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This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
EU-InnovatE: Sustainable Lifestyles & Green
Economy in Europe to 2050
Company-Driven Sustainability Innovation Integrating Users and
Entrepreneurs
04 October 2016
Agenda
2
15:00 Webinar opens
15:05 Introduction & context
Simon Pickard, Director International Programmes, ABIS
15:10 Presentation of emerging evidence & findings
Minna Halme - Professor of Sustainability Management - Aalto University
Angelina Korsunova - Project manager at EU-InnovatE - Aalto University
Jennifer Goodman - Post-doctoral researcher EU-InnovatE - Aalto University
15:35 Questions and comments
15:55 Summary & forthcoming events
16:00 Webinar closes
Context: Sustainable Lifestyles at EU Level
3
Strategic policy objectives:
1. Promoting smart, sustainable and inclusive growth in the
single market
2. Managing an ageing population while reducing current
levels of energy, transport and resource use
3. Rethinking consumption / production systems as part of a
transition to low-carbon economy by 2050
Ref: SPREAD 2050
(www.sustainable-lifestyles.eu)
EU Policy Research Questions
4
i. Links between economic, ecological, human and technological
systems and their influence on consumers' values and behaviour
ii. Short and long-term obstacles and opportunities associated with the
transition to European sustainable lifestyles and green economy
iii. New ways and new business models to manage natural resources
while reducing consumption and improving quality of life
iv. Prospects for sustainable lifestyles and the green economy
(i.e. trends up to 2050)
EU-InnovatE Consortium
Key Idea
6
„ ... investigate
the creative, innovative and
entrepreneurial roles of users
in developing novel sustainable
products, services and systems
(Sustainable Lifestyles 2.0).“
Towards User Innovation
7
WP 7
Synthesis
SL 2.0
WP 8 Dissemination
WP 9 Management
WP 6 Policy Design for SL 2.0
WP 5 Measuring Trends SL 2.0
WP 3
Company
Sustainability
Innovation
Integrating Users
WP 4
User
Sustainability
Innovation and
Entrepreneurship
WP 2 Future of SL 2.0
WP 1 Past and Present of SL 2.0
This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
Company-Driven Sustainability
Innovation Integrating Users and
Entrepreneurs
PRESENTERS:
Minna Halme - Professor of Sustainability Management - Aalto University
Angelina Korsunova - Project manager at EU-InnovatE - Aalto University
Jennifer Goodman - Post-doctoral researcher EU-InnovatE - Aalto University
Introducing the Presenters
10
Minna Halme
Professor of Sustainability
Management
Aalto University
Angelina Korsunova
Project manager at EU-InnovatE
Aalto University
Jennifer Goodman
Post-doctoral researcher EU-InnovatE
Aalto University
Company-Driven Sustainability Innovation
11
What does it mean?
How can we do it?
Why do we need to think about this?
12
The world is ridden with environmental and
social problems like climate change, poverty,
inequality and the refugee crisis that easily
give us a sense of hopelessness.
But…
…these sustainability problems and challenges can also be sources of
new innovations
13
Innovation as a way forward
• 18 cases
• Large companies
• End user involvement
• 4 domains: energy,
mobility, living, food
• 4 regions
• Innovations which
addressed social and/or
environmental issues
14
Background
15
Skanska:
• Affordable, eco-efficient housing for
low incomes
• Public authority, end users,
academia, business partners
Examples
Vélib’:
• City cycle share system
• Public authority, end users,
sustainability start-up, cycling
associations
• Companies worked with ordinary people, users, environmental and social
groups, academia and public sector organisations.
• Sustainability innovation calls for novel ideas or capabilities beyond the usual
business partners.
• The best recipe is to work with a limited number of selected stakeholders. Only
large companies have enough resources to do this.
• Most impactful sustainability-oriented innovation resulted from involving multiple
company members in innovation with stakeholders.
16
Key Findings
Multiple stakeholders
17
E.On:
• Smart control system for solar power
• Public authority, academic, end user,
business
Frosta:
• Additive free frozen fish
• Business, end user, academia, CSO,
public authority
Beyond the usual business partners
18
Rockwool:
• Eco friendly housing shelters
• CSO, academic, end users
Ecoveritas:
• Solution for food wastage
• Business, CSO, end users
The best recipe: strategies for collaboration with
deviant partners
Strategy 1:
- Selective early collaboration
- Few stakeholder partners
- Early phase of collaboration
Strategy 2:
- Selective late collaboration
- Verification strategy
- Inputs from stakeholders are
minimal in the early phasesStrategy 3:
- Broad committed collaboration
- Final decisions are taken alone
- Most suitable for large companies with extensive resources
In the times when
open innovation is
becoming a norm
across different
industries keeping
innovation and
stakeholders
relationships
separate makes little
sense from business
point of view
19
Managerial implications
• Importance of strong ties
• Integrating stakeholders into innovation processes of
sustainable products require building of strong ties to
stakeholders.
