2003 bell 09 larson

Views:
 
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

Alternative Energy Source Development: 

Alternative Energy Source Development Andrea Larson Darden Business School, University of Virginia July 17-19, 2003 Florida Atlantic University’s Fort Lauderdale Campus

Darden Graduate School of Business AdministrationUniversity of Virginia, Charlottesville, Virginia: 

Darden Graduate School of Business Administration University of Virginia, Charlottesville, Virginia 2-year MBA General Management Case method 650 students First year required curriculum Doctoral programs in ethics and entrepreneurship Executive Programs Sustainability Issues in the 1st year program Strategy/Entrepreneurship Accounting Ethics Executive Program

The Ingenuity Project: 

The Ingenuity Project Approach: INNOVATION AT THE NEXUS OF BUSINESS AND NATURAL SYSTEMS Methods: Interdisciplinary/Collaborative Research Publications Curriculum development Workshops, conferences MBA program Executive program Distribution of teaching materials Purpose: Integration of Sustainability Issues Into Management Education

Innovation, Entrepreneurship and Natural Systems: 

FUEL CELLS ENERGY MODULE COURSE CONTENT Innovation, Entrepreneurship and Natural Systems

Sustainable Innovation and Entrepreneurship: 

Innovation, Entrepreneurship and Natural Systems 2004 Sustainable Innovation and Entrepreneurship

Fuel Cell Material Useful in Courses On…: 

Fuel Cell Material Useful in Courses On… Strategy Environment Innovation Entrepreneurship

Perceptions and/or Assumptions: 

Environment is 'out there' – separate Social Responsibility Ethics Costs and Compliance Altruism Externality Luxury for Good Times Only Big Companies Can Afford Only Small Companies Can Do Risk Liability Regulation Perceptions and/or Assumptions

Course Topics: 

Course Topics Entrepreneurship (Schumpeterian) Innovators and innovations Future products and services Opportunity Competitive Advantage Business and individual leadership

Sustainable Business: Opportunity and Value Creation: 

Sustainable Business: Opportunity and Value Creation The search for sustainability can lead to innovation that yields cost savings, new designs, and competitive advantage. Like the quality gurus who called for zero defects, the early adopters of the sustainability perspective may seem extreme in calling for waste-free businesses in which the nonproduct outputs become inputs for other products or services. But sustainability’s zero-waste goal offers a critical, underlying insight: environmental and social issues offer opportunities for businesses.

Sustainable Business: Opportunity and Value Creation: 

Sustainable Business: Opportunity and Value Creation Sustainable business is environmentally and socially aware business strategies and operating practices that guide firms to a cleaner, healthier, more equitable (and hence more stable world) - AND offer an avenue to profitability and competitive advantage. Sustainable business entrepreneurs understand that sustainability (or 'triple bottom line') opportunities represent a wide open frontier for creativity, innovation, and the creation of value.

Evolution of the Sustainability Focus in the late 1990s Parallels the Evolution of Quality Programs in the early 1980s: 

Evolution of the Sustainability Focus in the late 1990s Parallels the Evolution of Quality Programs in the early 1980s Resistance and lack of understanding at the outset Seemingly unrealistic goals (zero defects, now zero waste/emissions) become standard operating practices Initiatives lead to product and process innovations (not just incremental improvements) Both movements require – leadership and an educated and engaged workforce Success extends efforts into value chain management and further improvements and innovation Sustainable business movement is best understood in relation to the quality movement and sustainability builds logically from the platform of successful quality programs. Parallels to quality include:

The Evolution of Corporate Response to Environmental Concerns: 1980s, 1990s and Beyond: 

Peripheral to strategy Focus on the firm Pursuing incremental change Returns to stockholders Integrated into strategy Wider focus on networks of firms across the value chain Positioned for breakthrough innovation Triple bottom line Waste streams to landfills (linear) Piecemeal analysis Waste is inevitable and costly Opportunities in product recovery and remanufacturing (cyclical) Systems thinking Waste can be minimized Waste is a resource Cost burden Altruism Focus on compliance End-of-pipe filters and treatment Side issue Reactive management Isolated activity Profit or Environment Innovative, anticipatory, entrepreneurial management Organization-wide frameworks, tools, and programs Profit and Environment and Equity Opportunity for efficiency Operational excellence and strong financial performance Focus on competitiveness and strategic advantage Product and process design criteria include the environment Quality initiatives encompass environment Managerial Mindset Definition of the Issues Perception of Waste Strategic Orientation The Evolution of Corporate Response to Environmental Concerns: 1980s, 1990s and Beyond

The Change in Perspective on Environmental/Social Issues: 

The Change in Perspective on Environmental/Social Issues

Key Questions to Be Addressed in the Course: 

Key Questions to Be Addressed in the Course WHY the Concern? WHAT Does It Mean? HOW Are Firms Implementing?

