The Assessment Of Technological Product Innovations Business Essay

Thesis made

by

Minke Goes

THE ASSESSMENT

OF

TECHNOLOGICAL PRODUCT INNOVATIONS

A Thesis Presented to the Faculty

of

VU University

De Boelelaan 1105, 1081 HV, Amsterdam

Made on behalf

of

Accenture

Gustav Mahlerplein 90, 1082 MA, Amsterdam

In Partial Fulfillment

of the Requirements for the Degree

of Bachelor of Science

"Science, Business and Innovation"

By

Minke Goes, 1939963

January 2013, Amsterdam

CERTIFICATION OF APPROVAL

THE ASSESSMENT

OF

TECHNOLOGICAL PRODUCT INNOVATIONS

by

Minke Goes

_____________________________________ ______________________

Dr. P.C. van der Sijde Date

Professor of Social Science

_____________________________________ ______________________

Dr. A.T.M. van Gogh Date

Professor of Exact Science

_____________________________________ ______________________

Mrs. C. Meuwissen Date

Manager at Accenture

© 2013

Minke Goes

ALL RIGHTS RESERVED

PREFACE

I am proud to hereby present to you my bachelor thesis for the study Science, Business and Innovation. The thesis is written on behalf of the bachelor project which takes place in the graduation semester of this study. A mandatory part of this project is an internship. I did my internship at Accenture by helping with the organization of the Innovation Awards and by doing research for a better method for the selection of innovations that register for the energy industry of the Innovation Awards.

During the organization of the Innovation Awards, it was great to see all the innovations that take place in the energy industry. Because this industry is facing big challenges over the coming years due to the energy transition, it is a perfect industry for innovation.

The criteria for the assessment of the innovations that register for the Innovation Awards have to be clear, as it is important that every innovation is assessed in a fair way and that the best innovation wins. Until now the assessment of these innovations is done according to a method with no scientific base and with no clear description. In this study the main aim is to develop the criteria for a method for the assessment of innovations in the energy industry. In order to achieve this goal, this paper will address the main-question:

"On which criteria can an assessment

regarding innovations in the energy industry be based?"

I would like to thank everybody who made it possible for me to write my thesis. A project and experience that I have learned so much from.

First of all, I would like to express my sincere gratitude to my supervisor of Accenture, C. Meuwissen, for her support of my study and research, for her motivation, enthusiasm, and knowledge. Her guidance helped me during the time of my research and writing of this thesis.

Besides my supervisor, I would like to thank my mentor of the VU University, P. van der Sijde. He has given me great advice and he gave me the structure I needed to write my thesis.

I also would like to thank A.T.M. van Gogh and I.M.J. Rozendal-Vesters for their encouragement, insightful comments, and hard questions.

Last but not the least, I would like to thank all the interns that helped with the organization of the Innovation Awards. Without them, my internship would not have been the same.http://www.redhat.com/rhecm/rest-rhecm/jcr/repository/collaboration/jcr:system/jcr:versionStorage/4268619c0a070d5400bf0029a8f8fda6/1/jcr:frozenNode/rh:companyLogo

Minke Goes,

January, 2013

http://www.digitalezorg.nl/digitale/uploads/2011/11/10.jpghttp://www.dienstenmarketing.nl/wp-content/uploads/2011/09/vu_logo.jpg

EXECUTIVE SUMMARY

Innovation is a main driver for economic growth as it strengthens the competitiveness of companies. For a company innovation is not only important to be able to exceed competitors, but also to keep up with the always changing market. Even though innovation is vital for the performance of a company, it is difficult to make an assessment of an innovation.

In this study, the main aim is to develop method for the assessment of innovations in the energy industry. This goal results from organizing the Innovation Awards for the energy industry. The Innovation Awards are organized by Accenture firstly to stimulate innovation in the Netherlands, secondly to analyze the innovation trends and last because of the relevance of innovation to the clients of Accenture.

The study for the development of a new method for the assessment of innovations in the energy industry is done via literature research as well as by using data from the Innovation Awards. In order to accomplish this goal, the following main-question needed to be answered:

"On which criteria can an assessment

regarding innovations in the energy industry be based?"

One major problem in innovation research is that there is not a single definition of innovation. Due to this, innovation is a very broad and complicated topic. It is important to establish what kind of innovation is discussed in this thesis as there are a lot of different types of innovation. This paper will focus on technological product innovation, by this definition:

"Technological product innovation is the implementation/commercialization of a product with improved performance characteristics such as to deliver objectively new or improved services to the consumer. A technological process innovation is the implementation/adoption of new or significantly improved production or delivery methods. It may involve changes in equipment, human resources, working methods or a combination of these."(Oslo Manual, no date, p. 9)

For the assessment of innovation first it is important to look from different perspectives at an innovation. Secondly you have to look at marketing and/or technological discontinuities. Third, for an assessment you need both qualitative as quantitative criteria.

This paper will focus on innovations in the energy industry. This is a wide-ranging problem and therefore there are a lot of different sectors where innovation is needed. Accenture differentiates three challenges in the energy industry:

The limitation of conventional resources;

The growth of renewable energy resources

Efficiency to reduce the growth of energy demand

The innovations that this paper will focus on are innovations that provide (part of) a solution of these challenges.

For the assessment of innovations in the energy industry it is recommended to use a scoring model. This model is made according to three steps:

Determination of the criteria

Determination of the weights for the criteria

Assessment of the scores for the innovation (Coldrick et al, 2005:187).

The criteria that are found in this paper for the assessment of innovations in the energy industry are based on:

The value

The business potential

The next steps

The context of the company

The impact on the energy challenges

The scoring model provided by this thesis will help with the assessment of the innovations in the energy industry. Therefore this model will help with the selection of the best innovation, even though there is still uncertainty in the literature about the best criteria for the assessment of innovation within the energy industry. By using a meta-analysis, this paper aims to provide the best criteria to make an assessment for innovation. I would suggest that further research should be done on the topic of this thesis to eliminate the uncertainty for the assessment of innovations in the energy industry.

