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John Shaw, Mainstream Renewable Power: Open Innovation@ Mainstream

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John Shaw is CIO and Head of Information Services, based at Mainstream’s Global Headquarters in Dublin, Ireland. John joined Mainstream in September 2008 to lead the company’s Business Technology Strategy. A Chartered Engineer (C Eng MIEI) and a registered European Professional Engineer (Eur Ing) with 20+ years experience. John holds an MBA in Technology Management and a Bachelor’s Degree in Electronics Engineer from University College Dublin. A senior member of the IEEE (SMIEEE), joined Mainstream from Pfizer where he was Director of Information Services at one of Pfizer’s largest manufacturing facilities, having previously held senior IS executive positions in Accenture and General Electric. John is an active member of technical institutes, including The International Society of Automation, The Institute of Marine Engineering, Science and Technology and The Innovation Value Institute which researches and develops unifying frameworks to create more value from Business Technology innovation.

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John Shaw, Mainstream Renewable Power: Open Innovation@ Mainstream

  1. 1. Dublinked Open Innovation Event Wed 13 June 2012 Open Innovation @ Mainstream Eur Ing JohnP. Shaw BE MBA CEng MIEI SMIEEE MISA CIO Mainstream Renewable Power John.shaw@mainstreamrp.com 11.10 – 11.30 Wednesday 13 June 2012
  2. 2. Introduction Mainstream’s business is all about Innovative Sustainability Successful Innovatorsare Open Disruptive Innovators with Strong Management Processes Sustainable Cloud is on the way
  3. 3. Open Innovation @ Mainstream• Mainstream’s Vision• Mainstream’s Innovation Culture• Mainstream’s IT Innovation• Sustainable Cloud
  4. 4. Open Innovation @ Mainstream• Mainstream’s Vision• Mainstream’s Innovation Culture• Mainstream’s IT Innovation• Sustainable Cloud
  5. 5. VisionMainstream Renewable Power was founded by Dr. Eddie O‟Connor in February 2008. “ Our vision is of thriving economies and communities liberated from the restrictions of fossil fuels, using renewable energy as their mainstream source of power. “Mainstream develops, constructs and operates large-scale Wind and Solar projects.The world is experiencing a once-off historical transition to sustainable fuels: Each one of our195 countries must go through it.4 fundamental issues drive this transition ; •Climate change •Ever-increasing Demand for Energy •Rising Fossil Fuel Prices •Energy Security These 4 key drivers influence the pace of the transition to sustainability
  6. 6. Driver 1 : Climate Change“British adventurer and swimmer Lewis GordonPugh has become the first person to swim inthe icy waters of the North Pole.”16 July 2007 2011 : 2nd Biggest Arctic Ice Melt in Recorded History
  7. 7. Driver 2 : Exploding Global Demand for Energy •China is adding 100,000 MW to it‟s grid annually •Equivalent to „ Adding Germany „ each year •By 2030, China & India will add „ 23 Germanys „In 2009 China surpassed US to become world’s largest Energy Consumer
  8. 8. Driver 3 : Rising Fossil Fuel PriceGeneral JN Mattias, USMCMarch 2010 Richard Branson, Virgin Ian Marchant, SSE February 2010 1,600% Oil Price Rise 1997 – 2007..... Will it do it again by 2020 ?