• Importance of Fuzzy Front End
• Not a necessary condition but strong signal that
beneficial in order to achieve high sustainability
outcome.
• Avoid too large stakeholder networks
• Particularly important for smaller companies
20
FFE NPD
Stakeholder roles
21
Educator
Concept
refiner
Context
enabler
Impact
extender
Stimulator Initiator
Broker/Me
diator
Legitimator
Proactive
Reactive
Mixed
Organizational readiness for Open Innovation
Organizational Barriers Organizational Enablers
- Organizational fragmentation (outsourcing)
- Communication barriers
- Integration issues
- Skepticism – not invented here syndrome
- Difficulty accessing user insights
- Accessing end-users (stability)
- Keeping stakeholder motivated
- Managing knowledge inflow insights
- Secrecy issues
- Top management support
- Stakeholder support
- Independent department with cross-functional
team
- Government support (legitimizer)
- Integration in research project
- Company culture
- Sufficient funding
- Autonomy of innovation teams
22
Source: : . Zimmerling, Roed Nielsen, Korsunova, Juntunen (2015); Gürtler 2013; Braun 2012; Albers 2010, Enkel 2009
 Opportunities: faster time to market, lower costs, early technology adoption etc.
 Risks: Know-how loss, increased complexity, demotivation of employees etc.
Success factors for two innovation projects
23
Top Management
support
Independent
department
Multi-stakeholder
involvement
Innovation culture
BMW Verbund
• Direct • Direct
• Planned cross-functional team • Evolving cross-functional team
• Universities
• Energy supplier
• Infrastructure partner
• Public authorities
• Research institutions
• Equipment development
• Infrastructure partner
• Car dealer
• Public authorities
• History of innovativeness and open
innovation approaches
• Open company culture
• Strong personal commitment
Source: : . Zimmerling, Purtik, Welpe (2016)
 The results of the qualitative comparative analysis show that the intense collaboration with users
at all stages of the development process triggered a strong product-service character of the
emerging mobility solutions that increase market attractiveness.
How to….?
• Look out for policy initiatives or projects stimulated by public authorities
• Work with ‘unusual’ stakeholders to help navigate the complex multi-stakeholder
environment.
• Give users and new audiences the chance to try out new concepts of products
or services.
• Get users involved in on-line ideas contests. As well as technical functionality
and rewards, pay attention to:
• Leadership style: clear vision, joint goals, exceed expectations, transformational
• Competitive climate: emphasis on competition may not be most effective
• Work with CSOs, academia and public authorities to build credibility and trust,
and to sensitize the public of new sustainability solutions
• Don’t take policy as a given! Public authorities can help create a regulatory-
friendly environment.
• Sustainability specialists can help extend the impact of new innovations to
create more holistic solutions.
24
Summary
• Sustainability challenges and the innovations needed to respond to them are
urgent and systemic.
• Research covered sustainability-oriented product, service and business model
innovations in established companies around Europe.
• Companies worked with ordinary people, users, environmental and social
groups, academia and public sector organisations.
• Sustainability innovation calls for novel ideas or capabilities beyond the usual
business partners.
• The best recipe is to work with a limited number of selected stakeholders. Only
large companies have enough resources to do this.
• Most impactful sustainability-oriented innovation resulted from involving multiple
company members in innovation with stakeholders.
25
Why?
What?
How?
This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
Questions & Feedback from Participants
27
Summary & Forthcoming Events
FINAL CONFERENCE
 TUESDAY, NOVEMBER 22
 HOSTED BY ABIS @ ATELIER
DES TANNEURS IN BRUSSELS
 EXPLORATION OF PATHWAYS TO
ACCELERATE SUSTAINABILITY
ENTREPRENEURSHIP
 NO CONFERENCE FEES!
28
For More Information
www.euinnovate.com
This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
Thank you for your time!

