Glossary in:

Joachim H. Becker, Sven Pastoors, Ulrich Scholz, Rob van Dun

Towards Sustainable Innovation, page 309 - 333

A five step approach to sustainable change

1. Edition 2017, ISBN print: 978-3-8288-3903-8, ISBN online: 978-3-8288-6655-3,

Tectum, Baden-Baden
Bibliographic information
305 glossary Accountability: “Being answerable, or responsible, to stakeholders. In Sustainable Management, this goes beyond financial stakeholders to include any natural or social systems affected by a business, including customers, employees, and communities.“ (Sustainable Management, 2016) Activation process (customer knowledge): An important component of the customer insight process is the activation of the knowledge of the customer gained in the framework of the “customer insight”: “As the company’s new products must meet its customers’ requirements, binding the customer already at the start of the innovation process is both logical and shows commitment. They are the most important source for the identification of possible problem areas.” (Vahs/Brem, 2013, p. 265). Analogies: Analogies are similarities, equivalences. Analytical approach: Use of an appropriate process to break a problem down into the smaller pieces necessary to solve it. 306 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Association: Automatic thought process; a learnt relationship between two cognitive elements, usually an impulse of a rewarded (or punished) reaction. Audit: an official inspection of an organization’s accounts, typically by an independent body. Austerity measures: All official actions taken by the government, during a period of adverse economic conditions, to reduce its budget deficit using a combination of spending cuts or tax rises. Awareness: (Collective) Awareness is a shared sense of urgency combined with a set of shared beliefs, ideas and moral attitudes within an organization or a society. Bio-capacity: The planet’s biologically productive land areas including our forests, pastures, cropland and fisheries. Bio-diversity: The variety of life on earth and its processes. This it includes the variety of living organisms, the genetic differences among them, and the communities and ecosystems in which they occur. “As human influence spreads, there is concern over the reduction of the total number of species and its effect on economics, medicine, and the ability of ecosystems to remain viable. […]“ (Sustainable Management, 2016) Biological cycle (Cradle-to-Cradle): In the framework of the biological cycle, it has to be observed that plant-based resources can be industrially processed in order to be returned to the organic cycle after use: e.g. textiles are composed of 100% natural fibres that can be composted after use. The resulting compost is then used for growing more plants again. A natural perpetual motion is created in which the respective resources are available without limitation. 307 Glossary Biological nutrients: Biological nutrients and materials are organic materials that can decompose into the natural environment, soil, water, etc. without affecting it in a negative way, providing food for bacteria and microbiological life. Biomass: “Organic, non-fossil material that is available on a renewable basis. Biomass includes all biological organisms, dead or alive, and their metabolic by products, that have not been transformed by geological processes into substances such as coal or petroleum. […]“ (Sustainable Management, 2016) Biosphere: “Part of a planet’s outer shell – including air, land, and water – within which life occurs, and which biotic processes alter or transform. From the broadest geo-physiological point of view, the biosphere is the global ecological system integrating all living beings and their relationships, including their interaction with the elements of the lithosphere (rocks), hydrosphere (water), and atmosphere (air).“ (Sustainable Management, 2016) Brainstorming: Brainstorming is primarily about generating as many new ideas as possible. The focus is on the quantity and not the quality. Participants have the task of generating and introducing as many ideas as possible, quickly and without restrictions. Business Model Canvas: A strategic management and lean startup template for developing new or documenting existing business models. It is a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances. Business model: “A business model describes the rationale of how an organization creates, delivers, and captures value” (Osterwalder/ Pigneur 2010, p. 14). Carbon footprint: The total sets of greenhouse gas emissions caused by an organization, event, product or person. 308 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Carrying capacity: Maximum number of people that can be supported indefinitely in a given environment resp. on earth. CEO (Chief Executive Officer): The most senior corporate officer, executive, or administrator in charge of managing an organization CERN: The European Organization for Nuclear Research: a European research organization that operates the largest particle physics laboratory in the world. Challenge:  “A problem, unmet need or opportunity to innovate around.“ (Dabscheck, 2016) Change (organisational): Process in which a company or organization is going through a transformation. Organization change occurs when business strategies or major sections of an organization are altered. (Business Dictionary, 2016) Change management: “Minimizing resistance to organizational change through involvement of key players and stakeholders.“ (Business Dictionary, 2016) Climate Change: “The global climate has changed as human activity has released more and new substances and gases into the atmosphere. This has many results, including global warming, the effect of consistently increased average global temperature, particularly in the oceans. […] There is overwhelming, credible support from scientists and scientific research around the world that confirm that increased carbon released into the atmosphere from manufacturing and oil-burning or the decrease of the ozone layer due to specific gasses and other human activities are having real (and alarming) effects on the global climate.“ (Sustainable Management, 2016) Climate Neutral: “The process of offsetting carbon-producing activities with those that either reduce or capture carbon, thus credibly 309 Glossary neutralizing the net amount of carbon released in the atmosphere from a particular activity.