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Connected Business as a Driver for Sustainable Innovation From Business Opportunities towards Successful Implementation

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Page 1: Connected Business as a Driver for Sustainable Innovation€¦ · Connected Business as a Driver for Sustainable Innovation Ecosystem Society Economy Connected technologies (e.g

Connected Business as a Driver for

Sustainable Innovation

From Business Opportunities towards Successful Implementation

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2

Connected technologies are not only a major business enabler

of the 21st century but also a key driver for sustainability.

The mm1 Sustainable Innovation Practice helps clients to

create new connectivity driven business value and maximize

sustainability effects.

Connected Business as a Driver for Sustainable Innovation

Page 3: Connected Business as a Driver for Sustainable Innovation€¦ · Connected Business as a Driver for Sustainable Innovation Ecosystem Society Economy Connected technologies (e.g

Contents

3

How connected

technologies

enable

sustainability

Why businesses

should care about

connectivity driven

sustainability

How to leverage

sustainability

effects using

connectivity

Success stories:

mm1 sustainable

innovation

reference projects

1 2 3 4

Connected Business as a Driver for Sustainable Innovation

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4

How connected technologies enable

sustainability

Connected Business as a Driver for Sustainable Innovation

Page 5: Connected Business as a Driver for Sustainable Innovation€¦ · Connected Business as a Driver for Sustainable Innovation Ecosystem Society Economy Connected technologies (e.g

How connected technologies enable sustainability

5Connected Business as a Driver for Sustainable Innovation

…are one of the major drivers for resource decoupling which in

turn drives sustainabilityB

…enable sustainability via the optimisation of processes, products

and decisions and are highly scalableA

…offer the potential to save up to 16% of CO2 emissions vs an

energy footprint of only 2%C

Connected Technologies…

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6

Connected technologies as a catalyst for sustainability

High scalability due to limited infrastructure requirements

Autonomous Driving

Smart City

Smart Home

Industry 4.0

Agriculture 4.0

IT-for-Green

Wireless Networks

Real Time Traffic

Cloud Computing

Smart

Grid

Connected Business as a Driver for Sustainable Innovation

Ecosystem

Society

Economy

Connected technologies (e.g.

autonomous cars), offer significant

economic opportunities, but also

benefits to society (safer roads)

and the ecosystem (fuel savings).

A

Connected technologies often

have limited local physical

infrastructure requirements

(e.g. cloud computing) compared

to other sustainable technologies

(e.g. wind). Thus they scale well.Car Sharing

From optimised processes to improved decision making – connected technologies are a

driver for sustainability. They also offer high potential scalability of sustainability effects.

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7

Connected technologies enable resource decoupling and are (along with the circular

economy) the key to a 21st century sustainable economy

Connected Business as a Driver for Sustainable Innovation

Key to 21st century sustainability: resource decoupling

Connected technologies and circular economy major driversB

Connected technologies contribute to resource decoupling via virtualization of processes (e.g. web-

meetings instead of physical travelling, digitalization of paper based processes) and substitution of

physical products (e.g. car sharing instead of car ownership).

Time

Business activity

Resource Use

Resource decoupling

Inte

nsi

ty

1970 2015

In order to work towards a sustainable

economy, business activity growth needs

to be decoupled from resource usage and –

by extension – environmental impact. This

is also known as the dematerialisation of

the economy - or resource decoupling.

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Connected technologies offer high return on invest

Estimated CO2 saving potential of up to 12 Gt by 2030

*Source: GeSI, SMARTer 2030, 2015

8

0

10

20

30

40

50

60

70

2030 with Business as

usual

2030 with ICT enabled

abatement

GtC

O2

em

issi

on

s

ICT Footprint All other GHG emissions

-20 %

The savings potential of ICT

amounts to 12 GtCO2 – more than

the total emissions of China today

Connected Business as a Driver for Sustainable Innovation

Currently, ICT has a carbon footprint

comparable to the complete global air

traffic (~2%). At the same time ICT has

the potential to reduce greenhouse gas

emissions by the year 2020 by 20%! *

ICT Savings

Potential

C

High return on sustainability investment: 20% CO2 savings potential vs 2% energy use