TABLE OF CONTENTS

PAGE

Certification of approval 4

Preface 6

Executive Summary 7

Table of Content 9

Introduction 10

PART 1: Theoretical Framework & Innovation Awards 2012 12

1. Innovation 13

Importance of Innovation 13

Types of Innovation 13

Definition of (technological product) innovation 15

Differences in technological product innovations 15

Conclusion 17

2. Innovation in the Energy Industry 18

Challenges in the Energy Industry 19

Conclusion 22

3. Assessment of Innovation Success 23

Novelty of Innovation 23

Criteria 24

Conclusion 25

4. Development of a Scorings Model 27

Scoring models 27

5. Accenture Innovation Awards 2012 28

Accenture Innovation Awards in general 28

The Energy Industry 28

Selection Process Innovation Awards 2012 29

PART 2: Development of a New Method 33

1. Introduction 34

2. Method to Collect Data 35

3. Feedback of the Innovation Awards 2012 37

4. Discussion 39

5. Conclusion & Recommendations 40

Bibliography 43

Appendix

A: Interview Andrew Smart 47

B: Trend-Analysis 51

C: Questionnaire Innovation Awards 2012 59

INTRODUCTION

Context

For the second year in a row Accenture organized the Innovation Awards for the energy industry. This event goes back to 2007, when the industry group "Communication, Media and Technology" were the first ones to give out a blue tulip as an award for the best innovation that registered for the Innovation Awards. Since then the Innovation Awards have grown to a major event that has all five of Accenture’s Customers Service Groups participate:

- Communications, Media & Technology; Consumer Goods & Services; Energy; Financial Services; and Health & Public Service - .

In 2012 the Innovation Awards were a great success as there were 1441 registrations and almost 1000 guests at the event. This makes it one of the largest innovation events in the Netherlands.

The goal of the Energy Innovation Awards is to stimulate innovation in the Netherlands as well as to analyze the trends of innovation in the energy sector. By giving an award to the best innovation, Accenture puts the companies that perform excellent regarding innovation in the spotlights. Because of the organization of the Innovation Awards, Accenture positions itself as a leader and expert in the field of innovation. Accenture wants to improve client relationships and develop opportunities by this.

overall 166

Figure : Innovation Market at the Innovation Awards, 8th of November 2012

Problem definition

A companies performance and market dynamics are affected by innovation. The concept of innovation as an important driver of economic growth and about the magnitude regarding its role in competitive markets is widely accepted (Schumpeter (Schumpeter, 1912/1934), Porter & Ketels (Porter & Ketels, 2003), De Vries (De Vries 2008), Wong, Ho & Autio (Wong, Ho & Autio 2005), among others). Hence, research has shown that only one out of four product innovations is considered a success. As innovation goes hand in hand with uncertainty and because it is generally an open-ended process, it is hard to predict whether an innovation will become a success (Stockstrom & Herstatt, 2008). Even the best companies in the area of product innovation find it hard to select the best innovations (Kim & Mauborgne, 2000).

The criteria that an innovation should be assessed on in the selection process of the Innovation Awards have to be clear, as it is important that every innovation is assessed in a fair way and that the best innovation wins. Until now the assessment of these concepts is done according to a method with no scientific base and this method is not clearly described. In this study the main aim is to find a method for Accenture to assess innovations in the energy industry. In order to achieve this goal, this paper will address the following main-question:

"On which criteria can an assessment

regarding innovations in the energy industry be based?"

In the first chapter I will provide information about innovation in general. First I will establish the importance of innovation. Secondly, I will state that there are some problems with the research that is done on innovation because there is no singe definition. In innovation research you can look at different types of innovation, therefore it is necessary to establish what type of innovation this thesis is about and what definition of innovation is used. Without this information it will not be possible to decide on which criteria you can base an assessment regarding innovations in the energy industry.

Secondly, the innovations in the energy industry will be discussed. As the energy consumption is increasing and conventional resources are running out, we need to innovate to find new sources of energy and make better use of old ones. To understand which criteria are important for the assessment of innovation in the energy industry, it is important to understand what challenges there are in the energy industry. What kind of innovation is needed for this industry?

Thirdly, the measurement of innovation success will be discussed. For the assessment of an innovation it is important to look from different perspectives. The criteria that are important for the assessment of an innovation will be discussed in this chapter. Besides this, also information about the selection method will be provided.

With this theoretical background and the data from Accenture I will find a method for the Innovation Awards for the assessment of innovations that register for the energy industry.

PART 1

THEORETICAL BACKGROUND

&

THE INNOVATION AWARDS 2012

INNOVATION

Importance of Innovation

Research shows that innovation is a main driver for economic growth as it strengthens the competitiveness of company’s (Porter, 1985). Innovation takes care of an increased productiveness and has a positive influence on turnover, profitability and employment (Guinet and Pilat, 1999). For the consumer innovation improves quality, increases variation and diversification in products. Other advantages are protection or extension of market shares, improved operational efficiency, improved reputation and cost reduction (Abernathy and Clark, 1985; Cooke and Mayes, 1996). There are also non-economic arguments for innovation, which focus on a better social and environmental corporate performance bringing an improved market position within reach (Elkington, 1997; Larson, 2000). Because of these arguments innovation is an important factor to sustain a company’s profitability over a long term.

Innovation research has mostly been concerned with understanding how innovation emerge, develop, grow and are displaced by other innovations (Hockerts, 2003). One major problem in innovation research is that there is not a single definition of innovation between researchers, policymakers and authorities (Edosomwan, 1989; Tohidi, 2011). This makes it hard to compare the research that has been done and makes innovation one of the most important and most complex issues organizations are faced with today (Tohidi, 2012).

It is important to establish the difference between an invention and an innovation as there is often a lack of clarity about the difference between these words. An invention does not become an innovation until it has processed through production and marketing tasks and is diffused into the marketplace (Dickson, 1992).

"The solution to a basic scientific puzzle or invention of a new "product" only in a laboratory setting makes no direct economic contribution. Innovation includes not only basic and applied research but also product development, manufacturing, marketing, distribution, servicing and later product adaptation and upgrading" (Smith BRL, 1996 p.1).

With respect to this quote an innovation differs from an invention as it provides economic value and is diffused to other parties beyond the discoverers.

Types of Innovation

Schumpeter (1912/1934) is regarded as a pioneer in the field of innovation. His work has greatly influenced theories of innovation (OECD&Eurostat, 2005). A summary of Schumpeter’s’ view can be found in: "Economic development is driving by the discontinuous emergence of new combinations (innovations) that are economically more viable then the old way of doing things". Schumpeter describes innovations as something that has a major effect at large scale, is –per definition- a rare event and tends to be extremely difficult to predict. Based on "The Five Forms of Innovation, with practical examples" it is possible to distinguish five different forms of innovation:

Product innovation: the introduction of a product that can be a service or a good which is new to the market

Process innovation: the introduction of a method of production which is new to an industry

Market innovation: the introduction of a new market. This can be new to the company or completely new. The innovation is due to significant changes in product design or packaging, product placement, product promotion or pricing

Input innovation; the acquisition of new sources of supply of raw or intermediate commodity

Organizational innovation: the performance of a new organization of an industry (Drejer (2004); Schumpeter (1912/1934), Oslo Manual (OECD & Eurostat, 2005)

These forms of innovation cannot be mutually excluded, as it is possible they occur simultaneously or have effect on each other in the same project. Even though more conceptual definitions of innovation and the types of innovation exist, most tend to revolve around a central theme that is similar to Schumpeter’s original concept (Drejer, 2004), they all focus on ‘novelty’ and ‘value’ as the main components of innovation.

