12 2. THE SOCIAL INNOVATION OPPORTUNITY...13 A. SO WHAT IS SOCIAL INNOVATION?..13 B. HOW BIG IS THE OPPORTUNITY?..
14 C. WHAT DOES IT TAKE TO DELIVER IT?..16 I. COMPANY VISION/ETHOS...17 II.
EFFECTIVE STAKEHOLDER MANAGEMENT...18 IV. COLLABORATION...18 V. CONVERGENCE AND INTEGRATION...19 D. WHO ARE THE STAKEHOLDERS?..
19 3. THE AREAS THAT ARE POISED FOR GROWTH...20 4. CONCLUSION...21 Social Innovation to answer Society's Challenges 2014 Frost
and new business models that threaten to disrupt or even collapse individual companies or even entire industries,
and power-hungry global population increasingly concentrated in urban environments entirely dependent on vulnerable power grids? In Transport, will we empower our increasingly urbanised global population with door-to-door,
But how will we innovate to meet these growing human and society challenges, with new business models,
products and services that make sense for corporations and benefit each global citizen? B. TOP 12 GLOBAL MEGA TRENDS The best way to plot the course for this future innovation need is to star t at the top:
The global mega trends that are defining the future challenges and opportunities for society as a whole.
The top 12 transformative, global forces that define the future world with their far-reaching impacts on businesses, societies, economies, cultures,
and the city infrastructure market will provide a $2. 2 trillion opportunity in 2020. Bricks and Clicks In the US alone, on-line retail sales will rise from 4%in 2011 to 18%by 2020.
R&d and technical excellence, attracting massive investment and government support. Smart is the New Green Smart products with intelligent sensing technology are being integrated with internet technologies to allow systems to react
and communicate to changing environments, optimizing operations, and improving efficiency. We will see over 15 smart global cities in 2020 and 26 by 2025.
and women's empowerment will usher in new opportunities, signalling the advent of customized applications and innovative technologies.
New Business models: Value for Many Next-generation business models are reshaping the landscape of the business environment.
The Value for Many concept implies producing and selling to mass markets in developing countries or leveraging the market globally for maximum value delivery.
and artificial intelligence, will open new business models and opportunities for growth. Future convergence will be defined as convergence of products (Eg. electric car
Companies will now look at new economies Beyond BRIC and new hotspots for their business operations.
The need for sustainability and efficiency means massive innovation opportunities are opening for the deployment of smart technology for energy management.
we can quickly see huge opportunities for innovation to meet these societal challenges. In fact you could say many of these trends have been driving innovation for many years.
the years ahead will be categorised by the need for business model innovation and-in par ticular-the need to harmonise multiple types of innovation to address complex
developing economies will contribute around 65%to 70%of global growth in the next 10 years
and the 40 largest urban Mega Regions will account for 66%of global economic activity and about 85%of global technological and scientific innovation.
Eventually cities, rather than countries, will be targeted as hubs of investment with each city becoming a unique customer with untapped opportunities in key industries such as mobility.
and services will be enhanced increasingly or even replaced by smart products and services, with intelligent sensing technology and internet connectivity driving better optimisation.
Enabled by the internet of things (Iot), machine to machine (M2m) communication and over 80 billion connected devices globally,
digital intelligence will be the key driver of efficiency and sustainability across a vast array of applications.
with sectors such as Smart Governance, Transportation and Smart Energy driving investment growth in this space. The pace of smart city market development will depend on how quickly companies converge
Huge opportunities will exist for sustainable and efficient manufacturing by 2020 and beyond. III. THE FUTURE OF ENERGY Powering the global economic growth,
urbanisation and expanding populations in a sustainable manner is one of the biggest challenges and opportunities of the 21st century.
Urbanisation will lead to cities consuming over 3/4 of energy globally. Combined with an increasing desire for energy security at a country level
and business models for the future, including resurgence in nuclear power, newly exploited fuels such as shale gas and ongoing growth in renewable energy. 2. From Frost & Sullivan ongoing research.
& Sullivan 9 www. frost. com Gas has become a game changer for the world's energy demands
and has increased the outlook for production across a wide variety of industries from railroads, shipping, local economies, and farming.
nuclear power will continue to present significant opportunities for players that can successfully address the dominant issues of safety and security.
and manage demand more effectively, which results in cleaner, reliable and smarter energy. With these possibilities in mind, the European union (EU) is currently considering a 40%energy efficiency target for Europe by 2030.
