Dubbed “Innovation Breakthroughs – Igniting Europe’s Growth” They were celebrating 10 years of the opening of the centre and as you arrived, you saw the cranes at work to double the facility as well as further deepen their commitments within the surrounding community even further.

One such community success story has been the co-location they have with the Technical University of Munich (TUM), where both have evolved to share a real philosophy of creating new knowledge and making it available for the industrial innovation process through this partnership.

They combine in a number of “sweet spots” or research domains, that move the academic creative contributions of science into the industrial researchers alongside, working to advance products, bringing these concepts to commercial fruition.

The event also combine with the announcement of Euro €18.5 Million in New Research Program Funding announced as GE Marks the 10th Anniversary of its Global Research Centre in Europe with its university partners. A further community commitment.

Alongside side this announcement, a White Paper was issued on “The State of European Innovation”, drawing down from the GE Innovation Barometer  and other resources.

I have always liked to read with interest this set of Barometer insights,  and have enjoyed commenting upon (here for example) the results that are published each year. The GE Innovation Barometer I think really does offer valuable insights into innovation thinking by over 3,000 leaders in larger business organizations. It offers good insights into the inner thinking about innovation that has practical implications.

A quick tour of the R&D facilities reveals much about a company

While I was there, I was lucky enough to take a “quick” tour of the GE facility after my small contribution to a fascinating set of debates earlier in the day. I can honestly state the passion, commitment and sense of pride in all the researchers I meet were impressive. It goes way, way beyond putting on a positive spin to the visitor, it is a deep desire and I think a real motivation to push advancement.

Before I went to Munich I really got caught up in GE and its evolving story.
From the outside looking into GE I had felt it was evolving but I was not able to get ‘under the hood’ and see the ‘powerful forces’ that seem to be at work. This event helped trigger that growing awareness and brought it significantly to life for me.

GE often use an awful lot of ‘convening words’ that make you curious to connect to their technologies, and their industry areas and explain how and where these are evolving. I think this thinking has been ‘cranking up’ significantly in the past couple of years, and for good reasons. GE has a good evolving story to tell.

Included in their portfolio are some of the essential aspects of our lives, they connect us, connect enterprises and advance many things and reshape the future. When you hear about “mapped minds”, “brilliant factories”, “extreme machines”, “energy everywhere”, “super materials” and finally their take of the “industrial internet” it confronts you. That was how I felt when I walked through the doors into their lobby area.

For me it was going to be a promising day.
Irrespective of how or where I could contribute, I knew I was going to learn a lot from the event. As it turned out the panel I was invited upon became fairly lively.

I had the pleasure of being on a panel that included Mark Little, the Senior Vice President and Chief Technical Office for GE, Jean Botti, the Chief Technical and Innovation Officer for the Airbus Group and Christian Cahn von Seelen, the Head of Corporate Strategy, China and India Business at Skoda Auto.

The audience ranged from politicians, and senior representatives across industry, research institutions and health and the Q & A I felt could have gone on and on, debating Europe’s innovative future. We simply touched the ‘tip of the iceberg as there are equally dangers lurking not just under the surface as complex problems to tackle.

Yet equally, such a positive mass of deep knowledge, real tangible successes and high absorption of learning across Europe, all needs to be picked apart, mapped out and reconnected in new ways, does provide a promising future in innovative ways to get Europe moving again, in growth, jobs and unified commitments. I only wish it was less left in Politicians and Bureaucratic hands and our institutions and business leaders were more deeply involved in shaping the process, not just lobbying for their specific part.

Plenty of pride, some angst.

Sitting in Germany you can always ‘feel’ that real pride, a clear determination and belief in the achievements made and plenty yet to come-

Equally, you know what will be delivered in much of the approaches can be summarized as making connected sense. Sometimes the rest of Europe does seem to want to ‘pull’ in other ways and that is hard to understand from a German’s perspective. This is part of ‘our’ creative tensions in Europe to be bridged.

It is part of the challenges we face in Europe, connecting all the diversity and opinions of 28 countries to get growth and a real momentum within the European economy going again. Debating the required innovation fits across Europe is complex and challenging.