At the same time, ICT could generate $11 trillion in economic benefits by 2030*

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9

Why businesses should care about

connected technology driven

sustainable innovation

Connected Business as a Driver for Sustainable Innovation

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Why businesses should care about connected technology

driven sustainable innovation

10Connected Business as a Driver for Sustainable Innovation

…Sustainability is recognised as a strong driver for corporate innovationB

…Sustainability results in significantly increased shareholder returnA

….Market pressure, government regulation and business opportunities

generate strong incentives for sustainabilityC

…CEOs and top level management push sustainability on the

corporate agendaD

…Connected technologies driven sustainability offers business opportunities

across a wide range of industriesE

Sustainability matters because…

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Positive business impact of sustainable business practice

Sustainable innovation affects multiple levers for profits

11

Higher Margin Higher Revenue

Improved business case drivers and increased return for shareholders

Connected Business as a Driver for Sustainable Innovation

Costs Employees Brand ProductSpeed &

RisksInvestment

• Optimised use

of energy and

resources

• Optimised

processes &

supply chain

• Lower taxes

• Improved ability

to attract, retain

& motivate

employees

• Improved

employee

productivity

• Stronger brand

and greater

pricing power

• Improved

customer loyalty

• Lower churn rate

• Opportunities to

seize the

innovative high

ground via

disruptive

sustainable

innovation

• Pre-empting

regulations via

proactive

innovation, Risk

Management

• Greater access

to investment

capital

• Lower cost of

capital

Higher ValuationIncreased Profits

Beyond CSR: Sustainable business practice benefits much more than just brand reputation. Significant and

measurable business benefits can be generated along the complete value chain, specifically in the areas of

cost, product and risk, directly benefiting the bottom line.

A

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12

Sustainability recognised as strong driver for innovation

Companies leading in sustainability are also innovation leaders

Additional

boundary

conditions

stimulate thinking

about new

approaches to

solving known

problems

New Boundary

conditions

New

perspective

New

Focus

Helps companies

approach

situations

differently,

enabling them to

see situations

from a different

point of view

Can help

companies to

focus on new

areas for product

development with

previously

untapped market

potential

Connected Business as a Driver for Sustainable Innovation

Incorporating sustainability into regular business praxis generates a most welcomed side effect: it makes a

company more innovative. This effect has been well documented by Aronson et. all. Companies taking

sustainability seriously look at challenges in a different way: new boundary conditions, perspective and focus

all contribute to the development of more innovative products and business models.

B

Companies who are leaders in sustainability are

more than 400% more likely to be innovation leaders*Source: Aronson, 2013

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Strong push & pull of sustainability towards top agenda

Multi-sided incentives drive sustainability on corporate agendas

13Connected Business as a Driver for Sustainable Innovation

The rise of commodity prices since 2000 has

erased all real price declines in commodities

achieved during the whole 20th century*.

From consumer demand over government regulation up to rising commodity prices: there are many good

reasons to take the issue of sustainability serous. Whether it is a push or a pull, sustainability is rising on

corporate agendas

C

Pressure from government and society

Tightening governmental regulation

Positive government incentives

Pressure through social activism

Emerging business Opportunities

Customer demand

Technological advance

Process optimisation

Risk reduction

Transformation of business mission

CSR, social enterprise

‘Green’ supply chain partnerships

Drive towards circular economy models

Market pressure

Rising & extremely volatile commodity prices (energy, raw materials)

Pull from investors

*Source: World Economic Forum 2014:

Towards the Circular Economy

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69 of global CEOs

believe that investor

interest in sustainability

will become an

increasingly important

factor for securing

business finance

CEOs push sustainability on corporate agendas

Business upsides recognised at top level management

14

76 of global CEOs believe

embedding sustainability into core

business will drive revenue growth

and opportunities.

63 of CEOs expect

sustainability to

transform their

industry within five

years

84 of global CEOs report that

they are actively investing in and

employing connected and digital

technologies to advance

sustainability.

93 of global CEOs view

sustainability as important for

the future of their companies

54 of companies’ sustainability

heads anticipate that they will see

“significant” or “transformational”

change in their firms’ sustainability

management practices by 2015

Connected Business as a Driver for Sustainable Innovation

D

69%

93%

54%76%

84%

63%

*Source: The UN Global Compact-

Accenture CEO Study on Sustainability

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Substitution Optimisation Incentivation Other (i.e. Decision

Making, Life Cycle, Waste)

Transportation Car Sharing, Virtual

Mobility

P2P Parking, Inter-

modal transp.