“ (Sustainable Management, 2016) Closed innovation: Paradigm, that successful innovation requires control and ownership of the intellectual property generated during the innovation process. Thus, an organisation only uses internal ideas for the development of new products. Clustering: Process of grouping objects in such a way that objects in the same group (cluster) are more similar to each other than to those in other groups (clusters). Consumer: A purchaser of a good or service in retail. The term ‚consumer’ refers to the end customer. Contamination: Process of making something dangerous, dirty, or impure by polluting it or adding something harmful to it. Continuous improvement process (CIP): Continuous improvement, is a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality which is realized under a scheme such as Kaizan, lean production, or total quality management (TQM). Continuous improvement process: Within the frame of the market research it is investigated whether and how the existing customer requirements and problems can be solved better, easier or less expensively with the aid of new approaches. Copy-strategy: Determination of the commercial content adjusted to the needs of the target group and the aspired positioning. The planning of the advertising objective is a prerequisite. Copycat: a competitor that copies a product or technology. 310 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Corporate Social Responsibility (CSR): A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Cost Benefit Analysis: “Cost Benefit Analysis is a financial method of evaluating the feasibility of a project or program by systematically summing its benefits and deducting its costs. […]“ (Sustainable Management, 2016) Cradle-to-Cradle design: an innovative, positive and integral approach to sustainability, which is not based on reduction, but rather on unlimited reuse of raw materials. Creative collisions: The collision of two of more creative ideas that will develop in a new, more creative or valuable idea. Creative Problem Solving: Creative Problem Solving (CPS) is a simple process that involves breaking down a problem to understand it, generating ideas to solve the problem and evaluating those ideas to find the most effective solutions. Creativity technique: Creativity techniques are cognitive tools that help the brain during work to find new solutions for an existing problem Creativity: The ability to develop a product, a service or an idea, which is evaluated as functional, original, unique and adequate Crop failure: A failure of crops (fruits, cereals etc.) to yield sufficient food, to maintain a community or to provide a surplus to sell Crowdsourcing: Practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional stakeholders. 311 Glossary Customer Insight: Customer insight indicates which motives move the customer to buy a certain product. Customer: A party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers. The customer can be regarded both as a B2C (Business to Customer) and B2B (Business to Business) customer. Decision making: “The thought process of selecting a logical choice from the available options.“ (Business Dictionary, 2016) Decision matrix: “Table used in evaluating possible alternatives to a course of action.“ (Business Dictionary, 2016) Decision tree: “Type of tree-diagram used in determining the optimum course of action, in situations having several possible alternatives with uncertain outcomes.“ (Business Dictionary, 2016) Deforestation: Clearing of virgin forests, or intentional destruction or removal of trees and other vegetation for agricultural, commercial, housing, or firewood use without replanting (reforesting) and without allowing time for the forest to regenerate itself. Desertification: the process by which green space or agricultural area becomes a desert. Design thinking: “A method of problem-solving strategy wherein the data collected is expressed visually in order to create new strategies, ways and methods to solve problems, create opportunities or strengthen weaknesses.“ (Business Dictionary, 2016) Disruptive Innovation: Process of developing new products or services which create a new market and value network, and eventually disrupt an existing market and value network, displacing established market leaders and alliances. 312 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Dissemination: The act to cause something (such as an idea or an information) to go to many people. Diversity: “In nature, diversity is a source of ecosystem strength since failures are unlikely to eliminate all species. Therefore, the ecosystem will recover in some form and continue. […] When applied to a human context, diversity refers to a wide variety of cultures, ethnic groups, physical features (and race), socio-economic backgrounds, opinions, religious beliefs, sexuality, and gender identity. (Sustainable Management, 2016) Down cycling: Process of converting waste materials or useless products into new materials or products of lesser quality and reduced functionality. Eco-balance: “A description of an industrial process in terms of the materials and energy inputs and the outputs of solid, liquid and gaseous wastes.“ (Science Dictionary, 2016) Eco-effectiveness: Eco-effectiveness proposes the transformation of products and their material flows such that they form a supportive relationship with ecological systems and future economic growth. The goal is to generate cyclical, cradle-to-cradle ‚systems’ that enable materials to maintain their status as resources over time. Eco-efficiency: Eco-efficiency is based on the assumption of a linear flow of materials (cradle to grave). Thus, eco-efficient techniques seek to minimise the volume, velocity, and toxicity of the material flow system and by this the harm done to environment. Eco-Management and Audit Scheme (EMAS): Voluntary environmental management instrument, which was developed in 1993 by the European Commission. It enables organizations to assess, manage and continuously improve their environmental performance. 313 Glossary Ecological footprint: The term ecological footprint stands for an accounting system for bio capacity. It tracks the amount of bio capacity and how much of it is used by people. Ecological Marketing: Among other things, companies demonstrate, that they conserve natural resources and raw materials to maintain this social acceptance. The companies show recycling concepts for their products and evidently establish ecological disposal concepts in their own operating facilities. Ecological sustainability: A way of producing and living, which only stresses the natural resources to a limited extent so that they can regenerate, is considered ecologically sustainable. Economic cycle: “Recurring, fairly predictable, general pattern of periodic fluctuations (as measured by gross national product) in national economies.