What I liked in my visit was a reminder that if you combine much that is good from one culture and fuse it in thoughtful ways that capitalise on the diversity of the other or across many, you can really see tangible results. Collaborating on big challenges would be one ‘unifier’.

I think the combination of the fusion of the mindsets of an American company that believes it is a scale-based entrepreneur organization, managing complicated technologies and ‘big things’ and a collection of bright researching minds, all drawn from not just across Europe but many parts of the world, sitting next to a university (TUM) that are plugging into the German way of doing things is a good example of this collaborating across big challenges.

Of course, managing complex situations across cultures can be frustrating but this host of ‘connected points’ strikes me to be a winning formula. Of course in GE’s case, you throw in the connected nine Global Research centres you certainly ‘sense’ this motion towards an accelerating future within GE. 2,000 scientists and engineers and 50,000 technologists. It can make you pause for breath, it’s simply impressive, and ‘living proof’ of connecting minds, knowledge, and cultures with machines on how it can generate results that are advancing what we know today in significant ways.

Then we have the wave of connecting minds and machines.

Mark Little the Chief Technology Officer for GE was heading out of the door early afternoon to catch the flight to get him back to GE’s next event, of connecting minds and machines being held the next day. Now this promises a different, potentially radical new future in industry and GE are placing a lot of resource and commitments into it.

GE is taking a real lead here. In the last three years, they have been ramping up their thinking, dubbed “the industrial internet” and moving into the power of connected industrial assets (the machines) through embedding sensor technology everywhere on the machine, bringing back its data from often hostile environments and through the analytics applied can turn this into ‘intelligent information.’

This offers the potential of real-time decision making, delivering required and necessary insights at the right time, to the operators and business decision-makers so as to manage that dreaded aspect all industries fear of “downtime” better. It also allows for managing more efficiently and effectively the assets.

Already I gather GE has put over £1 billion into this potential game-changing move to transform industry. CEO and Chairman Jeff Immelt’s opening to this event with his headline view: “if you went to bed last night as an Industrial company, you are going to wake up in the morning as a software and analytical company” where the separation between data and industry has vanished. Does this change the business model, I think so.

Of course, Jeff Immelt is saying this, he runs a “big bets company” and they are setting about transforming the industry for competitive advantage. Yet again though, it is the way they seem to be setting about it that makes you feel it is happening and shifting the dynamics of big asset business, in significant ways.

Platforms, Partnerships and the Ecosystem

I strongly believe the future of collaboration is going to be based around platforms and ecosystems, where you bring together the minds and the business interest, gathered around specific but complex issues to solve. GE are working on delivering this.

Through their platform of Predix, GE are providing “industrial-strength software and analytics” and spoke of having 40 apps ready for customer use today at this event. They are also throwing open the platform for others to use, build and develop their apps. GE will offer the backbone, architecture, resilience, and security for others to come onto this platform with growing confidence and work towards ‘apps’ that are even more tailor-specific to their needs beyond ‘just’ sensors.

The partners already working with delivering from this platform are Cisco, Intel and Accenture and GE’s investment in Pivotal will mean the amount of time GE executives will be spending in San Francisco building the resources behind this is a space worth following.

I gather they have 800 data scientists and GE is on a further massive recruit to ramp this up, well over doubling this in the region, to attract and blend the best in talent, software and analytics. I also gathered they have been but recruiting the ‘forty something’ person as well for their business experience, as they sit down and work through issue upon issue with their customers.

It is clearly evolving at some speed, GE are delivering the Medici Effect of breakthrough insights at the intersections of ideas, concepts and cultures. as our world becomes more intersectional when we merge one field into a new, unfamiliar territory for these radical changes in how we will manage in the future.

The combinations of smart machines, enabling technologies, big data modelling and analytics and determining the customer outcomes in increasing collaborations, will radically alter the Business Model of GE in future years, in ways that we yet can’t imagine.