EcoDriving, Pay-

How-You-Drive

ITS, intelligent POI,

C2C/C2X

Telco, IT, Entertain Cloud Infrastructure,

ePaper, VoD

Energy efficient

devices, Green IT

HW-SW Life Cycle Mgmt.

Modularisation

Production & Eng. Automation Robotics, Industry

4.0, stand-by oper.

Production Process

Mgmt., 3D Printing

Energy & Construction Grid-Decentralisation Smart Home, Smart

Grid

Supply Mgmt., Demand

Mgmt.

Health Care Tele health Quantified Self,

Health Applications

Big Data driven Smart

Health

Goods & Services Virtual goods, E

business

Green material selection

via CAD* plus LCA**

Public Sector E-Governance, E-

Bureaucracy

Agent Based Policy &

Service Models, Big Data

Raw Materials, Agric. Agriculture 4.0 Supply Chain Mgmt. &

Life Cycle Mgmt.

15Connected Business as a Driver for Sustainable Innovation

Sustainability LeverIndustry

High business potential across all major industries

Tipping point for large-scale implementation reached

Connectivity enabled sustainable innovation finds its application across all major industries, with

different primary sustainability levers at work for different industries. The Telco, transportation, energy

and production industries in particular offer significant sustainability driven business potential.

E

*Computer Aided Design, ** Life Cycle Analysis

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Some recent success stories of sustainable innovation

Examples include reduced recycling costs and higher margins

16

Pre-empted government banon lead solders in electronics products by experimenting with alternatives for 10 years. By time of ban, HP complied with regulations before other companies were able to do so.

Raised fraction of recycled equipment from 5% in 2004 to 45% in 2008, reduced recycling costs by 40%. Recycling became profit centre and contributed $100M to Cisco’s bottom 4 years later.Charges 15 to 30 % more

for sustainable products because its customers are able to generate increased product margins through green products.

Green Products line, stablished 2004, by 2010 already accounted for 37.5% of overall sales, with the target for 2015 to reach 50%.

Sustainable product line yields significantly higher growth rates and margins than standard product lines.

Connected Business as a Driver for Sustainable Innovation

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17

How to leverage sustainability effects

using connected technologies

Connected Business as a Driver for Sustainable Innovation

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How to leverage sustainably effects using connected

technologies

18Connected Business as a Driver for Sustainable Innovation

…follow the mm1 three stage process to generate sustainability

impact & to monitor sustainability transformationB

…take a realistic approach tailored to your needs and experience with

sustainabilityA

To leverage sustainability effects…

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19

• None by definition

low

low

high

Positive

• Low investment costs

Positive

• Increasing Market share by being

early adopter

Positive

• Increasing innovation capability

• Improving perception of product

quality

• Reducing risk (environmental, LtO)

• Increasing attractiveness for new

talent

Acti

on

sIm

pli

cati

on

s

Negative

• Missed opportunity to innovate &

grow

• Abandoning sustainability-sensitive

customer segments

• Jeopardizing License to Operate (LtO)

• Increased challenge to attract top

talent

Negative

• Medium investment volume required

Negative

• Extensive amount of resources

needed

• High investment costs

• Increasing Risk

medium

medium

low

high

high

high

1) Business as Usual 2) Pragmatic Approach 3) Radical Turnaround

No company can afford to ignore sustainability due to high resulting risks and opportunity costs. At the same time, it is often

inadvisable to opt for a radical sustainability turnaround straight away. The mm1 sustainable innovation practice encourages a

step by step approach – starting with the golden mean for the best balance of required investment, opportunity and risk.

Be realistic not idealistic – take sustainability step by step

Pragmatic approach not radical turnaround – learn & adapt

Investment

Opportunity

Risk

A

Connected Business as a Driver for Sustainable Innovation

• Anticipating regulations

• Successive improvement of

sustainable efficiency & portfolio

• Opportunistic PDP & BMDP–

Sustainable and cost-sensitive

• Preempting and shaping regulations

• Complete transformation towards

sustainable business & portfolio

• Fully sustainable PDP & BMDP

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20

The mm1 sustainable innovation process

Three stages towards generating and monitoring sustainabilityB

In order to generate tangible sustainability impact, the mm1 Sustainable Innovation Practice relies on 18 years of industry

experience an a proven selection of methodologies and frameworks. We engage in a three stage process ranging from

1) strategy analysis over 2) business analyses & development up to the 3) development of a successful product or service

whilst continually monitoring results along the way.