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Company-Driven Sustainability Innovation Integrating Users and Entrepreneurs

  • 1. This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613194 EU-InnovatE: Sustainable Lifestyles & Green Economy in Europe to 2050 Company-Driven Sustainability Innovation Integrating Users and Entrepreneurs 04 October 2016
  • 2. Agenda 2 15:00 Webinar opens 15:05 Introduction & context Simon Pickard, Director International Programmes, ABIS 15:10 Presentation of emerging evidence & findings Minna Halme - Professor of Sustainability Management - Aalto University Angelina Korsunova - Project manager at EU-InnovatE - Aalto University Jennifer Goodman - Post-doctoral researcher EU-InnovatE - Aalto University 15:35 Questions and comments 15:55 Summary & forthcoming events 16:00 Webinar closes
  • 3. Context: Sustainable Lifestyles at EU Level 3 Strategic policy objectives: 1. Promoting smart, sustainable and inclusive growth in the single market 2. Managing an ageing population while reducing current levels of energy, transport and resource use 3. Rethinking consumption / production systems as part of a transition to low-carbon economy by 2050 Ref: SPREAD 2050 (www.sustainable-lifestyles.eu)
  • 4. EU Policy Research Questions 4 i. Links between economic, ecological, human and technological systems and their influence on consumers' values and behaviour ii. Short and long-term obstacles and opportunities associated with the transition to European sustainable lifestyles and green economy iii. New ways and new business models to manage natural resources while reducing consumption and improving quality of life iv. Prospects for sustainable lifestyles and the green economy (i.e. trends up to 2050)
  • 6. Key Idea 6 „ ... investigate the creative, innovative and entrepreneurial roles of users in developing novel sustainable products, services and systems (Sustainable Lifestyles 2.0).“
  • 8. WP 7 Synthesis SL 2.0 WP 8 Dissemination WP 9 Management WP 6 Policy Design for SL 2.0 WP 5 Measuring Trends SL 2.0 WP 3 Company Sustainability Innovation Integrating Users WP 4 User Sustainability Innovation and Entrepreneurship WP 2 Future of SL 2.0 WP 1 Past and Present of SL 2.0
  • 9. This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613194 Company-Driven Sustainability Innovation Integrating Users and Entrepreneurs PRESENTERS: Minna Halme - Professor of Sustainability Management - Aalto University Angelina Korsunova - Project manager at EU-InnovatE - Aalto University Jennifer Goodman - Post-doctoral researcher EU-InnovatE - Aalto University
  • 10. Introducing the Presenters 10 Minna Halme Professor of Sustainability Management Aalto University Angelina Korsunova Project manager at EU-InnovatE Aalto University Jennifer Goodman Post-doctoral researcher EU-InnovatE Aalto University
  • 11. Company-Driven Sustainability Innovation 11 What does it mean? How can we do it? Why do we need to think about this?
  • 12. 12 The world is ridden with environmental and social problems like climate change, poverty, inequality and the refugee crisis that easily give us a sense of hopelessness.
  • 13. But… …these sustainability problems and challenges can also be sources of new innovations 13 Innovation as a way forward
  • 14. • 18 cases • Large companies • End user involvement • 4 domains: energy, mobility, living, food • 4 regions • Innovations which addressed social and/or environmental issues 14 Background
  • 15. 15 Skanska: • Affordable, eco-efficient housing for low incomes • Public authority, end users, academia, business partners Examples Vélib’: • City cycle share system • Public authority, end users, sustainability start-up, cycling associations
  • 16. • Companies worked with ordinary people, users, environmental and social groups, academia and public sector organisations. • Sustainability innovation calls for novel ideas or capabilities beyond the usual business partners. • The best recipe is to work with a limited number of selected stakeholders. Only large companies have enough resources to do this. • Most impactful sustainability-oriented innovation resulted from involving multiple company members in innovation with stakeholders. 16 Key Findings
  • 17. Multiple stakeholders 17 E.On: • Smart control system for solar power • Public authority, academic, end user, business Frosta: • Additive free frozen fish • Business, end user, academia, CSO, public authority
  • 18. Beyond the usual business partners 18 Rockwool: • Eco friendly housing shelters • CSO, academic, end users Ecoveritas: • Solution for food wastage • Business, CSO, end users
  • 19. The best recipe: strategies for collaboration with deviant partners Strategy 1: - Selective early collaboration - Few stakeholder partners - Early phase of collaboration Strategy 2: - Selective late collaboration - Verification strategy - Inputs from stakeholders are minimal in the early phasesStrategy 3: - Broad committed collaboration - Final decisions are taken alone - Most suitable for large companies with extensive resources In the times when open innovation is becoming a norm across different industries keeping innovation and stakeholders relationships separate makes little sense from business point of view 19
  • 20. Managerial implications • Importance of strong ties • Integrating stakeholders into innovation processes of sustainable products require building of strong ties to stakeholders. • Importance of Fuzzy Front End • Not a necessary condition but strong signal that beneficial in order to achieve high sustainability outcome. • Avoid too large stakeholder networks • Particularly important for smaller companies 20 FFE NPD
  • 22. Organizational readiness for Open Innovation Organizational Barriers Organizational Enablers - Organizational fragmentation (outsourcing) - Communication barriers - Integration issues - Skepticism – not invented here syndrome - Difficulty accessing user insights - Accessing end-users (stability) - Keeping stakeholder motivated - Managing knowledge inflow insights - Secrecy issues - Top management support - Stakeholder support - Independent department with cross-functional team - Government support (legitimizer) - Integration in research project - Company culture - Sufficient funding - Autonomy of innovation teams 22 Source: : . Zimmerling, Roed Nielsen, Korsunova, Juntunen (2015); Gürtler 2013; Braun 2012; Albers 2010, Enkel 2009  Opportunities: faster time to market, lower costs, early technology adoption etc.  Risks: Know-how loss, increased complexity, demotivation of employees etc.