Because in a product innovation the result is seen by the customer, this is the type of innovation is the best known. Besides that it is the one that you can measure the best due to the possibility of direct measurement of new product-development products. This is most likely the reason that the most research has been done on this type of innovation. (Manu & Sriram, 1996). Product innovations are more likely to be copied by a competitor. For manufactured products there are patents to protect the innovation, in a service industry protecting your innovation is a lot harder. Product innovations tend to be associated with a high degree of marketing effort.

Because process innovation has a lot of effect on product innovation, there has been a lot of research for this type of innovations as well. As a process innovation happens inside a company it does not include a lot of marketing effort. Process innovations tend to be hard to distinguish from product innovations.

The other forms of innovation –marketing, organizational and input- can be used to measure product and/or process innovation. The measurement is more difficult as there is no quantitative outcome that you can focus on. Therefore little research has been done on these types of innovation. This paper will focus on product innovations, but because the effect of process innovations on products this type will also be discussed.

The rest of this chapter will focus more on innovation in general. I will discuss what is important to know about innovation. First it is important to be aware of the different definitions of innovation that are used. Second, within the definition used in this paper there is still a lot of difference within these innovations. This is also something that you need to be aware of.

Definition of (technological product) innovation

The aim of the Oslo Manual is to provide guidelines for the collection and interpretation of data on innovation. This manual has a focus on the business and enterprise sector. In this manual the following definition is given for innovation:

"An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations."(OECD & Eurostat, 2005)

This is a broad definition of innovation. Innovation can be more narrowly categorized as the implementation of one or more types of innovations, as discussed above. A narrower definition of product innovations can be related to the definition of technological product innovation used in the second edition of the Oslo Manual. The definition of technological product innovation is given in the manual as:

"Technological product innovation is the implementation/commercialization of a product with improved performance characteristics such as to deliver objectively new or improved services to the consumer. A technological process innovation is the implementation/adoption of new or significantly improved production or delivery methods. It may involve changes in equipment, human resources, working methods or a combination of these."(Oslo Manual, no date, p.9)

This type of innovation with this definition will be used for further research on innovation in this paper.

Differences in technological product innovations

In the definition used in this paper for technological product innovation there is a distinction between manufacturing, service and other forms of innovation. This is for the most part based on the performance characteristics of the product and process. The innovations that are excluded from this definition are changes in products which provide largely subjective improved customer satisfaction based on personal taste and aesthetic judgment or that follow fashions trends. This means technological product innovation still includes a lot of diverse innovations, such as manufacturing and service innovations.

Even though the service industry has become dominant in Western countries after World War I, innovation research still mainly focused on manufacturing (Fuchs, 1965; Meyer; DeTore, 2001). This is one of the reasons is that many studies focus on the relation between R&D activities and successful innovations (e.g., Freeman and Soete, 1997). Therefore the research on service innovation is still at an early stage.

This paper is about technological product innovation, which includes manufacturing innovation as well as service innovation. It is important to be aware that there are differences between the two forms of innovation, because this will have impact on the criteria that are important for the assessment of innovation in the Energy Industry:

There is a bigger focus on Research and Development with bigger investments in the manufacturing industry comparing it to the service industry (Brouwen & Kleinknecht, 1996; Hagendoorn & Cloodt, 2003; Hipp & Grupp, 2005; Nijssen, Hillebrand, Vermeulen & Kemp, 2006)

There is a more positive attitude towards changing procedures and routines for new product- (services-) development in the service industry (Nijssen, Hillebrand, Vermeulen & Kemp, 2006). Within the service industry there is a bigger focus on organizational factors then on technology (Debretani, 1989; Easingwood, 1986; Fitzsimmons & Fitzsimmons, 2000). Most innovations within this industry are moderately innovative.

There are however also similarities in innovations in the service- and manufacturing sector. It is shown by Nijssen et al. (2006) that both sectors have much involvement of top management, they have alignment of cultures and synergy. The boundaries between these two sectors are fading (Drejer, 2004; Fitzsimmons & Fitzsimmons, 2000; Gao, Yao, Zhu, Sun & Lin, 2011; Nijssen, Hillebrand, Vermeulen & Kemp, 2006). Service and products are nowadays marketed as a combined set.

image innovate

Figure : Dictionary about innovation

Conclusion

Innovation is very important for a company, the market as well as the consumer. Because of the important role of innovation for economic growth, there has been a lot of research done on innovation. Partly due to the different definitions of innovations and the different types of innovation it is hard to compare the research that has been done. Therefore innovation can be considered as a complex phenomenon.

Schumpeter distinguishes five different types of innovation:

Product innovation

Process innovation

Market innovation

Input innovation

Organizational innovation

Because the innovations that register for the innovation awards are mostly product innovation, this is the type of innovation that is used in this paper. Innovations in the energy industry are most often technological innovations, therefore this paper will focus on technological product innovation with the following definition:

"Technological product innovation is the implementation/commercialization of a product with improved performance characteristics such as to deliver objectively new or improved services to the consumer. A technological process innovation is the implementation/adoption of new or significantly improved production or delivery methods. It may involve changes in equipment, human resources, working methods or a combination of these."(Olso Manual, no date, p. 9)

Both innovative services as manufacturing products are included in this definition of innovation. It is important to be aware of the different characteristics of these innovations when assessing them. In the service industry there is:

Less focus on research and development with smaller investments

A more positive attitude towards changing procedures and routines for new product- (services-) development

A bigger focus on organizational factors then on technology

Most innovations are moderately innovative

INNOVATIONS IN THE ENERGY INDUSTRY

A trend analysis of the innovations in the energy industry has been done by the research team of Innovation Awards that I was part of. Part of the research was an interview with Andrew Smart which is added in appendix A. This chapter will be based on the findings of the trend analysis. In appendix B a bigger part of the rapport is included. The rapport will be published by Accenture in 2013 named "Energy Rapport, Innovation Awards 2012".