With smarter energy services, smart buildings and homes will become a mainstream reality in 2 to 3 years, driven by the convergence of green and smart technology and the deployment of service-based business models
which will lead to new mobility business models and some exciting new products and solutions. In mobility, new and upcoming services such as multi-modal mobility are already available in an effort to tackle the urbanisation challenges of congestion and pollution.
Therefore, companies that look at cities as customers and position themselves as partners and solution providers to cities will benefit from new business and investment opportunities.
Concepts like bike and car sharing, integrated door-to-door transport solutions, inter-modality, smart phone-based urban mobility solutions
and automotive app store based connectivity applications will become a common site on our roads of the future,
The role of technology will increase in delivering smart mobility services, as we see more intelligent transport networks,
For example, built-in mobile hotspots will enable services such as internet radio, video streaming, web browsing and access to content to be downloaded in all connected devices under the same network.
in addition to serving as a key connecting node, will also be a driver of economic growth. In fact, investments in high speed rail have been estimated to have potential to add 2 to 3%to countries'GDP growth through wealth and job creation.
It will also augment growth in multi-modal freight logistics offering what is essentially a more sustainable alternative to road transportation and a faster delivery time than the typical air-road mix.
and healthcare provision environments, the developing regions will drive new business models tailored to meeting specific patient needs in novel and costeffective ways.
For example an eye care clinic in the impoverished Aravind province in India is driving a new,
That means defining both the opportunities for future advancement, and also the social challenges they will present.
Smart technology will create an opportunity for our growing cities to operate far more efficiently than they do today using interconnected sensors and data analytics;
and demand response to tackle our need to use energy more efficiently. Put simply, the Social Innovators will be those that can directly address the challenges posed by these mega trends
and deliver value to all of the stakeholders in our global future. In the second half of this Whitepaper we will go on to define Social Innovation in more detail.
We will also tackle the crucial questions surrounding the size of the Social Innovation opportunity,
what it takes to deliver it successfully, the business models of the future, the stakeholders, and the areas and sectors that are poised for the highest growth. 3 Power Patients proactively make use of Google
and other search engines to self-diagnose and arm themselves with the best available healthcare information online
& Sullivan 13 www. frost. com 2. THE SOCIAL INNOVATION OPPORTUNITY A. SO WHAT IS SOCIAL INNOVATION?
and has many stakeholders companies, social enterprises, governments, NGOS, charities and public sector organisations to name but a few.
HP has a particular focus on education, entrepreneurship and health. Meanwhile other interpretations focus more on the business value of innovation to deliver advancements for society by opening untapped markets with profitable business models.
A number of companies have developed multiple products and solutions around this theme of growth while supporting societal and community initiatives.
and solutions driven by the‘value-for-many'business model to bring affordable essentials to par ts of society that would traditionally not be able to afford them.
products and business models, including finance. Social Innovation to answer Society's Challenges 2014 Frost & Sullivan 14 www. frost. com Meanwhile other companies operate at the intersection of CSV
This is done through communication with stakeholders and integrating those expectations into its management and business value creation with a strong focus on technology deployment
That means convergence of technologies, industries, products and business models, including finance. Sectors that were seen as separated in the past are converging into new products
and services to provide innovations that will help provide breakthrough changes for society. In our definition of Social Innovation, Frost & Sullivan believes it is this key element of convergence that is absolutely central.
and new business models to bring about real positive change to the lives of individuals and societies,
B. HOW BIG IS THE OPPORTUNITY? Many observers are reluctant to put a financial value to the Social Innovation opportunity,
which is given of course understandable the relative‘newness'of the term and the fact that different organisations address Social Innovation in different ways.
these levels of growth bring both huge opportunities and multiple challenges for society. The mega trends we discussed above will make sure of that. 1. Live Example:
Through the collaboration of multiple stakeholders, the initiative focuses on energy and transportation infrastructure and the application of autonomous, decentralised IT systems for energy control.
Global GDP by sector, 2014 to 2020 These are massive industries with huge challenges and therefore significant innovation opportunities.
For Social Innovation to deliver on its opportunity to drive growth, transformation and societal impact in these industries,
the success will be driven by technology deployment, information analytics, new business models and integrated service-oriented solutions.
In our research to size the global Social Innovation opportunity, Frost & Sullivan has quantified Social Innovation as accounting for around 5%of the $40 trillion that these industries contribute to GDP in 2020.
but it still presents a Social Innovation investment need of over $2 trillion in 2020 alone a significant economic opportunity from even a conservative angle.
happiness, convenience, choice, better quality of life, a cleaner environment, more time, less stress, and more safety to the end-user.
