Lecture 11: Sustainability Oriented Innovation

Question 1

What is the definition of innovation? (Carrillo-Hermosilla)

Answer 1

Technological and social change consisting of the invention of an idea for change and its practical application

Question 2

What is the definition of innovation? (Innovation Unit UK))

Answer 2

Innovation is the successful exploitation of new ideas

Question 3

What is the difference between invention and innovation?

Answer 3

Invention

• Creation of something new with practical application
• Some but not all are patented
• Not all inventions are commercialized

Innovation

• The deduction and commercialization of novelties
• Includes products, process and organizational changes

Question 4

What are three results of innovation?

Answer 4

Innovation is driven by the ability to see connections, to spot opportunities and to take advantage of them

• Completely new opportunities
• New markets can be created
• New ways of serving

Question 5

What is creative destruction?

Answer 5

Constant search to create something new which simultaneously destroys the old rules and establishes new ones

Question 6

What are sustainability oriented innovations?

Answer 6

Realized ideas that improve environmental and social performance while simultaneously considering commercial viability

• implies directionality
• avoids confusion

Question 7

What is the difference between normal and sustainable?

Answer 7

Sustainability is a gratis side effect, environmentally beneficial normal innovations

Question 8

Conventional Innovation vs SOI

Answer 8

• Max retur vs max social impact
• customer desire vs social problem
• avoid imitation vs open access for replication

Question 9

What are the three levels of product development?

Answer 9

• Product improvement
• Function innovation
• System innovation

Question 10

Three parts to conceptualizing SOI

Answer 10

1. Novelty: incremental vs radical
2. Type: Product, Process, Position, Paradigm
3. Scope of change

Question 11

Why is radical innovation important?

Answer 11

Incremental innovations only minimize negative sustainability effects without addressing the root causes

Question 12

What is operational optimization?

Answer 12

optimized performance through increased efficiency

- techno fix

Question 13

What is organizational transformation?

Answer 13

the creation of disruptive new products and services

Question 14

What is systems building?

Answer 14

The collaboration between organizations to create positive impact on people and planet

Question 15

What are the 5 stages of innovation?

Answer 15

1. Viewing compliance as opportunity
2. Making value chains sustainable
3. Designing sustainable products and services
4. Developing new business models
5. Creating next practice platforms

Question 16

What are the passive factors against ideation?

Answer 16

Techno-instituiotnal lock in

• using old solutions due to habit
• investment decisions linked to earlier decisions
• absence of driving forces

Question 17

What are product development challenges?

Answer 17

1. added complexity
2. higher ambiguity
   May lead to products with inferior performance

Question 18

What is the double market failure?

Answer 18

1. Technological change externality

2. Environmental externality

Question 19

What are success factors for SOI?

Answer 19

1. Market law and legislation knowledge
2. Inter-functional collaboration
3. Innovation-oriented learning
4. R&D investments