Opportunity Space at the innogy innovation hub

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

Between March and October 2016, 88new 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

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


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 Farming Smart

Buildings

e - Mobility Personal Data


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


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 thatthey do NOT have completecontrol over their personal

data online.Eurobarometer, 2015.

OS

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 CultivatorUrbanisten - Aquaponic

FOO

D P

RO

DU

CTIO

N

FOO

D C

ULT

UR

E

BUSINESS

CONSUMERS

NO BUSINESS-CASE SCALABILITY?

'TOYS ONLY'HIGH COSTLOW 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


© Copyright innogy SE / innogy Innovation Hub8

Opportunity Space Process – Spiraling Iterations

Challenges in building opportunity spaces:

• Should be lean & fastprocess 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.


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!

•


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?

Contact partners

innogy SE – innogy Innovation Hub · Presentation Guidelines 11

Nicole Reinhold

User Insights ConsultantT +4915254596828 [email protected]

Heinrich Schwarz

Innovation ConsultantT +49151 5802 [email protected]

Small Business & Entrepreneurship

Opportunity Space at the innogy innovation hub