Toolbox Sustainability-Driven Innovation Matrix - IMIN Helsingborg 2024

The Sustainability-Driven Innovation Matrix
The Sustainability-Driven Innovation Matrix, also known as the Next Agents’ Holy Grail, is a process and visualization tool. The tool maps out where an organization is and where that organization wants to go in terms of Sustainability and Innovation capabilities.

This simple but powerful 2 by 2 matrix has a plot of 7 steps for both Sustainability and Innovation capabilities, as well as an underlying 3 step progress to drive transformation all the way from “Operation Efficiency”, to “Organisational Transformation”, to “Ecosystem Symbiosis”.

In this workshop, led by Fernanda Torre, you will get an introduction to the tool and how to use it in a workshop setting.

2. Sustainability-driven
Innovation Matrix
Impact Innovation Summit Helsingborg
18th September 2024
[email protected]

3. Different perspectives

4. Holy Grail
The Sustainability-driven Innovation Matrix
helps organizations understand where they are,
by assessing current practices and creating a
vision for integrating sustainability and
innovation.
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5. The Axis
Sustainability
Innovation
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6. The Axis –
MaturityLevels
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
Synergizing
Basic
Improving
Sustainability
None
Innovation
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7. The Axis –
MaturityLevels
Maturity LevelDescription Level on SustainabilityDescription Level on Innovation
None
No sustainability efforts or awareness;
operations are purely profit-driven
without environmental or social
considerations.
The organization operates in traditional
ways with no effort to innovate.
Basic
Awareness of sustainability issues
exists; some basic measures (like
compliance with regulations) are in
place but not fully integrated.
Some incremental innovations, typically
driven by necessity (cost reductions, small
improvements).
Improving
Incremental steps are taken to reduce
environmental impacts and improve
social responsibility, but it’s not a core
driver.
The organization starts investing in more
structured innovation processes to
enhance existing products, services, or
processes.
Advancing
Sustainability is becoming embedded
in processes and strategies, with
measurable goals being actively
pursued.
Innovation is part of the culture, with a
focus on new business models,
technologies, or markets.
Differentiating
Sustainability is a strategic
differentiator, driving significant
competitive advantage and innovative
offerings.
Innovation is core to the company’s
identity, consistently delivering cutting-
edge solutions that differentiate from
competitors.
Leading
The organization is at the forefront of
sustainability, actively shaping industry
standards and influencing others.
The organization is seen as a global
leader in innovation, setting new trends
and leading transformative projects.
Synergizing
Full integration where sustainability is
inseparable from innovation, fostering
industry-wide or global-scale impact
through collaborations and shared
value.
Innovation is interconnected with
sustainability, delivering breakthrough
solutions that create a larger positive
impact on the environment and society.
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8. Sustainability-driven
Innovation Matrix
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
Synergizing
Basic
Improving
Sustainability
None
Innovation
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9. As one of the biggest drivers for
change and innovation -technology
research is a core field of research
TECHNOLOGY
Trends and shifts in market find their
expressions in phenomena in culture
and society.
SOCIETY & CULTURE
Especially driven by the need for a
sustainable development and this
particular point in time to make
change -sustainable solutions are a
focal point for Next Agents.
SUSTAINABILITY
From large systems mega trends and
developments to hyper local micro
expressions all accumulate to an
informed perspective .
GLOCAL PERSPECTIVES
All changes in these observed dynamics are influencing
decisions, behaviours and norms of your customers and
employees and therefore are vital to the success of
companies.
BEHAVIOUR & EXPERIENCE
Where are you?

