Company-Driven Sustainability Innovation Integrating Users and Entrepreneurs by Minna Halme Angelina Korsunova & Jennifer Goodman

1. This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
EU-InnovatE: Sustainable Lifestyles & Green
Economy in Europe to 2050
Company-Driven Sustainability Innovation Integrating Users and
Entrepreneurs
04 October 2016

2. Agenda
2
15:00 Webinar opens
15:05 Introduction & context
Simon Pickard, Director International Programmes, ABIS
15:10 Presentation of emerging evidence & findings
Minna Halme - Professor of Sustainability Management - Aalto University
Angelina Korsunova - Project manager at EU-InnovatE - Aalto University
Jennifer Goodman - Post-doctoral researcher EU-InnovatE - Aalto University
15:35 Questions and comments
15:55 Summary & forthcoming events
16:00 Webinar closes

3. Context: Sustainable Lifestyles at EU Level
3
Strategic policy objectives:
1. Promoting smart, sustainable and inclusive growth in the
single market
2. Managing an ageing population while reducing current
levels of energy, transport and resource use
3. Rethinking consumption / production systems as part of a
transition to low-carbon economy by 2050
Ref: SPREAD 2050
(www.sustainable-lifestyles.eu)

4. EU Policy Research Questions
4
i. Links between economic, ecological, human and technological
systems and their influence on consumers' values and behaviour
ii. Short and long-term obstacles and opportunities associated with the
transition to European sustainable lifestyles and green economy
iii. New ways and new business models to manage natural resources
while reducing consumption and improving quality of life
iv. Prospects for sustainable lifestyles and the green economy
(i.e. trends up to 2050)

5. EU-InnovatE Consortium

6. Key Idea
6
„ ... investigate
the creative, innovative and
entrepreneurial roles of users
in developing novel sustainable
products, services and systems
(Sustainable Lifestyles 2.0).“

7. Towards User Innovation
7

8. WP 7
Synthesis
SL 2.0
WP 8 Dissemination
WP 9 Management
WP 6 Policy Design for SL 2.0
WP 5 Measuring Trends SL 2.0
WP 3
Company
Sustainability
Innovation
Integrating Users
WP 4
User
Sustainability
Innovation and
Entrepreneurship
WP 2 Future of SL 2.0
WP 1 Past and Present of SL 2.0

9. This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
Company-Driven Sustainability
Innovation Integrating Users and
Entrepreneurs
PRESENTERS:
Minna Halme - Professor of Sustainability Management - Aalto University
Angelina Korsunova - Project manager at EU-InnovatE - Aalto University
Jennifer Goodman - Post-doctoral researcher EU-InnovatE - Aalto University

10. Introducing the Presenters
10
Minna Halme
Professor of Sustainability
Management
Aalto University
Angelina Korsunova
Project manager at EU-InnovatE
Aalto University
Jennifer Goodman
Post-doctoral researcher EU-InnovatE
Aalto University

11. Company-Driven Sustainability Innovation
11
What does it mean?
How can we do it?
Why do we need to think about this?

12. 12
The world is ridden with environmental and
social problems like climate change, poverty,
inequality and the refugee crisis that easily
give us a sense of hopelessness.

13. But…
…these sustainability problems and challenges can also be sources of
new innovations
13
Innovation as a way forward

14. • 18 cases
• Large companies
• End user involvement
• 4 domains: energy,
mobility, living, food
• 4 regions
• Innovations which
addressed social and/or
environmental issues
14
Background

15. 15
Skanska:
• Affordable, eco-efficient housing for
low incomes
• Public authority, end users,
academia, business partners
Examples
Vélib’:
• City cycle share system
• Public authority, end users,
sustainability start-up, cycling
associations

16. • Companies worked with ordinary people, users, environmental and social
groups, academia and public sector organisations.
• Sustainability innovation calls for novel ideas or capabilities beyond the usual
business partners.
• The best recipe is to work with a limited number of selected stakeholders. Only
large companies have enough resources to do this.
• Most impactful sustainability-oriented innovation resulted from involving multiple
company members in innovation with stakeholders.
16
Key Findings

17. Multiple stakeholders
17
E.On:
• Smart control system for solar power
• Public authority, academic, end user,
business
Frosta:
• Additive free frozen fish
• Business, end user, academia, CSO,
public authority

18. Beyond the usual business partners
18
Rockwool:
• Eco friendly housing shelters
• CSO, academic, end users
Ecoveritas:
• Solution for food wastage
• Business, CSO, end users

