Sustainable Innovation

The innovation discipline has an opportunity to go far beyond the optimization of products and services from a sustainability perspective. Innovators have an opportunity to reduce revenue risks and seize market opportunities for their respective organization by applying a consistent sustainable innovation framework...Sustainable Development is most commonly defined as development that “meets the needs of current generations without compromising the needs of future generations to meet their own needs,” (Brundtland Commission, established by the United Nations in 1983).  In practice corporations have interpreted and shaped this definition into today’s working model of Corporate Social Responsibility, which generally includes 3 components:  Social Responsibility, Governance, and Environmental Responsibility.  More commonly referred to as ‘People, Profits, Planet’, Corporate Social Responsibility is still in its infancy as a way to inform and guide corporate strategy.

To date, the role of sustainability in Product Development and Management has centered around existing product and service portfolios:
•    How can we make our products with fewer or more environmentally or socially sensitive inputs?
•    How can we reduce the environmental impact of our products in distribution, use and disposal?

These activities are generally consistent with the profit motive, as they generally reduce operating expenses or improve the market appeal of products and services.  PDMA members have done much to advance the cause of sustainability by asking these questions and responding accordingly.  But are these efforts enough?  How can or should the PDMA take a leadership role in creating and advancing a Body of Knowledge around Sustainable Innovation? Can we define the best practices, value creation strategies, policies, and processes to help the innovation discipline reduce anthropogenic climate disruption and improve social well being?

The Role and Responsibility of the Innovation Discipline
The innovation discipline has an opportunity to go far beyond the optimization of products and services from a sustainability perspective.  Innovators have an opportunity to reduce revenue risks and seize market opportunities for their respective organization by applying a consistent sustainable innovation framework to inform product portfolio, market, corporate, production processes, service delivery, supply chain, and other strategies.  Corporation-specific answers to questions that could be addressed by the application of such a framework could include:
•    What threats to our revenues are posed by increasing consumer interest in environmental and social responsibility?
•    What options and substitutes available to our customers are more sustainable than our solutions?
•    What is the size of the opportunities offered by more sustainable product options and business models?
•    How should our product portfolio change to minimize sustainability-related revenue risks and seize sustainability-related revenue opportunities?
•    What role should environmental and social responsibility play in setting research objectives?  Product development guidelines?  R&D resource allocation?  Portfolio decisions?
•    Can materials specifications be implemented into our product and production innovation processes that will systematically improve our environmental and social performance over time?
•    How can we ensure that we are maximizing the value of our efforts through marketing and messaging?

The framework for such a strategy development process could look something like the diagram below, with market drivers prioritizing a corporation or business unit’s sustainability ‘Point of View’.  Using available levers, capabilities, and metrics, the ‘Point of View can be developed into a defined Sustainable Innovation strategy, ready for execution across an enterprise:

What do you think?
Please help us build the Body of Knowledge on Sustainable Innovation by letting us know what you think of this post.  Do you have a contrary or confirming experience?  Questions on Sustainable Innovation for your peers’ consideration?    Challenges or success stories you’d care to share?

I’m Interested in Growing the Body of Knowledge on Sustainable Innovation.  How can I do more?
The PDMA is organizing an effort to establish a Special Interest Group (SIG) on Sustainable Innovation.  The Sustainable Innovation SIG will consider whether and how to establish standards for Sustainable Innovation.  If you are interested in participating as a thought leader or have questions please comment below or contact Paul Alvarez, Principal and Practice Leader at MetaVu, at 303-679-8340 or pja@metavu.com