A breakthrough innovation in the field of nuclear energy or fusion technology would be a real game-changer in the search for new energy resources. The importance of innovation within this industry is widely accepted. Even though everybody realizes that the world needs a different energy architecture, the question remains how this transition will take place.

There is a lot of discussion about innovations in the energy industry. Every research shows different outcomes on what is going to happen in the energy industry and when it will happen. There is not a single opinion about the value of different innovations in the energy industry and therefore there is not a single view on how the transition in the energy industry will take place in the future.

What we do know for sure is that the demand for energy resources increases. For the biggest part this is due because of two things:

The increasing population in the world

The development of emerging countries.

At the moment most of the innovations in the energy industry come from conventional fuels: oil, gas and coal. Even though we are running out of conventional fuels, investments for innovation within the sector of conventional fuels are necessary as conventional fuels will be essential for the next 25 till 50 years.

Renewable energy resources are strongly depended on technological innovations and the profitability of these resources. Even though research shows a positive view on the future for the innovation in the energy industry, the current investments in the R&D will not be sufficient to meet the demand for energy.

Energy Mix

Table : United Nations, World Economic and Social Survey 2009: Promoting Development, Saving the Planet.

So the question remains how the growth of sustainable energy resources can be accelerated in the energy industry. A combination of innovations that have a positive influence on each other seems essential and most realistic at the moment. In the innovation process there for example an important role for smart grids. Digitalization of the net makes it is possible to decentralize the supply of energy. This new energy infrastructure will offer possibilities for the development of decentralized energy. The smart grid technologies have to become commercially in response to the implementation in pilot versions that happen right now. Their impact on the energy sector will be substantial.

For the reduction of energy demand it is among other things important to look at efficiency and consumer behavior. At the moment there are a lot of improvements for ‘smart buildings’ and energy efficient products for consumers. Consumers too become more aware of the effect their consumption has on the environment and how they can control their usage of resources. Without innovations that decrease the demand for energy, it will not be possible to reduce CO2-emmissions or to make the supply of energy sufficient. For the success of the innovations for energy efficiency for consumers it is important that the innovations are cheap and scalable because the biggest grow in energy demand will be in emerging countries.

The search for revolutionary technologies that will shake up the energy industry continues. At the moment there is no real ‘game-changer’, but people do become more aware of their behavior and they are willing to use sustainable energy.

Challenges in the Energy Industry

The world is facing a big challenge as we will have a transition to a new energy architecture. Due to the emission goals of the EU combined with the depleted oil wells and an increasing demand for energy the energy industry has to change.

The goal of this transition is to make sure the economy can grow in a sustainable and environmental friendly way, with energy access for everybody. To achieve this it is important to take care of the following three challenges:

The limitation of conventional resources

The growth of renewable energy resources

Efficiency to reduce the growth of energy demand

The limitation of conventional resources

The conventional resources will not be sufficient for the growing demand of energy. Next to this, the governments of different countries want to limit the CO2 emissions. Therefore innovative ideas are necessary:

Gas becomes more important in the energy mix:

Natural gas has one of the lowest intensities of all fossil fuels. This is why it is seen as one of the most important replacements of oil and coal. In the energy transition, the use of natural gas is necessary.

Energy sources which are hard to get hold of will be used:

The energy sources that we can easily get a hold of are depleting. Therefore innovation is focusing more on energy generation of resources that are more difficult to get to, like the resources that are deeper in the ocean or the ones in pole areas. Because the risk in these areas is higher, the importance of reliable technology is comprehensive.

Unconventional sources like shale gas are tapped into:

The production of gas and oil is focusing more on the use of unconventional sources. A good example of this, is the growth in the production of shale gas. Some people see shale gas as the most important innovation of the last decennium in the energy sector. At the moment there is a lot of uncertainty on environmental issues and policies with respect to shale gas. More research can give more certainty on the impact shale gas has.

The rise of cleaner coals

Coal will remain of great importance in the generation of electricity. Coal plants do not have a good image, because they are associated with pollution and CO2 emissions. By innovating them, it is possible to make them cleaner and more efficient. At the moment coal plants are the cheapest way to generate electricity in major parts of the world.

The growth of renewable energy resources

The growing demand together with the aim to reduce CO2 emissions makes innovation for sustainable energy resources inevitable.

Renewable energy will get a bigger part in the energy mix:

Because of the high costs the up-scaling of sustainable energy is not profitable yet. In countries such as Germany a lot of investments are being made in the technology of sustainable energy. The International Energy Agency (IEA) expects the proportion of renewable energy resources to grow from 18% in 2009 to 30% 2035. Here innovation focusses mainly on higher efficiency of existing techniques, new ways of energy production and the development of new business models for renewable energy that make it more attractive for the consumer.

Nuclear energy remains part of the energy mix

Whether the projected growth of nuclear energy will continue is uncertain since the disaster around the nuclear plant Fukushima I in Japan happened. Nuclear power is scalable and CO2-free, therefore it should be part of the energy mix if the safety and environmental concerns can be overcome. A breakthrough innovation in this field could positively influence the political debate.

Efficiency to reduce the growth of energy demand

Three sectors have a significant share in the growing energy demand:

Buildings

Industry

Transport

This gives these sectors relevant opportunities for investments in energy efficiency. It is possible to make simple improvements within the current technology to increase the efficiency.

Tabel : ExonMobil, 2010 The Outlook for Energy: A view to 2040

Demand per region for buildings

Trillion BTU

Buildings:

Buildings require a lot of energy for lighting, heating, air conditioning, lifts, etc. Due to global economic growth, improved prosperity and a growing number of households, the demand for energy in households with 25% growth to 2040. The largest growth is caused by electricity use. In addition, the growing demand mainly comes from countries that are not member of Organization for Economic Cooperation and Development (OECD). In 2040 there will be 2.8 billion households in the world, representing a growth of almost 50% compared to now.

Demand per industry sector

Trillion BTUIndustry:

Tabel : ExonMobil, 2010 The Outlook for Energy: A view to 2040

The manufacture of industrial products such as plastics, steel and textiles requires a lot of energy. Agriculture and the oil, gas and coal producing sector use a lot of energy too. Between now and 2040 it is expected that the industrial energy consumption will grow by 30%. This growth is mainly attributable to non-OECD countries (India and Africa).

