tommi lampikoski: creating value through corporate sustainability - the four games of green...

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Creating value through corporate sustainability- the

four games of green innovation

Tommi Lampikoski

RAMSE Consulting

23.10.2014

SITRA Event

Management ConsultingSince 1993

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Argument 1.

Sustainability is disconnected

from business innovation

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“ Many Finnish and international firms-in relation to their

corporate sustainability activities- have majority of people

working in the communications department”

Director, KoneCranes

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“ It took us 10 years to realize, that sustainability needs to be

wedded with business”

Hannah Jones, Nike’s sustainability leader

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“Incremental green innovations will not get us there…

How do you create game changing innovations?”

Insight from managerial interviews

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Argument 2.

Value creation via mastering

four games of green innovation

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Key concepts

Strategic

innovation

Game-changing innovation

in products, services,

business models, or

positioning vis-a-vis

competitors to improve

performance.

Strategic

game

Set of activities that create

and capture value in new

ways and which determines

a firm’s performance in the

face of a strategic

innovation.

When a company performs

new value-chain activities,

or performs existing ones

differently, it is playing new

games.

Playing

games

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Value creation playground for green innovations

Radical

Innovation

Game

Clarity

Game

Collaboration

Game

Rationality

Game

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Summary of the games

Rationalitygame

Collaborationgame

Radicalgame

ClarityGame

Innovationtype

Evolutionary Evolutionary Revolutionary Revolutionary

Emphasis ProductivityValue systemimpact

Exploration &unlearning

Rewriterules

Focus ofchange

Practices &products

Scale

Business models & breakthrough technologies

Ecosystems &industries

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Rationality

Game

“Value creation via eco-efficiencies"

Emphasizes productivity

& cost savings through

eco-efficiency

Incremental improvements

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Rationality

Game

Source: www.gm.com

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Nokia reduced the size of packaging of its mobile phones

€500 million savings annually

Rationality

Game

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Collaboration

Game

“Value creation via scaling sustainability practices”

Collaboration to adopt and

scale sustainability

Evolutionary innovation

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Collaboration

Game

$250 million raised to fight aids

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Radical

Innovation

Game

“Value creation via radical experimentation”

Challenges dominant mental

models and assumptions

Pursues access to new

markets & business

opportunities

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Radical

Innovation

Game

Challenge lazy & institutionalized practices

“Americans spend more on potato chips than the government

spends on clean energy research and development” .

John Doerr, Kleiner Perkins, 2009, 2010

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Radical

Innovation

Game

source: interview with author Andrew Winston

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Clarity

Game

Clarified vision and purpose

Institutionalized sustainability

Solving game changing

challenges

“Rewriting the rules of an industry”

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Clarity

Game

Which US company has a twenty-year compounded

annual growth rate of 23 Percent?

(Hint: It is not Southwest Airlines)

Business started with 7 cows and one man in 1980s

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Clarity

Game

From zero to plus $400 million business

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Key takeaways

1. “Incremental green

innovations will not get

us from here to there”

3. Experiment and

master the games

2. Key to success

and long term survival

Radical innovations

and breakthroughs

4. Innovate like you

give a damn

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“The more you know the less you need”

Yvon Chounaird, Founder, Patagonia

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tommi.lampikoski@ramse.fi

phone + 358 40 353 8311

www.vihrea-aalto.fi

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Management ConsultingSince 1993

Solutions for Renewal

Bertel Jungin aukio 7

02600 Espoo, Finland

www.ramse.fi