  9. 9. Driver 4 : Security of SupplyEurope will become dependent on large GasImports, Cash Outflows without ECintervention... ... Via a Continent-wide Grid for Natural Gas yet no equivalent for Electricity exists yet Source: EGL 2007 Source: Allianz 2010 European Commission has intervened to catalyse the switch to Sustainable Energy
  10. 10. Crisis, what crisis ?A transition to Sustainable Energy permanently extracts us from the Energy Crisis
  11. 11. Mainstream’s Business ModelSustainability as a business is what we do at Mainstream : large wind & solar.Mainstream’s business model spans 4 key areas ; Government Policy Project Development Recycle Cash For New Projects Project Construction Asset Operation & Maintenance3 Revenue Streams = Profit Long-term Asset out- from sale O&M contract performance fee A sustainable pipeline of Renewable Energy Projects secured
  12. 12. Mainstream’s 14,000+ MW Projects’ Pipeline 420 MW : Scotland 1,000 MW : Germany845 MW : Canada 6,000 MW : England 947 MW : USA 994 MW :Chile 4,086 MW : South Africa Offices Offshore 11 Office, 150 Employees, 8 Countries Onshore
  13. 13. The Big Picture “...We can get 100 percent of our energy from wind, water, and solar (WWS) power. And we can do it today—efficiently, reliably, safely, sustainably, and economically... ...The obstacles to this transformation are primarily social and political, not technical or economic...” Dr Mark Delucchi University of California230,000 MW Wind Power installed globally by December 2011 25 % of this in China 20 % in USA 12 % in Germany 9 % in Spain IEEE Spectrum Supergrid is the key technology for this transformation September 2011
  14. 14. Europe’s Energy Mix in 20502050 Energy Mix Where is the Wind Resource? 1,800,000 MW of installed Wind Power needed • Based on projected 2050 energy requirements 200,000 MW from Onshore Wind : the limit • Europe is the most crowded Continent Nuclear Other Renewables 10% 10% 1,600,000 MW from Offshore Wind Wind • Plenty of space to grow further Solar 50% • Achievable at €3,600,000.00 per MW 30% Investment : • €5.8 Trillion for Offshore Wind Turbines by 2050. • €0.6 Trillion for associated Offshore transmission and distribution: Supergrid. Supergrid is the key enabler for the Renewable Energy Future
  15. 15. Europe’s Supergrid in 2050 7 Innovation Trajectories are needed; 1. Bigger Wind Turbines 2. HVDC Transmission Cables An electricity transmission system, 3. Supernode mainly based on HVDC 4. Next-Generation Civil Engineering designed to 5. Bigger Construction Vesselsfacilitate large scale sustainable power generation in remote 6. Bigger Ports areas 7. Better IT: for transmission to centers of consumption, • Intelligent Market for Energy thereby • Risk Management & Modelling enhancing the energy market • Real-time Pervasive Monitoring Dr Eddie O’Connor, Mainstream Renewable Power Supergrid Launch London, March 2010 An inevitable transition to sustainability with 7 Innovation Trajectories
  16. 16. Supergrid ConsortiumThe consortium represents companies and organisations with amutual interest in promoting the policy agenda for the Supergrid.CEO Ana Aguado run the Consortium which exists to acceleratethe Supergrid via a 5 point strategy: 1. Develop Standards 2. Create Offshore Transmission Operator 3. Establish EU Regulations 4. Create Single Electricity Market 5. Establish legal basis for trading The Consortium has 23 members
  17. 17. Innovation # 7 : Better IT Power Distribution ManagementHi-Speed Wireless Communication Supernode Power Controls Wind Turbine Control Systems Monitoring & Controlling Risk Surveying & Modelling the Sea Reduce Project Risk & create the Intelligent Market
  18. 18. Open Innovation @ Mainstream• Mainstream’s Vision• Mainstream’s Innovation Culture• Mainstream’s IT Innovation• Sustainable Cloud
  19. 19. Innovation ?Innovation is the creation of better products, processes, services or ideas that are readily available to society.Innovation differs from Invention in that innovation refers to the use of better and novel ideas or methods whereas invention refers to the creation of the idea or method itself.Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. Source: Innovation drives our civilisation Wikipedia
  20. 20. Open Innovation ? Open innovation is a paradigm that assumesOrganisations can use external and internal ideas, and internal and external paths to market, as the organisations look to advance their technology Open Innovation is Innovating with partners by sharing risk and reward Prof Henry Chesbrough Center for Open Innovation University of California, Berkeley Open Innovation = a Virtuous Helix of Public + Private + Academic
  21. 21. Disruptive Innovation ? A disruptive innovation helps Create a new market and eventually disrupts an existing market, displacing an earlier technology Source:Disruptive Innovation is challenging and exhilarating Wikipedia