Transport:

Without energy, there is no transport. Without transportation, there is no exchange of goods and without the economic exchange of goods the economy stops and as a result ultimately everything stops. One of the changes that will have the most impact in the energy demand will take place in the transport sector. There is an increasing number of hybrid cars and many improvements will be made that make vehicles more efficient. Despite the doubling of the number of passenger cars, it is expected that because of the improved technology, the energy demand for passenger cars will reduce somewhat. Nevertheless, the energy consumption of commercial transportation will increase with 45% to 2040. Economic growth is one of the main reasons for the growth of commercial transportation. This will result in a demand for transportation of good that increases more than 70% in 2040. Within the sector of commercial transportation a lot of impact can be made.

Tabel : ExonMobil, 2010 The Outlook for Energy: A view to 2040

Demand for transport worldwide

Million barrels of crude oil

Conclusions

The demand for energy increases mainly because of the increasing population in the world and the development of emerging countries. This is a major problem because the oil wells are depleting and the policies considering CO2 emissions are stricter than ever. Therefore innovation is needed in the energy industry.

Because of these big challenges the energy architecture will undergo a transition. The goal of this transition is to make sure the economy can grow in a sustainable and environmental friendly way, with energy access for everybody. To achieve this goal this paper differentiates three challenges that all have their own trends:

The limitation of conventional resources

Gas becomes more important in the energy mix

Energy Sources which are hard to get a hold of will be used

Unconventional sources like shale gas are tapped into

The rise of cleaner coals

The growth of renewable energy resources

Renewable energy will get a bigger part in the energy mix

Despite the objections of nuclear energy, it remains part of the energy mix

Efficiency to reduce the growth of energy demand

Buildings

Industry

Transport

Innovations that deal with these challenges will fit the criteria to fall within the category of the energy industry.

ASSESSMENT OF INNOVATION SUCCESS

As discussed in a previous chapter, innovation is important as it is a main driver for economic growth. It strengthens the competitiveness of companies. Besides this, when companies innovate, they are able to keep up with the always changing market. For an innovation to really achieve these results it has to be a successful innovation, the right question to ask is then "what makes an innovation successful?" This question needs to be answered in order to find the criteria that are important for the assessment of innovation in the energy industry.

In a previous chapter it is stated that several criteria are important for an innovation in the energy industry. The most important for an innovation to add value and to be novel. Adding value can include economic value as well as societal value. Novelty can be seen from different perspectives.

Novelty of Innovation

When it comes to the measurement of innovation often the degree of newness is looked at, which is also called ‘Innovativeness’. Where ‘highly-innovative’ products are often called radical-innovations, breakthrough-innovations, disruptive-innovations or discontinuous-innovations, which have a high degree of newness. And ‘low-innovative’ products are called incremental-innovations or continuous innovations, which have a low degree of newness. Despite the varying perspectives for innovativeness, a single consistency does exist: it is always modeled as the degree of discontinuity in marketing and/or technological factors. (Garcia & Calantone, 2002)

You can regard the potential discontinuity that a technological product innovation (manufacturing good or service) can generate at different levels.

Level of perspective

At macro level it is measured whether the innovation is new to the world, the market or an industry.

At micro lever it is measured whether the innovation is new to the company and/or customer.

Marketing and/or Technological perspective

Product innovation may include a paradigm shift in the state of science, require new technology, have a new R&D resource and /or have a new production process.

Product innovation can indulge new markets or have a new marketing principle.

Product innovations can also include both marketing as technological discontinuities.

Single dimensional or multifactorial construct

‘Technological product innovativeness’ is mostly measured with multidimensional reflective variables. Most studies used both macro and micro measures to determine discontinuities in both market and technological issues.

Categorical or continuous variable

Researchers that used categorical measures mostly summed the scales and separated the sample into groupings of high/moderate/low innovativeness or some similar categorization.

‘Continuous measures’ are not used in the operationalization of innovativeness.

The measurement of technological product innovativeness can have different outcomes. In this paper the following definitions are used to describe the innovativeness of a technological product innovation:

High innovativeness: Technological product innovations that include a new technology, resulting in a new market infrastructure. The effect is seen on the macro and micro levels, since a discontinuity on the world, industry or market level will automatically cause discontinuity on the company and industry level (Song & Montoya-Weiss, 1998).

Moderate innovativeness: This technological product innovation will cause either a marketing or a technological discontinuity at the macro level. On the micro level it has an impact on either a marketing or technological discontinuity, or both.

Low innovativeness: These technological product innovations are products that provide novelty to the existing technology in the existing market. Discontinuity will occur only on the micro level (company and industry), affecting either technology and/or marketing.

Criteria

The different impact originality and novelty has on the success of a technological product innovation is already discussed in this chapter. But there are more criteria that the success of innovation can be assessed on (Kim and Wilemon, 2002).

Companies have already adopted a various set of criteria to screen innovations, but there has never been research that shows sufficient evidence if these criteria are helpful to select the right concepts of technological product innovations that are of actual benefit to the company. (Hart, Hultink, Tzokas, and Commandeur, 2003). The results of an investigation by Miia Martinsuo and Jarno Poskela (2009) revealed the important role of using market and technical criteria in competitive potential, whereas using strategic criteria did not appear as statistically significant. This is supported by other literature (Schmidt et al., 2009).

Technological product innovation contributes to the improvement of products so that a company can achieve a better competitive position (Kim and Wilemon, 2002; Kleinschmidt, Koen, and Reilly, 2005; Koen et al., 2001). The easiest criteria to measure the success of a technological product innovation are observable project targets that serve the customer needs. A criteria that follows from this is that a technological product innovation must provide a competitive advantage that contributes to the adoption of a new product by the market (Rogers, 2003) and strongly impacts new product performance (Calantone, Chan, and Cui, 2006; Langerak, Hultink, and Robben, 2004). The competitive advantage can come from superior price/performance and unique features in relation to the competing products on the market (Cooper, 1994). It is important that the customer realizes the advantage of the technological product innovation as well (Shenhar, Dvir, Levy, and Maltz, 2001)

For a company it is important to show by innovating their capabilities of adaption to environmental changes (Danneels, 2002; Eisenhardt and Tabrizi, 1995). Therefore, when it comes to technological product innovation, companies are not only interested in financial and customer benefits that are gained immediately, but they expect their technological product innovations to generate future business potential by new market entries or new product development activities (Cooper and Kleinschmidt, 1986; Kleinschmidt et al., 2005; Shenhar et al., 2001).

Research shows a positive link between risk planning, process formality, and goal clarity and innovation success, (Salomo, Weise, and Gemunden, 2007). Therefore one of the criteria can include the company-level innovation performance. Also the research of Miia Martinsuo and Jarno Poskela also showed how important the role of the company context played in the future business potential of a technological product innovation: R&D investments, the number of front-end projects, concept complexity, and concept novelty to the organization all appeared as relevant factors.

