OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

TONY O’DONNELL PARTNER CAMBIUM LLP WWW.CAMBIUMLLP.COM

Cleantech Innovation Today is Not Easy

• Economy, Skills, The Right Entrepreneurs

• Finite Resources in Incubator

• BUT the biggest waste of your resources are those SMEs

that don’t evolve into successful businesses

Q. How do you mitigate the risk of innovation failure in your incubator and to ensure that you

don’t waste money and resources?

Who Are Cambium?

Sales & Marketing

B2B

Sustainable Innovation

(Cleantech & IT)

Accelerate Innovation

Adoption and Revenues

Scientific and Engineering skills

Environmental policy and legislation expertise

Extensive experience of successful B2B sales and marketing execution

Specialist Consultancy – based Peterborough since 2008

Help Cleantech & IT Innovators accelerate adoption of their products and services

Market research, consultancy & training interventions

Work with large and small companies

Agenda - OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

• Commercialising Cleantech Innovation Successfully

• Changing Drivers of Cleantech Adoption By Business

• Suggestions for Cleantech Incubator Response

Agenda - OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

• Commercialising Cleantech Innovation Successfully

• Changing Drivers of Cleantech Adoption By Business

• Suggestions for Cleantech Incubator Response

• The Innovation gets used and delivers tangible value

• A Business that is able to repeatedly acquire Customers

• Established in a Market

• Self Sustaining Revenues

• Contributing to the Local Economy

• Growing Jobs

• Sustainable Success

• Everyone is Happy

What Does A Successful Innovation Look Like?

The Realities of Innovation

Company A

Company B

Company C Revenues

Time

Successful Sales and Marketing Execution

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

MARKET RESEARCH

REPEATABLE SALES & MARKETING EXECUTION

VALUE PROPOSITION DEVELOPMENT

TARGET MARKET / AUDIENCE SELECTION

How will you engage with your chosen

market?

Early Stage Innovation Focus

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

MARKET RESEARCH

REPEATABLE SALES & MARKETING EXECUTION

VALUE PROPOSITION DEVELOPMENT

TARGET MARKET / AUDIENCE SELECTION

How will you engage with your chosen

market?

Cambium LLP all rights reserved

Early Stage Innovation Execution

Core Competences

Sales and Marketing Execution

People and

Communications

• Early Innovations fail - 3 key success factors are not aligned

• There is no clear, agreed, value proposition or execution plan

Cambium LLP all rights reserved

Align Key Success Factors

Core Competences

Sales and Marketing Execution

People and

Communications

A Key Intervention

Required Early and Often

Cambium LLP all rights reserved

Value Proposition Development

Core Competences

Path to

success

People and

Communications

• Identification, creation and alignment of Key Success factors

• An innovation action plan designed

to support the company’s goals

• Built with the active participation of all key participants in the business

• A coherent focus and a unified

team

Agenda - OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

Commercialising Cleantech Innovation Successfully

• Changing Drivers of Cleantech Adoption By Business

• Suggestions for Cleantech Incubator Response

Global Pressures on Businesses

ENVIRONMENTAL CONSTRAINTS

Climate Changing Water Scarcity Environmental Diversity Declining Finite Natural Resources – Peak Everything

INCREASING SOCIETAL RESPONSIBILITIES

Global and Local Legislation P2P Politics / Active NGOs Employee & consumer aspirations Supply chain pressures

NEW ECONOMIC REALITIES

Global Population - 7bn 9bn 2050 Economic Power Shifting Growing Demand - Cars, Phones, Food

Expanding Middle Class in BRICs

Resource Pressures – Pricing & Security

ENVIRONMENTAL

ECONOMIC

• Consistent, profitable growth • Total shareholder return • Risk mgt

• Compliance • Bio-diversity mgt • Emissions to air • Water/chemical

discharges

• Diversity • Human rights • Equal opportunity • Outreach programmes

SOCIETAL

Adoption of Sustainability By Businesses

Sustainability??

Corporate Social Responsibility

CSR

Corporate Governance

Community Relationship Management

Stakeholder Management

Sustainability

Environmental Stewardship

Natural Resource Management

Green

Energy Efficiency Management

Co

mp

lian

ce

Asse

t Man

agem

en

t

Triple Bottom Line

Ethics and Compliance

Risk & Compliance

Inte

grat

ed

Re

po

rtin

g

Inte

grated

A

ccou

ntin

g Sustainable Living Plan

Responsibility

ENVIRONMENTAL

ECONOMIC • Consistent,

profitable growth • Total shareholder

return • Risk mgt

• Compliance • Bio-diversity mgt • Emissions to air • Water/chemical

discharges

• Diversity • Human rights • Equal opportunity • Outreach

programmes

SOCIETAL

Traditional Cleantech Investment Drivers - 1

The Drivers of Cleantech Investment Are Changing

ECO - ECONOMIC • Resource efficiency • Energy efficiency • Global climate / energy issues

Sustainability Measurement - Best Practice

Carbon

Water

Waste

ENVIRONMENTAL

ECONOMIC • Consistent,

profitable growth • Total shareholder

return • Risk mgt

• Compliance • Bio-diversity mgt • Emissions to air • Water/chemical

discharges

• Diversity • Human rights • Equal opportunity • Outreach

programmes

SOCIETAL

ECO - ECONOMIC • Resource efficiency • Energy efficiency • Global climate / energy issues