  22. 22. What are the Ingredients for success ?Open Disruptive Innovation fails the Cross the Chasm without 3 key ingredients
  23. 23. Ingredient #1 : The Virtuous HelixEC Innovation Index 2011: http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovation-scoreboard/index_en.htm “ All of the innovation leaders have higher than average scores in Public-private co-publications per million populations, which suggests good linkages between the science base and enterprises. “ Source: Innovation Union Scorecard 2011 Finland is consistently in the “ Innovator Leaders “ since the mid-1990s
  24. 24. Ingredient #1 : The Virtuous Helix What’s so special about Finland?A focus on Science….. .…. An Integrated, Free Education System from Birth to PhD Finland is no accidental success
  25. 25. Ingredient #2 : The Right People on the BusOpen Innovators are different.... .... And can be Identified in Aptitude tests THE INNOVATOR’s DNA : HBR May 2012 5 Key Traits of the Innovator 1. Associational thinking: I creatively solve challenging problems by drawing on diverse ideas or knowledge. 2. Questioning: I often ask questions that challenge others fundamental assumptions. 3. Observing: I get innovative ideas by directly observing how people interact with products and services. 4. Idea Networking: I regularly talk with a diverse set of people (e.g., from different functions, industries, geographies) to find and refine new business ideas. 5. Experimenting: I frequently experiment to create new ways of doing things. Source: HBR, Jeff Dyer, Hal Gregersen, and Clayton M. Christensen We can all learn from the Great Innovators
  26. 26. Ingredient #2 : The Right People on the BusSometimes you’ll meet an exceptionally Disruptive Innovator The Course of History is set by the Unreasonable Man
  27. 27. Ingredient #3 : A Culture of Innovation Bureaucracy Great OrganisationsDiscipline Hierarchy Start Up Innovation Good to Great (http://www.jimcollins.com/) Great Organisations have a Structured Innovation Processes
  28. 28. Ingredient #3 : A Culture of InnovationCulture ? Assessing Innovation Culture ( scale of 1 – 5 ) Organizational culture is the set of values and beliefs shared by an organizations members. Vision Strategy & Strategic planning Culture is ... Management The way we do things around here Funding and resource allocation Portfolio managementHow can we “ see “ Culture ? Management leadershipVISIBLE Acceptance of risk taking People Behavior & Collaboration Culture Capability development Roles & responsibilities Beliefs Assumptions Rewards and recognitionINVISIBLE Process, Processes Values Tools, and Metrics Frameworks Measurement & communication of value Innovation Value Institute ( http://ivi.nuim.ie ) Innovation Culture can be measured by Outcomes
  29. 29. Ingredient #3 : A Culture of InnovationInnovative Values form the Foundation of an Innovative Culture Mainstream VISION To lead the global transition to sustainable energy Mainstream MISSION To increase our customers‟ renewable energy portfolio, safely, profitably, efficiently and reliably by working with them to deliver their needs with innovation, respect and entrepreneurial spirit Mainstream VALUES Safety : A safe environment for our people Sustainability : A sustainable approach to everything we do Teamwork : Working together to deliver more Respect : Personal respect for everyone we deal with Entrepreneurial approach : find solutions others can‟t see Innovation : seek novel ways to deliver technology & services Customer Service : focus on customer service excellence Values inform our inner motivation
  30. 30. Ingredient #3 : A Culture of InnovationBacked up with Strong Management Processes Innovation Value Drivers Innovation Management Process Innovation Management Discipline differentiates the Winners
  31. 31. Ingredient #3 : A Culture of InnovationBacked up with Leadership1. Set a vision and goals for Innovation in your group2. Assess the current state of Innovation3. Purposefully execute an innovation plan that builds on innovation strengths and breaks down barriers that inhibit Innovation4. Enact the right level of innovation training and enabling tools for your organization5. Effectively communicate your innovation vision and plan6. Use performance management as a key innovation driver7. Visibly show passion for Innovation; role model the behaviors you want to drive; expect the same of your leaders8. Measure progress to goals9. Reward and recognize innovation results10. Repeat these 10 steps Innovation Value Institute ( http://ivi.nuim.ie ) Leadership always differentiates the Winners
  32. 32. Ingredient #3 : A Culture of InnovationThought Leaders on Open Disruptive Innovation? 6 Inspirational Books on Open Disruptive Innovation
  33. 33. Open Innovation @ Mainstream• Mainstream’s Vision• Mainstream’s Innovation Culture• Mainstream’s IT Innovation• Sustainable Cloud
  34. 34. Remember this guy ?Imaging the future in 1959 wasn’t easy, it is still difficult.....