10. Guiding questions

11. Guiding questions
Maturity LevelsSustainability Guiding QuestionsInnovation Guiding Questions
None
Sustainability is not on the
agenda and no innovation
efforts exist.
•How does the current business model account for long-term
environmental risks?
•Could ignoring sustainability create future operational or
reputational risks?
•What internal or external resources could help begin
addressing basic sustainability concerns?
•Are there any external threats or opportunities that could
prompt the need for innovation?
•How is the organization managing risks associated with a
lack of innovation?
•Are competitors gaining a market advantage through
innovation?
Differentiating
Sustainability- driven
Innovation is a core
differentiator in the
organization’s strategy.
•How can sustainability initiatives (e.g., circular economy
models, zero-waste processes) be leveraged as a market
differentiator?
•What innovative social programs can be introduced to
address inequities or improve employee well-being, beyond
compliance requirements?
•What governance policies can ensure that sustainability is a
core part of decision-making at the board level?
•What radical or disruptive innovations are being
pursued that align with broader sustainability goals?
•How is the organization maintaining flexibility to adapt
and evolve its innovation strategy?
•How are stakeholders involved in shaping and driving
the innovation agenda?
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12. Sustainability-driven
Innovation Matrix
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
Synergizing
Basic
Improving
Sustainability
None
Innovation
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13. Sustainability-driven
Innovation Matrix
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
SynergizingOperational
Efficiency
Basic
Improving
Sustainability
Innovation
Organisational
Transformation
Ecosystem
Symbiosis
None
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14. Sustainability-driven
Innovation Matrix
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
SynergizingDoing good
by Doing the
Same Things
Better
Basic
Improving
Sustainability
Innovation
Organisational
Transformation
Ecosystem
Symbiosis
None
Operational
Efficiency
Doing good
by doing New
Things
Doing good
by doing New
Things Better
with Others
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15. Whereareyou?
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
SynergizingDoing good
by Doing the
Same Things
Better
Basic
Improving
Sustainability
Innovation
Organisational
Transformation
Ecosystem
Symbiosis
None
Operational
Efficiency
Doing good
by doing New
Things
Doing good
by doing New
Things Better
with Others
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16. OperationalEfficiencyActivity examples:
Organization Level:
•Use available tools such as environmental management systems
and life cycle analysis to integrate sustainability into processes.
•Adopt sustainable supply chain management practices and ensure
suppliers are operating sustainably.
Solution Level:
•Use design tools to redesign products to address sustainability
considerations: e.g. dematerialization
•Reduce materials’ impacts and products’ energy consumption
•Pollution controls, flexible work hours, waste diversion, renewable
energy adoption, elimination of hazardous materials, optimized
product weight for shipping.
Innovation Characteristics:
•Inward-focused innovation, primarily for internal
cost reduction and profit maximization.
•Mostly stand-alone innovations that are not
integrated into the firm through departments or
functions.
•Techno-fix solutions: focusing on new
technologies to mitigate issues without disrupting
the business model.
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17. Operational Efficiency
Paptic
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18. OrganisationalTransformation
Activity examples:
Organization Level:
•Rethink internal units and silos, and use industry knowledge to
address new products in new markets
• Integrate future-thinking and scenarios into both the innovation
and sustainability process, to understand the long-term
consequences of solutions according to different climate
scenarios.
Solution Level:
•Adopt a servitization strategy: supplement or replace products
with services
•Search for product innovation ideas in new areas: e.g. use
biomimicry and engage with bottom-of-the-pyramid customers
Innovation Characteristics:
•Disruptive and socio-technical innovations that
improve the quality of life and address societal
needs.
•Integrated innovations that are integrated into
the firm not only on the different departments,
and functions, but also vision and strategy.
•Collaboration with external stakeholders but still
maintaining a strong internal organizational focus.
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19. OrganisationalTransformation
Lignode–Stora Enso
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20. EcosystemSymbiosisActivity examples:
Organization Level:
Derive new value propositions from entire socio-technical and
ecosystem value network to make a positive impact with an inclusive
business
Engage in institutional dialogues and proactively drive change within
your industry through advocacy and lobbying.
Solution Level:
Companies sharing resources, such as one company using another’s
waste glass for construction materials (Industrial Symbiosis). Crete a
solution with partners that addresses value creation aspects that you
could not address alone
Be attentive to disruptive and systems-changing innovation
happening elsewhere.
Innovation Characteristics:
Technological innovation gives way to greater socio-
technical innovation
Fully Integrated innovations that are integrated not
only in the firm but also within partners.
Partnerships that extend beyond traditional business
boundaries, leading to radical collaboration.
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21. EcosystemSymbiosis
Ogoori
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22. As one of the biggest drivers for
change and innovation -technology
research is a core field of research
TECHNOLOGY
Trends and shifts in market find their
expressions in phenomena in culture
and society.
SOCIETY & CULTURE
Especially driven by the need for a
sustainable development and this
particular point in time to make
change -sustainable solutions are a
focal point for Next Agents.
SUSTAINABILITY
From large systems mega trends and
developments to hyper local micro
expressions all accumulate to an
informed perspective .
GLOCAL PERSPECTIVES
All changes in these observed dynamics are influencing
decisions, behaviours and norms of your customers and
employees and therefore are vital to the success of
companies.
BEHAVIOUR & EXPERIENCE
In a workshop

23. Map where you are
and where
you want to go
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
Synergizing
Basic
Improving
Sustainability
Innovation
A
None
B
C
C
A
B
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24. Strategic
portfolio allocation
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
SynergizingWhat are we
doing here?
Basic
Improving
Sustainability
Innovation
Organisational
Transformation
Ecosystem
Symbiosis
None
Operational
Efficiency
What are we
doing here?
What are we
doing here?
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25. Competitors
and threats
Synergizing
Leading
Differentiating
Advancing
Improving
Basic
AdvancingDifferentiating
Leading
SynergizingCompetitors
& threats
Basic
Improving
Sustainability
Innovation
Organisational
Transformation
Ecosystem
Symbiosis
None
Operational
Efficiency
Competitors
& threats
Competitors
& threats
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26. Holy Grail
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28. As one of the biggest drivers for
change and innovation -technology
research is a core field of research
TECHNOLOGY
Trends and shifts in market find their
expressions in phenomena in culture
and society.
SOCIETY & CULTURE
Especially driven by the need for a
sustainable development and this
particular point in time to make
change -sustainable solutions are a
focal point for Next Agents.
SUSTAINABILITY
From large systems mega trends and
developments to hyper local micro
expressions all accumulate to an
informed perspective .
GLOCAL PERSPECTIVES
All changes in these observed dynamics are influencing
decisions, behaviours and norms of your customers and
employees and therefore are vital to the success of
companies.
BEHAVIOUR & EXPERIENCE
The best time to plant a tree was
20 years ago.
The second-best time is now.
Chinese proverb

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Sustainability-driven
Innovation Matrix
Complete toolbox:
https://www.nextagents.se/tools/
Reach out! :
[email protected]

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