Utilities need to innovate . Next-Gen Tech needs business opportunities . Together , they can create shared value with the end user at the heart of it . But , asks Sietske Jacobs , how do we make innovation accessible to all players ?
In their ‘ Creating Shared Value ’ article , published in the Harvard Business Review in 2011 , Michael Porter and Mark Kramer argued that companies can go beyond corporate social responsibility and gain competitive advantage by including social and environmental considerations in their strategies .
According to them , treating societal challenges as business opportunities is the most important new dimension of corporate strategy and the most powerful path to social progress .
And in their subsequent Harvard Business Review article ‘ The Ecosystem of Shared Value ’, they stated : “ Shared value results from policies and practices that contribute to competitive advantage while strengthening the communities in which a company operates .
Companies can create shared value in three ways : by reconceiving products and markets ; redefining productivity in the value chain ; and strengthening local clusters .”
Shared value and the energy industry are intrinsically linked . We are moving to a world where we want to consume less and in a more distributed and green way by offering solutions that add value to society as a whole . This is a business opportunity for companies by positioning themselves as technology partners that can help to create a prosperous energy sector and enable society to thrive .
But how do you innovate and create your innovation funnel when your core business is being disrupted and margins on electricity prices are decreasing ?
There is a clear need for innovative solutions which are often being developed by new ventures that are not bound by the history , legacy and corporate structure of large organisations . The industry needs new innovative technology and the new tech needs to find business partners that can sell their products and services .