  35. 35. What is IT Innovation ? Invention Combining existing technologies in new architectures Increasingly Immediate: NOW! ImprovementsIncreasingly Creative: WOW! Incrementally improving service levels Unique creation Introducing new products and systems Value creation Deploying and realizing value from new IT technologies services Novel implementation Supporting new business models through IT Problem solving Delivering efficient solutions to business needs Innovation Value Institute ( http://ivi.nuim.ie ) IT Innovation = a tension between the WOW and the NOW
  36. 36. Mainstream’s Business ContextA company operating exclusively in the Renewable Energy SectorA New company, established in early 2008A company operating Globally, 11 offices in 8 countriesA company growing fast, a Big Company by 2014Secure, Accessible IT Services are key to the success of Mainstream A Secure, Sustainable IT Strategy delivered via a Structured Process
  37. 37. 1. Innovative IT Vision : Focus on Business ValueBusiness Need Integrated Business Systems Value Document Management Collaboration & Fast Replication Deal Making Asset Finance & Management HR Efficient Work Flow Geospatial ProjectCash generation & Information Management Management Customer A Single Version of Predictive Relationship the Truth Performance Management Project Execution Faster Decision- Business Making Intelligence Increase Personal & Team Productivity Key Innovation: 8 Integrated Business Systems to deliver Value
  38. 38. 2. Innovative IT Execution : Focus on DeliverySCHEMATIC PARTNERS Primary Datacenter : Eircom CityWest DR Datacenter : Eircom Clonshaugh • Microsoft : Software • Eircom-Orange : Communications • HP -DSS : Hardware STANDARDS • Microsoft : 32 Products • HP : Client & Infrastructure h/w 4 ‘small’ Offices: London, • Cisco : Data Communications Glasgow, • Intel : Infrastructure Architecture Berlin, Capetown Dublin, Ireland Office PRINCIPLES • Align with SERA • Understand what you Outsource • Build for global growth • Build for 24 x 7 availability • Build for Security : ISO27001 • Single User Signon Santiago, Chile Office • Standardise components Toronto, Canada Office • Configure not customise Chicago, USA Office • Partner with 4 Strategic IT vendors • Service Level Agreements Key Innovation : A Private Cloud built for High Availability & Security
  39. 39. 3. Innovative IT Controls: Focus on ServiceThe Governance Model delivers Business Value via; 1. Business Technology Council ; Business led 2. Tollgate Program Management ; clear steps, clear outcomes 3. Focusing on Business Benefits 4. Prioritising Projects around Business Needs : Growth, Cost Reduction 5. Tracking all projects consistently: Progress, benefits, costsBusiness Technology Council Tollgate Program ManagementThis Council meets monthly to agree where All Business Technology Projects are managed using a 6 Phase 5 Tollgate Modelinvestment is needed in Business Technology. designed to trap issues early and improve the quality of the delivered Solution :This is aligned with a Business TechnologyProjects forum which tracks projects progressand escalates issues for decision 1. 2. 3. 4. 6. 5. Initiate Plan & Build & Go-Live Benefits Operate Design Test Verification Harvest Business Technology Council Onshore Offshore Finance Development Development Tollgate 1 Tollgate 2 Tollgate 3 Tollgate 4 Tollgate 5 Technical IS SHEQ Services Projects Progress is tracked and communicated weekly to all stakeholders. Monthly Business Technology Projects Forum New Projects are force-ranked against a set of business criteria; Project System IS PMO Managers Owner 1. Project Payback 2. Support Business Growth Weekly 3. InnovationA Plan of Record is maintained, high-lighting the 4. Reduce Business Riskstrategic plan behind all projects. Key Innovation : Tollgates to fast-track progress
