Katrien Barrat - Duurzaam innoveren in 3 stappen

We believe transforming the climate crisis into a restorative economy is urgent, smart and profitable.Futureproofed presentation

Tuesday 30 October 12

We deliver bold, sustainable business solutions for energy, transport and food creating value today and tomorrow.


verwachtingen op flip

mijne : duurzaamheid: waarom, wat en hoe ?

noot : nl sessies over verschillende dagen : nu veel info


1

Duurzaam innoveren ?

- Waarom en wat ? -Voorbeelden en waar zit de markt ?

1u

sense of urgency => sense of opportunity


World Economic Forumin collaboration with :

Marsh & McLennan Companies Swiss Reinsurance CompanyWharton Center for Risk Management, University of PennsylvaniaZurich Financial Services

Global Risks 2011Sixth Edition An initiative of the Risk Response Network

World Economic Forum January 2011

Climate changemost important risk

of next 10 years

(January 2011)

WORLD ECONOMIC FORUM


Figure 1 | Global Risks Landscape 2011: Perception data from the World Economic Forum’s Global Risks Survey

Economic RisksAsset price collapseExtreme commodity price volatilityExtreme consumer price volatilityExtreme energy price volatilityFiscal crisesGlobal imbalances and currency volatilityInfrastructure fragilityLiquidity/credit crunchRegulatory failuresRetrenchment from globalizationSlowing Chinese economy (<6%)

Environmental RisksAir pollutionBiodiversity lossClimate changeEarthquakes and volcanic eruptionsFloodingOcean governanceStorms and cyclones

Societal RisksChronic diseasesDemographic challengesEconomic disparityFood securityInfectious diseasesMigrationWater security

Geopolitical RisksCorruptionFragile statesGeopolitical conflictGlobal governance failuresIllicit tradeOrganized crimeSpace securityTerrorismWeapons of mass destruction

Technological RisksCritical information infrastructure breakdownOnline data and information securityThreats from new technologies

Econ

omic

impa

ct (b

illion

$)

Likelihood of occurring in the next 10 years


Haïti Dominican Republic

The climate project

Ecosystem services:“interest” onnatural capital

Living systems (capital)Ecosystem services (interest)

Ecosystem services

• Water purification• Flood management• Pollination• Buffering extreme weather• Soil formation• Photosynthesis:

CO2 to O2

Ecosystem services


Source: University of Alaska - Fairbanks/INE, 2007


Risk of water shortage

Risk of coastal flooding

Millions at risk in 2080s3500

3000

2500

2000

1500

1000

500

0

350

300

250

200

150

100

50

01,0°C 1,5°C 2,0°C 2,5°C 3,0°C

Hun

ger,

mal

aria

, floo

ding

(mill

ion

peop

le a

t ris

k)

Risk of hunger

wat

er s

hort

age

(mill

ion

peop

le a

t ris

k)

Global temperature increase above pre-industrial (°C)

Risk of malaria


-20

-15

-10

-5

0

5

10

15

20

25

30

2000 2050

0

11

-10-15

10

26

billio

n to

n CO

2 / y

ear

Emissions Absorption In atmosphere


0

4

8

12

16

20

USA Russia Belgium E.U. China India Target1,2

2,0

6,0

10,0

12,3

16,0

20,0

The global challenge is immenseto

n C

O2

e/ p

erso

n*ye

ar

-90 % by 2050


FACTOR 10IS

NECESSARYPOSSIBLE

ATTRACTIVEPROFITABLE


From Dan Esty “Green to Gold”

short term(more certain)

long term(less certain)

Boost upside

Reducedownside

Revenues Intangibles

Costs Risks


Arup Drivers of Change cardsTuesday 30 October 12

VISIONWITHOUT

EXECUTIONIS

HALLUCINATIONTHOMAS EDISON


Large scale consumption mapping covering 74% CO2 impacts households and 43% budget

20%

17%

6%Energy

Transport

Food 16%

31%

27%

74% CO2 households 43% budget households

CO2 Budget

A B

----

----

scope 1 & 2

transport van personen

scope 1 & 2

televisie thuis

scope 1 & 2

niet energie

Fermob colors

materialen & diensten

transport van personen

energieverbruik

vaste activa

vracht

direct afval - water

afval verpakking producten

niet energetisch

Future-proofed

Future

proofed

Understanding consumption shifts within these 3 sectors is important for both environment as business success.