Connected Business as a Driver for Sustainable Innovation

Sustainable

Business

Innovation

S-SWOT Analysis

Sustainability Balanced Score Card (S-BSC)

Sustainability Levers Framework

mm1 Sustainable Best Practices

2

3

6

Sustainable Business Model Canvas

4

mm1 Sustainable Product

Development Script

FinancialOrganisation CustomerProcesses Sustainability

Maximise Positive Effects Minimise Negative Effects

1

5

Ste

ps

To

ols

/ F

ram

ew

ork

s Challenges

Trends

T

O

S

W

1) Strategy

Analysis

3) Product & Service

Development

2) Business Analysis &

Development

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21

Environmental

Challenges & TrendsSte

ps Opportunities &

Threats

• Natural resource scarcity

• Water availability

• Waste & hazards

• Global warming

• Climate variability and

extremes

Challenges

What do you and others see

changing? What are the

sustainability relevant big

trends?Key q

uest

ion

• Innovation & technology

advances

• Demographic & social shifts

• Global economic dynamics

• Political & regulatory

requirements

Trends

Where are environmental

challenges threatening future

business value, and how can

you address these threats?

The Sustainability SWOT Analysis (S-SWOT)

Take into account environmental challenges and trends

How can our strengths

address environmental

challenges? Who has similar

weaknesses or faces similar

risks?

Which insights will influence

senior company

stakeholders most? What

can be a short/mid/long

term strategy?

Strengths & weaknesses

B 1

Action

Deta

ils

• Consider both direct threats

as well as threats to partners

in the value chain

• Look upstream and

downstream and identify

opportunities for joint action

T Threats

• Look at threats that currently

are not addressed

• Consider the business value

that can be created with new

products, services and

business practices

O Opportunities

• Start with traditional list of

your companies’ strengths,

extend the list to the

partners in your value chain

• Consider core & transferable

strengths (i.e. R&D, Eng.)

S Strengths

• Start with risks resulting from

environmental challenges

impacting markets (e.g.

operations, regulation,

commodity prices)

• Include partners in list,

W Weaknesses

• Prioritise according to

company vision and strategy

• Identify strong messengers

• Emphasise findings that

would resonate with CEO

and senior management

Prioritise

• Categorise generated

insights according to where

and when you can act

• If needed, consider

gathering more insights

before planning action

Act

Connected Business as a Driver for Sustainable Innovation

*Source: mm1 & Metzger et al., 2012

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22

The Sustainability Balanced Score Card (S-BSC)

A tool to implement and monitor sustainability in businessesB 2

• Definition of financial targets

• Direct or indirect reference

for perspectives 2-5

• Low relevance for

environmental and social

perspectives

1 Financial Perspective

Ob

j.M

eas.

Targ

.In

itia

t.

• Definition of target customer

group to achieve econ. Goals

• High env. & social relevance,

i.e. health aspects., demand

for green products, pressure

from NGOs & via regulation

2 Customer Perspective

Ob

j.M

eas.

Targ

.In

itia

t.

• Definition of processes req.

to achieve perspectives 1-2

• Innovation, Operation, Serv.

• High env. & social relevance,

i.e. production processes &

material usage, supply chain.

3 Internal Business Proc.

Ob

j.M

eas.

Targ

.In

itia

t.

• Optionally, a 5th perspective

can be introduced if necess.

• Examples: legality and

legitimacy, i.e. proactive

compliance with future

regulation), child labour

5 Non Market Perspective

Ob

j.M

eas.

Targ

.In

itia

t.

• Definition of necessary

competencies, information,

motivation & organ. struct.

• High env. & social relevance,

i.e. purpose/vision as ‘green

company, working conditions

4 Learning & Growth

Ob

j.M

eas.

Targ

.In

itia

t.