  40. 40. IT Innovation 2008 - 2011 Private Cloud Minimises Energy Combining existing technologies in new architectures Increasingly Immediate: NOW! Strategic IT Partnerships Deliver ValueIncreasingly Creative: WOW! Incrementally improving service levels Electronic Workflow reduces Paper Introducing new products and systems Video Conferencing Reduces Travel Deploying and realizing value from new IT technologies services Managed Print Reduces Ink Supporting new business models through IT PCs are Energy Efficient Delivering efficient solutions to business needs IT Innovation enables Sustainable Business Activities
  41. 41. IT Innovation 2012 - 20154 key IT Innovations delivered by 2015 : An Integrated Sea Information System ( ISIS ) reduces project risk Wind Turbine Control Systems are highly available The Supergrid avails of advanced Digitisation Sustainable Energy powers Cloud Datacenters IT Innovation to accelerate Sustainable Renewable Energy
  42. 42. Open Innovation @ Mainstream• Mainstream’s Vision• Mainstream’s Innovation Culture• Mainstream’s IT Innovation• Sustainable Cloud
  43. 43. What if we miss the Next Big Thing ?We need to understand the 4 Mega IT Trends of 2030.....
  44. 44. Mega-Trend #1 : Democratised IT for 5 Billion users In a world of 15 Billion microprocessors
  45. 45. Mega-Trend # 2 : Energy Dominates the IT DebateEnergy Costs have risen for ICT Organisations;$ 7.00 the annual recurring energy cost for every $1,000.00 invested in Datacenter kit, in 2000.$ 1,000.00 the annual recurring energy cost for every $1,000.00 invested in Datacenter kit, in 2010. Source: Bathwick GroupEnergy Drivers:• In 2000 ICT organisations didn’t talk about Energy: by 2010 Energy was firmly on the Agenda• This change was driven by reduced cost for Hardware, increased price in energy• What are the 3 attributes of an effective Energy Strategy for an ICT Organisation? – Guaranteed Secure Energy Supply – Guaranteed Fixed-Price Energy Supply – Guaranteed Green Energy Supply SustainabilityCompany Proprietary & Confidential Information Challenge meets Cloud Challenge
  46. 46. Mega-Trend # 3 : The Internet of Everything The Future is already here, only it is not evenly distributed William Gibson
  47. 47. Mega-Trend # 4 : Cloud Computing is EverywhereAn Exploding demand for Data: An increasingly Digitised world via Pervasive Monitoring Highly Democratised IT drives demand for data The Oil Crunch will influence IT Strategy, Cloud StrategyA Digitised Renewable Sector : New Renewable Energy Infrastructure is highly-data Intensive Digitised decision-making drives demand for more dataWhat this means for any enterprise: The IT experience at work must match or exceed that at home Inevitable Public Cloud via New, Big, Sustainable Datacenters The Cloud will host civilisation’s exponential growth in data demand
  48. 48. Gartner’s 10 year view : Cloud Hype-Cycle Software as a Service is Maturing
  49. 49. Sustainable Cloud ? Cloud computing is the delivery of Sustainability is the capacity to endure. For Computing as a service rather than a humans, sustainability is the long-term product, whereby shared resources, maintenance of well being, which hassoftware, and information are provided environmental, economic, and social to computers and other devices as a dimensions, and encompasses the concept utility over the internet of stewardship, the responsible management of resource use. Source: 2 Great Concepts Collide Wikipedia
