Social InnovationIn a world riddled with economic uncertainty, increasing geopolitical
asymmetry, and new business models that threaten to disrupt or even
collapse individual companies or even entire industries, leaders find it
increasingly challenging to plot a forward course...
To meet these challenges, innovation is no longer a simple strategic option,
it is a global imperative. But how will we innovate to meet these growing
human and society challenges, with new business models, products and
services that make sense for corporations and benefit each global citizen?This Whitepaper has been developed by Frost & Sullivan in conjunction with Hitachi, Ltd.Frost & SullivanFS_fec3e7b6-b8db-11e5-a87b-cfb14630016fFrost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the
CEO and the CEO's Growth Team with disciplined research and
best-practice models to drive the generation, evaluation, and
implementation of powerful growth strategies. Frost & Sullivan leverages
over 50 years of experience in partnering with Global 1,000 companies,
emerging businesses and the investment community from more than 40
offices on six continents. To join our Growth Partnership, please visit
http://www.frost.com.Hitachi, Ltd.Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers
innovations that answer society’s challenges with our talented team and
proven experience in global markets. The company’s consolidated revenues
for fiscal 2013 (ended March 31, 2014) totaled 9,616 billion yen ($93.4
billion). Hitachi is focusing more than ever on the Social Innovation
Business, which includes infrastructure systems, information &
telecommunication systems, power systems, construction machinery, high
functional materials & components, automotive systems, healthcare and
others. For more information on Hitachi, please visit the company's
website at http://www.hitachi.com.... life-changing outcomes for society and individuals._fec3ea40-b8db-11e5-a87b-cfb14630016fTo bring together technological and human capabilities to address society's core challenges ..._fec3eb08-b8db-11e5-a87b-cfb14630016fSocial InnovationThe global imperative to innovate and address the local challenges of the
fast-moving modern world is effectively what creates the concept of
Social Innovation.
At Frost & Sullivan, we believe it's about bringing innovation to deliver
life-changing outcomes for society and individuals. It's about bringing
together technological and human capabilities from various sectors, with
technology convergence and IT as the glue that binds them together, in
order to address society's core challenges arising from the mega trends.
The last few years have seen the term Social Innovation being used
increasingly widely and our research has found many great examples of it
in action, with different firms often coming from slightly different angles.Shared ValueOn the one hand, Social Innovation has strong links to the concept of
creating shared value (CSV). CSV has a major role to play in society and
has many stakeholders -- companies, social enterprises, governments,
NGOs, charities and public sector organisations to name but a few. Several
companies have embraced and defined Social Innovation to drive their
CSV strategies and this will no doubt continue.CommunicationMeanwhile other companies operate at the intersection of CSV and
business value creation. An example here is Hitachi which focuses on
realising a sustainable society by understanding global social and
environmental expectations. This is done through communication with
stakeholders and integrating those expectations into its management and
business value creation with a strong focus on technology deployment and
innovation to answer the challenges of society. It is committed to
sustainable and profitable growth while delivering solutions that address
the needs and concerns of a diverse customer base through innovation.ConvergenceBut perhaps most interestingly of all, in spite of slight differences and
interpretations of Social Innovation, there is one common theme:
Convergence. That means convergence of technologies, industries,
products and business models, including finance. Sectors that were seen
as separated in the past are converging into new products and services
to provide innovations that will help provide breakthrough changes for
society.
In our definition of Social Innovation, Frost & Sullivan believes it is this key
element of convergence that is absolutely central. We believe convergence
will define the level of Social Innovation in the future, as well as maximising
the benefits to society.TechnologyFrost & Sullivan defines Social Innovation as the deployment of technology and
new business models to bring about real positive change to the lives of
individuals and societies, delivering shared value, be it through CSV,
profitable business or somewhere in between.BalanceUnder the definition that Social Innovation aims to achieve a sustainable
society in which environmental and economic needs are addressed in a
balanced way, companies which succeed will utilise unique and innovative
delivery methods which have not necessarily been used in specific
industries but have shown success elsewhere.RelationshipsAs social issues are the core component of innovation it requires the creation of new relationships in the decision making and delivery process.NetworkingChallenges in today's society require innovative ways of applying new
technology along with new forms of organisation and network processes
to build human and social capital.Co-ordinationThe key characteristics of delivering Social Innovation include the co-ordination and mediation between the different groups of stakeholders involved.MediationInvolvementThere is also increased involvement from the society (users, patients, citizens etc.) in the process of co-development which needs to be considered.
It takes many elements of strategy to come together to make Social
Innovation happen successfully.ProfitabilityProfitability that is sustainable to the company and society is the core component of successful Social Innovation, with various other strategic factors that contribute to its success.SustainabilityVision & EthosClearly define company vision to demonstrate sincerity, pioneering spirit, and an ethos for profitability that is sustainable to both the company and society._fec3ebd0-b8db-11e5-a87b-cfb14630016fICOMPANY VISION / ETHOS --
Those companies taking on the challenge of delivering Social Innovation
and succeeding have a clearly defined company vision which demonstrates
sincerity and pioneering spirit. In addition, profitability that is sustainable
to the company and society is their core ethos.
