Open Innovation @ Mainstream

Eur Ing John P. Shaw BE MBA CEng MIEI SMIEEE MISA

CIO

Mainstream Renewable PowerJohn.shaw@mainstreamrp.com11.10 – 11.30 Wednesday 13 June 2012

Dublinked Open Innovation Event Wed 13 June 2012

Introduction

Mainstream’s business

is all about

Innovative Sustainability

Successful Innovators

are Open Disruptive Innovators with

Strong Management Processes

Sustainable Cloud

is on the way

• Mainstream’s Vision

• Mainstream’s Innovation Culture

• Mainstream’s IT Innovation

• Sustainable Cloud

Open Innovation @ Mainstream

• Mainstream’s Vision

• Mainstream’s Innovation Culture

• Mainstream’s IT Innovation

• Sustainable Cloud

Open Innovation @ Mainstream

Vision

Mainstream Renewable Power was founded by Dr. Eddie O‟Connor in February 2008.

“ Our vision

is of thriving economies and communities

liberated from the restrictions of fossil fuels,

using

renewable energy

as their

mainstream source of power. “

These 4 key drivers influence the pace of the transition to sustainability

Mainstream develops, constructs and operates large-scale Wind and Solar projects.

The world is experiencing a once-off historical transition to sustainable fuels: Each one of our

195 countries must go through it.

4 fundamental issues drive this transition ;

•Climate change

•Ever-increasing Demand for Energy

•Rising Fossil Fuel Prices

•Energy Security

Driver 1 :

Climate Change

“British adventurer and swimmer Lewis Gordon

Pugh has become the first person to swim in

the icy waters of the North Pole.”

16 July 2007

2011 : 2nd Biggest Arctic Ice Melt in Recorded History

In 2009 China surpassed US to become world’s largest Energy Consumer

Driver 2 :

Exploding Global Demand for Energy

•China is adding 100,000 MW to it‟s grid annually

•Equivalent to „ Adding Germany „ each year

•By 2030, China & India will add „ 23 Germanys „

Driver 3 :

Rising Fossil Fuel Price

General JN Mattias, USMC

March 2010

Richard Branson, Virgin

Ian Marchant, SSE

February 2010

1,600% Oil Price Rise 1997 – 2007..... Will it do it again by 2020 ?

Driver 4 :

Security of Supply

European Commission has intervened to catalyse the switch to Sustainable Energy

Source: Allianz 2010

Source: EGL 2007

Europe will become dependent on large Gas

Imports, Cash Outflows without EC

intervention...

... Via a Continent-wide Grid for Natural Gas

yet no equivalent for Electricity exists yet

Crisis, what crisis ?

A transition to Sustainable Energy permanently extracts us from the Energy Crisis

Government Policy

Project Development

Project Construction

Asset Operation & Maintenance

3 Revenue Streams = Profit

from sale

Long-term

O&M contract

Asset out-

performance fee

Sustainability as a business is what we do at Mainstream : large wind & solar.

Mainstream’s business model spans 4 key areas ;

Mainstream’s Business Model

Recycle

Cash

For New

Projects

A sustainable pipeline of Renewable Energy Projects secured

845 MW : Canada

994 MW :Chile

420 MW : Scotland

4,086 MW : South Africa

6,000 MW : England

Mainstream’s 14,000+ MW Projects’ Pipeline

Offices

Offshore

Onshore

1,000 MW : Germany

947 MW : USA

11 Office, 150 Employees, 8 Countries

The Big Picture

“...We can get 100 percent of

our energy from wind, water,

and solar (WWS) power. And

we can do it today—efficiently,

reliably, safely, sustainably, and

economically...

...The obstacles to this

transformation are primarily

social and political, not

technical or economic...”

Dr Mark Delucchi

University of California

IEEE Spectrum

September 2011Supergrid is the key technology for this transformation

230,000 MW Wind Power installed globally by December 2011

25 % of this in China

20 % in USA

12 % in Germany9 % in Spain

Wind50%Solar

30%

Other Renewables10%

Nuclear10%

Supergrid is the key enabler for the Renewable Energy Future

1,800,000 MW of installed Wind Power needed

• Based on projected 2050 energy

requirements

200,000 MW from Onshore Wind : the limit

• Europe is the most crowded Continent

1,600,000 MW from Offshore Wind

• Plenty of space to grow further

• Achievable at €3,600,000.00 per MW

Investment :

• €5.8 Trillion for Offshore Wind Turbines by 2050.

• €0.6 Trillion for associated Offshore transmission

and distribution: Supergrid.