There is a difference in market-related information and technology-related information for the assessment of a product innovation in terms of uncertainty (Poskela and Martinsuo, 2009). Where market-related information is intangible and often based on speculation, technology-related information is more based on facts and can be accumulated from research and test reports.

Conclusion

When it comes to measuring an innovation, most people think immediately of innovativeness. The level of innovativeness can be high, moderate or low depending on the degree of newness, so for what part of the society the innovation is new. Besides this it depends on whether the innovation has a new technology and/or can be introduced to a new market:

Measurement of innovativeness

Discontinuity type

Macro level

Micro

Novelty

(global, market and/or industry)

(company and/or customer)

High

Technological

and

Market

Technological

and

Market

Moderate

Technological

or

Market

Technological

and

Market

Low

None

Technological

or

Market

Table

The measurement of the success of a technological product innovation has become important for companies over the years as they started to become more aware of the impact technological product innovation has for a company. The criteria discussed in this chapter are captured in a model below:

Criteria to measure innovation success

Criteria

Factors that influence the criteria

Competitive advantage

Price/performance

Unique features

Awareness of the consumer

Business potential

New market entries

New product development activities

Company-level innovation performance

Risk planning

Process formality

Goal

Previous innovation success

The company context

R&D investments

The number of front-end projects

Concept complexity

Concept novelty to the organization

Table

DEVELOPMENT OF A SCORINGS MODEL

In the literature a distinction is made ​​between traditional and modern methods of selection (Coldrick et al, 2005). The more traditional selection methods are mostly financial analyses that focus on the product outcome. These kinds of selection methods are called optimization models (Coldrick et al, 2005:185). The best known example of a selection method is based on manufacturing, future revenues and earnings, the Net Present Value (NPV). However, by calculating the NPV not all risks and external factors are taken into calculation (Cooper et al, 2000). Therefore the NPV method is based on chance and short-term results. A better method would determine the balance of the degree of risk versus the reward (Coldrick et al, 2005). A selection method that takes this risk better in consideration is a scoring model.

Scoring models

By using a scoring model, an organization is able to capture the value of an innovation in numbers. The data is mostly quantitative as qualitative data can give a biased outcome (Coldrick et al, 2005; Cooper et al, 2000).

The selection in this scoring model is as follows:

Determining the criteria (definition of the criteria);

Determining the weights (determination of the weighting);

Assigning the scores (assignment of scores) (Coldrick et al, 2005:187).

The criteria used in this type of scoring models often clustered in technical, market and financial criteria. The criteria in this scoring model can differ for each type of product, resulting in a better assessment than in the old-fashioned, more linear scoring models (Chen & Cheng, 2009).

Even though the selection methods have developed over time, it remains difficult for organizations to select the best product innovations. Managers are often blamed off using inadequate selection methods (McNally et al, 2009). They consider the traditional financial methods still the most popular (McNally et al, 2009).

As long as managers do not have all the information and do not apply the selection methods properly or use the wrong selection methods, there will not be good selection of innovations (Kline & Rosenberg, 1986; Cooper et al, 2000, Danneels & Kleinschmidt, 2001; Linton et al, 2002). A good selection by type of product seems to be important. In this way, an organization can set priorities, so that the correct selection can be made (Cormican & O 'Sullivan, 2004).

ACCENTURE INNOVATION AWARDS 2012

Accenture Innovation Awards in general

Accenture has organized the Innovation Awards to stimulate companies in the Netherlands to innovate. By giving a blue tulip as an award for the best innovation within an industry, Accenture wants to put the companies that perform exceptional regarding innovation in the spotlight.

Besides the stimulation of innovation, Accenture can analyze the trends within the different industries because of all the registrations of the Innovation Awards. This shows to the clients of Accenture that Accenture has a lot of knowledge on innovation and positions Accenture as a leader and expert in the field of innovation. Finally the goal is to develop new opportunities and to improve the relationship Accenture has with their clients.

The Innovation Awards go back to 2007, then the industry "Communication, Media and Technology" were the first ones to give out a blue tulip as an award for the best innovation. Since then the Innovation Awards have grown to a major event with1441 registrations and almost 1000 guest on the event itself. The Innovation Awards have now all five of Accenture’s Customers Service Groups participate: -Communications, Media & Technology; Consumer Goods & Services; Energy; Financial Services; and Health & Public Service-

The Energy Industry

The Accenture Innovation Awards for the energy industry were able to give a good picture of the innovations that happen within the Netherlands for this sector. It was possible to differentiate five different trends based on the registrations:

Growing number of renewable energy resources

Creating consumer awareness

Products and processes become more efficient

The rise of electric transport

Development of smart grids

Based on the theory discussed before we can state that this picture is almost complete. The innovations that are missing are the ones that focus on unconventional resources. This is due to the difficulty of these innovations as they are very technical. For these innovations big investments are needed with a high degree of knowledge. Therefore companies that innovate within the sector of conventional resources keep their knowledge for themselves.

The main aim of this paper is to develop a method for the assessment of innovation that register for the energy industry of the Innovation Awards. Therefore it is important to understand how the previous selection was done to understand what can be improved.

Secelction process Innovation Awards 2012

The Innovation Awards

Selecting the winner

Second selection round

Selecting a top 5

First selection round:

Selecting a top 25

Registration:

160 Registrations

Within the Innovation Awards for the Energy Industry there were 160 participating innovations. The selection was done by first selecting a top 25 and then selecting a top 5. At the event the winner got selected as the best innovation of the Innovation Awards for the Energy Industry.

Registration

The requirements to register for the Innovation Awards 2012 in the energy industry were to have a working prototype which had to be launched on the market between the 1st of January 2009 and the 30th of June 2012.

Companies could register an innovation by filling out an online questionnaire on the website: www.innovation-awards.nl. The information given in this questionnaire had to be sufficient for the selection of the best 25 innovations. The properties discussed were amongst others:

Revenue model

Competitors

Media attention

Market

Appendix C gives the full questionnaire for the Innovation Awards for Energy 2012.

For the energy industry there were 160 registered innovations. The innovations are divided in five different trends which are already discussed in this chapter. The chart below shows how the registrations were divided:

Table

First selection round

In the first selection round the top 25 was selected. A scoring model was made for the assessment of 160 innovations (see table 8). The criteria were not based on research, but on an internal discussion about the criteria. Finally, the scores were given by 12 employees of Accenture that work for the industry group "Resources".

