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Industrial Energy Efficiency Innovation and Technology Cooperation. Anne Arquit Niederberger, Ph.D. Principal, Policy Solutions policy.solutions@comcast.net. A ssociating I nnovation.
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Industrial Energy Efficiency Innovation and Technology Cooperation Anne Arquit Niederberger, Ph.D. Principal, Policy Solutions policy.solutions@comcast.net
Associating Innovation [We need a practical 21st Century development model that connects the dots between the key issues of our time] UN Secretary GeneralBan Ki-moon
BUSINESS MODEL INNOVATION –BEYOND EFFICIENCY • “Lower carbon” today…truly “low-carbon” tomorrow? • Need disruptive innovation • Culture of innovation: • Aspire to transformational, not incremental change • Adopt new behaviors and think differently • New business models Source: 2012 China Energy Saving Service Industry Report
Conventional Business Models Fundamental approaches to create, deliver and capture value respond to powerful drivers
Fertilizer Production Transformational model addresses multiple challenges simultaneously, benefits farmers,eliminates food vs. fuel
“Innovator’s DNA” Christensen, Clayton M.; Jeff Dyer; Hal Gregersen (2011-07-12). The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators. Harvard Business Review Press. Innovation Premium Proportion of a company’s market value that cannot be accounted for from cash flows of its current products or businesses in its current markets
Lighting Services Transformational model integrates LED as infrastructure to enhance efficiency of building-energy system
“LED-Fueled” Efficiency Power Plants 65% of urban population in SSA is electrifiedEvery kilowatt-hour of powerusedrepresents a fiscal lossto utilitiesBulk procurement of LED can turn loss profit
Best Use of Scrap Tires? • TransformationalapproachAvoids 0.8 tCO2e/t scrap tires compared to co-incineration Incremental approach Arquit Niederberger, Anne, Shiroff, Samuel, Raahauge, Lars (2012): Implications of Carbon Markets for Implementing Circular Economy Models. ICAE 2012 (Suzhou)
Does your company foster a culture of innovation? • Is disruption part of your innovation portfolio? • Are small project teams central to taking innovative ideas to market? • Are employees encouraged to take smart risks (and learn from failure) in the pursuit of innovation? • Is innovation everyone’s job? Business model innovation cantransform industries and catalyze broader systems change