Now,
Receive Now” service, a domestic money transfer service throughout Thailand which doesn’t require a bank account but only a valid sender and recipient ID card, enables immediate cash transfer to recipients at over 14,545 7-Eleven stores nationwide, 24 hours a day. Additional services include identity verification via online system for account registration and government agency services access through digital channels 24 hours a day.

*Note: Counter Service is only a channel to facilitate identity verification when using government applications - information provided by users to Counter Service for identity verification is encrypted and sent to the Digital Government Development Agency (Public Organization) or DGA directly via high security methods whereby no information is stored at the service counter.

Innovation to improve operation process

The Company continuously improves the efficiency of business operations by bringing modern technology to improve the speed and efficiency of existing processes and streamline work processes for employees and relevant departments. In 2O23, the outstanding projects were as follows:

Develop a product sampling counting process at 7-Eleven stores Sampling Count continuation project

The Company developed a product data analysis system which identifies product encountering shortages at respective branches using the Pareto principle continuously as a means to fulfill customer needs and prevent loss of sales opportunities from product shortages. The system additionally provides information regarding product groups requiring inventory checks. Currently, the technology is deployed in all 7-Eleven stores nationwide

Impacts and Benefits

11  working days per branch per year

Reduced product counting time at the stores

57  million Baht per year

Reduced the cost of counting

387  million Baht

Increased sales

Technology integration for efficient branch layout and product placement system project

CP AXTRA Public Company Limited collaborates with RELEX Solutions to adopt technology for efficient branch layout and design to maximize benefits by integrating AI and product placement systems in line with sales volume, appropriate product placement plans, and increased supply chain system efficiency in a more integrated manner.

Smart Ice Maker Project

The team has designed and developed a smart ice making machine capable of automatically transporting ice to the dispenser in front of 7-Eleven stores in addition to development of an ice storage cart compartment for ice delivery to the All Café beverage service point. The mentioned design reduces energy consumption, reduces work processes, reduces ice exposure, and reduces employee accident risks. This design also doubles as preparatory efforts for labour shortage issues arising from an aging society in the future.

Impacts and Benefits

100%

Reduces ice production to dispenser transportation effort and processes

100%

Reduce product contact

Smart coffee machine service by IoT system project

The All Cafe business in 7-Eleven stores designed and developed an IOT system to assist with management of automated coffee machine repairs, which detects broken machine status prior to storefront, enables basic immediate troubleshooting, increases work efficiency with increased accuracy and speed, increases delivery of good quality service, and reduces lost sales opportunities and repair costs by 823,5OO Baht per year.

Creating innovation for social and environmental

The Company cooperates with Panyapiwat Institute of Management (PIM) and All Wellness Business to develop an Outdoor Delivery Robot, a 1OO% battery-powered robot using an unmanned artificial intelligence (AI) autonomous navigation system to deliver product while being non-polluting and noiseless. The outcome of the project creates clean energy delivery that lightens the workload of 7-Eleven store employees during the period when there is a large number of orders at the same time and the case of delivery at night—an efficient assistant for a 24-hour store. For the first phase of development, the
robot can deliver two orders at a time. It also increases the safety of consumers and employees. In the testing stage, the real run was launched in the supervised area (Sandbox), PIM building area (PIM), and Thara Park area to ensure that each delivery run is accurate even on different types of roads and obstacles. Currently, the project is under development in Phase 2, under the consideration of designing more robots in various sizes. So, the robots can be ready to meet the needs of receiving and delivering goods in each area. The goal is to expand outcomes, create new business opportunities (New S-Curve), and create new innovations that meet the world of the future. The opportunity to bring an Outdoor Delivery Robot to meet the needs of delivering goods to companies or other stores near 7-Eleven.

CP ALL Public Company Limited empowers innovation cooperation with external organizations, both government and the private sector totaling 11 national organizations under the "Thailand Synergy Innovation Driving Cooperation Project for Thai SMEs" by supporting organizations, including small entrepreneurs (SMEs), research outcomes, and inventions. The outcomes provide opportunities to increase marketing channels, exchange knowledge and guidelines applicable to business operations, as well as innovation scale-up to further create value for the organization and society. In 2O23, outstanding projects were as follows:

Banana processing business model for the community

The banana processing business model for the community promotes Namwa banana processing into ready-to-eat chewy bananas full of fragrant aroma and natural sweet taste. Produced from Jasmine Ong variety Namwa bananas of the Ban Khwae Community Enterprise, Saraphi District, Chiang Mai Province, and supported by product processing technology research and development by Sunsweet Public Company Limited, this initiative creates a famer network and generates communitywide income.

Impacts and Benefits

20  million Baht per year

Generate sales exceeding

from  20  Baht per kilogram to  400  Baht

Increasing the value of processing chewy bananas

60  households, with additional imcome generation of  8  million Baht per year

Create careers for the Ban Khwae Community Enterprise, Chiang Mai Province, comprising ove

Develop quality agricultural product throughout the supply chain

AI Vulcan Project, a platform to upgrade the careers of disabled people as AI trainers

Vulcan Coalition Company Limited develops a platform to provide data for AI input which allows handicapped people to employ their skills and special abilities as AI Trainers, a means to assist in data preparation for the Artificial Intelligence (AI) technology to comprehend human language in addition to developing various models and applications. This project maintains fair employment an

Impacts and Benefits

10  million Baht per year

Generate income of over

60  million Baht

Create employment and income for handicapped people totaling over

700  people

Assist in advancing the human rights for handicapped people through fair employment of over

Improving life quality for handicapped people and create pride from valuable and meaningful work

Recycle Day project, a comprehensive waste management platform

Recycle Day Company Limited develops a comprehensive waste management platform via application to simplify various tasks, schedule vehicles to transport sorted garbage from various places inclusive of residences and office buildings to industrial factories and various Drop Points with fair trading prices. A system function to record waste quantities sold and points conversion for prize exchange promotes collective social responsibility.

Impacts and Benefits

13000  members

A group of over assisted waste separation organization via platform

10  million Baht per year

Generate income exceeding

1000  tonnes per year

Reduce waste quantities in landfills by over

1300  tCO2e

Reduce greenhouse gas emissions by over

Rice straw pulp and packaging molded from organic rice straw pulp project

Fang Thai Factory Company Limited utilizes rice straw, a material usually discarded or burned after harvesting, and combines it with pure rice straw pulp production technology using the Mechanical Process, which results in strong rice straw pulp material. This approach creates material capable of replacing a variety of wood pulp required in packaging from organic rice straw pulp, assists reduction of tree consumption and greenhouse gas emissions, ads value to local resources, and distributes income within the community.

Impacts and Benefits

10  million Baht per year

Generate sales of over

160  households, worth over  7  million Baht per year

Communitywide income distribution among

2000  tCO2e

Reduce greenhouse gas emissions by more than

Reduce energy costs

Promoting Thai products from organic rice straw pulp at the international level

Innovation Culture

The Company provides training in terms of knowledge and innovation development to foster comprehension and encourage employees to propose creative ideas and innovations valuable to the Company. as well as promoting innovators through in-house innovation project contests and forums. CP ALL encourages innovation and honors projects that produce economic, social, and good environmental results. The training includes promoting the exchange of knowledge and innovative practices to improve the work processes, assists in reducing unnecessary workload, streamline organizational efforts, maintain resilience in light of current and future global market changes, in addition to cultivating an innovation culture among executives and employees. The participation delivers value to the nation, people, and organizations.

Related Policy and Guideline

Innovation and Value Creation PolicyDownload

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