The criteria that the innovations were judged on were:

General Impression: First impression of the concept?? What is the added value for customers? What is the degree of social contribution of the concept?

Success: Did the concept already have financial success? What kind of media attention did the concept get? How many and what kind of external parties are involved?

Potential: Which needs of the market does the concept fulfill? Is the concept able to grow in market share? What kind of risks does this concept have??

Innovation: How innovative is the concept? Is it a technological, social or business innovation - or a combination of these?

Scorings model 2012

General Impression (2x)

First impression

Contribution to Society

Success (1x)

Revenue

Media Attention

Collaboration

Potential (3x)

Market potential

Risk

Innovation (4x)

Technical innovation

Social innovation

Business innovation

Table

Second selection round

A jury consisting of eight experts representing different sectors from the energy industry had the responsibility to select a top 5. In preparation for the second selection round the judges had the opportunity to add a wildcard from all the160 concepts. One jury member added two wildcards.

In preparation of the jury meeting the top 25 had made a video-pitch of one minute. In this pitch the entrepreneur could tell why the innovation should win the Innovation Awards.

During the jury meeting for the second selection round, the video pitches of the top 25 and the two wildcards were presented. Further explanation of the concepts was given by a research team of the Innovation Awards. A discussion was led by the chairman of the jury to determine what innovations should be in the final top 5.

Energy 006

The Innovation Awards

On the 8th of November 2012 the Innovation Awards took place. The 6th edition of the Innovation Awards had almost 1000 guest and could therefore be considered a success according to Accenture. It was a big event that had all five industry groups of Accenture participate. Besides all the prices that were given, there was also a market full of innovations that had registered for the Innovation Awards. At this market the guest could experience the innovations themselves.

Mike Lee and Andre Kuipers were the ones that gave a speech to open the Innovation Awards. Wouter van Dieren was the one that had the final speech and gave out the last price for the most sustainable innovation of the Innovation Awards 2012.

During the Innovation Awards all the industry groups had their own break-out session. Yuri van Geest was the moderator for the break-out session of the energy industry. He had an inspiring speech about the future of innovation.

During the break-out session the top 5 innovations were presented live on stage by the entrepreneur. The same jury that had selected the top 5 could now see the entrepreneur of the innovation and ask questions.

Finally, after a discussion behind closed doors, this jury decided who could call themselves the winner of the Innovation Awards 2012 for the energy industry. Power Matcher a smart grid technology of TNO was the winner of the Innovation Awards 2012 for the energy industry.

Figuur : Impression of the Innovation Awards 2012PART 2

DEVELOPMENT OF A NEW METHOD

INTRODUCTION

The main aim of this paper is to develop a method for the assessment of technological product innovations. Important for the development for this method is to find the right criteria that a technological product innovation should be assessed on. Therefore the main-question of this paper is:

"On which criteria can an assessment

regarding innovations in the energy industry be based?"

In the first part of this paper information is provided about innovation in general. Secondly innovations that happen in the energy industry were discussed. Thirdly, the criteria for the assessment of technological product innovation were given. These criteria are based on a literature research. And the method to for the selection of innovations was discussed. Finally the process of the Innovation Awards 2012 is explained.

In the selection process of the Innovation Awards 2012 were some difficulties as the criteria were not clearly described and there was no research done on the criteria. Therefore this chapter will focus on feedback on the selection process of the Innovation Awards 2012.

The final goal is provide a selection method for the Innovation Awards. In the first part of this paper is already discussed how to make a scorings model:

Determining the criteria

The criteria for the assessment of innovation in this thesis will be based on a scientific literature analysis and the date of the Innovation Awards 2012. I have chosen this base because I want the outcome to fit with the process of the Innovation Awards but I also want them to fit within the literature-research. By using a meta-analysis the outcome of this research will be more reliable than by doing an empirical research (Cooper, 1998:114).

Determining the weights

The determination of the weights for the criteria has to be done in a different research

Assigning the scores

The assignment of scores will be done in the Innovation Awards of 2013.

For the rest of this part of the thesis, first the method used to collect the feedback will be explained. Secondly the feedback will be given en finally the method will be given for the assessment of innovations in the energy industry.

METHOD TO COLLECT DATA

To explain the method used to collect feedback on the selection process of the Innovation Awards 2012 it is useful to go back to the different phases of the selection process. With every phase different feedback was given.

For every phase I will state:

By who the feedback was given

How the feedback was given

How many respondents there were

To collect feedback I did not have a survey or written interview. Because I helped with the organization of the Innovation Awards I monitored all the feedback from phone-calls, e-mails, conversations and meetings.

The Innovation Awards

Selecting the winner

Second selection round

Selecting a top 5

First selection round:

Selecting a top 25

Registration:

160 Registrations

Registration

Who: The entrepreneur of the innovation that registered

How: The feedback was given over the phone

How many: There were 5 respondents

Who: The team of the Accenture Innovation Awards 2012

How: The feedback was given over the face-2-face and in meetings

How many: There were 8 respondents

First selection round

Who: The employee of Accenture that had to fill in the scorings model for the selection of the top 25 innovations

How: The feedback was given face-2-face and by email

How many: There were 8 respondents

Who: The team of the Accenture Innovation Awards 2012

How: The feedback was given face-2-face and in meetings

How many: There were 8 respondents

Selection round 2

Who: The jury of the Accenture Innovation Awards 2012

How: The feedback was given face-2-face and over the phone

How many: There were 5 respondents

Who: The team of the Accenture Innovation Awards 2012

How: The feedback was given over the face-2-face and in meetings

How many: There were 8 respondents

The Innovation Awards

Who: The entrepreneur of the innovation that registered

How: The feedback was given over the phone

How many: There were 5 respondents

Who: The jury of the Accenture Innovation Awards 2012

How: The feedback was given over the face-2-face and over the phone

How many: There were 5 respondents

Who: The team of the Accenture Innovation Awards 2012

How: The feedback was given face-2-face and in meetings

How many: There were 8 respondents

FEEDBACK OF THE INNOVATION AWARDS 2012

Here I will summarize the feedback given over the selection process of the Innovation Awards 2012. Again, I will divide the feedback over the different phases of the Innovation Awards 2012

The Innovation Awards

Selecting the winner

Second selection round

Selecting a top 5

First selection round:

Selecting a top 25

Registration:

160 Registrations

Registration

The information collected as input for the selection was not sufficient. A different way to collect the information should be implied.