Where is the Wind Resource?2050 Energy Mix

Europe’s Energy Mix in 2050

Europe’s Supergrid in 2050

Dr Eddie O’Connor, Mainstream Renewable PowerSupergrid LaunchLondon, March 2010

7 Innovation Trajectories are needed;

1. Bigger Wind Turbines

2. HVDC Transmission Cables

3. Supernode

4. Next-Generation Civil Engineering

5. Bigger Construction Vessels

6. Bigger Ports

7. Better IT:

• Intelligent Market for Energy

• Risk Management & Modelling

• Real-time Pervasive Monitoring

An inevitable transition to sustainability with 7 Innovation Trajectories

An electricity transmission

system,

mainly based on HVDC

designed to

facilitate large scale sustainable

power generation in remote

areas

for transmission to

centers of consumption,

thereby

enhancing the energy market

Supergrid Consortium

The consortium represents companies and organisations with a

mutual interest in promoting the policy agenda for the Supergrid.

CEO Ana Aguado run the Consortium which exists to accelerate

the Supergrid via a 5 point strategy:

1. Develop Standards

2. Create Offshore Transmission Operator

3. Establish EU Regulations

4. Create Single Electricity Market

5. Establish legal basis for trading

The Consortium has 23 members

Surveying & Modelling the Sea

Wind Turbine Control Systems

Hi-Speed Wireless Communication

Power Distribution Management

Supernode Power Controls

Monitoring & Controlling Risk

Reduce Project Risk & create the Intelligent Market

Innovation # 7 :

Better IT

• Mainstream’s Vision

• Mainstream’s Innovation Culture

• Mainstream’s IT Innovation

• Sustainable Cloud

Open Innovation @ Mainstream

Innovation ?

Source:

WikipediaInnovation drives our civilisation

Innovation is the creation of better products, processes, services or ideas that are readily available to society.

Innovation differs from Invention in that innovation refers to the use of better and novel ideas or methods whereas invention

refers to the creation of the idea or method itself.

Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the

same thing better.

Open Innovation ?

Open Innovation = a Virtuous Helix of Public + Private + Academic

Open innovation is a paradigm that assumesOrganisations can use external and internal ideas, and internal and

external paths to market, as the organisations look to advance their technology

Open Innovation is Innovating with partners by sharing risk and reward

Prof Henry ChesbroughCenter for Open Innovation

University of California, Berkeley

Disruptive Innovation ?

Disruptive Innovation is challenging and exhilarating

A disruptive innovation helps Create a new market and

eventually disrupts an existing market, displacing an earlier technology

Source:

Wikipedia

What are the Ingredients for success ?

Open Disruptive Innovation fails the Cross the Chasm without 3 key ingredients

EC Innovation Index 2011:

Finland is consistently in the “ Innovator Leaders “ since the mid-1990s

http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovation-scoreboard/index_en.htm

“ All of the innovation leaders have higher than average scores in

Public-private co-publications per million populations,

which suggests good linkages between the science base and enterprises. “

Source: Innovation Union Scorecard 2011

Ingredient #1 : The Virtuous Helix

What’s so special about Finland?

Finland is no accidental success

A focus on Science….. .…. An Integrated, Free Education System from Birth to PhD

Ingredient #1 : The Virtuous Helix

Open Innovators are different.... .... And can be Identified in Aptitude tests

We can all learn from the Great Innovators

Ingredient #2 : The Right People on the Bus

THE INNOVATOR’s DNA : HBR May 2012

5 Key Traits of the Innovator

1. Associational thinking: I creatively solve challenging

problems by drawing on diverse ideas or knowledge.

2. Questioning: I often ask questions that challenge others'

fundamental assumptions.

3. Observing: I get innovative ideas by directly observing how

people interact with products and services.

4. Idea Networking: I regularly talk with a diverse set of people

(e.g., from different functions, industries, geographies) to find and

refine new business ideas.

5. Experimenting: I frequently experiment to create new ways

of doing things.

Source: HBR, Jeff Dyer, Hal Gregersen, and Clayton M. Christensen

Sometimes you’ll meet an exceptionally Disruptive Innovator

Ingredient #2 : The Right People on the Bus

The Course of History is set by the Unreasonable Man

Dis

cip

lin

e

Innovation

Start Up

Bureaucracy

Hierarchy

Great

Organisations

Good to Great

(http://www.jimcollins.com/)

Ingredient #3 : A Culture of Innovation

Great Organisations have a Structured Innovation Processes

Innovation Culture can be measured by Outcomes

Culture ?

Organizational culture is

the set of values and beliefs

shared by an organization's members.

How can we “ see “ Culture ?

