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ESCP EUROPE INNOVATION + SUSTAINABILITY = NEW BUSINESS MODELS Key Findings of a Survey on Sustainable Innovation by Profs Aurlien ACQUIER, Valentina CARBONE & Olivier DELBARD Slide 2 Sustainability, Competitiveness & Innovation Demographic trends Source: UN predictions and US census bureau Source: J.M Jancovici 2012 sur UNEP Energy transition World energy consumption Supply of Raw materials Innovation ? Slide 3 How do companies respond? Innovation, sustainability, competitiveness : what is the current level of awareness? What are the mechanisms enabling sustainability issues to be integrated into innovation strategies? What are the key success factors? Interviews with top managers On-line Questionnaire The questions asked The sample Functions: innovation Management, Marketing, sustainability Sectors of activity : transportation, building, energy, luxury, mass retail 312 international respondents on the importance and the management of sustainable innovation within their organizations. 36 top managers of big companies and start ups in Europe Slide 4 The Results: 7 KEY FINDINGS Slide 5 The need to integrate sustainability into innovation strategies : Key Finding n1 A key issue, but a very destabilizing one! Slide 6 if I gather 10 people in the same room and ask them to define sustainable innovation, Ill get 30 different definitions! Trevor Davis, Global Expert, IBM Innovation Sustainability ProductprocessBusiness Models & Which actors? Environmental SocialEconomic Which focus? Slide 7 Large organizations tend to deal with sustainable innovation as an incremental innovation process Key finding n2... Before re-designing business models Slide 8 Sustainability and business model innovations Circular economy Not for Profit, Social Business and Bottom of the Pyramid From product to service sharing economy (Collaborative production and consumption) Environmental scopeSocial scope Consumption Production Slide 9 The ingredients of the sharing economy Wired to share Intensifying the use of material capital Slide 10 involve to rethink the relationship between the company and its ecosystem Key finding n3 Disruptive innovations in the field of sustainability Slide 11 Thinking at a broader scale Companies Public actors Distributors Suppliers Other stakeholders Research & Educational institutions Standardization agencies NGOs competitors Natural eco-systems Business eco-systems Clients Slide 12 How to favor the emergence of sustainable business ecosystems ? Big data 2. Sharing & Structuring informations, agreeing on shared objectives 3. Create platforms and rules for interconnecting actors 1. Capitalizing on distributed intelligence within the ecosystem Intra-firm Open innovation Slide 13 Implementing sustainable innovation... Key Finding n4... Involves a total revamping of organizational strategies Slide 14 Which organizational models? Simplifiying innovation by desystemizing it Monitoring a series of innovative projects Conducting a policy of partnerships, acquisitions, financing Creating new brands or divisions Slide 15 Key Finding n5 The need to mobilize new skills and new evaluation criteria Slide 16 I dont think many people could claim to have all the skills required for sustainability. It is multidisciplinary by nature. We need scientists, technicians, public affairs specialists, lawyers Catherine Tissot-Colle, Communication and Sustainability Director, Eramet Our sustainability approach has to be long term, but todays societies all think short term, which is the crucial point. Sandrine Sommer, Sustainability Director, Guerlain Slide 17 Key finding n6 Government & the Consumer : 2 key players, whose role remains ambiguous! Slide 18 Key Finding n7 For sustainable innovation to be successful, It is necessary to learn from failures and develop an iterative approach! Slide 19 Successful failures as sources of learning and opportunities Slide 20 Pilar Acosta Aurlien Acquier Valentina Carbone Olivier Delbard Julie Fabbri Florent Gitiaux Delphine Manceau Catherine Ronge The authors