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The presentation of Tommi Lampikoski, lead consultant of Ramse Consulting, at Sitra's Road to carbon neutrality -event.
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1 © RAMSE1
Creating value through corporate sustainability- the
four games of green innovation
Tommi Lampikoski
RAMSE Consulting
23.10.2014
SITRA Event
Management ConsultingSince 1993
2 © RAMSE
Argument 1.
Sustainability is disconnected
from business innovation
3 © RAMSE
“ Many Finnish and international firms-in relation to their
corporate sustainability activities- have majority of people
working in the communications department”
Director, KoneCranes
4 © RAMSE
“ It took us 10 years to realize, that sustainability needs to be
wedded with business”
Hannah Jones, Nike’s sustainability leader
5 © RAMSE
“Incremental green innovations will not get us there…
How do you create game changing innovations?”
Insight from managerial interviews
6 © RAMSE
Argument 2.
Value creation via mastering
four games of green innovation
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Key concepts
Strategic
innovation
Game-changing innovation
in products, services,
business models, or
positioning vis-a-vis
competitors to improve
performance.
Strategic
game
Set of activities that create
and capture value in new
ways and which determines
a firm’s performance in the
face of a strategic
innovation.
When a company performs
new value-chain activities,
or performs existing ones
differently, it is playing new
games.
Playing
games
8 © RAMSE
Value creation playground for green innovations
Radical
Innovation
Game
Clarity
Game
Collaboration
Game
Rationality
Game
9 © RAMSE
Summary of the games
Rationalitygame
Collaborationgame
Radicalgame
ClarityGame
Innovationtype
Evolutionary Evolutionary Revolutionary Revolutionary
Emphasis ProductivityValue systemimpact
Exploration &unlearning
Rewriterules
Focus ofchange
Practices &products
Scale
Business models & breakthrough technologies
Ecosystems &industries
10 © RAMSE
Rationality
Game
“Value creation via eco-efficiencies"
Emphasizes productivity
& cost savings through
eco-efficiency
Incremental improvements
11 © RAMSE
Rationality
Game
Source: www.gm.com
12 © RAMSE
Nokia reduced the size of packaging of its mobile phones
€500 million savings annually
Rationality
Game
13 © RAMSE
Collaboration
Game
“Value creation via scaling sustainability practices”
Collaboration to adopt and
scale sustainability
Evolutionary innovation
14 © RAMSE
Collaboration
Game
$250 million raised to fight aids
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Radical
Innovation
Game
“Value creation via radical experimentation”
Challenges dominant mental
models and assumptions
Pursues access to new
markets & business
opportunities
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Radical
Innovation
Game
Challenge lazy & institutionalized practices
“Americans spend more on potato chips than the government
spends on clean energy research and development” .
John Doerr, Kleiner Perkins, 2009, 2010
17 © RAMSE
Radical
Innovation
Game
source: interview with author Andrew Winston
18 © RAMSE
Clarity
Game
Clarified vision and purpose
Institutionalized sustainability
Solving game changing
challenges
“Rewriting the rules of an industry”
19 © RAMSE
20 © RAMSE
21 © RAMSE
Clarity
Game
Which US company has a twenty-year compounded
annual growth rate of 23 Percent?
(Hint: It is not Southwest Airlines)
Business started with 7 cows and one man in 1980s
22 © RAMSE
Clarity
Game
From zero to plus $400 million business
23 © RAMSE
Key takeaways
1. “Incremental green
innovations will not get
us from here to there”
3. Experiment and
master the games
2. Key to success
and long term survival
Radical innovations
and breakthroughs
4. Innovate like you
give a damn
24 © RAMSE
“The more you know the less you need”
Yvon Chounaird, Founder, Patagonia
26 © RAMSE26
Management ConsultingSince 1993
Solutions for Renewal
Bertel Jungin aukio 7
02600 Espoo, Finland
www.ramse.fi