  • 23. Success factors for two innovation projects 23 Top Management support Independent department Multi-stakeholder involvement Innovation culture BMW Verbund • Direct • Direct • Planned cross-functional team • Evolving cross-functional team • Universities • Energy supplier • Infrastructure partner • Public authorities • Research institutions • Equipment development • Infrastructure partner • Car dealer • Public authorities • History of innovativeness and open innovation approaches • Open company culture • Strong personal commitment Source: : . Zimmerling, Purtik, Welpe (2016)  The results of the qualitative comparative analysis show that the intense collaboration with users at all stages of the development process triggered a strong product-service character of the emerging mobility solutions that increase market attractiveness.
  • 24. How to….? • Look out for policy initiatives or projects stimulated by public authorities • Work with ‘unusual’ stakeholders to help navigate the complex multi-stakeholder environment. • Give users and new audiences the chance to try out new concepts of products or services. • Get users involved in on-line ideas contests. As well as technical functionality and rewards, pay attention to: • Leadership style: clear vision, joint goals, exceed expectations, transformational • Competitive climate: emphasis on competition may not be most effective • Work with CSOs, academia and public authorities to build credibility and trust, and to sensitize the public of new sustainability solutions • Don’t take policy as a given! Public authorities can help create a regulatory- friendly environment. • Sustainability specialists can help extend the impact of new innovations to create more holistic solutions. 24
  • 25. Summary • Sustainability challenges and the innovations needed to respond to them are urgent and systemic. • Research covered sustainability-oriented product, service and business model innovations in established companies around Europe. • Companies worked with ordinary people, users, environmental and social groups, academia and public sector organisations. • Sustainability innovation calls for novel ideas or capabilities beyond the usual business partners. • The best recipe is to work with a limited number of selected stakeholders. Only large companies have enough resources to do this. • Most impactful sustainability-oriented innovation resulted from involving multiple company members in innovation with stakeholders. 25 Why? What? How?
  • 26. This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613194 Questions & Feedback from Participants
  • 27. 27 Summary & Forthcoming Events FINAL CONFERENCE  TUESDAY, NOVEMBER 22  HOSTED BY ABIS @ ATELIER DES TANNEURS IN BRUSSELS  EXPLORATION OF PATHWAYS TO ACCELERATE SUSTAINABILITY ENTREPRENEURSHIP  NO CONFERENCE FEES!
  • 29. This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no 613194 Thank you for your time!

Editor's Notes

  1. Sustainability challenges and the innovations needed to respond to them are urgent and systemic.
  2. Research covered sustainability-oriented product, service and business model innovations in established companies around Europe.
  3. Comment here also on some of the different roles of stakeholders?
  4. Cross-case analysis of recent 6 cases of innovation processes Data comprises interviews with firms, integrated consumers and other involved stakeholders.
  5. The final user-centric business model includes product-related services such as green energy contracts, the installation of private charging stations and additional ICT based services that facilitate the everyday use of the EV and a smooth transition to electric mobility, such as specific smartphone apps regarding parking and charging and driver assistance systems. Verbund: Wall box (incl. installation) Access to public charging infrastructure Discounts on car sharing and renting for longer trips Membership in automobile club Flat rate contracts BMW: Regenerative braking Limited range 360 Service Portfolio: access to conventional cars during holidays Green energy contracts
  6. Unusual stakeholders: public authorities, universities, foundations or other non-profit or civil society organisations Which of our cases had online ideas contests? BMW? Leadership style: recognize and respond to individual followers’ needs, provide a clear vision, motivate followers to strive for joint goals, and push followers to reach performance beyond expectations. Address participants in a transformational way to inspire creativity and critical thinking. Instructions should be motivating not limiting. Company should align ideals and treatment of employees Climate: consider carefully whether to take a collaborative or a competitive approach