As I left the R&D centre in Munich

As I look up at the crane as I left and saw the shell of the additional building going up in Munich, I can imagine that science, research and technology will fuse in ways that we are only beginning to grasp. I wonder what type of mix of skills that group of future employees will have, far more a blend, perhaps a more broad set, rather than one that is deep only.

We will be seeing software services, a changing portfolio strategy and GE’s scientists, researchers and engineers all managing not just in their deep domains of knowledge but broadening out into far greater engagements alongside customers. It alters and unleashes.

Combining in future ways with the chosen universities, institutions and partners, increasing working through and on these platforms. where collaboration and co-creation will move way beyond today’s open innovation concepts, focusing on bringing ‘synergies’ that deliver those vital winning outcomes.

The future era of innovation suddenly looks even brighter.

So those Asset-intensive industries that are looking to reduce costs, improve efficiencies and search to unlock new sources of customer value, are moving into a ‘connected realisation’ that will bring the industrial internet into increasing focus. It will sit alongside the social side, where the internet of things (IoT) has been making most of the running to date, encroaching far more of our business and personal lives.

The promise of deep, lasting connections and relationships all seem to be offering innovation in a new era of prosperity, were connected enterprise and the connected world come together with very different business models, built on this ‘promise’ of platforms and ecosystems, delivering in very tangible ways through a collaborative common cause.

A place where “Everything connects,” a book written recently by Faisel Hoque, is suggesting where people, insights, capital, infrastructure and ecosystems combine. One where the age of creativity, innovation and sustainability come together as the needed skills required to be continually adaptive.

I’m all for that era. We are at perhaps an inflexion point on the way we are thinking, managing, and collaborating in a connected universe for new growth possibilities. I’d like to believe so and from what I can see, GE is well on their way to working this out in its own, highly focused way.

The post Connected Enterprise, Connected World with GE first appeared on Building Your Innovation & Ecosystem Intelligence.

I gaze through unbelieving eyes at the continued rise of unemployed in Europe. Unemployment in the Eurozone has reached another record high with the seasonally-adjusted rate for April  2013 going to 12.2%, up from 12.1% the month before according to the European Commission’s statistics office, Eurostat:An extra 95,000 people were out of work in the 17 countries that use the Euro, taking the total to 19.38 million. Both Greece and Spain have jobless rates above 25%. The lowest unemployment rate is in Austria at 4.9%.

It seems never-ending.

Youth unemployment remains a particular concern; you simply have to wonder what we are storing up in the longer term with this situation. Can the youth ever catch up, can our society as it is positioned give them the opportunities to turn today’s grim world into a world of optimism and contentment, or is it a lost generation?  In April, 3.6 million people under the age of 25 were out of work in the Eurozone, which translated to an unemployment rate of 24.4%.

Why does this issue of growing unemployment seem to be drowned out by events that seem important on the day but realistically pale in their significance against something as damaging as this present crisis?

Examples of persistent economic and social challenges

We are facing significant society challenges. These include declining Economic competitiveness, deepening Social inequalities, rising Mental ill-health, increasing Crime and social disorder and we see growing Alcohol and drug abuse, to name some of the issues being increasingly tackled as part of the consequences of these tough economic and social times.

We must increasingly recognise that the cost of deferring concerted action to confront these growing set of social challenges is beginning to rise – and could easily outpace our ability to respond.

Can we afford to wait? There are so many pressing questions.

The cost of lock in

More fundamentally, our existing approaches and institutions are also inadequate because, in the main, they lack the capacity to develop the new approaches we need through innovation.

We are faced increasingly with the ‘innovator’s dilemma’, identified by Professor Clayton Christensen, where a company or in this case whole nations can’t seem to address the changes (rapidly) going on around them.

Their existing models become obstacles in the face of changing conditions, deepening issues, new threats from emerging nations, rapidly changing technologies and a growing inability to overcome rapidly changing circumstances wrought by deteriorating economics, (infra) structures and upheavals.

Any organisation or system or even nation is susceptible to ‘lock-in’, whereby it loses the ability to develop novel ways to serve its customers or clients or markets because it has invested so heavily in its existing processes and technologies. This is part of one of the fiercest debates on the future of the European Union we have yet to have.