Values

AssumptionsBeliefs

BehaviorVISIBLE

INVISIBLE

Ingredient #3 : A Culture of Innovation

Strategic planning

Management leadership

Vision

Portfolio management

Collaboration

Rewards and recognition

Funding and resource allocation

Acceptance of risk taking

Roles & responsibilities

Capability development

Strategy

&

Management

Process,

Tools, and

Metrics

People

&

Culture

Frameworks

Processes

Measurement & communication of value

Assessing Innovation Culture ( scale of 1 – 5 )

Culture is ...

The way we do things around here

Innovation Value Institute

( http://ivi.nuim.ie )

Innovative Values form the Foundation of an Innovative Culture

Values inform our inner motivation

Mainstream VISION

To lead the global transition to sustainable energy

Ingredient #3 : A Culture of Innovation

Mainstream MISSION

To increase our customers‟ renewable energy portfolio, safely, profitably, efficiently and reliably by working with them to deliver their needs with

innovation, respect and entrepreneurial spirit

Mainstream VALUES

Safety : A safe environment for our people

Sustainability : A sustainable approach to everything we do

Teamwork : Working together to deliver more

Respect : Personal respect for everyone we deal with

Entrepreneurial approach : find solutions others can‟t see

Innovation : seek novel ways to deliver technology & services

Customer Service : focus on customer service excellence

Backed up with Strong Management Processes

Innovation Management Discipline differentiates the Winners

Ingredient #3 : A Culture of Innovation

Innovation Value Drivers Innovation Management Process

Backed up with Leadership

Leadership always differentiates the Winners

Ingredient #3 : A Culture of Innovation

1. Set a vision and goals for Innovation in your group

2. Assess the current state of Innovation

3. Purposefully execute an innovation plan that builds on innovation strengths and breaks down barriers that inhibit Innovation

4. Enact the right level of innovation training and enabling tools for your organization

5. Effectively communicate your innovation vision and plan

6. Use performance management as a key innovation driver

7. Visibly show passion for Innovation; role model the behaviors you want to drive; expect the same of your leaders

8. Measure progress to goals

9. Reward and recognize innovation results

10. Repeat these 10 steps

Innovation Value Institute

( http://ivi.nuim.ie )

Thought Leaders on Open Disruptive Innovation?

6 Inspirational Books on Open Disruptive Innovation

Ingredient #3 : A Culture of Innovation

• Mainstream’s Vision

• Mainstream’s Innovation Culture

• Mainstream’s IT Innovation

• Sustainable Cloud

Open Innovation @ Mainstream

Remember this guy ?

Imaging the future in 1959 wasn’t easy, it is still difficult.....

What is IT Innovation ?

Invention

Combining existing technologies in new architectures

Improvements

Incrementally improving service levels

Unique creation

Introducing new products and systems

Value creationDeploying and realizing value from new IT

technologies services

Novel implementation

Supporting new business models through IT

Problem solving

Delivering efficient solutions to business needs

Innovation Value Institute

( http://ivi.nuim.ie )

Inc

rea

sin

gly

Cre

ativ

e:

WO

W!

Inc

rea

sing

ly Im

me

dia

te: N

OW

!

IT Innovation = a tension between the WOW and the NOW

Mainstream’s Business Context

A company operating exclusively in the Renewable Energy Sector

A New company, established in early 2008

A company operating Globally, 11 offices in 8 countries

A company growing fast, a Big Company by 2014

Secure, Accessible IT Services are key to the success of Mainstream

A Secure, Sustainable IT Strategy delivered via a Structured Process

Geospatial

Information

Project

Management

Business

Intelligence

Document Management

Predictive Performance

Finance & HR

Customer Relationship

Management

Asset Management

Key Innovation: 8 Integrated Business Systems to deliver Value

Deal

Making

A Single Version of

the Truth

ValueBusiness Need Integrated Business Systems

Faster Decision-

Making

Increase Personal

& Team

Productivity

Cash generation &

Management

Efficient Work Flow

Project

Execution

Collaboration &

Fast Replication

1. Innovative IT Vision : Focus on Business Value

Primary Datacenter : Eircom CityWest DR Datacenter : Eircom Clonshaugh

Dublin, Ireland Office

Toronto, Canada Office

Chicago, USA Office

Santiago, Chile Office

4 ‘small’ Offices:

