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Innovations for SustainabilityIntegrating Stakeholders into the Innovation Process
Environmental Management Leadership SymposiumUniversità Bocconi, Milano8th & 9th June 2009
Michele ArouchMarianne Esders
Workshop.
Sustainability Innovation Process
Multi-Stakeholder Integration
R&D /Prototyping
Potential innovation
Idea generation
Invention phase
Introduction Dispersion
Realisation & adoption phase
Realised innovation
Market Arena
Competitors /Suppliers
Civil SocietyNGOs
Scientific Arena
Political and Legal Arena / Government
Workshop.
Some of the main questions arising within this context:
1a) How can the sustainability innovation process benefit from stakeholder integration?
• Where can which stakeholders be supportive for what?
1b) What are the risks and challenges to be aware of?
2)What are the skills and actions necessary for a sustainability manager to successfully utilize cross-sector initiatives for sustainability innovation?
Market Arena (Competitors, Suppliers, Consumers)
Consumers• push governments and companies to do more on sustainability issues
• require labelling of products with indicators on environmental standards
Suppliers• give the companies their ideas on innovation for sustainability
• collaborate with other suppliers on more environmentally friendly production processes
Market Arena (Competitors, Suppliers, Consumers)
Competitors• Innovation through a collaborative effort between competitors – alliances, clusters
Govnernment / Political / Legal Institutions
• Fund research
• Support universities and research institutes
• Provide financial incentives for eco-friendly behaviour
and products
• Implement taxes and laws
• Support the bank system for low investment loans
• Bring different stakeholders together
• Provide platforms for information sharing purposes (e.g.
a website)
• Integration of different countries (e.g. within the EU)
Research Institutes / Universities
• Provide skilled people by having education programmes
like the Master in Environmental Management
• Support business by doing research for them
• Provide students
• Provide the framework for sustainability
Civil Society / NGOs / Media
• Press governments to restrict standards and laws
• NGOs can be a reference point for the companies
• Provide their knowledge on sustainability issues
• Media can inform and educate the people on
sustainability issues (e.g. Lifegate)
• Media can support knowledge sharing and promoting
sustainable innovations
Risks of Stakeholder Integration
• Every stakeholder group makes other stakeholder groups
responsible for solving the problem
• Not every stakeholder likes to share knowledge – free
rider problem
• Knowledge spill-over – loss of competitiveness
• Increasing costs
• Time constraints
• Distribution of power between the different stakeholders
Skills of the Environmental / Sustainability Manager
• Negotiation and communication skills
• Patience
• Interdisciplinary background to speak the stakeholders‘
„language“
• Not only integrate external stakeholders but also
integrate the different functions within the organisation
(R&D, production, marketing, finance, packaging, etc.)
Conclusion
• Many risks of stakeholder inclusion• Make sure you choose the right stakeholders and the right timing to involve them• Innovation for sustainability cannot take place without the support of many stakeholders. • Isolated R&D efforts cannot become a market success if they are not supported by stakeholders affected.• Definitely not only external stakeholder integration is needed but internal integration of functions and top management commitment need to be worked on as well.
Conclusion II
Milano is a great city with great food and great people and great students!!!!
Thank you!