New Business models in Traditional Industries Hitachi brings the service based Train concept to drive business model innovation in the rail industry Hitachi has won a landmark project in the UK to deliver rolling stock and maintenance services
The vision is to transform a rolling stock business into a solution business with a new business model.
thereby changing traditional fixed costs to a variable cost model and massively diminishing upfront investment.
an enhanced passenger environment; less energy use and track damage; greater safety; and TSI (and RGS) compliance.
If people truly see the improvements to their lives, environment and society, they will see the value of investing in it.
This is where the profitable growth will come for those companies that can innovate to maximise the welfare of society with the right balance of information, infrastructure, technology and new business models.
And this is all with the backdrop of a $2 trillion Social Innovation opportunity. C. WHAT DOES IT TAKE TO DELIVER IT?
along with new forms of organisation and network processes to build human and social capital. The key characteristics of delivering Social Innovation include the co-ordination and mediation between the different groups of stakeholders involved.
There is also increased involvement from the society (users, patients, citizens etc. in the process of co-development which needs to be considered.
Over $2 trillion of global Social Innovation opportunity by 2020 3. Live Example: Innovative Delivery Models The Coca-cola Approach to Delivering Essential Medicine through the Colalife Project The Colalife project is an initiative
The aim of Coca-cola's distribution structure is to help create the same demand and value that consumers wanted from Coca-Cola.
Coca-cola demonstrates innovation with integrity though a B2s (Business to Society) business model. Social Innovation to answer Society's Challenges 2014 Frost & Sullivan 17 www. frost. com Key Success Factors for Social Innovation
BUSINESS 2 SOCIETY (B2s) MODEL The B2s perspective is created by a complete stakeholder focus and is a core element of Social Innovation.
and B2c models, focussing to a higher degree on a number of social parameters (environment, business ethics, etc.),
more than the traditional factors such as purely maximising profit, benefits and experience. Future-thinking companies are going to orient themselves more towards the B2s model.
Business models which are scalable, replicable and cost effective because of existing distribution network and structures are also advantageous in creating successful B2s outcomes.
EFFECTIVE STAKEHOLDER MANAGEMENT The long-term success of Social Innovation lies with the proactive engagement of local stakeholders and beneficiaries.
B2s models tend to involve multiple stakeholder groups and the successful social innovators will be those that can bring integrated solutions to deliver clear value
and benefits to the multiple interconnected local stakeholders. Successful Social Innovations tend to occur within a cross sector context
where different stakeholders from different sectors of society, government or industry work together towards common goals and hence share common benefits.
It also requires collaborative working between the multiple stakeholders. Projects are often large and complex,
There are also many emerging opportunities for IT and mobile services (m-services) to play a role in collaboration by enabling stakeholders to work competently, effectively and efficiently, with par tners, anytime and anywhere.
The trend is towards a business environment in which communications both real-time and non-real time are integrated to optimise stakeholder processes
and increase productivity. One example is Cisco and Schlumberger who have worked together to develop a‘First Mile Wireless for Drilling (FMWD')solution for the oil
and gas industry to enable full collaboration and data sharing to deliver joint service. Another is‘Nemid'a unique digital identity developed for Danish citizens to access government services and private services such as internet banking and postal services. 4. Live Example:
Value for Money Business models in Action Value for many is replacing Value for Money. In recent years the concept of sharing and collaborative consumption has gained prominence creating
what has been clustered as value for many business models, which in turn play a significant role in the emerging Business to Society (B2s) model.
Groupon's collaborative business model is an excellent example of this, which uses collective bargaining over the internet to bring down the prices of services,
thereby offering unmatched discount deals in the market for everyone. Another popular‘value for many'business model is that of sharing and renting.
Car sharing schemes such as Zipcar and other sharing business models such as Parkatmyhouse. com help people find and rent cars and assets at an affordable rate.
Here again, they are able to offer competitive rates only because they have a large number of members.
Thereby, with the idea of‘consumer communities',these‘value for many'business models are increasingly encouraging individuals to radically prioritise access over ownership,
and choose sharing, renting, swapping, and bartering instead. This transition toward sharing everything and not owning assets is creating a new circular economy where there is no wastage
and every product and service is reusable. Social Innovation to answer Society's Challenges 2014 Frost
D. WHO ARE THE STAKEHOLDERS? Social Innovation at its best delivers value to the full spectrum of stakeholders:
Positive transformational change to communities; accelerated advancement for Governments; enhanced efficiency and sustainability to corporations;
Key Stakeholders for Social Innovation Ability to deliver integrated, converged and connected solutions is a critical success factor Government Increased pressure for sustainable economic growthcommunities Communities/users/patients/citizens:
Collaboration & Multi-Stakeholder Models Clinics Set up Overseas Using NHS Brand The Department of health (DH) and the UK Trade and Investment department (UKTI) have put together a scheme where the NHS establishes overseas clinics.