0 Analysis & Strategy Fit In order to implement

a sustainable business

strategy and to measure

+ monitor sustainability

performance, the S-BSC

method can be used

along the 4 to 5 main

business perspectives

Vision

& Strategy

Top down generation of

input for 1-5, taking

the Analysis (0)

into account

1. Define all environmental/social

aspects related to the business,

irrespective of strategic relevance

2. Define strategic relevance of

these identified environmental

aspects for the company strategy

Connected Business as a Driver for Sustainable Innovation

The mm1 S-BSC is derived from the work of

Schaltegger & Lüdeke-Freund, 2011

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23

Technology

Application

Behaviour and

structural

change

• None by definition

• Substitution (e.g. of paper

through digitalisation)

• Optimisation (e.g. of

energy usage & processes)

• Rebound effects (e.g. via

additional consumption)

• New risks (e.g. via rising

network vulnerability)

• Life cycle Impact

(Production, Use, Disposal)

• Induction (of resource

consumption, e.g. energy)

• Obsolescence (e.g. via

shorter product life cycles)

• Incentivisation (e.g. of fuel

saving drive styles)

• Decision making (e.g. via

agent based models)

Connected Business as a Driver for Sustainable Innovation

1st

ord

er

eff

ect

s

2n

do

rder

eff

ect

s

3rd

ord

er

eff

ect

s

Maximise Minimise

The ICT sustainability impact framework

Maximise positive and minimise negative ICT effects

Positive Effects Negative Effects

Connected technologies can yield powerful 2nd and 3rd order effects to deliver significant sustainability

potential. Nevertheless, they also can also generate negative effects. The key to successful sustainable

innovation is to identify all sustainability levers and maximise positive and minimise negative effects.

B 3

Source: Hilty, L.M.: Information Technology

and Sustainability, 2008

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24

The Sustainable Business Model Canvas

Complementary usage to traditional Business Model CanvasB 4

The sustainable business model canvas is an ideal tool to complement the traditional business model

canvas in order to fine tune the sustainable product and business model development process.

Connected Business as a Driver for Sustainable Innovation

Sustainable

Partners

Sustainable

Value Creation

Sustainable

Products/Services

Sustainable

Customer Relation

Sustainability-

responsive

customers

Higher Costs due to Sustainability Strategy

Subsidisation

Sust. ChannelsSustainable

Resources & Tech.

Who are possible partners in

becoming more sustainable?

How can we make the whole

supply chain sustainable and

circular?

Can we substitute some

resources for sustainable

ones?

Can we shape anticipated

environmental regulations by

partnering and cooperating

with relevant regulatory

bodies?

How do we have to adjust our

key activities to ensure

sustainability?

Can we create value via

resource and product

recovery?

What kinds of resources,

materials and technologies

do we need for our

sustainable transformation?

How can we make our

distribution channel more

sustainable and circular?

How do we best communicate

the sustainable aspect of our

product / service?

Can we solve customers‘

problems more sustainably?

How do we satisfy

customers‘ needs more

sustainably?

How do we transform

sustainability to value in the

customer’s eyes?

Is ownership necessary for

customer value? Is the

product as a service model

applicable?

How do we extend the

product life cycle?

Which customer relationships

satisfy customer expectations

AND are sustainable?

How can we make current

relationships more

sustainable?

How can we engage in

acting in a sustainable way?

Which target customers

value sustainability and may

help to promote our

sustainable solution?

Which resources / activities are the least sustainable?

Do sustainable alternatives exist? Is switching economically reasonable?

Do tax bonuses & subsidies exist for my endeavour?

Is third-party funding available?

Increased Turnover due to Sustainability Strategy

Are customers willing to pay a premium for sustainability?

Can we create a unique advantage due to sustainable proposition elements?

What is it that customers value about our product / service? Is there a way to

provide this value more sustainably?

Do fee structures exist that incentivize sustainable user behaviour?

The mm1 S-BMC is derived from the work

of Servatius, 2014

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25

Sustainable Product Development Process (S-PDP)

Holistic Framework to Ensure Sustainability in Product Design

Product

Value & LT

ExtensionEnergy

Efficiency

Substance

& Material

Emissions

BatteriesPackaging

& Packing

End of Life

treatment

Design for

Manufact-

uring

Smart

Usage

• The S-PDP takes into account

complex and interacting aspects of

the complete product life cycle,

considering economy, ecosystem

and society

• Each major aspect, i.e. Smart

Usage, is treated along an

integrated sustainability approach

and according to the latest industry

consensus and standards

The mm1 Sustainable Product

Development Process

S-PDP

$$$

B 5

Connected Business as a Driver for Sustainable Innovation

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26

Best practices for successful sustainable innovation

Follow these 10 general rules, learn and adapt

Look ahead - Don‘t start from the

present, but envisage the future (e.g. anticipate future regulation, consider enabling trends)

