Sustainability | Paul4innovating Innovation Views

Innovation comes in different forms and problems, all requiring financial support.

*Innovation & Finance needed for the Energy Transition in developing countries*

Innovation has a very tough job of attracting the necessary money to take a concept or idea all the way through to commercialization. There is always that constant asking about the economic return and the associated risks.

Financing game-changing investments, replacing something existing or simply providing something new have tough financial questions always to be answered.

Here I am taking an innovation need in a different way than most are used to reading about. So what are right conditions to invest and realize innovation?

The Energy Transition is one of the toughest innovation challenges ever. We must remove fossil fuel as a source of energy, decarbonize our planet and replace it with clean energy alternatives of solar, wind, hydropower, nuclear and green hydrogen solutions. To make the transformation in just under 30 years is a massive task. So far, we are doing a poor job of this as markets, solutions, opinions, and financial support are all highly fragmented.

Tacking emerging and developing markets is even harder to achieve an energy transition.

Can you imagine what it is like in a developing country that lacks sufficient energy and infrastructure yet is faced with the sizable task of expanding its economy to meet growing population expectancies and the need for rising incomes to give that essential potential for growth that having energy available can provide?

Innovation: the accelerator for the changes in our energy transitions

Innovation is the accelerator in our energy transitions.

No energy transition will be achieved without invention and innovation, yet we are currently failing badly to fund research, development and deployment. We are losing the race to stop our planet’s warming as our innovative human endeavours are not at the level they should be, or we lack the “will” to make the changes we so desperately need to undergo to protect our planet.

The sheer scope of the energy transition often pulls me in so many different directions. Still, the foundation stays in place, that of making the contribution of my understanding of innovation as my focal point of contribution- the accelerant to energy change.

An innovation framework that offers a formula for sustainable advantage

*A formula to build a framework for sustainable innovation*

Here is my solution that I think is worth working through first to absorb it and its combination. Then apply it to your innovation-building activity as a framework for innovation. Each time you are reviewing innovative activity, run through this formula in your head to see if each of the parts is embedded into the work.

I have worked on the formula SCA = II + OC + EE + MLC + RNE for many years.

In that post, I detail the make-up of the formula, made up of the combination of positive relationships between the following interrelated parts.

We are or need to be, in search of a sustainable future where we can constantly build upon innovation capabilities, capacities and competencies that can be refreshed, strengthened and sometimes reduced to meet the circumstances.

The formula SCA = II + OC + EE + MLC + RNE makes sense to me. How you build out these yourself further adds more uniqueness and source of advantage.

Gaining energy and idea generation

I have been asking myself how a combined effect of innovation and ecosystem design thinking will support the energy transition we are undertaking to give it additional traction and generation.

Let me share my thoughts and proposition here.

The vital “infusion” of innovation in thinking, approaching and building this into the front end of any energy transition provides a greater discovery structure and process that can greatly facilitate the changes, with more informed knowledge, insights and validation of a path to travel.

Finding fresh ideas and momentum Continue reading “Gaining energy and idea generation”

Transforming What? Delivering Future Impact

Delivering Future Impact on Performance

As demand is more volatile today what becomes more important is the work to be done, not the work done.

Surprisingly Adam Smith identified this important difference back in 1776.

This can be explained as the work done is the accumulated knowledge, which has built up and been embodied in the firm’s results with the innovations achieved in the past and is seen as the tangible capital.

The work to be done is how well it can adapt to change. In the past century, we operated in the mass production era, with systems with standard goods and stable market conditions, the work done was equivalent to the ‘work to be done.

In today’s global market, with its rapid technology diffusion, disruptive and constant change with an emphasis on servicing the work to be done is more important than the work done and intangible assets are fundamental to this. Continue reading “Transforming What? Delivering Future Impact”

Sustainability will increasingly come through innovation ecosystem designs

Making Sustainability central to our future innovation capability building will be through the adoption of taking on a new open ecosystem approach.

Broader collaborations will become central for future organizations to find ways to cooperate, network and build relationships, that recognize the partnership value, to achieve a sustainable, future business that offers impact and connected design for customers to value, that meets their changing needs.

Today’s challenge is to build the capacity to be different, to sustain and accelerate the critical aspect that innovation, ingenuity and creativity can provide, with the additional stimulus for sustaining lasting growth.

