This is a framework for (industrial) research developed by the research and design organizations of Philips. It may be a good source of inspiration in the search for new, more sustainable, approaches and solutions.

1. Innovation Framework for Sustainable DevelopmentVersion 2 of December 2009 Dr. Dorothea SeebodeSenior Director SustainabilityPhilips Corporate Technologies & Research

2. What is this ‘innovation framework’? Philips Research is an organization with a nearly 100 years history in industrial research It’s among others the cradle of the Compact Disc (and the Compact Cassette before that) It’s an organization used to approaching new challenges in a structured way This Innovation Framework has been developed, together with Philips Design, to enable (industrial) research for sustainable development to progress in a focused way Philips Research offers this framework for everyone to use and welcomes feedback to help improve it

3. What is wrong with this picture? This is a standard oil rig It is bright On clear nights, quite a few birds confuse it for land …and die

4. What can be done to change that? This is a standard oil rig With new Philips lights Birds perceive this oil rigdifferently now Technology plays a role in causing and solving smaller problems (and hopefully bigger onesas well)

5. That implies that we are connected We share an environment with others, other species Our society evolves together with that environment As individuals, we relyon our society to be ableto live (healthy) withinthat environment

6. 6 In which world do we live currently? Ecological footprint Human Development Index Source: WWF Living Planet Report 2006

7. 7 How do our societies deal with our environment? Human development is accompanied by increased consumption, enlarging advancing societies’ ecological footprint! This paradigm is unsustainable Ecological footprint Human Development Index Source: WWF Living Planet Report 2006

8. 8 Can we do something about it? Human development is accompanied by increased consumption, enlarging advancing societies’ ecological footprint! This paradigm is unsustainable Leading innovation question: How are we going to increase people’s quality of life while staying within the limits of our ecosystem capacity? Ecological footprint Human Development Index Source: WWF Living Planet Report 2006

9. So what is the Innovation Framework? We can combine our understanding of being connected With the realization that the Earth cannot sustain advancing economies to continue using resourcesat the current rate Along two dimension: Y-axis (left to right): changing from unsustainable to sustainable paradigm X-axis (up-down): the degree of (individual)influence See next slide

10. Innovation Framework for Sustainable Development (of Health & Well-being) In the Brundtland report (1987) we find the following definition: Sustainable Development is not a fixed state of harmony, but rather a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are made consistent with future as well as present needs. Dimension: quality of “stakeholder influence” capturing who, where, how? Direct Influence Improving & optimizing in the current socio-economic eco- system Dimension: quality of “eco-system” change capturing why, what, when? Developing & living in a new socio-economic eco-system Indirect Influence Disruption Zone 10 5 October 2009, D. Seebode , guest lecture @ Vrije Universiteit Amsterdam

11. The Innovation Framework enables creating Solution Maps Direct Influence Improve & optimize current socio-economic eco-system Developing & living in a new socio- economic eco-system Indirect Influence

12. Example: Lighting Me in my private life (B2C) Home Me in my profess. life (B2B) Profess. Spaces Me as citizen (B2Soc.) Public spaces Me as part of nature & humanity (B&Nat.) The Innovation Framework enables creating Solution Maps Direct Influence Improve & optimize current socio-economic eco-system Developing & living in a new socio- economic eco-system Indirect Influence

13. Example: Philips Lighting Individual Business Society Nature /Environment The framework can lead to a solution map: Light, Air, Water, Waste * Improve & optimize current socio-economic eco-system Developing & living in a new socio- economic eco-system CO2-free Lighting solutions in e.g.Africa * http://www.design.philips.com/probes/projects/sustainable_habitat_2020/index.page 13

14. Some transformations in the disruption zone: * From fossil-fuel based  renewable energy * From products & solutions  eco-system design * From “linear” value chain  closed loop value net * From end-user driven  “network” innovation Example: Philips Lighting Beyond efficiency increase: (within existing paradigm) From conventional light sources to energy efficient lighting From component & product to lighting systems & solutions From technology push to end user driven To a new effectiveness: (develop new paradigm) From CO2-efficient to CO2-neutral closed loop lighting solutions From lighting solutions to integrated building systems & solutions From end user driven to Multi-stakeholder co-creation (enabling sustainable development) Individual Business Society Nature /Environment The framework can lead to a solution map: Light, Air, Water, Waste * Improve & optimize current socio-economic eco-system Developing & living in a new socio- economic eco-system CO2-free Lighting solutions in e.g.Africa * http://www.design.philips.com/probes/projects/sustainable_habitat_2020/index.page 14

15. Using the Innovation Framework 4SD Solution maps can help business define their roadmaps to more sustainable products and services For a number of businesses, solution maps are relatively easy to make For others, the context is not yet clear enough To help those businesses, we need to… Determine what the overall ‘transformation’ from ‘unsustainable’ to ‘sustainable’ paradigm needs to be Define the practical ‘transitions’ that need to take place In the spirit of Open Innovation, Philips Research hosts events

16. March 11: ‘Disruption Day’ Philips Research organized ‘disruption day’ A day to exchange perspectives: Sally Jeanrenaud (Internation Union for the Conservation of Nature) Bettina von Stamm (Innovation Leadership Forum) Luc Soete (United Nations University MERIT) Businesses from Philips Researchers from Philips Designers from Philips www.bamboostones.net was launched as follow up action

17. Bamboostones Bamboostones is a movementwith the ambition to furthersustainabilitythrough thinking as well as doing Throughits online presence (www.bamboostones.net) it provides a focal point forindividuals as well as organisations - from the developed as well as the developingworld - who are concernedaboutsustainability. The website offers thoughtleadership; case studies, insights and challenges as well as a plattformthatconectsthosewho want to move from thinking to action; Bamboostones was initiated by Philips Research, and supported since its launch in March 2009 by the Innovation Leadership Forum, the International Union for the Conversation of Nature (IUCN); and the University of the United Nations, Maastricht.

18. What is the status of the Innovation Framework? Philips Research is sharing it with its partners And is exploring it in search of new solutions and technologies A new event will be held on December 7th in the Van Abbemuseum (Eindhoven, The Netherlands): Connection Day Outcome of this open innovation event will be shared on bamboostones.net in Q1 of 2010 Meanwhile, the paradigm shift is being explored further…

19. Exploring the paradigm shift Transformation from ‘(post-)industrial’ paradigm to ‘???’ paradigm With transitions from… through …towards People: materialistic valueswealth = money rich Status via consumption People: holistic wellbeing enabling tools & services Personal behavioral & attitude change Individual Business: Trust crisis towards business & (yet trust is the basis for economic growth) Business: credible solution provider commercial relationships Economy / Business Redefine value creation beyond profit Culture of creativity and innovation  Towards a new effectiveness Culture of accounting & efficiency Society / Government Redefine social systems & createindependency from high quality infrastructures Fair, effective social systems; autonomy via distributed systems Social systems & infra-structures under stress Nature / Environment Nature as resource: 60% of our supporting ecosystems are under stress ( MEA 2005) Nature as school: Life creates conditions conducive to life … Find a solution to “tragedy of commons”