19. The best recipe: strategies for collaboration with
deviant partners
Strategy 1:
- Selective early collaboration
- Few stakeholder partners
- Early phase of collaboration
Strategy 2:
- Selective late collaboration
- Verification strategy
- Inputs from stakeholders are
minimal in the early phasesStrategy 3:
- Broad committed collaboration
- Final decisions are taken alone
- Most suitable for large companies with extensive resources
In the times when
open innovation is
becoming a norm
across different
industries keeping
innovation and
stakeholders
relationships
separate makes little
sense from business
point of view
19

20. Managerial implications
• Importance of strong ties
• Integrating stakeholders into innovation processes of
sustainable products require building of strong ties to
stakeholders.
• Importance of Fuzzy Front End
• Not a necessary condition but strong signal that
beneficial in order to achieve high sustainability
outcome.
• Avoid too large stakeholder networks
• Particularly important for smaller companies
20
FFE NPD

21. Stakeholder roles
21
Educator
Concept
refiner
Context
enabler
Impact
extender
Stimulator Initiator
Broker/Me
diator
Legitimator
Proactive
Reactive
Mixed

22. Organizational readiness for Open Innovation
Organizational Barriers Organizational Enablers
- Organizational fragmentation (outsourcing)
- Communication barriers
- Integration issues
- Skepticism – not invented here syndrome
- Difficulty accessing user insights
- Accessing end-users (stability)
- Keeping stakeholder motivated
- Managing knowledge inflow insights
- Secrecy issues
- Top management support
- Stakeholder support
- Independent department with cross-functional
team
- Government support (legitimizer)
- Integration in research project
- Company culture
- Sufficient funding
- Autonomy of innovation teams
22
Source: : . Zimmerling, Roed Nielsen, Korsunova, Juntunen (2015); Gürtler 2013; Braun 2012; Albers 2010, Enkel 2009
 Opportunities: faster time to market, lower costs, early technology adoption etc.
 Risks: Know-how loss, increased complexity, demotivation of employees etc.

23. Success factors for two innovation projects
23
Top Management
support
Independent
department
Multi-stakeholder
involvement
Innovation culture
BMW Verbund
• Direct • Direct
• Planned cross-functional team • Evolving cross-functional team
• Universities
• Energy supplier
• Infrastructure partner
• Public authorities
• Research institutions
• Equipment development
• Infrastructure partner
• Car dealer
• Public authorities
• History of innovativeness and open
innovation approaches
• Open company culture
• Strong personal commitment
Source: : . Zimmerling, Purtik, Welpe (2016)
 The results of the qualitative comparative analysis show that the intense collaboration with users
at all stages of the development process triggered a strong product-service character of the
emerging mobility solutions that increase market attractiveness.

24. How to….?
• Look out for policy initiatives or projects stimulated by public authorities
• Work with ‘unusual’ stakeholders to help navigate the complex multi-stakeholder
environment.
• Give users and new audiences the chance to try out new concepts of products
or services.
• Get users involved in on-line ideas contests. As well as technical functionality
and rewards, pay attention to:
• Leadership style: clear vision, joint goals, exceed expectations, transformational
• Competitive climate: emphasis on competition may not be most effective
• Work with CSOs, academia and public authorities to build credibility and trust,
and to sensitize the public of new sustainability solutions
• Don’t take policy as a given! Public authorities can help create a regulatory-
friendly environment.
• Sustainability specialists can help extend the impact of new innovations to
create more holistic solutions.
24

25. Summary
• Sustainability challenges and the innovations needed to respond to them are
urgent and systemic.
• Research covered sustainability-oriented product, service and business model
innovations in established companies around Europe.
• Companies worked with ordinary people, users, environmental and social
groups, academia and public sector organisations.
• Sustainability innovation calls for novel ideas or capabilities beyond the usual
business partners.
• The best recipe is to work with a limited number of selected stakeholders. Only
large companies have enough resources to do this.
• Most impactful sustainability-oriented innovation resulted from involving multiple
company members in innovation with stakeholders.
25
Why?
What?
How?

26. This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
Questions & Feedback from Participants

27. 27
Summary & Forthcoming Events
FINAL CONFERENCE
 TUESDAY, NOVEMBER 22
 HOSTED BY ABIS @ ATELIER
DES TANNEURS IN BRUSSELS
 EXPLORATION OF PATHWAYS TO
ACCELERATE SUSTAINABILITY
ENTREPRENEURSHIP
 NO CONFERENCE FEES!

28. 28
For More Information
www.euinnovate.com

29. This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration under grant agreement no 613194
Thank you for your time!