Moorfields Eye Hospital already profits from running clinics in the middle East, an example the government thinks the NHS could follow.
A cross-government unit, Healthcare UK, was set up in 2012 to link UK health providers with possible clients overseas. 20 NHS trusts are planning to go into business with healthcare providers in India,
& employees about health Extra investments generated outside the UK to improve services at local hospitals in the UK New forms of care delivery:
Patients will receive NHS standard healthcare services outside the UK Government NHS reputation can help generate extra income abroad Profit making hospital branches Revenues can help close the NHS funding gap Solution
Provider Opportunity for the NHS brand to use its expertise to sell services outside the UK Corporations Expansion of the private health sector to provide universal and affordable access creates opportunities for companies in India, China and other
growing economies Source Frost & Sullivan Source: Frost & Sullivan Social Innovation to answer Society's Challenges 2014 Frost
& Sullivan 20 www. frost. com Examples of Government Initiatives in Specific Regions & Countries 3. THE AREAS THAT ARE POISED FOR GROWTH So where is need the and hence the opportunity most compelling?
environmental food processing and eco-friendly packaging) o There are emerging paradigm shifts (such as the global shift in investment from cure to prevention
and diagnostics in healthcare) o There is a need to deliver value for many through new business models (such as mobility solutions like car sharing that prioritise access over ownership;
while also competing with one another for investment and business) o There is an opportunity for technology convergence (such as digital intelligence, internet of everything and data analytics in buildings, homes, grids, water networks, hospitals, cities, factories and transport
systems) 6. Live Example: Sustainability, Industrial Growth & Urban Development Dahej desalination plant to support industrial growth and urban development in India The Delhi-Mumbai industrial corridor in India has experienced huge
and has created a significant opportunity for innovative solutions to support industrial growth while improving the quality of life for citizens.
The WPA business model allows the consortium to own, operate and maintain all water infrastructure and allows Dahej to receive secure,
we believe the future opportunities will be greatest for the companies that can bring together total solutions to address these multiple needs in a coherent, integrated manner.
High Growth Opportunity Areas for Social Innovation Opportunities will be greatest for companies that can bring together total solutions Source:
Frost & Sullivan 4. CONCLUSION At the outset of this Whitepaper, we asked how we could innovate to meet growing human challenges, with new business models,
products and services that make sense for corporations and benefit each global citizen? In this paper, we have explored how Social Innovation answers this question across the massive industries such as Healthcare, Energy, Transportation,
and ICT, through new business models, superior products and novel services aligned with the key mega trends driving the future.
Successful innovators in the next few years will deploy a spectrum of new business models, integrating superior products and creative services into total solutions as a service.
This new breed of innovators will also strike a balance between profit for stakeholders and improved lives for individual citizens, focusing on progress both for business and our global society.
Frost & Sullivan leverages over 50 years of experience in partnering with Global 1, 000 companies, emerging businesses and the investment community from more than 40 offices on six continents.
works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make orbreak today's market participants.
we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community.
is prepared your organization for the next profound wave of industry convergence, disruptive technologies, increasingcompetitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
-Reviewing the overall development needs and investment priorities of the region; -Preparation of statutory Regional Planning Guidelines (RPGS) and reviewing Development Plans of local authorities in the region. 3. Strategic Directions Required for the RDP 2014-2020 A number of key directions have been identified by the SERA
-Promote regional smart specialisation by aligning with the sectoral opportunities identified in the Regional Competitiveness Agenda reports developed by Forfás for each NUTS III region;
-Support and manage orderly change to a more environmentally sustainable, multiethnic society and a knowledge-based economy;
-Acknowledge that some areas of Ireland have demand deficiencies with respect to certain services and that these services cannot be provided in a way that does not require indefinite, ongoing support;
-Provide an increased level of subsidiarity in decision-making so that areas can respond properly and effectively to their specific needs in the context of the overall parameters set by Government;
and implementation of programmes and that will not merely focus on specific investment programmes alone. 4. Implementation/Administrative Requirements Most responsibility for successful implementation of the RDP 2014-2020 will rest with the various public
in order to avoid overlap and duplication (even interagency competition) of measure implementation. There should be proper liasion/consultation with local bodies
such as Local authorities, County Enterprise Boards (to be known in future as Local Enterprise Offices) and others.
