Flashcards in Lecture 11: Sustainability Oriented Innovation Deck (19):
What is the definition of innovation? (Carrillo-Hermosilla)
Technological and social change consisting of the invention of an idea for change and its practical application
What is the definition of innovation? (Innovation Unit UK))
Innovation is the successful exploitation of new ideas
What is the difference between invention and innovation?
- Creation of something new with practical application
- Some but not all are patented
- Not all inventions are commercialized
- The deduction and commercialization of novelties
- Includes products, process and organizational changes
What are three results of innovation?
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
What is creative destruction?
Constant search to create something new which simultaneously destroys the old rules and establishes new ones
What are sustainability oriented innovations?
Realized ideas that improve environmental and social performance while simultaneously considering commercial viability
- implies directionality
- avoids confusion
What is the difference between normal and sustainable?
Sustainability is a gratis side effect, environmentally beneficial normal innovations
Conventional Innovation vs SOI
- Max retur vs max social impact
- customer desire vs social problem
- avoid imitation vs open access for replication
What are the three levels of product development?
- Product improvement
- Function innovation
- System innovation
Three parts to conceptualizing SOI
1. Novelty: incremental vs radical
2. Type: Product, Process, Position, Paradigm
3. Scope of change
Why is radical innovation important?
Incremental innovations only minimize negative sustainability effects without addressing the root causes
What is operational optimization?
optimized performance through increased efficiency
- techno fix
What is organizational transformation?
the creation of disruptive new products and services
What is systems building?
The collaboration between organizations to create positive impact on people and planet
What are the 5 stages of innovation?
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
What are the passive factors against ideation?
Techno-instituiotnal lock in
- using old solutions due to habit
- investment decisions linked to earlier decisions
- absence of driving forces
What are product development challenges?
1. added complexity
2. higher ambiguity
May lead to products with inferior performance
What is the double market failure?
1. Technological change externality
2. Environmental externality