The presentation of Tommi Lampikoski, lead consultant of Ramse Consulting, at Sitra's Road to carbon neutrality -event.

1. 1© RAMSE
1
Creating value through corporate sustainability-the four games of green innovation
Tommi Lampikoski
RAMSE Consulting
23.10.2014
SITRA Event
Management Consulting
Since 1993

2. 2© RAMSE
Argument1. Sustainabilityis disconnectedfrombusiness innovation

3. 3© RAMSE
“ Many Finnish and international firms-in relation to their corporate sustainability activities-have majority of people working in the communications department” Director, KoneCranes

4. 4© RAMSE
“ It took us 10 years to realize, that sustainability needs to be wedded with business” Hannah Jones, Nike’s sustainability leader

5. 5© RAMSE
“Incremental green innovations will not get us there… How do you create game changing innovations?” Insight from managerial interviews

6. 6© RAMSE
Argument2. Value creationvia masteringfourgamesof greeninnovation

7. 7© RAMSE
Key concepts
Strategic
innovation
Game-changing innovation in products, services, business models, or positioning vis-a-vis competitors to improve performance.
Strategic
game
Set of activities that create and capture value in new ways and which determines a firm’s performance in the face of a strategic innovation.
When a company performs new value-chain activities,
or performs existing ones differently, it is playing new games.
Playing
games

8. 8© RAMSE
Value creation playground for green innovations
Radical
Innovation
Game
Clarity
Game
Collaboration
Game
Rationality
Game

9. 9© RAMSE
Summary of the games
Rationalitygame
Collaborationgame
Radicalgame
Clarity
Game
Innovation
type
Evolutionary
Evolutionary
Revolutionary
Revolutionary
Emphasis
Productivity
Value systemimpact
Exploration & unlearning
Rewriterules
Focus ofchange
Practices & products
Scale
Business models & breakthrough technologies
Ecosystems & industries

10. 10© RAMSE
Rationality
Game
“Valuecreationviaeco-efficiencies"
Emphasizes productivity
& cost savings through eco-efficiency
Incremental improvements

11. 11© RAMSE
Rationality
Game
Source: www.gm.com

12. 12© RAMSE
Nokia reduced the size of packaging of its mobile phones
€500 million savingsannually
Rationality
Game

13. 13© RAMSE
Collaboration
Game
“Valuecreationviascalingsustainabilitypractices”
Collaboration to adopt and scale sustainability
Evolutionary innovation

14. 14© RAMSE
Collaboration
Game
$250 million raised to fight aids

15. 15© RAMSE
Radical
Innovation
Game
“Valuecreationviaradicalexperimentation”
Challenges dominant mental models and assumptions
Pursues access to new markets & business opportunities

16. 16© RAMSE
Radical
Innovation
Game
Challenge lazy & institutionalized practices“Americans spend more on potato chipsthan the government spends on clean energy research and development” . John Doerr, KleinerPerkins, 2009, 2010

17. 17© RAMSE
Radical
Innovation
Game
source: interview with author Andrew Winston

18. 18© RAMSE
Clarity
Game
Clarified vision and purpose
Institutionalized sustainability
Solving game changing challenges
“Rewriting the rules of an industry”

19. 19© RAMSE

20. 20© RAMSE

21. 21© RAMSE
Clarity
Game
Which US company has a twenty-year compounded
annual growth rate of 23 Percent?
(Hint: It is not Southwest Airlines)
Business started with 7 cows and one man in 1980s

22. 22© RAMSE
Clarity
Game
From zero to plus $400 million business

23. 23© RAMSE
Key takeaways
1. “Incremental green innovations will not get us from here to there”
3. Experiment and
master the games
2. Key to success andlong term survival
Radical innovations and breakthroughs
4. Innovate like you
give a damn

24. 24© RAMSE
“The more you know the less you need”
YvonChounaird, Founder, Patagonia

25. 25© RAMSE
25
tommi.lampikoski@ramse.fiphone + 358 40 353 8311www.vihrea-aalto.fi

26. 26© RAMSE
26
Management Consulting
Since 1993
Solutions for Renewal
Bertel Jungin aukio 7
02600 Espoo, Finland
www.ramse.fi