1

Be open to change - Understand

that sustainability is a business

opportunity, not just marketing

2

Question the status quo - Ask

yourself how you can make your value

proposition more sustainable

3

Be lean and green - Start small,

learn, pivot & scale

4

Keep efficiency in mind and

prioritise - Change what you can

change now most efficiently

5

Anchor sustainability in strategy

and processes, allocate resources and

ensure accountability

6

Team up - Form alliances with

stakeholders (e.g. suppliers, NGOs)

including regulatory bodies

7

Look at the roots - implement

sustainability-related activities and goals

into the entire supply chain

8

You cannot control what you

cannot measure - Quantify sustainable

activities using the S-BSC

9

Stay Flexible - Pursue

sustainability consistently but stay

flexible to be able to react to new trends

10

B 6

Connected Business as a Driver for Sustainable Innovation

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27

Reference Projects

Connected Business as a Driver for Sustainable Innovation

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mm1 Sustainable Innovation reference projects

28Connected Business as a Driver for Sustainable Innovation

…the connected washing machineB

…the life cycle extension of legacy Set Top BoxesA

…the integrated Smart Home SolutionC

…the optimisation of the energy footprint of a search platform D

…a fuel saving and safety increasing connected car solutionE

…an optimised Telco consumer product development processF

Successful mm1 sustainable innovation projects include…

Page 29: Connected Business as a Driver for Sustainable Innovation€¦ · Connected Business as a Driver for Sustainable Innovation Ecosystem Society Economy Connected technologies (e.g

Solution: Smart STB replaces HTML5 STB

Life cycle extension of Set Top Boxes

29

Challenge: Large legacy STB base impacts performance & market growth

• Legacy STB cannot deploy modern UIs less customer satisfaction &

market growth

• STB life cycle (LC) much longer than UI application life cycle

• Constantly upgrading STBs to enable modern UIs is expensive

• Less environmental impact, less land fill

via longer STB life cycle (increased from

2-3 to 5-7 years)

• Higher margin via longer STB life cycles &

lower customer churn.

• Higher customer satisfaction through high

quality UX without need to upgrade

legacy STBs.

Results:

Connected Business as a Driver for Sustainable Innovation

• Decision to abandon traditional layered software

architecture in STB HTML5 clients

• Mid term strategy: use of SmartSTB strategy where

client directly connects app & STB HW using a

‘virtual animation machine’

• Long term strategy: Virtual STB, moves app

execution and rendering into the cloud and streams

video data directly to the STB

AA major client in the

TELCO industry (client details available on request)

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Solution: The connected washing machine

30

• SIM card based connectivity of washing machine,

digitalised washing assistant

• Digital and optimised two component based

dosage system for washing agent

• Smart phone enabled control of washing machine

• Remote and atomised reordering of washing agent

• Up to 70% savings of washing agent

• Increased water efficiency

• Differentiating product feature

• Direct customer contact, knowledge about

customer & usage behaviour over whole

product life cycle

• Increased customer retention via

automated reordering system

Results:

Challenge: Increase consumer retention and improve washing machine efficiency• Few customer touch points with washing machine customer after initial sales of

washing machine, lack of upselling opportunities

• Lack of influence on customers choice of washing agent

• Inefficient usage of water and washing agent (e.g. 30-40% over dosage of

washing agent common)

The connected washing machine

Connected Business as a Driver for Sustainable Innovation

BA client in the home

appliance industry (client details available on request)

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Solution: QIVICON– The Smart Home Solution

31

• Integrated Smart Home Solution connectable to a

wide range of devices

• Allows monitoring and controlling energy

consumption, lighting, heating, AC, etc.

• Easy to control via smartphone, tablet & computer

• Renowned suppliers of compatible products, e.g.