would welcome the opportunity, and is available, to meet with you to further discuss its submission and, in particular,
p. 4 Economist editor: Big data is a goldmine for companies...p. 6 Boosting e-skills in European higher education requires political will at national level...
involving 60 hours guided experience of digital opportunities. The project, which will deliver short‘hands on'courses in core computer science for pupils aged 14-15,
told Euractiv that in January the company committed to a further two pledges focused on fostering entrepreneurship
Tashatuvango/Shutterstock 2 5-9 may 2014 SPECIAL REPORT ESKILLS FOR GROWTH Euractiv a six-month-long competition, rewarding national finalists with a camp to enthuse teachers
and create opportunities for youth, while helping Europe to reap the benefits of the booming digital economy,
John Higgins, director general of Digital Europe, the association for the digital technology industry in Europe, said that the initiative had created already competition between actors involved on pledges.
Employers also have to be better at explaining that the opportunities in ICT are attractive,
they are convinced that employers need to tackle the issue today through better training programmes, better start-up environments,
despite the economic downturn, as ICT is adopted widely in all corners of society. Experts believe a new wave of big data
But how big the skills gap will be is impossible to forecast in an ever-changing business environment.
and contribute €63 billion to the economy, with a positive impact on youth unemployment. The real issue is that there are going to be skill gaps.
but for the economy as a whole. We need more highly specialised computer engineers. The ICT sector currently lacks people with the right skills to accomplish a number of functions, from developing software applications and security systems,
to providing lowerend support services such as systems and network administration and user support, Schaart told Euractiv.
No image problem Higgins said that employers face a big challenge in communicating what sort of exciting job opportunities the industry is providing, especially since fewer people study computer science.
According to Microsfot's Schaart, the technology sector's gender gap is a serious loss for the European economy
and for millions of customers who could benefit from ideas contributed by talented women. Continued from Page 2 Photo:
Digital entrepreneurship is an important part of this effort. The letter stated that tech entrepreneurship will power the economic recovery.
The app economy workforce is predicted to triple its revenues from €17. 5 billion to €63 billion from 2013 to 2018.
That translates to 4. 8 million jobs by 2018, according to the EU executive. The strategy also aims to digitise existing traditional businesses.
Entrepreneurship in the EU is a very large challenge. That comes from education, taxation, innovation unlike the US,
Campolargo added the EU was trying to identify the different elements that needed to be harmonised to promote entrepreneurship.
We support entrepreneurship but we also have to create conditions of the wealth of all of society in general.
Finance and training Start-up companies can't begin without investment. Access to finance for business is another policy area that requires serious attention.
There is also a knowledge gap between the number of people who could be employed by digital ventures
aimed at promoting innovation and fostering a culture of European entrepreneurship. Startup Europe introduced a commission one-stop website for entrepreneurs.
a crowdfunding network and Tech Allstars group run by DG Connect. The conference was chosen to Continued on Page 5 Euractiv ESKILLS FOR GROWTH SPECIAL REPORT 5-9 may 2014 5 launch Watify
Since 2010 the European Institute of technology has provided entrepreneurship training for more than 1, 000 students and contributed to the creation of more than 100 start-ups.
In March, The European commission created a new forum dedicated to enhancing digital entrepreneurship in Europe,
Digital entrepreneurship cuts across a huge amount of policy areas and national and European responsibilities.
A president taking personal responsibility would be an important advantage for those trying to create a new culture of European digital entrepreneurship.
Digital Commissioner Neelie Kroes. European parliament 6 5-9 may 2014 SPECIAL REPORT ESKILLS FOR GROWTH Euractiv Economist editor:
Kenneth Cukier is data editor at The Economist and co-author with Viktor Mayer-Schönberger of Big data:
lacking the necessary digital skills to effectively use information and communication technologies, according to a report by the Organisation for Economic Cooperation and Development (OECD) published in autumn 2013,
transparent and replicable testing of open learning environments, open education theories, new business models, open education computational tools,
Yannis Sirros, head of the Federation of Hellenic ICT Enterprises (SEPE) told Euractiv Greece in an interview that Europe will need 900
via outsourcing services and service-level agreement (SLA), create collaboration with Southern Europe, in order to ensure a competitive Europe with innovative services and products,
the SEPE head said, adding that the e-skills conference tries to address this development.
In addition, the creation of a digital single market in the EU could add up to €800 billion in the European economy.
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