Our understanding of innovation has broadened

Today innovation is increasingly being understood in a broader perspective than just products alone. We are in a period of major transformation in what we mean by ‘innovation’. We need to push innovation across its broader understanding to explore new business models, unique services, greater collaborative techniques and community engagement.

Traditional innovation is insufficient for the challenges we face, this will not resolve climate change, an ageing society or reinvent public/ private services that match demand and need. We need greater connections across society.

There is a growing buzz around the Quadruple Helix of Innovation, where Government, Institutions (Academia, Foundations and NGO’s),  Industry and Citizens need to collaborate together to drive structural changes far beyond the scope of one organizations and what it can achieve on its own.

These will be increasingly through innovation engagement platforms where people use the designed structures to purposefully intensify exchanges to co-create value to solve our growing bigger problems.

Seeking out unconventional solutions through more radical innovation

These are times when we need some visionary leadership and thinkers out there. Those that dare to breach present accepted boundaries of rigid beliefs and conventions. Those that push beyond the normal practices and can depart from the commonly held goals of establishment, by looking for non-conventional novel solutions that can draw in more of the disenfranchised, we are seeing today.

Facing New Challenges: Promoting active inclusion through social innovation

Social inclusion is a pre-requisite for the creation of a just and cohesive society in which each individual can fully participate and realise his or her potential. Active inclusion, as one strand of the broader social inclusion concept is looking to draw in and deal with inclusion into society of people furthest away from the labour market.

We need to make new markets full of engaged young people.

 There is clearly a latent demand building in our societies and we need to turn this into a more ‘effective’ demand, to forge the links between supply and demand that will generate new value and opportunity. For example, who can invest in effective supply by supporting promising projects and collecting evidence of what works that shows promise of broader societal impact?

Then who can we involve who can invest in effectively ramping this up. Perhaps focusing the different Foundations already set up can turn this latent demand into effective demand. This might mean shifting resources from other parts of the world, back into Europe to get the economic engine kick started again.

Applying innovation intensity to what we do.

We need to rapidly accelerate a rigorous experimentation mentality by focusing far more on major societal challenges that need addressing, before it is too late. Ones that can encourage and embraces local solutions needed and engagement within communities but the learning can be rapidly absorbed and the winning concepts can be scaled up to benefit more communities or areas of need and resolution.

Different type of economic statecraft are needed to position ourselves

How can we encourage and accelerate more of our companies to pro-actively integrate environmental and social impact into their business models? To put into place better measures of investment performance over the long-term that ties into greater social good?

There is also a real challenge today to lay out a different position for government. One that is more the facilitator, setting out the conditions for  the impact economy ecosystem and  supporting in ways that invest in the longer-term infrastructure and platforms that can scale the innovations and partnerships needed to achieve sustainable, long-term growth.

Government cannot ‘play’ in all three horizon investment areas, it does not have the capacity, experience, capital and resources. We need leaders who not just make tough decisions but set about putting in place the different conditions, incentives and clarification of who does what and why. The more the short-term crisis extends, the harder it becomes for Governments to participate in mid-term future innovation activities. They simply can’t easily.

A time and place where we are converging to make social innovation a critical element

We are in a current battle to address both short and long-term economic and growing social challenges. We are faced with growing unemployment still, especially here in Europe. The youth of today need to engage, otherwise we are in a great danger of losing a whole generation and that has such significant impact on or nearly everything we have in place today.

How are we going to draw upon the imagination and expertise of a broader set of innovators and tap into the entrepreneurs that are out there, to tackle some of these significant societal challenges?

Are we at the early stages of a new economic order with even more disruption?

Of course we might be in the beginning of a very different set of economic factors. We might actually be heading to a completely different type of economy that melds features which are very different from economies previously based on the production and consumption of commodities. Today we are already seeing blurred boundaries between production and consumption.

We need to think about repeated interactions, care and maintenance and not one-off consumption; and a strong role for values and missions that are far more inclusive for society and less focused on individuals; otherwise we end up with a divided society that clash in ways reminiscent of past revolutions where the majority finally rebel.

