Building Sustainable Competitive Advantage Through Collaborative Innovation. Hugh Henry, Head of Innovation, Bord na Móna
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1 Building Sustainable Competitive Advantage Through Collaborative Innovation Hugh Henry, Head of Innovation, Bord na Móna
2 Contents Introduction Why transform through Innovation? What is Innovation? What is not Innovation? How to innovate? The process Principles of our process
3 Why?
4
5 Bord na Móna - Today
6 Drivers Market/Commercial Vision/Strategy Regulatory Sustainability Climate Change Short- term Medium-term Long-term
7 What is Innovation?
8 Innovation is.simply the process of generating new ideas and using them to replace what is already in the marketplace with something that works better or lasts longer or is more appealing to a wider spectrum of customers or a target niche, so as to increase market share.it is about creating or retaining a customer Innovation is the creation of value for stakeholders
9 Some misconceptions! R&D is the conversion of money to knowledge Innovation is the conversion of knowledge to money Creativity is coming up with ideas Innovation is bringing ideas to life Invention is creation of a new concept Innovation is commercialising that concept R&D, creativity and invention are subsets or elements of innovation
10 Multiple types of innovation are identified Strategic Innovation Business Model Innovation Customer led Innovation Technology led Innovation It s not all about technology!!
11 How?
12 Our Core Approach! Innovation is the harnessing of ideas for the commercial benefit of a business Such ideas range from small continuous improvements to larger cost-saving projects, right through to the development of radical new approaches. Through these ideas, the primary aim of Innovation is to drive future growth and profitability in a company. It is as simple and as grounded as that (i) (ii) (iii) De-centralisation Open model (collaboration) Innovation in the horizons
13 Horizon 1 Is the current cash generative business activities within BnM. Any innovation here is about doing what we do better or incremental improvement of our current product/service offering. Innovation is centred around Mastering the Basics. Horizon 2 Is new business activities proposed which will enable BnM to expand past the next number of years and become cash generative to enable further innovation to proceed. It is about what do we do next to create a competitive advantage and generate tomorrows cash generative businesses. Any innovation here is focused on Step change improvements. Innovation is centred around Raising the bar The Operators The Builders Horizon 3 Is the future business activities or tomorrow's world which will shape the business in the future. It is the so called blue skies innovation. Innovation here is centred around Changing the Game The Visionaries
14 The Process
15 Identifying Opportunities The Innovation Cycle 6. REINVESTMENT Getting the Return 1. IDEATION 2. PRIORITISATION PORTFOLIO MANAGEMENT 3. INVESTIGATION Getting the Balance Right 5. EXPLOITATION Project Delivery 4. IMPLEMENTATION
16 BnM s OPEN Innovation Structure Customer Insights RR Higher Education Institutes EXTERNAL Feedstock Powergen EXTERNAL OPPORTUNITY INNOVATION CENTRE OPPORTUNITY Anua C&P Entrepreneurs Industrial Partners
17 Innovation Organisational Structure ASSIST, RECORD, COLLABORATE AND OVERSEE IDENTIFY, LIAISE, DELIVER AND REPORT STEER AND ADVISE PARTICIPATE GUIDE
18 Ideas - the lifeblood of Innovation?
19 Where Do Ideas Come From? Workshops Ideation Challenge identification Internal Focused Consultation/Interaction with Business Unit Campaign drives Cross company opportunities Recording Initial look Fits with BU Strategy Further Investigation Teaser Business Case on Opportunity Delivery Business Unit Internal Driven Entrepreneurs Companies Collaborations Networks External Focused Feedback to Idea Source as Required
20 Review Gate
21 Principles of our Process Simple process Be commercially focused ( applied ) Be led by firm market insights Every idea will be considered Be customer centric Open to everyone (Collaboration is critical) Operate a balanced portfolio (Risk : Reward) Recognition and reward is critical Achieve sustainability criteria Celebrate success but allow for failure Communicate successes Innovation is a team sport! (outside contacts are key)
22 Origin of Innovative Ideas New Ideas 10% Eliminate Waste 40% Continuous Improvement 40% Borrowed Ideas 10% COURESTY OF CRANFIELD/AXA IRELAND
23 THANK YOU
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