Our thinking needs to reflect a longer-term horizon, beyond just achieving immediate results. The dividend of thinking for a sustainable future has the promise of greater value and recognition. The reward by customers comes from the value of resolving growing complex problems, which is increasingly coming through this understanding of ecosystem design and collaborative endeavours.

We need to build far more collaborative environments for exchanging knowledge and sharing. To achieve this the recognition of the value of ecosystems as central to any future design is becoming central to this need, to co-create and capitalize on a wider knowledge only available in an open approach. Continue reading “Sustainability will increasingly come through innovation ecosystem designs”

So what is value creation?

https://www.imsmarketing.ie/news/a-value-proposition-statement-is-critical-to-the-success-of-your-business/

Value creation is highly dynamic, it is going on all the time and can increase, decrease or transform, in different ways, when you exploit your different capitals that will be in constant change and adjusting to reflect your organization’s business activities and eventual outputs.

This is when you can begin to see the value created by the use of deploying all the capitals to build new growth and what I call “stock” that along with “flow”.

Robin Sloan does a brilliant job of explaining this. I loved this explanation of the two:

“There are two kinds of quantities in the world. Stock is a static value: money in the bank, or trees in the forest. Flow is a rate of change: fifteen dollars an hour, or three thousand toothpicks a day. Easy – too easy.”

“Flow is ephemeral. Stock sticks around. Stock is capital. Stock is protein. And the real magic trick is to put them both together. To keep the ball bouncing with your flow—to maintain that open channel of communication—while you work on some kick-ass stock in the background. Sacrifice neither. It’s the hybrid strategy.”

Value is not just from within, it is the links our organizations are constantly making with others, in the interactions, relationships and the combining of the activities. The important need is to manage the stocks and flows of the capitals Continue reading “So what is value creation?”

Building the use of the innovation work mat as a compelling business case

The Executive Innovation Work Mat as a compelling business case

After a series of conversations around the Executive Innovation work mat, Jeffrey Phillips and I decided there was a need to add one more to the series, one that makes the business case for the work mat, one that is more from the leaders perspective.

In this video conversation of around 13 minutes, we explore why the leadership of organizations needs to get deeply involved in the innovation activity.

The reason top leadership needs to be fully involved

How many of our organizations are not looking to search for new ways for organic growth, improve their profit margins and create differentiation? This makes innovation central to this CORE need.

Continue reading “Building the use of the innovation work mat as a compelling business case”

Why we should focus on Innovation Governance

I am working with Jeffrey Phillips, a long-term collaborator on “all things concerning innovation.” We have just had our third short conversation of a five-part series on Innovation Governance.

This specific conversation is all about the fit of innovation governance within our Executive Innovation Work Mat. This is the link on Innovation Governance to the conversation, just under 14 minutes to listen to. Hope it gives a different set of insights to this area of innovation alignment.

If you would like to listen to the two previous conversations then these are here in the links that take you to youtube.com The first was setting the scene for these conversations on the “fundamental building blocks for innovation success” (LINK) and then the second into “the essential alignment of innovation to strategy” (LINK).

I have written supporting posts to these conversations, more to flesh out a number of different pointers to add more value and awareness of the importance of having a clear integrated solution for innovation in the solution we offer, the Executive Innovation Work Mat. Continue reading “Why we should focus on Innovation Governance”

Technology, inspiration and connected innovation

Visual from Siemens Digital Industries SPS Event November 2021 The recognizing of digital threads are connected to the new drivers.

I have been virtually attending the Siemens SPS Event this week taking technology, inspiration and connected innovation to a new level. Siemens does do these events well. I have been associated with Siemens for nearly four years in an external influencer group, #SIEx. This association provides me with a significant focus on what they are doing in a rapidly changing market for mobility, smart infrastructures for cities and grids, and their digital industries business.

The evolution (perhaps transformation) of Siemens in these last few years has been a significant one. Siemens has separated or spun-off companies, such as Siemens Healthineers and Siemens Energy, and reorganizing the remaining core businesses around these three core areas of mobility, smart infrastructure and digital industries.

The SPS Event Continue reading “Technology, inspiration and connected innovation”