London,

Glasgow,

Berlin,

Capetown

SCHEMATIC PARTNERS

• Microsoft : Software

• Eircom-Orange : Communications

• HP -DSS : Hardware

STANDARDS

• Microsoft : 32 Products

• HP : Client & Infrastructure h/w

• Cisco : Data Communications

• Intel : Infrastructure Architecture

PRINCIPLES

• Align with SERA

• Understand what you Outsource

• Build for global growth

• Build for 24 x 7 availability

• Build for Security : ISO27001

• Single User Signon

• Standardise components

• Configure not customise

• Partner with 4 Strategic IT vendors

• Service Level Agreements

Key Innovation : A Private Cloud built for High Availability & Security

2. Innovative IT Execution : Focus on Delivery

Business Technology Projects Forum

Finance

Business Technology Council

OffshoreDevelopment

ProjectManagers

System Owner

IS PMO

Business Technology Council Tollgate Program Management

Monthly

Weekly

This Council meets monthly to agree where investment is needed in Business Technology.

This is aligned with a Business Technology Projects forum which tracks projects progress and escalates issues for decision

OnshoreDevelopment

IS SHEQTechnicalServices

1.

Initiate

4.

Go-Live

Verification

3.

Build &

Test

Tollgate 1 Tollgate 2 Tollgate 3

2.

Plan &

Design

5.

Operate

Tollgate 4

All Business Technology Projects are managed using a 6 Phase 5 Tollgate Modeldesigned to trap issues early and improve the quality of the delivered Solution :

Projects Progress is tracked and communicated weekly to all stakeholders.

New Projects are force-ranked against a set of business criteria;

1. Project Payback2. Support Business Growth3. Innovation4. Reduce Business RiskA Plan of Record is maintained, high-lighting the

strategic plan behind all projects.

The Governance Model delivers Business Value via; 1. Business Technology Council ; Business led

2. Tollgate Program Management ; clear steps, clear outcomes3. Focusing on Business Benefits 4. Prioritising Projects around Business Needs : Growth, Cost Reduction5. Tracking all projects consistently: Progress, benefits, costs

6.

Benefits

Harvest

Tollgate 5

Key Innovation : Tollgates to fast-track progress

3. Innovative IT Controls: Focus on Service

IT Innovation enables Sustainable Business Activities

IT Innovation 2008 - 2011

Inc

rea

sin

gly

Cre

ativ

e:

WO

W!

Inc

rea

sing

ly Im

me

dia

te: N

OW

!

Private Cloud Minimises Energy

Combining existing technologies in new architectures

Strategic IT Partnerships Deliver Value

Incrementally improving service levels

Electronic Workflow reduces Paper

Introducing new products and systems

Video Conferencing Reduces TravelDeploying and realizing value from new IT

technologies services

Managed Print Reduces Ink

Supporting new business models through IT

PCs are Energy Efficient

Delivering efficient solutions to business needs

4 key IT Innovations delivered by 2015 :

An Integrated Sea Information System ( ISIS ) reduces project risk

Wind Turbine Control Systems are highly available

The Supergrid avails of advanced Digitisation

Sustainable Energy powers Cloud Datacenters

IT Innovation to accelerate Sustainable Renewable Energy

IT Innovation 2012 - 2015

• Mainstream’s Vision

• Mainstream’s Innovation Culture

• Mainstream’s IT Innovation

• Sustainable Cloud

Open Innovation @ Mainstream

What if we miss the Next Big Thing ?

We need to understand the 4 Mega IT Trends of 2030.....

Mega-Trend #1 : Democratised IT for 5 Billion users

In a world of 15 Billion microprocessors

Energy Costs have risen for ICT Organisations;

$ 7.00 the annual recurring energy cost for every $1,000.00 invested in Datacenter kit, in 2000.

$ 1,000.00 the annual recurring energy cost for every $1,000.00 invested in Datacenter kit, in 2010.

Source:

Bathwick Group

Energy Drivers:

• In 2000 ICT organisations didn’t talk about Energy: by 2010 Energy was firmly on the Agenda

• This change was driven by reduced cost for Hardware, increased price in energy

• What are the 3 attributes of an effective Energy Strategy for an ICT Organisation?

– Guaranteed Secure Energy Supply

– Guaranteed Fixed-Price Energy Supply

– Guaranteed Green Energy Supply

Mega-Trend # 2 : Energy Dominates the IT Debate

Company Proprietary & Confidential Information Sustainability Challenge meets Cloud Challenge

Mega-Trend # 3 : The Internet of Everything

The Future is already here, only it is not evenly distributed William Gibson

An Exploding demand for Data:

An increasingly Digitised world via Pervasive Monitoring

Highly Democratised IT drives demand for data

The Oil Crunch will influence IT Strategy, Cloud Strategy

A Digitised Renewable Sector :

New Renewable Energy Infrastructure is highly-data Intensive

Digitised decision-making drives demand for more data

What this means for any enterprise:

The IT experience at work must match or exceed that at home

Inevitable Public Cloud via New, Big, Sustainable Datacenters

The Cloud will host civilisation’s exponential growth in data demand

Mega-Trend # 4 : Cloud Computing is Everywhere

Gartner’s 10 year view : Cloud Hype-Cycle

Software as a Service is Maturing

Sustainable Cloud ?