EnWB, Miele, Philips

• 30% reduction in energy consumption

• Reduced risk of mould-related health

issues

• Improvement of fire prevention via

connection with smoke-/CO2-detectors

Results:

Challenge: Satisfying the increasing demand for an integrated SH solution

• Global demand for resources drives up energy prices (+33% until 2030)

• Increasing consumer interest in energy-saving Smart Home solutions

• High demand for increased convenience

Integrated Smart Home Solution

Connected Business as a Driver for Sustainable Innovation

CA client in the conn.

home industry (client details available on request)

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Solution: Product Re-Launch

32

• Replacement of legacy search engine with new

open-source technology

• Switch from high performance physical servers to

cloud infrastructure

• Modularisation of the search engine, elimination of

redundant systems

• Consolidation of several interfaces for various

consumers into one full-featured interface serving

all customers

• Hardware setup reduced by 50%

• Overall performance significantly

increased (up to 2,000%)

• Lead time for change requests has been

reduced by around 3 weeks

• Modularization helped reducing

complexity such that only 1 interface

needs to be maintained instead of >10

before

Results:

Challenge: Provide efficient and service-friendly search solution

• Need for a solution to provide a search engine allowing for a near-to-realtime

processing of TV metadata

• New solution required to be more cost-efficient, flexible and powerful than the

current proprietary system

• Support for current solution is cancelled by vendor

Optimisation of a metadata search

platform

Connected Business as a Driver for Sustainable Innovation

DA client in the TELCO

industry (client details available on request)

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Solution: Multifunctional Application

33

• B2C2B Product that aggregates several consumer

services in a single product

• Services include EcoDrive, PHYD, parking,

Maintenance Mgmt. and more

• Intelligent push instead of pull App layout based

on recommendation engine

• Gamification and community functionality to

incentivise active use

• Less environmental impact as consumers

and fleets save up to 15% fuel

• Less accidents due to incentivised save

driving

• Less urban congestion and CO2

emissions due to parking space finder

Results:

Challenge: Achieving high connected car market penetration with B2B partners

• Players in the connected car eco system (OEMs, workshops, insurers) are

looking for products to achieve high consumer market penetration

• Stand alone products often not sufficiently attractive to consumers and not

conducive to frequent App use

Fuel efficient and safe driving solution

Connected Business as a Driver for Sustainable Innovation

EA client in

automotive industry (client details available on request)

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Solution: Sustainable Dev. Process

34

• Establishment of a Stage-Gate Process in

Product development

• Codification of process and quality mgmt.

in the quality management handbook

according to the ISO norm

• Establishment of check points at every

product development gate including the

check points ‘reusability material’,

‘reduction material usage’ and

‘optimisation energy efficiency

Results:

Challenge: Reducing cost and time required to manufacture Telco consumer prod.

• Quality problems during development and manufacturing of Telco products

• Need to optimise product development and quality management processes

• Need for lean and fast product development with minimized use of resources (i.e.

reduced materials usage and improved energy efficiency)

Optimised product development process

Connected Business as a Driver for Sustainable Innovation

• Certification ‘Blauer Engel’ awarded

• Sustainability of router considered and increased

energy savings generated, e.g. via sleep mode in

IP-Telephones

• Development of a mass market router in 50%

shorter time span and less use of personnel and

material resources

• Product meeting higher customer demand and in

line with strategic objectives, incl. sustainability

strategy, of client

FA client in the TELCO

industry (client details available on request)

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35

About mm1

Connected Business as a Driver for Sustainable Innovation

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We develop new products and services for the digital world

36Connected Business as a Driver for Sustainable Innovation

Thought leadership &

industry expertise

State-of-the-art methods &

competence in

implementation

Smart Home &

EnergyConnected Car

Connected Rail

M2M/

Industrial IoT

Connected Finance Substainable

Innovation

Design Thinking

Agile Development

Lean Startup

Platform ThinkingData ThinkingFuture of

Communications

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37

Data volume reaches

4,000,000,000

terabytes*

Mobile devices

outnumber human

population*2014

18 years of experience Founded in 1997 by McKinsey consultants

300+ successful consulting projects in

innovation and transformation

50 consultants with focus on development

and marketing of connected business

solutions What is Connected Business?

The development and marketing of new

products and solutions, the generation

of new business models and the

optimisation of processes based on the

increasing interconnectedness of todays

world

Connected Business as a Driver for Sustainable Innovation

mm1 – The Consultancy for Connected Business

*Source: SAP Multinational IT Decision

Makers Study, 2013

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Get connected

38

Sustainable Innovation Practice

Lean and Green Dr. Robert Gerlach

Senior Consultant

+49 171 3569 193

[email protected]

Connected business as a driver for sustainable innovation

Volker Scholz

Managing Partner

+49 170 2457999

[email protected]

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