SOCIO-ENVIRONMENTAL • Health & Safety • Legislation • Public awareness

NEW Cleantech Investment Drivers - 1

ENVIRONMENTAL

ECONOMIC • Consistent,

profitable growth • Total shareholder

return • Risk mgt

• Compliance • Bio-diversity mgt • Emissions to air • Water/chemical

discharges

• Diversity • Human rights • Equal opportunity • Outreach

programmes

SOCIETAL

SOCIO-ECONOMIC • Talent management • Recruit and retain • Local economies

Sustainability – the Triple Bottom Line

ECO - ECONOMIC • Resource efficiency • Energy efficiency • Global climate / energy issues

SOCIO-ENVIRONMENTAL • Health & Safety • Legislation • Public awareness

The Importance of Reputation & Brand

Tesco:

Sustainable Supply Chains

UK

Starbucks:

Ethics and Taxes

UK

Primark:

Employee Welfare

Bangladesh

Safapac:

Environmental Impact

Peterborough

Governments Are Legislating for Sustainability

• New UK Legislation In October 2013 affecting all Listed Companies

• Mandates creation of a Carbon footprint report

• In Annual Report

• To be extended to 24,000 organisations in 2016

• Annual Report must also now contain a description

of principal risks

• the environment,

• the company’s employees,

• social, community and human rights issues,

http://www.cambiumllp.com/resources/greenhouse-gas-report-download

Draft EU Directive issued April 2013

Disclosure of non-financial and diversity information

Objective: to improve the transparency of the social and environmental

information provided by companies in all sectors, in order to ensure a level

playing field

Whose Affected: to apply to companies whose average number of employees

exceeds 500 and which have a balance sheet total of €20 m or a net turnover of

€40 m

Obligation: Requires companies to adhere to one of the emerging Sustainability

standards

• UN Global Compact

• ISO 26000 Guidance Standard on Social Responsibility

Timescale: In effect 2016, companies to publish their first reports in 2017

http://ec.europa.eu/internal_market/accounting/non-financial_reporting/index_en.htm

Cambium LLP all rights reserved

Great Opportunity for Engagement:

New Conversations

What Is The Cleantech

Proposition?

How to Engage

Interest?

COST

ENERGY

CONTINUITY

COMPLIANCE

REPUTATION

SHAREHOLDER VALUE

RECRUITMENT & RETENTION

CEO

H.R Dir.

COO

CFO

CIO

CSR

CMO

Why Is This Important for Cleantech?

Growing Interest In Sustainability Across C-Suite In Business Market

ENVIRONMENTAL

ECONOMIC

• Consistent,

profitable growth

• Total shareholder

return

• Risk mgt

• Compliance

• Bio-diversity mgt

• Emissions to air

• Water/chemical

discharges

• Diversity

• Human rights

• Equal opportunity

• Outreach programmes

SOCIETAL

The Transition To Sustainable Business Models

What Are The Implications for Cleantech Incubators?

COST

ENERGY

CONTINUITY

COMPLIANCE

REPUTATION

SHAREHOLDER VALUE

RECRUITMENT & RETENTION

CEO

H.R Dir.

COO

CFO

CIO

CSR

CMO

Do SME Innovators

Understand This Change?

Do SME Propositions

Maximise This Opportunity?

Are SMEs Aligned with their best markets and

clients?

How will you improve the

return on your Innovation € / £ s?

How will Incubators

measure success?

ENVIRONMENTAL

ECONOMIC

SOCIETAL

The Implications for Cleantech Incubators

Agenda - OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

Commercialising Cleantech Innovation Successfully

Changing Drivers of Cleantech Adoption By Business

• Suggestions for Cleantech Incubator Response

New Requirements for Cleantech Innovation Support

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

How to engage

successfully with the chosen

market?

New Requirements for Cleantech Innovation Support

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

How to engage

successfully with the chosen

market?

• Market Research Support

• Local Needs Assessment

• Regulatory Catalysts

ENVIRONMENTAL

ECONOMIC

SOCIETAL

New Requirements for Cleantech Innovation Support

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

How to engage

successfully with the chosen

market?

• Support of Value Proposition Development

• Proposition Review / Audit

• Real World Business Planning

ENVIRONMENTAL

ECONOMIC

SOCIETAL

New Requirements for Cleantech Innovation Support

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

How to engage

successfully with the chosen

market?

• Campaign development

• Audience Identification

• Telemarketing / Lead Generation

ENVIRONMENTAL

ECONOMIC

SOCIETAL

New Requirements for Cleantech Innovation Support

Where is best

market for the

Innovation

What value does the

Innovation Offer?

Who is most interested

in the offer?

How to engage

successfully with the chosen

market?

• Sales Opportunity Management

• Sales Coaching

• Sustainability Education

ENVIRONMENTAL

ECONOMIC

SOCIETAL

Agenda - OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

Commercialising Cleantech Innovation Successfully

Changing Drivers of Cleantech Adoption By Business

Suggestions for Cleantech Incubator Response

Q. How do you mitigate the risk of innovation failure in your

incubator and to ensure that you don’t waste money and resources?

OVERCOMING THE BARRIERS OF COMMERCIALISING CLEANTECH

A. To maximise the Cleantech Opportunity Incubators must evolve:

• Recognise the growth in Sustainability (Environment and Societal) Impacts

• Have a greater focus on Sales And Marketing execution

ENVIRONMENTAL

ECONOMIC

SOCIETAL

QUESTIONS

The Eco Innovation Centre

City Road

Peterborough

PE1 1SA

Telephone: +44 (0) 8456 383 280

Email: info@cambiumllp.com

www.cambiumllp.com