• organisational dynamism
• cross-sectoral collaboration
• outcomes-based budgets and long-term horizons
• dynamic public-private partnerships
Mazzucato also promotes the larger idea that solving these societal challenges will require a major rethinking of the role of government in our lives - both at home and abroad . But by reshaping the government and economies in a way that puts the public purpose first , it therefore puts all of us in a better position to solve those challenges that truly matter to the people . Not just the problems facing the major corporations or those with the top 1 % of all wealth - but the people living and working in the same communities that we do .
Although it is hard to imagine governments have the capacity to lead and innovate change without the impact of significant large-scale crisis . Mazzucato suggests that “ The task is neither to pick winners nor give unconditional handouts , subsides and guarantees , but to pick the willing ”.
It may well be a good strategy to “ pick the willing ” to effect institutional change . At the very least Mazzucato ’ s work explains why our political system has lost its way in leveraging the public benefits of capitalism .
SYSTEMS INNOVATION The world is changing in profound ways as we transition from disconnected to connected and moving from silos to networks . We face challenges and opportunities as traditional reductionist thinking fail to solve our increasing complex problems . New networked approaches are now needed to better meet the social , economic , and environmental challenges of the 21st century .
Systems innovation is a combination of systems thinking and the process of innovation to enable transformative change within a complex system . The three aspects of systems thinking , innovation , and complex systems provide a holistic paradigm that enables us to look at , analyse and talk about whole systems , rather than simply looking at their parts . This new approach to thinking is being globally promoted by Systemsinnovation . io which consists of a network of organisations dedicated to promoting education and training resources for systems innovation .
Systems Thinking System thinking is about creating a mental model to interpret and predict changes in the real world . As all models are conceptual and therefore not perfect . Mental models enable us to create , test and refine our ideas before we apply our thinking in the real world .
The Cabrera Research Lab provides resources and insights into system thinking . Derek Cabrera , the founder of Cabrera Research Lab has identified four simple patterns of systems thinking as : 1 . Distinction – making distinctions between and among ideas . 2 . Systems – organising ideas into systems of parts and wholes . 3 . Relationships – identifying relationships between ideas . 4 . Perspective – taking many perspectives on any idea .
The regular application of these thinking structures assists with understanding complex problems and avoiding the application of inappropriate simplistic frameworks .
Innovating Systems Innovation is about responding to the existing environment . Staying relevant in a changing world . It provides a new solution that adds values and allows us to adapt . When considering innovation , we often think of things in isolation . We have been good at building better parts and closed forms of incremental innovation whilst ignoring its system . We can build a better solar panel but have no need to consider the energy system of which it is just one part .
As we move from the industrial age to an age of information , globalisation , and sustainability , we will need innovation that changes systems rather than just improving isolated parts . The design challenge is moving from building things to building systems . In a world of increasing people wanting more goods and services , we need to organise these needs better . For example , systems innovation would not look to build a better school , it would focus on innovation that would transform the way people learn .
AirBnB is a good example of systems innovation . It did not necessarily “ create a better hotel .” Instead , it redefined the way we think about hotels . Similar to what Uber has done to Taxis . They didn ’ t perfect the existing system - instead , they restructured it and re-invented it from a systems view .
FINAL THOUGHTS The Purpose Economy begins to put people back in the centre of why the economy exists . It is probably the most profound shift driven by the impact of decentralised information networks . These networks will continue to empower the individual in the marketplace . Business can no longer ignore the interests and needs of their customers and employees if they wish to survive in the long term .
Transformational Finance is a new opportunity created by the emerging decentralised finance marketplace where purpose-driven investors can align themselves with purpose-driven systems . This paradigm is still very experimental but is the beginning of a new financial ecosystem that could drive new investments in sustainable economic development .
Public Mission is a timely political critique that provides insights into the failure of capitalism to distribute wealth for public good . The tensions of increasing financial inequity are going to define the success or failure of future economic growth . Unless market forces re-balanced the public private good , the social impacts are going be highly disruptive and too significant to ignore .
Systems Innovation challenges how we think . The evidence is clear that we need a fast transition into a more sustainable economy . We need to move from building better parts within existing systems to building better systems . This requires us to learn new patterns and thinking models to innovate our ideas . If we view this challenge through the old system lens , we will choose the ideas that will diminish the future of our children and the planet .
ABOUT THE AUTHOR
ROBERT PRESTIPINO Robert Prestipino is a Passionate Design Thinker and Project Innovator for those seeking to create better places for people , business , and the planet . He is a qualified Urban Designer , Registered
Landscape Architect , corporate member of the Planning Institute of Australia and an Australian Certified Economic Developer . His advice on design and sustainable development is highly regarded , resulting in his invitation as the keynote presenter at TEDxGympie on the theme of regional innovation .
VOL 14 NO 2 2021 48 www . edaustralia . com . au