Student Learning Objectives:: 

Student Learning Objectives: Gain perspective and insight into a rapidly expanding arena of entrepreneurship and innovation Explore the why, what, and how of 'sustainable' business Understand the history and context for sustainability ideas and practices Comprehend and apply frameworks, concepts, and terms Learn from multiple examples of firms integrating sustainability principles into strategy/operations

Methods:: 

Methods: Discussion and analysis Articles, book chapters Case studies Technical notes Mini-lectures Guest speakers Videos Student reports Final Papers

Frameworks and Concepts: 

Frameworks and Concepts Schumpeterian innovation Entrepreneurship Environmental management and sustainable innovation EI=P x A x T Earth Systems Engineering and Management Industrial Ecology The Natural Step Natural capitalism Cradle to cradle Green chemistry Nature’s services Biomimicry Precautionary principle

5 Schumpeterian Forces of Creative Destruction: 

5 Schumpeterian Forces of Creative Destruction Discovery of… New technologies New products New markets New processes New organizational forms

SchumpeterEntrepreneurship as “New Combinations”: 

Schumpeter Entrepreneurship as 'New Combinations' Existing technology + new processes New technology applications + new organizational forms Enhanced products + new processes + expanded markets New technology + new markets

Entrepreneurship: A Frontier of Innovation: 

Time Orientation – Past andamp; Present Time Orientation – Present andamp; Future The Traditional Economy The Entrepreneurial Economy New Paradigm… Entrepreneurship: A Frontier of Innovation Schumpeter’s 'creative destruction' New technologies, products, markets, processes, organizational forms

Slide21: 

PAST PRESENT FUTURE Conventional Products, Services (power, transportation, materials, food, shelter) Wind turbines Fuel cells Hybrid cars Biodegradable plastic Organic food Buy function, not product Reverse logistics Zero waste Zero emissions Markets in nature’s services Creating the Future Through Innovation New Products

Sustainable Business Innovation and the Traditional Economy: 

Sustainable Business Innovation and the Traditional Economy Traditional Economy Entrepreneurial Sector Sustainable Business Subsector

The Impact of the Entrepreneurial Sector: 

The Impact of the Entrepreneurial Sector The force of one period’s entrepreneurs becomes the next generation’s business paradigm, therefore entrepreneurship trends can be seen as a leading indictor of business change

Entrepreneurship: 

Entrepreneurship 'At the core of entrepreneurship is the question of why and under what conditions opportunities for [Schumpeterian] innovation and creativity exist.' – Venkataraman, 1997

Population Growth: 

Source: Living in the Environment, Tenth Edition, G. Tyler Miller, Jr., 1998 Population Growth

Slide26: 


Slide27: 

UNLIKE NATURAL SYSTEMS, MODERN HUMAN SOCIETIES PROCESS RESOURCES IN A LINEAR FASHION, CREATING WASTES FASTER THAN THEY CAN BE RECONSTITUTED INTO USABLE RESOURCES. On average 94% of the raw materials used in creating a product ends up as waste; only 6% ends up in the final product. 6% Product 94% Waste Source: National Academy of Engineering

Changing Character of Natural Resource Challenges in the Last 25 Years: 

Changing Character of Natural Resource Challenges in the Last 25 Years Local Specific Short Delay Low Complexity Society Impact Low Global Diffuse Long Delay High Complexity Societal Impact High

Major Environmental and Resource Problems: 

Major Environmental and Resource Problems Air Pollution Global climate change Stratospheric ozone depletion Urban air pollution Acid deposition Outdoor pollutants Indoor pollutants Noise Water Pollution Sediment Nutrient overload Toxic chemicals Infectious agents Oxygen depletion Pesticides Oil spills Excess heat Biodiversity Depletion Habitat destruction Habitat degradation Extinction Food Supply Problems Overgrazing Farmland loss and degradation Wetlands loss and degradation Overfishing Coastal pollution Soil erosion Soil salinization Water shortages Groundwater depletion Loss of biodiversity Waste Production Solid waste Hazardous waste Major Environmental Problems Source: Living in the Environment, Tenth Edition, G. Tyler Miller, Jr., 1998 Human Health Childhood diseases Cancer Asthma Immune system deficiencies Reproductive system problems Endocrine system disruptions

Changing Conditions: 

Changing Conditions Natural Resource Services (amount, quality, assimilative capacity) Public opinion NGOs Media International protocol 1900 Demand for Natural Resources (population, consumption, technology) The Economy 1970 Innovation and Opportunity Innovation: Creating New Competitive Space The Economy Customer demand Recruitment and retention Material cost, availability Waste disposal Regulation Health issues Fines Liabilities Insurance Bank credit Risk

Slide31: 


Slide32: 


Slide33: 

66% (or 2/3rds) of U.S. oil imports are used for transportation

Slide34: 