The companies' overall vision should be dynamic, success generating with
an entrepreneurial ethos. This stems from creative, innovative,
entrepreneurial, productive, successful and aspiring employees who have
a full belief in the vision_fec3ecb6-b8db-11e5-a87b-cfb14630016fB2S ModelCreate stakeholder focus on social parameters._fec3ed74-b8db-11e5-a87b-cfb14630016fIIBUSINESS 2 SOCIETY (B2S) MODEL --
The B2S perspective is created by a complete stakeholder focus and is a
core element of Social Innovation. It is a mixture of B2B and B2C models,
focussing to a higher degree on a number of social parameters
(environment, business ethics, etc.), more than the traditional factors such
as purely maximising profit, benefits and experience. Future-thinking
companies are going to orient themselves more towards the B2S model.
Business models which are scalable, replicable and cost effective because
of existing distribution network and structures are also advantageous in
creating successful B2S outcomes. Likewise the focus on 'value for many',
whereby the benefits are clear at a societal level, but the impact is also
clearly felt and appreciated at an individual level._fec3ee46-b8db-11e5-a87b-cfb14630016fStakeholder ManagementEngage local stakeholders and beneficiaries._fec3ef4a-b8db-11e5-a87b-cfb14630016fIIIEFFECTIVE STAKEHOLDER MANAGEMENT --
The long-term success of Social Innovation lies with the proactive
engagement of local stakeholders and beneficiaries. Crucial to this success
is the ability to understand the local impact of global mega trends and
hence adapt global vision to local strategy to address local needs. B2S
models tend to involve multiple stakeholder groups and the successful
social innovators will be those that can bring integrated solutions to deliver
clear value and benefits to the multiple interconnected local stakeholders.
Successful Social Innovations tend to occur within a cross sector context,
where different stakeholders from different sectors of society, government
or industry work together towards common goals and hence share
common benefits. _fec3f436-b8db-11e5-a87b-cfb14630016fCollaborationCoordinate and integrate of social innovation activities in national and regional socio-economic planning._fec3f530-b8db-11e5-a87b-cfb14630016fIVSocio-Economic PlannersSocial MediaMeanwhile, the growth of social media (Facebook, Twitter and many
others) has helped simplify the collaboration between people,
communities and countries encouraging successful innovation.
There are also many emerging opportunities for IT and mobile services
(m-services) to play a role in collaboration by enabling stakeholders to
work competently, effectively and efficiently, with partners, anytime and
anywhere. The trend is towards a business environment in which
communications – both real-time and non-real time – are integrated to
optimise stakeholder processes and increase productivity.CiscoOne example is Cisco and Schlumberger who have worked together to
develop a 'First Mile Wireless for Drilling (FMWD') solution for the oil and
gas industry to enable full collaboration and data sharing to deliver joint
service.SchlumbergerDanish CitizensAnother is 'NemID' – a unique digital identity developed for
Danish citizens to access government services and private services such
as internet banking and postal services.IV. COLLABORATION --
Ensuring the successful implementation of Social Innovation activities in
different countries requires the coordination and integration of these
activities in national and regional socio-economic planning. It also requires
collaborative working between the multiple stakeholders. Projects are
often large and complex, meaning that smooth delivery of innovative
integrated solutions will always require high levels of collaboration.
Public-private partnerships can also play an important role in supporting
Social Innovation, for both collaborative working and collaborative project
financing. Strengthening these global partnerships and platforms will become
increasingly effective for understanding and fostering Social
Innovation worldwide._fec3f62a-b8db-11e5-a87b-cfb14630016fConvergence & IntegrationDeliver integrated, converged and connected solutions through leverage of technology and information analytics._fec3f710-b8db-11e5-a87b-cfb14630016fVV. CONVERGENCE AND INTEGRATION --
We've already identified convergence and integration as important drivers
and enablers of Social Innovation. This means the ability to deliver
integrated, converged and connected solutions is a critical success factor,
particularly through leverage of technology and information analytics.
Mobile devices and social media have been an important driving force for
example in the Healthcare industry, particularly around the power patient
enabling faster and more informed decisions to be made. This includes
information analytics; the sharing, review and analysis of information in real
time.
With the "internet of things" (IoT), web connected products with
smartphone apps or access to social networks are increasingly becoming
important drivers for Social Innovation as they offer new solutions and
accessibility to society.InformationShare, review and analyze information in real time._fec3f7ec-b8db-11e5-a87b-cfb14630016fV.AIoTOffer new solutions and accessibility to society through the "internet of things" (IoT)._fec3f922-b8db-11e5-a87b-cfb14630016fV.B2016-01-11OwenAmburOwen.Ambur@verizon.net