  50. 50. Sustainable Cloud ? Sustainable Cloud computing is the delivery of computing as a service over the internet in a manner which utilises renewable energy sources, energy efficienttechnology and low-carbon footprint hosting facilities to deliver Highly Available, Secure and Confidential Services. Sustainable Energy + Public & ConfidentialSustainable Cloud Company Proprietary Cloud = Information
  51. 51. Sustainable Cloud : National PerspectiveCushman & Wakefield : “ Data Centre Risk Index 2012 “ “ Ireland falls into the bottom half of the table for Energy Security and Sustainability “ Where with Sustainable Cloud Data Centres be built ? Ireland is 16th, Iceland is 4th
  52. 52. Sustainable Cloud : Innovative Design ? Features 1. Sustainable Cloud Service 1. Availability 2. Security 3. Confidentiality 2. Sustainable Energy Supply 1. Secure Grid connection 2. Fixed Price contract 3. Direct Energy Asset ownership 3. Sustainable Energy Distribution 1. UPS is a storage medium 2. DC powered Servers 3. DC in, DC out 4. Sustainable Energy Use 1. Energy Efficient Management 2. Virtualisation 3. Certified Devices 5. Sustainable Building 1. Low carbon Design 2. Low carbon Materials 3. Certified The CloudCompany Proprietary & Confidential Information will be built on Sustainable Principles
  53. 53. The right Attitude helps.... Henry Ford “Today & Tomorrow” 1926
  54. 54. ... And don’t forget Vision We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win. President John F. Kennedy September 12, 1962
  55. 55. Conclusion Innovative Sustainability is what Mainstream’s business is all about Successful Innovatorsare Open Disruptive Innovators with Strong Management Processes Sustainable Cloud is on the way
  56. 56. Further InformationMainstream ‘s Business Model http://www.mainstreamrp.com/Mainstream’s Innovation : A winner in the 2011 Computerworld Innovation Awards http://www.eiseverywhere.com/ehome/CWHONORS2011/35791/?&Mainstream’ ICT Strategy: Described by Silicon Republic http://www.siliconrepublic.com/strategy/item/14728-in-the-mainstreamMainstream & Intel: joint White-Paper & Video on Offshore Wind Farms http://www.intel.com/content/www/us/en/energy/wind-turbine-availability-excellence.html http://www.youtube.com/watch?v=oOlWSWujw8sMainstream & Microsoft: Blog on SERA adoption & link to SERA document http://blogs.msdn.com/b/mspowerutilities/archive/2010/06/24/sera-succinctly.aspx http://www.microsoft.com/industry/manufacturing/utilities/default.mspx ( see „Spotlight‟ Section )Friends of the Supergrid : driving policy and standards http://www.friendsofthesupergrid.eu/Energy Trends : Oil refinery bottleneck report from Richard Branson & from US Military http://peakoiltaskforce.net/wp-content/uploads/2010/02/final-report-uk-itpoes_report_the-oil-crunch_feb20101.pdf http://smallwarsjournal.com/blog/joint-operating-environment-2010IEEE September 2011 : 100 % Renewable Future http://spectrum.ieee.org/energy/renewables/wind-water-and-solar-power-for-the- world/?utm_source=techalert&utm_medium=email&utm_campaign=092211Fortune September 2011 : The need for a Federal Approach to Supergrid http://tech.fortune.cnn.com/2011/09/14/the-power-struggle-for-wyomings-wind/The Economist September 2011 : Arctic Sea Ice is melting faster than the Climate Models predict http://www.economist.com/node/21530079

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