1. spend less money on transport

2. concern over environmental impact

3. spent less time in traffic jams

53

56

83

% Belgian consumers

Solving top 3 concerns mobility is good for both climate and business


HOW ?

Reduce need for transport

Combine transportation needs

Reduce need for energy : make vehicles lighter

Use renewable sources (energy & materials)


Replacing business travel by high-definition, low-latency telepresenceBoosting productivity: cutting costs, time, fuel, stress, and carbon

CISCO


From globalized analog production to direct digital local productionSuperior properties with dramatically reduced time, costs, carbon and resource use.

MELOTTE


© 2011

World Economic ForumSupply Chain Study 2009

≡ 24% of good vehicles in the EU are running empty

≡ Average loading of the rest is 57%≡ Overall efficiency: 43%≡ Flow imbalance could only explain half

of this loss

For how long?


Carpooling for cargo


1. keep prices under control

2. urgently find alternatives

3. less environmental impact45

52

84

The energy provider solving the top3 concerns wins most market share today

% Belgian consumers


HOW ?


Using less RenewablesCascade

“ESCO”


Price, packaging and labels are fundamentally sustainability concerns.

1. Stabilise food prices

2. Healthy food with clear labeling

3. Less packaging57

60

70

% Belgian consumers


FAO Food Price Index1990 – June 2012

2002 – 2004 = 100

1990 1995 2000 2005 2010

Source: The Food and Agriculture Organization of the United Nations, 2012

50

100

150

200

Two record food price spikes within three years

2013

?

And another this year? Already,

Corn and soybean futures are at

record highs and still increasing


Brightfarms: rooftop farms at grocery retailerscutting time, distance, costs, carbon and water from produce supply chain

URBAN AGRICULTURETuesday 30 October 12

Walmart Colruyt

Supply chain

control

Choice editing


VISIONWITHOUT

EXECUTIONIS

HALLUCINATIONTHOMAS EDISON


Changing consumption scale0 5 10

21% New Consumers8-10

Kick off the change

49% Future Switchers6-8

Are open for change if secure

30% Conservatives0-3

Hold on to existing Will change when everyone else has


Conservatives

New ConsumersFuture SwitchersConservatives

21%

49%

49%

30%


30% conservatives

• Anxious, poor self-confidence - identity comes from the group

• Focus on myself, ego-centric attitudes, escapism,

• Status quo, avoid risks, safety, routine ...

• The world is ending ... but it is not my fault : withdrawal, uninvolved

• Status, security, luxury, materialism

Socio Demographics

Gender : 55% FemaleLanguage : 68% DutchRegion : 67% Nielsen 1-2

The typical conservative is a young insecure Flemish girl, holding on to what she has.


13%

10%

12%

29%

23%

12%

18%

35%

30%

16%

22%

40%

Even if significantly less effective behaviour changes, still important potential of this group requires new products as well

% Past Behaviour % Current Behaviour % Future Behaviour


49% Future Switchers

• Group, bonding, human, social

• Still with distinct sense of direction, on the move, open minded, confirmation

• Security, routine, evidence, proofLittle push in the back, take away the risk, labels

• Family, home, simplicity, at ease

• Conscious, involved, responsibility

Socio Demographics

Gender : mixedLanguage : 54% DutchRegion : 20% Nielsen 3

and 5

Future Switchers want to make the difference as a group. Take away all risks and you will get them to act.


29%

19%

23%

36%

47%

21%

37%

47%

83%

35%

48%

60%

Vast majority will accelerate changed behaviour in energy. Also food is 1 out of2. For mobility, changes will be initiated by New Consumers first.