Are we facing even more instability in the coming years?

The present value equation in our societies is rapidly getting unstable; we need some fairly radical solutions to reverse the existing trends. I think the challenges will only get harder in the months ahead.

We do need to positively disrupt before we get more unexpected disruptions occurring. Innovation needs to play an ever-increasing part in this to explore alternatives and allow those lost from current economic activities to begin to participate and make a contribution where they see there is a future for them.

The post Breaking out of the current economic dilemma needs radical innovation first appeared on Building Your Innovation & Ecosystem Intelligence.

The shifts taking place in Europe

The competitiveness and challenges that Europe faces in the next ten years are significant. Innovation has been placed at the heart of Europe’s 2020 strategy.

It is this clear recognition that innovation is the best means of tackling issues that will affect our future living standards is not new in itself, but it is this real political recognition of its place and importance, now that is.

Innovation is also our best means of successfully tackling major societal challenges, such as climate change, energy and resource scarcity, health and aging and becoming more urgent each day to address in more systematic ways.

European funding of innovation in recent years has perhaps placed far too much emphasis on research and development to deliver the growth and jobs it requires.
In many cases it has been outperformed by other competitors and has not been as well linked as it should have been to country or EU policies. The EU is presently going through a public consultation to strengthen its new “Common Strategic Framework” to get into the system more efficiency, not an easy task across 27 plus countries and better uptake across a wider audience.

Societal challenges are where the next big challenges lie.
The recent global economic crisis has raised society issues far more. Social innovation will begin to move from the margins to the mainstream to tackle a range of these society challenges. It will inevitably need more structural support; it needs more coordination and alignment by all the stakeholders involved, it needs organizing and being recognized in its own right.

“Social innovation’ as a term is still relatively new one but social innovation is of course not. There are many examples but establishing a “field” of social innovation is certainly necessary and needed to get a broader momentum behind multiple initiatives.

Any new ‘field’ needs debate. It needs common terminology, clearer definitions of what it covers, a growing understanding of the different tools, techniques, and methods and establishing a knowledge base to draw down from. Social innovation has no given geographical boundaries; it happens across society that involves all sectors of a community: public, private and non-profit.

Actually one of the real challenges is managing across the boundaries between sectors.

An emerging social economy is replacing much of what we have known.
I recently wrote in this blog (4^th January 2011) about how social will dominate our thinking in 2011 and beyond. Here is the link (http://bit.ly/eYV9E9).

It is very different from economics based on the production and consumption of commodities. It has five very distinctive differences from existing innovation approaches

1. It has an intensive use and reliance on distributed networks to sustain and manage the relationships that constantly need to be brought together to resolve a ‘given level’ of societal challenges. They are fluid, constantly changing and never fixed.
2. It has blurred boundaries between production and consumption, across sectors and traditional ‘mixes’ of innovation. Often there are no clear ‘black or white’ solutions, many will need de-constructing and re-constructing on distinct challenges and context.
3. The emphasis on collaboration and repeated interactions need greater care and maintenance than much of our present ‘one-off’ consumption. Society is quick to mobilize today, playing off the defensive is not the answer, it is leading the offensive and shaping these interactions becomes critical. You cannot be passive, you need to be ready to experiment, learn and move on through this learning and confront, irrespective.
4.  There is a significant emphasis on value and missions to build momentum and overcome many challenging barriers so as to achieve those solutions that provide improvements on existing approaches. Passion runs high, solutions become very emotive. It needs a consistent and strong commitment to execute from this value and mission, you need a bedrock of belief and commitment.
5. The consumer or final receiver of the social solution dramatically changes, from being passive to a very active, and highly engaged participant. Many of today’s solutions based on the present linear process cannot work or applied. Solutions based on consistent interactions must be built on ecosystem platforms. I’ve touched on ecosystems previously here (http://bit.ly/icrzGb ).

Early recognition of these differences or where innovation is merging today around social and end consumer unmet needs will need ‘fleshing out’ in any future debates.