'Only few megatrends exist that are of special importance to the future of the automotive industry. Sustainable mobility is one of them, and fuel cells are a key technology for it.' Prof. Klaus-Dieter Voehringer, President of the Shareholder Committee of XCELLSIS and President of Research and Technology of DaimlerChrysler

Slide35: 

Fuel Cells 'UTC Fuel Cells: Innovation Inside a Large Firm' 'Fuel Cell Technology and Market Opportunity' Case Teaching Note Earth Systems Engineering and Management Climate Systems

Energy Module: 

Corporate Response Earth Systems Engineering andamp; Management Teaching Materials Articles on ESEM, video Telework at ATandamp;T Atlantic Energy Fuel Cell Technology and Market Opportunity UTC Fuel Cells – Innovation Inside a Large Firm Teaching Note Telework Emissions trading systems Fuel cells Corporate Transparency Regulation Efficiency Bank Credit andamp; Insurance Health National Security Risk Management Competition Fiduciary Responsibility Energy Module

Expected U.S. Fuel Cell Market Growth: 

Expected U.S. Fuel Cell Market Growth Source: Freedonia Group 2002 U.S. Fuel Cell Market Size 2006 2010 $3.3 billion $23 billion

Case Discussion: 

Case Discussion Entrepreneurship Framework Analysis Team Opportunity Product Resources Strategy UTCFC Evaluation Pre-1997 and 2002 Corporate Environmental Policy: Beyond Compliance to Innovation

Slide39: 


Slide40: 


Slide41: 

Conversion Efficiency of ICE (Internal Combustion) Vehicles is 20-25% (with CO2 emissions) compared to 55% Conversion Efficiency of FC (Fuel Cell) vehicles (with water and heat as the only emissions)

Total Relative Emissions from Vehicles: 

Total Relative Emissions from Vehicles Sulfur Dioxide Nitrogen-Oxygen Compounds Volatile Organic Compounds Source: http://www.sandiegometro.com/1999/sep/coverstory.html

Fuel Cells: 

Fuel Cells Advantages Smaller engine unit size More interior space, better visibility Improved ride, handling, stability Quiet Skateboard chassis Twice the efficiency of ICE Pure hydrogen fuel → zero emissions Integration of fuel cell with electronics (steering, braking, etc) Reduced reliance on oil imports Competition in energy, pricing Obstacles Durable on-board hydrogen storage technology (300 miles) Interim fuels Refueling infrastructure Chicken-egg challenge

Slide44: 

Small Randamp;D Shop Cost Center Market-facing High-growth Profit Center Challenge to UTC

Two Separate but Interlinked Corporate Arenas of Activity: 

Two Separate but Interlinked Corporate Arenas of Activity Environmental Management Sustainability Innovation

Sustainability as a Next Step in Total Quality Management: 

Sustainability as a Next Step in Total Quality Management Safety = zero injuries JIT = zero inventory TQM = zero defects Sustainability = zero waste and zero emissions

A Framework for the Process of Entrepreneurship: 

A Framework for the Process of Entrepreneurship Entrepreneur Opportunity Product Concept Resources

Environmental Impact Model: 

Number of people (P) Number of units of resources used per person (A) Environmental degradation and pollution per unit of resource used (T) Environmental impact of population (I)  =  Environmental Impact Model Source: Living in the Environment, Tenth Edition, G. Tyler Miller, Jr., 1998

Sustainable Business: Opportunity and Value Creation: 

Sustainable Business: Opportunity and Value Creation Sidestepping the need for sustainability may prove difficult. Population growth rates and related higher levels of waste guarantee environmental concerns will grow in importance. The government and the public are increasingly concerned with the extent and severity of air, water, and soil contamination and the implications of natural resource consumption and pollution for food production, drinking water availability, and public health. As environmental and social problems increase, public health concerns are likely to drive new approaches to pollution prevention and new regulations encompassing previously unregulated activities. As concerns and regulations increase, so will the market power of sustainable businesses.

From Patagonia, Tom’s of Maine, Ben and Jerry’s, The Body Shop to…: 

From Patagonia, Tom’s of Maine, Ben and Jerry’s, The Body Shop to… Interface Mitsubishi Electric Scandic Electrolux (Frigidaire) IKEA Xerox ATandamp;T Weyerhauser Alcoa Ford UTC Allied Signal 3M Collins Pine Visteon Automotive Systems Suncor Harley-Davidson Johnson andamp; Johnson Royal Dutch/Shell Conoco BP Shaw

Lens Adjustment: 

Lens Adjustment Engineered world Systems: Cells to atmosphere/biosphere

Slide52: 


Sustainable Business: Opportunity and Value Creation: 

Sustainable Business: Opportunity and Value Creation The ideas of sustainable business are positive, visionary, and strategic. Companies that do not develop capabilities in sustainability will risk becoming less competitive as the more innovative firms committed to sustainability forge ahead.