• Made it, ambition, can do and influence, change maker & driver

• Dynamism, positivism, extravert, outgoing, social >< internal locus of control

• Straightforward, requires transparency, reliability, stability, responsibility, expertise

• Realism, pragmatism, hands-on solidarity, rational planner

21% New Consumers

Socio Demographics

Gender : 54% menLanguage : 53% FrenchRegion : 31% Nielsen 3

and 5

New consumers are babyboomers who have made it, are convinced things need to change and will influence others


27%

17%

24%

42%

70%

42%

57%

65%

97%

72%

77%

77%

This is less about inspiring and much more about engaging.



Changing consumption scale0 5 10




Apply different market levers pending segment maturity

Kick off the changeAre open for change if secure

Hold on to existing Will change when everyone else has

Seeing=

Believing=

Doing

Make it simple,

accessible, low risk

Comply withcomfortzoneMore serviceLower price


Understand the levers for successful communication

Rat

iona

lEm

otio

nal

You prescribe them You inspire them They screen youAdult-to-child

communicationAdult-to-adult

communicationAdult-to-adultco-creation

OpportunityNecessity

Educational

NurturingSecurity

Reassurance

SimpleMatureOpen

Guidance

AspirationalSocial bonding

Involvement

TransparantExpertisePragmaticAnalytic

CommittedEmpowered





2

Duurzaam innoveren ?

- Hoe ? -In 3 stappen: denkkaders

A. StrategieB. Vermarkten


Hoe zal duurzaamheid uw business significant impacteren ?

- Stap 1 en 2 -

€ x x

Hoe kan business innovatie duurzaamheid significant impacteren ?

20min uitleg40min oefening

leidvragen : niet exhaustief

voorbeeld op echte case in bundel


1 Bedrijfslocatie zelf

2 Uw keten

3 Uw klant/de klant van uw klant


Scope 1&2 CO2 emissions Scope 1&2&3 CO2 emissions

x20

x50 and more...


GOOD BAD FIRM INTENTIONS

1 Bedrijfslocatie zelf

€



Hoeveel % van uw kosten zijn grondstofkosten en energie/water ?

Is de visie van uw bedrijf duidelijk ? Zijn de waarden duidelijk en worden

die nageleefd ? Hoe inspirerend is de visie van uw

bedrijf ?

Kent u uw CO2 uitstoot, weet u waar de belangrijkste focus ligt om deze te

verminderen ? Idem voor water ?

Kent u de relatie tussen CO2 uitstoot en uw winst ? Weet u hoe u uw afval

kan gebruiken voor productie van energie ... of als nieuwe grondstof ?

Houdt u rekening met prijsstijgingen en alternatieven ?



€

2 Uw keten



Wat zijn uw belangrijkste afhankelijkheden van leveranciers/

partners ?Hoe evolueren grondstofprijzen ?

Hoe bindt u deze belangijke leveranciers/partners aan u ?

Hoe worden zij geïmpacteerd door duurzaamheid ?

Hoe controleren uw klanten u : tot hoever moet u kunnen instaan voor

leveranciers ?

Zijn er alternatieven voor uw belangrijkste grondstoffen ?

Zijn concurrenten nieuwe samenwerkingen/consortia aan het

opzetten ?

Hoe evolueren de grondstofprijzen voor uw concurrenten ? Legt u hen cradle2cradle maatregelen op (kan

u) ?



€



3 Uw klant/de klant van uw klant

Welke 20% klanten/projecten doen 80% van uw omzet >< winst ?

Welke marktsegmenten ontbreken en zouden belangrijke omzet kunnen

betekenen ?

Hoe voelen zij ‘duurzaamheid’ ?

Wat kan u bieden om hun probleem op te lossen ?

Kunt u uw eigen duurzaamheidsinitiatieven makkelijk

omschrijven en geloofwaardig maken ?

Wat doen uw concurrenten, zijn er indicaties dat zij innoveren/

partneren ?Slagen ze / wat zijn hun

moeilijkheden ?

Bent u de markt voor ? Is er nog onvoldoende rechtstreeks voordeel aan uw duurzaam product lost het wel ook een klantenprobleem op ?

Creëert uw duurzaam product niet elders een probleem ?

Voor u aan cradle2cradle toe : heeft u eerst gedacht aan materialen-

efficiëntie ?