What is distinctive about social innovation?
Besides the five points listed above, there are many distinctive differences about social innovation. The emphasis is firmly placed and measured on outcomes; it raises relationships, cooperation and collaboration to far higher heights than innovation coming from business has seemingly been able to achieve or so it seems from the countless comments made.

Perhaps it might accelerate this end of the innovation debate and ‘fuse’ innovation at the end result not at the present ‘fuzzy front end’ or in the process but solving the execution challenge through new novel ways.

As a result, the processes, metrics, models and methods used in the commercial or technological field of innovation may not be directly transferable to the social economy, or it might be a real mistake to attempt this.

This is one of my major concerns from the EU commission merging this into their innovation activity under one overarching innovation initiative as the real danger becomes one of the ‘easy’ use of existing policy, mechanisms and frameworks for present innovation structure are applied to this.

This would be the wrong model for social challenges. This needs clear difference from day one. This needs to be part of these initial debates.
Innovation as many understand it is always chasing for a clear measurable result. The more unambiguous the result the more the market values it.

Scale, market share and profit rule the thinking. There is far more contestability when it comes to understanding value for society and will make for ‘generic’ answers as not as straightforward or potentially transferrable.

Social innovation will be hard to often transfer as the context will be distinctly different. Recognizing the successful aspects and separating the ones applicable to a certain challenge will become a significant skill to ‘scale and scope’ social innovation when we want to benchmark others and try to duplicate those efforts as ‘our’ answer.

Let the debate begin.

For many who have been working within the social area what I have commented upon so far is nothing new, far from it. There has been a significant ‘work-in-progress’ for some years. The change lies in my opening comments, if social innovation goes mainstream, then debate also goes mainstream and becomes a deluge of conflicting advice and thinking.

How any social innovation Europe initiative is managed will depend on the strength of the work documented, proven and ready to be applied from the past as a good starting point.  A consortium of European partners has been working on this and you can find some good background material on the website of the EU on social innovation (http://bit.ly/i7bfoD ).

Two other sites worth referring to are http://www.socialinnovationexchange.org/ and one of the leading researchers and influences on policy to date in this social innovation area has been http://www.youngfoundation.org/. I’ve drawn a lot of my insights from the work they have pioneered.

The official launch event is in March 2011
The adoption of social innovation will have a launch event for the Social Innovation Europe initiative in Brussels on 16^th & 17^th March 2011. (http://bit.ly/eJ09d5 ). This event will attempt to put a face on the policy, discuss implications and showcase a number of social innovation pioneers.

It officially begins the EU leading social innovation. Should we be afraid of this or grasp the opportunity of what it can bring for the pressing social problems that are pressing in on us? I choose the latter- embrace.

I’m presently reading an interesting book that does relate to this social set of challenges. Although it spends much of its discussion on business solutions it does certainly go well beyond the business world in lots of the examples to draw from and apply to social innovation. It is written by Gaurav Bhalla and called “Collaboration & Co-creation- new platforms for marketing and innovation”.

In this book he offers a simply but powerful framework that would apply here. Listen > Engage > Respond.

My hope for the EU Social Innovation debate
That the EU and all the ‘collective’ wisdom that will convene in Brussels will listen, not just to each other but to the crying needs of society as the issues have incredibly wide boundaries that are indeed unmet today. The challenges are big.

The EU does engage in a completely different way to tackle social issues. The platform that needs building has to be open, very fluid, often experimental and use all possible means of social tools to make it fully engaging.

Thirdly, the ability to respond to such a different, diverse set of society challenges is going to call upon the ingenuity of the Commission. It will need to respond not just to the established parts of society, the institutions, public and private but to the third sector. This sector is passionate, driven and highly committed to the causes they personally see as vital.

This all requires this social innovation ecosystem, the network of networks, that draws in civil society, government, business, institutions, not for profit charities and non-governmental organizations for example.

The Listen, Engage and Response principle is going to be a tough area for a body like the EU to manage but they will have to fully embrace today’s social tools (and tomorrow’s improvements) to stand a chance. A social challenge in itself!

The post Social innovation comes of age in Europe first appeared on Building Your Innovation & Ecosystem Intelligence.