How to know what to focus on in radical innovation?

1. Opportunity Spaces –
How to know what to focus
on in radical innovation?
Nicole Reinhold – innogy Innovation Hub
Heinrich Schwarz – innogy Innovation Hub & Schwarz
Innovation
ISPIM Vienna, June 2017

2. Between March and October 2016, 88
new corporate innovation labs
opened their doors globally.
Most of them focus on digital innovation
and on testing new business models.
(Capgemini, 2017)
These are rarely about incremental
innovation, rather they attempt to
pursue more disruptive innovation.
"Companies must give managers of
disruptive innovation free rein to
realize the technology's full potential -
even if it means ultimately killing the
mainstream business.”
(Bower / Christensen, 1995)
Transformational, Disruptive, Faster –
Expectations of Corporate Innovation are Changing
© Copyright innogy SE / innogy Innovation Hub

3. Business
Modell
Innovation
The innogy Innovation Hub – a Startup Centric Innovation Process
GOAL: create new revenue streams
Disruptive
& Expo-
nential
Work
with
Startups
Beyond
Energy
innogy
In the past: design thinking process
Now: startup centric process
Reason: speed & commercial potential
CURRENT INNOVATION PROCESS
1.
Define
opportunity
space
2.
Scout &
select
startups
3.
Evaluate
startups &
build new
business
4.
Grow
new
com-
panies
© Copyright innogy SE / innogy Innovation Hub

4. 4
What is an Opportunity Space?
Many different names out there …
Opportunity Spaces become Crucial for Startup Centric Innovation
Focus Area
Growth Area
Search Field
Innovation
Field
Opportunity
Mapping
Why important?
INTERNAL: give strategic direction and
help to align and guide purpose and scope
EXTERNAL: attract startups, talent and
partners via storytelling
Urban
FarmingSmart
Buildings
e - Mobility Personal
Data
© Copyright innogy SE / innogy Innovation Hub

5. 4. COMPANY
SPACE
Our Approach – Opportunity Spaces are the Match of 4 Spaces
(1) Description of problem worth solving
What can we solve for whom ?
(2) Outline of possible solution space
Can we deliver unique solutions ?
(3) Why it is worth our while
How do we make money with it ?
(4) Why innogy
What can innogy bring to the table ?
1. PROBLEM
SPACE
2.
SOLUTION
SPACE
3.
BUSINES
S
SPACE
Opp.
Space
© Copyright innogy SE / innogy Innovation Hub

6. Example 1: Opportunity Space 'Personal Data' (selection)
4. COMPANY
SPACE
[Problem space]: Consumers with a digital life style not getting
the full benefits of their personal data while privacy concerns
are growing.
1
PROBLEM
SPACE
2. SOLUTION
SPACE
[Solution space]: Looking for partners (startups) with solutions/
business models that put the consumer back in control over
their personal data and enable them to get clear benefits from
their data,
- e.g. through monetizing of their personal data or
- personalized services and advice. “My data in my hands.”
3.
BUSINESS
SPACE
81% of Europeans feel that
they do NOT have complete
control over their personal
data online.
Eurobarometer, 2015.
OS

7. Example 2: Opportunity Space 'Urban Farming' –
no Problem - Solution Match
4.
COMPANY
SPACE
1
PROBLEM
SPACE
2.
SOLUTION
SPACE
3.
BUSINESS
SPACE
PILOT PROJECTS
In show rooms, restaurants,
supermarkets
URBAN GROW SPACES
Infarm, GrowX, Urban Fresh Foods
LIFESTYLE PRODUCTS
Click&Grow, Freshsquare, Sprouts.io,
Ikea, Grove
PRIVATE FOOD PRODUCTION
Agrilution, Urban Cultivator
Urbanisten - Aquaponic
FOODPRODUCTION
FOODCULTURE
BUSINESS
CONSUMERS
NO BUSINESS-CASE SCALABILITY?
'TOYS ONLY'
HIGH COST
LOW PRODUCTIVITY
NO PROBLEM – SOLUTION MATCH
BECAUSE: serious in-home private food
production is driven by natural, organic
and DYI motivation, while solutions
with business opportunity are technical
and digital.
Empty
SPACE
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8. © Copyright innogy SE / innogy Innovation Hub
8
Opportunity Space Process – Spiraling Iterations
Challenges in building
opportunity spaces:
• Should be lean & fast
process but needs to be
grounded and evidence-
based.
• All four spaces are
interdependent but we
need to keep a clear user
focus
• Right granularity and level
of detail of OS description
hard to determine.
How we do it:
• Instead of linear process
starting simultaneously
from all four angels/
corners.
• In one brainstrom session
a first version can be
formulated as hypothesis
– then explored, deepened
and validated.
• Further Iterations make it
tighter at each round.

9. © Copyright innogy SE / innogy Innovation Hub
9
A Process not without Challenges
In the Good Old Days:
+ step by step process
+ clear time and resource
+ clear results and deliveries
Spiral approach:
+ going in iterations
+ continuously input from multiple
players
+ speedy & multi-sided results
Let’s make sure we spiral up rather than
go round in circles!
•

10. © Copyright innogy SE / innogy Innovation Hub
10
Outlook and discussion
1. How do Opportunity Space guide your daily
work?
2. Should opportunity spaces have strong future
driven vision?
3. Do we need a standard format for Opps Spaces?

11. Contact partners
innogy SE – innogy Innovation Hub · Presentation Guidelines 11
Nicole Reinhold
User Insights Consultant
T +4915254596828
Nicole.reinhold@innogy.com
Heinrich Schwarz
Innovation Consultant
T +49151 5802 9355
Heinrich.schwarz.extern@innogy.com