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14 | 15TH - 21ST MAY 2015 | UTILITY WEEK UtilityWeek Innovation Dr Edward de Bono is the Maltese physician, psychologist, author, inventor and consultant who coined the term "lateral thinking". He developed the well-known Six Thinking Hats approach to problem solving and innovation. The aim of Six Thinking Hats is to separate different types of thinking into different func- tions and roles. It is a popular tool for ensur- ing ideas are developed using lots of different perspectives and for ensuring their associated risks are recognised. "Gripple is a manufacturer of wire-joining and tensioning devices for agricultural and industrial applications. It is now a £40 million turnover business, up from £15 million in 2007, selling more than 50 million devices each year into over 80 countries. We have also won four Queen's Awards for Innovation. Our innovation strategy is based on finding problems to solve and in 25 years has had three disruptive "Eureka moments". We make repeat- ing this success our focus. Our key perfor- mance indicator is always to have 25 per cent of turnover coming from products launched in the past four years. Innovation is not just about winning products. Our mindset has enabled us to create a long- term sustainable business making widgets in the UK, generating margins in excess of 55 per cent, at a time when conventional wisdom would have the product manufactured in China. We have done this by investing in auto- mation, focusing on excellence, and using an employee ownership business model that deliv- ers exceptional buy in and a can-do culture." Gordon Macrae, senior projects manager, Gripple. Innovation tips from Gripple • Focus on solving problems for customers: Innovative step change products will result in long customer retention. • Learn from failure: Turning failure into a posi- tive learning experience is a key characteristic of a strong innovation culture. Gripple: getting a grip on CASE STUDY Catapults aim high T he establishment of the UK's Catapult centres represented a turning point for the nation's innovation strategy and support framework. The Catapult model was first conceived under the pre-2010 Labour government and was carried forward under the last govern- ment. Unlike the many academic research centres around the UK, Catapults target eco- nomic value creation from technology inno- vation. They fast-track the commercialisation of ideas that have reached mid-range tech- nology readiness levels. There are now seven fully functioning Catapults with a further two nascent centres launched this year. Each Catapult is designed to support commercially-focused innovation in a particular industry vertical or cross-cut- ting technology sphere – for instance, there is an Advanced Manufacturing Catapult and a Connected Digital Economy Catapult. The Energy Systems Catapult is one of the two newest centres and is chaired by Nick Winser, former executive director of National Grid. The centre will explore the application of technologies and the business models that arise from them across electricity, heat, com- bustible gasses. Speaking to Utility Week, Winser describes the scope and ambition of the new centre, which will be located in Birmingham. "The Catapult's role is to be a facilitator – a middleman that brings parties together and supports innovation, wherever it may come from," Winser explains. "We can provide common facilities, com- mon access to data, common models and the ability to simulate the effects of products. We will have a remit to reach out in all direc- tions, to all vectors of the energy system from academia through to SMEs, to large utilities. We will also have a role to seek to influence energy policy and regulation, and we've had a very positive reception from Ofgem so far." Winser is in the process of recruiting an executive board for the Energy Systems Catapult, which ultimately aims to employ around 150 people with expertise across engineering, science, social science, policy and economics. Although the centre will always be a relatively small organisation, Winser says it will punch above its weight. "If you deploy those people with skill you have a significant force for moving things forward. A real force for change." Catapults are funded by a tripartite sys- tem of government, private and European innovation competition money. All the major political parties have indicated they will continue to support the Catapults in a drive towards creating an apolitical, long-term industrial and infrastructure strategy for the UK. Nick Winser interview, p16 MARKET-LED INNOVATION MUST FOCUS ON CREATING BENEFITS FOR CUSTOMERS. THE INNOVATION PROCESS MUST THEREFORE HARNESS CUSTOMERS' ENGAGEMENT THROUGHOUT. SIX THINKING HATS Research and development pre-tests Procter & Gamble's product testing online community called Vocalpoint™ is a place where "moms" use and review P&G products. P&G sends them potential products to try out in their homes and as part of their everyday lives. Consumers buy tickets online, print boarding passes, check in lug- gage and board with little interaction with airline personnel. Staff and coun- ter space in airports can be reduced. FON distributes a special WLAN router that converts private broadband connections into access points that can be used by other "Foneros". The worldwide network consists of 150,000 hotspots and is growing by about 900 spots a day. eBay set up a free online community of discussion forums that offers tips on bidding and auction strategies. People who visit this community participate twice as often in auctions and spend up to 54 per cent more than those who do not visit the community. Consumers voted for their favourite pudding flavour via text message or on a food company's website. More than 1 million people voted within three and a half months. D-Link improves after-sales support by providing a mutual forum for cus- tomers and experts to discuss D-Link products. The platform, operated by users, reduces call centre costs. Purchasing production and quality management Marketing and commu- nications Sales and distribution Customer care and aftersales Source: A.T. Kearney