40 min oefening

in 3 groepenop 1 voorbeeld (of 2)


Duurzame product innovatie

Wat en hoe communiceren ?

- Stap 3 -

inzicht x propositie x storytelling x activatie

20min uitleg40min oefening


Activation

Storytelling

Proposition

Insight

4. How do you get your consumer to act and buy ?

3. How do you tell your story for maximum appeal ?

2. What is your proposition ? How does it solve your customer’s problem ?

1. Which customer problem/job do you solve ? What is the customer insight ?


Every successful business gets something done for someone.

Activation

Storytelling

Proposition

Insight

#1. Insight


“People don't want to buy a quarter-inch drill.

They want a quarter-inch hole”

Theodore Levitt -1975

What job/problem do you solve ?Tuesday 30 October 12

For who (first) ?


Getting under your customers’ skin

5 min individual exercise


What if job could be done faster-cheaper-with more guaranteed output ?

pains gains

fearsfrustrationsobstacles

wants/needsmeasures of success


2 people present : try to make 1 sentence in customer words “what if I ...”


#2. Proposition

Every successful business offers a single minded,

new, relevant and credible solutionto offer the target segment’s

problem

Activation

Storytelling

Proposition

Insight


What is a proposition? • Your offering told in 5 or 10 words max (proposition is not

slogan)

• In terms of communications, a proposition should lead to the right words that pull the right people in

• It is the promise I can deliver with my core business

• Should be credible, new, true and relevant for your audience and fit with your insight


How to come up with a proposition?1. Title :

Max 5-10 words, basic idea – written last, no publicity language

2. Accepted consumer belief: “what if I could ....? ”

Need/ problem identified in your market : customer words !(unsolved question/ existing frustration)

3. My single-minded unique and relevant benefit (solving the problem)

1. Rational benefit (functional)

2. Emotional benefit (consequence for people)

4. Reason to believe:

1. Convincing arguments why this solves the problem in a unique way

2. 2 – 3 most important reasons to buy the product


proposition

Why will they buy this product and not another ?

why YES

whyYES

whyYES

whyYES

whyNO

whyNO

whyNO

whyNO

EMOTIONALRATIONAL



Exercise• Title : (max 7 words)

..........................................................................................

• Customer problem/job you need to solve : (customer words)....................................................................................................................................................................................

• How you solve it : ..............................................................................................................................................................................................................................................................................

• Rational benefit : ........................................................................................................................................................................

• Emotional benefit : ........................................................................................................................................................................

• Reasons to believe you : (what makes it relevant and credible)

1. ....................................................................................

2. ....................................................................................

3. ....................................................................................

10 min individual exercise10 min : 2 people present


#3. Storytelling

Good storytelling helps us making our proposition spread and stick

Activation

Storytelling

Proposition

Insight


How to come up with good storytelling ? • Brands use storytelling to make their proposition worth remembering,

make it spread and make it stick

• What is your ‘business as unusual’? And what’s your heritage?

• What group of people has a potential self-interest to spread your story?

• In what larger societal tendency or bigger ideal are we playing a contributing role?

• Who’s my personality? The product, the brand or the company?

• What’s my plot? Connection, challenge or creativity?

• What’s my metaphor?


StorytellingWhat do you want your customer to …

Think

Feel

Say

Do



storytelling

Tell the story so it draws attention and they want to know more

story in about 7 words

key usp key fact

key quote key image



#4. ActivationBeing around at the right moment,

at the right time and place Activation

Storytelling

Proposition

Insight


activation

get

Info chann

el

info chann

el

purchase

channel

purchase

channel

keep

lock-in

intimacyMGM

&NPS

delight

increase

upgrade &

X-sell

service &

maintain

replace &

dispose

recurring

usage

What are the different touchpoints over the customer’s lifetime ? Do you know them and exploit them all ?



activation - prioritisation


We deliver bold sustainable business solutions for energy, transport and food

@katrienbarratTuesday 30 October 12

Katrien Barrat - Duurzaam innoveren in 3 stappen

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Transcript of Katrien Barrat - Duurzaam innoveren in 3 stappen