In the questionnaire of 2013, information should be given about:

Why is this concept an innovation?

What is the impact of the concept?

What is the earnings model?

The questionnaire was too long, therefore a lot of registrations were not completed

There was a lot of confusion about the questionnaire. It is important to make this as easy, short and clear as possible in 2013.

First selection round

A lot of the innovation did not have anything to do with the Energy Industry

The information provided on the innovation was not sufficient to make a good assessment

The criteria that the innovation had to be assessed on were not clear

Filling out the scorings model took a lot of time

Further research should be done on the selection method

Second selection round

It would have been good to see who the entrepreneur of the innovation is, as this is really important for the success of an innovation.

There was not enough information provided for a good assessment of the innovation

The jury would have liked to be able to ask questions at the entrepreneur about the innovation

Innovation Awards

There was little time for the discussion about the innovations

There were no radical innovations in the top 5

Overall

Based on several meetings a model was made with the important information that should be provided for an assessment. The topics in this model also make good criteria for an assessment of innovations in the energy industry.

Information that should be provided

What

What is your idea?

Why

What is the client’s need? Why would the client be interested in your idea?

Potential

What is the market potential? How big is the market? Which part of this market can we capture?

Fit

Can we deliver this? How does it fit with our strategy? Do we have access to the required the capabilities?

Differentiators

How do we differentiate? What makes us unique? What is our added value?

Next

What are the next steps? What do you need to proceed?

Table

DISCUSSION

In this paper the goal is to provide Accenture with a method that they should use for the assessment of the innovations that register for the energy industry of the Innovation Awards. Therefore both literature-research as well as data given by the Innovation Awards 2012 was used to develop the right criteria.

It must be noticed that a literature research is said to be highly susceptible to publication bias (Dwan, et al., 2008; Denrell & Le Mens, 2011), besides this the analysis of company is also affected by bias (Hendricks, Patel, & Zeckhauser, 1997). Therefore, the result of this paper is likely to be affected by these biases. Many of the relevant research that is done on innovation recognizes these biases and addresses any issues that may arise, these biases cannot be ignored and therefore it is necessary test this model with the Innovation Awards 2013.

Limitations

The criteria that are given for the assessment of an innovation are known for their effect on the success of innovation. It is only not known what the impact of these criteria have on the success of an innovation. This uncertainty has an impact on the reliability of the results as the criteria have their own weight in the selection process. More empirical research needs to be done to confirm the applicability, combinatory effects and magnitude of the different criteria. Until then, we cannot be sure about the weight given to the criteria.

The scoring model given for the assessment of the innovations within the energy industry cannot be tested now because the selection of the Innovation Awards 2013 is later this year. Therefore I would suggest that the research team of the Innovation Awards 2013 will use the model given in this paper, but will also monitor the problems considering this model, so that corrections can be made if necessary.

Subjectivity

In the assessment of an innovation it is suggested to use both qualitative as well as quantitative data. Because of the qualitative data there are two challenges:

A judgment bias can be induced because of qualitative data

The criteria do not have a uniform effect and therefore require adjustment by giving a weight to the criteria.

To prevent a judgment bias, the jury will consist of experts within the industry that have no personal interest for the innovation to succeed.

The weight given to the criteria can be adjusted based on the outcome of the selection process.

CONCLUSION & RECCOMMENDATIONS

Questionnaires are widely accepted as the most suitable means for measuring innovation and they are closely used for measurement of entrepreneurship (Armbruster, Bikfalvi, Kinkel, & Lay, 2008; OECD & Eurostat, 2005; The Advisory Committee on Measuring Innovation in the 21st Century Economy, 2008; Udell, 1989; Wong, Ho, & Autio, 2005). There have been several questionnaires created over the years for the measurement of innovation, each with their own unique focus and questions with differing relative weight (Armbruster, Bikfalvi, Kinkel, & Lay, 2008).

For the Accenture Innovation Awards I have developed a model for the assessment of the innovations that register for the energy industry. This method can be used by the upcoming Innovation Awards team members.

The recommendations given in this chapter are based on all the information provided in this paper.

Criteria

The criteria given in table 10 should be implemented in Excel as a scorings model. Based on the average score of these five criteria a selection can be made of the best innovations

Information

In this column questions are asked that should be answered about the innovation. Based on the answers of these questions the innovation can be assessed on the criterion that is placed in front of the questions.

Instructions

Based on the answers of the questions a score should be given to the criteria that is placed I front of the question. The instruction helps the person that is assessing the innovation on how he/she should evaluate the answer.

Recommended Model

Criteria

Information

Instructions

Innovation

Explain your concept? Is it a service, product or process innovation or a combination?

Give a score based on your first impression

How does your innovation differentiate from other innovations? What is really unique?

Is this innovation new to the world/industry/company/customer? A higher degree of novelty indicates a higher degree of uncertainty. Be aware of this when you give a score to an innovation

How does the innovation add value? Show us concrete numbers of extra features and/or significant price reduction and/or information that indicates a better performance.

Check if this is correct, from your own experience: do you think this is what the client needs? If so, the score is higher

Business Potential

What is the market that your innovation will fit in?

Could this innovation be of relevance to the clients of Accenture? If so, the score is higher

How big is that market?

A bigger market gives a better score

What is the earnings model of this innovation?

From your own expertise, is this earnings model successful?

Next steps

What are the risks considering you innovation? Is it likely a competitor will copy your innovation?

What is your strategy to avoid these risks? Do you have something to protect your innovation like a patent?

From your own expertise, is this a strong strategy, does it sound realistic?

What is the goal that you have with this innovation?

Willing to grow is an indicator for a good score or when the concept aims for a lot of media attention this is a good score as well

The context of the company

What size is your company?

What (R&D) investments have you done until now for your innovation?

Information for the context of this innovation. For manufacturing goods a high R&D investment relates to bigger chance on success

Do you have enough resources for this innovation to upscale and where do you get your resources from? For example, do you have collaboration agreements with other parties

If not, score is low

Do you already have record of success of this innovation? Or from previous innovations within your company?

If so, this gives more certainty of success for this innovation

What experience does your company already have in the field of this innovation?

Knowledge within the field relates to higher rate of success

What is the strategy of the company? And how does the innovation fit within the strategy of the company?

A good strategy and fit gives a higher score

Environmental Context

How does the innovation contribute to one of the challenges within the energy industry?

The limitation of conventional resources

The growth of renewable energy resources

Efficiency to reduce the growth of energy demand

It is important the innovation has a good fit within the energy industry

Table