Cloud computing is the delivery of Computing as a service rather than a product, whereby shared resources,

software, and information are provided to computers and other devices as a

utility over the internet

Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social

dimensions, and encompasses the concept of stewardship, the responsible management of resource use.

Source:

Wikipedia2 Great Concepts Collide

Sustainable Cloud ?

Company Proprietary & Confidential Information

Sustainable Cloud computing is the delivery of computing as a service over the internet

in a manner which utilises renewable energy sources, energy efficient

technology and low-carbon footprint hosting facilitiesto deliver

Highly Available, Secure and Confidential Services.

Sustainable Energy + Public Cloud = Sustainable Cloud

Sustainable Cloud : National Perspective

Cushman & Wakefield : “ Data Centre Risk Index 2012 “

Where with Sustainable Cloud Data Centres be built ? Ireland is 16th, Iceland is 4th

“ Ireland falls into the

bottom half of the table for

Energy Security and Sustainability “

Sustainable Cloud : Innovative Design ?

Company Proprietary & Confidential Information

Features

1. Sustainable Cloud Service

1. Availability

2. Security

3. Confidentiality

2. Sustainable Energy Supply

1. Secure Grid connection

2. Fixed Price contract

3. Direct Energy Asset ownership

3. Sustainable Energy Distribution

1. UPS is a storage medium

2. DC powered Servers

3. DC in, DC out

4. Sustainable Energy Use

1. Energy Efficient Management

2. Virtualisation

3. Certified Devices

5. Sustainable Building

1. Low carbon Design

2. Low carbon Materials

3. Certified

The Cloud will be built on Sustainable Principles

The right Attitude helps....

Henry Ford

“Today & Tomorrow”

1926

... And don’t forget Vision

We choose to go to the moon in this decade

and do the other things,

not because they are easy,

but because they are hard,

because that goal will serve to organize and

measure the best of our energies and skills,

because that challenge is

one that we are willing to accept,

one we are unwilling to postpone,

and one which we intend to win.

President John F. Kennedy

September 12, 1962

Conclusion

Innovative Sustainability

is what Mainstream’s business

is all about

Successful Innovators

are Open Disruptive Innovators with

Strong Management Processes

Sustainable Cloud

is on the way

Mainstream ‘s Business Modelhttp://www.mainstreamrp.com/

Mainstream’s Innovation : A winner in the 2011 Computerworld Innovation Awardshttp://www.eiseverywhere.com/ehome/CWHONORS2011/35791/?&

Mainstream’ ICT Strategy: Described by Silicon Republichttp://www.siliconrepublic.com/strategy/item/14728-in-the-mainstream

Mainstream & Intel: joint White-Paper & Video on Offshore Wind Farmshttp://www.intel.com/content/www/us/en/energy/wind-turbine-availability-excellence.htmlhttp://www.youtube.com/watch?v=oOlWSWujw8s

Mainstream & Microsoft: Blog on SERA adoption & link to SERA documenthttp://blogs.msdn.com/b/mspowerutilities/archive/2010/06/24/sera-succinctly.aspxhttp://www.microsoft.com/industry/manufacturing/utilities/default.mspx ( see „Spotlight‟ Section )

Friends of the Supergrid : driving policy and standards http://www.friendsofthesupergrid.eu/

Energy Trends : Oil refinery bottleneck report from Richard Branson & from US Militaryhttp://peakoiltaskforce.net/wp-content/uploads/2010/02/final-report-uk-itpoes_report_the-oil-crunch_feb20101.pdfhttp://smallwarsjournal.com/blog/joint-operating-environment-2010

IEEE September 2011 : 100 % Renewable Futurehttp://spectrum.ieee.org/energy/renewables/wind-water-and-solar-power-for-the-

world/?utm_source=techalert&utm_medium=email&utm_campaign=092211

Fortune September 2011 : The need for a Federal Approach to Supergridhttp://tech.fortune.cnn.com/2011/09/14/the-power-struggle-for-wyomings-wind/

The Economist September 2011 : Arctic Sea Ice is melting faster than the Climate Models predicthttp://www.economist.com/node/21530079

Further Information