“ (Business Dictionary, 2016) Economical sustainability: Economic actions are considered sustainable if the business model can be permanently practised. Ecosystem: A system that includes all living organisms in an area as well as its physical environment functioning together as a unit. Embedment: The integration of sustainability considerations in the processes and structures of an organisation. The prerequisite for embedment is a change in awareness of all the parties involved. End-of-the-pipeline solutions: Occurring or active at the end of a process stream, such as the catalytic converters installed near the end of engine exhaust pipe to reduce emission of pollutants that have already formed in the engine. These solutions do not target the actual process, but the outcome of those processes. 314 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Entrepreneur: “A person who assumes a lot of personal, financial, or business risk to pursue a market opportunity that does not yet exist.“ (Sustainable Management, 2016) Entrepreneurial management: The specific management behaviours which entrepreneurs must engage in, in order to drive the market process and produce innovation. European Foundation for Quality Management (EFQM): The EFQM Excellence Model is a non-prescriptive framework for organizational management systems, promoted by EFQM and designed for helping organizations in their drive towards being more competitive. Evaluation: Systematic determination of an object’s merit, worth and significance, using given criteria. Experiments (market research): An experiment is a survey and/ or observation within a controlled test setup with predetermined framework conditions. A laboratory experiment is one with artificial framework conditions; a field experiment has natural conditions. External effects: “External effects (shifting of costs and usage without payment): If people economise, this can have a positive or negative on society. Positive external effects raise the quality of life of other members of society, without them paying for the additional benefits. With negative effects, costs are generated, which the society members rather than the perpetrator must pay.” (Rogall 2012, p. 67) Externalities: “Externalities are effects of services, products, or production on third parties who were not involved in the buyer/seller relationship. Externalities occur when a third party incurs unintended consequences from the market behaviours of others.  […]“ (Sustainable Management, 2016) 315 Glossary Failure: “An often valuable and necessary step in the process of learning what works about a creative idea to transform it into a useful innovation.“ (Dabscheck, 2016) Fair Trade (Fairtrade): “A system of trade in which workers receive living wages and employment opportunities for the goods they produce. This system serves as an alternative approach to conventional international trade for producers who are typically economically disadvantaged artisans and farmers from developing countries. […]“ (Sustainable Management, 2016) Feasibility: The fact that a product can be used or dealt with successfully. Fostering innovation: To foster innovation is to nurture, promote the development or to cherish innovation within the business environment. Free rider: As individual society members cannot be partly or fully excluded based on economic, political or technical grounds from the use of goods provided once, there is often a free-rider problem with public goods. Individual users conceal their real purposes during the decision about the financing of public projects in order to not be drawn into their financing. They reckon that the goods will be provided without their contribution. Garbage: “Anything that costs less to dispose of than it’s worth commercially. […]“ (Sustainable Management, 2016) Green marketing: Green marketing aims to generate the desire of the user and end-customer for ecological products and services and if necessary to influence the individual lifestyle and politics. Companies involved in green marketing make decisions relating to the entire process of the company’s products, such as methods of processing, packaging and distribution. 316 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Green washing: Green washing is the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, and technology or company practice. Green washing makes a company appear to be more environmentally friendly than it really is. Greening initiatives: The sustainable approach focusing on risk reduction, reengineering or cost reduction. Greening as such does not include strategy or technology development, and as a result, most companies that pursue those initiatives fail to recognize opportunities to innovate (Hart, 2010). Habitat: An ecological or environmental area that is inhabited by a particular species of animal, plant, or other type of organism. The natural (or artificial) environment in which an animal or plant usually lives: a place where a person or thing is usually found. Heuristic approach: Experience-based technique for problem solving, learning, and discovery that find a solution, which is not guaranteed to be optimal, but good enough for a given set of goals. Holistic approach: An approach relating to or concerned with complete systems rather than with individual parts. Idea evaluation: “A process used to evaluate innovative product ideas, strategies and marketing trends.“ (Business Dictionary, 2016) Ideation: The process of generating ideas or concepts. Incongruities: Incongruity means out of place – something that doesn’t fit in its location or situation. Incubation: the incubation period is the time needed for any particular process of development to take place. In the context of the in- 317 Glossary novation process incubation describes the period from the first idea for a new product to its realization. Industrialization: The large-scale introduction of manufacturing, advanced technical enterprises, and other productive economic activity into an area, society, country, etc. Innovation funnel: The funnel illustrates how innovation goals, innovation actions and innovation results interact with each other to create change in any organization. Actions enter the wide mouth of the funnel and represent among other things, alternative ideas for change. These actions flow towards to the neck of the funnel where many will be eliminated. Innovation strategy: “A plan made by an organization to encourage advancements in technology or services, usually by investing in research and development activities. For example, an innovation strategy developed by a high technology business might entail the use of new management or production procedures and the invention of technology not previously used by competitors.“ (Business Dictionary, 2016) Innovation: An innovation is something original, new, and important – in whatever field – that breaks in to (or obtains a foothold in) a market or society. Innovative opportunity: Opportunities that arise due to changes in the internal or external environment of a firm. Innovative opportunities refer to a set of different elements within the processes whereby actors identify, act upon and realize new combinations of resources and market needs to try to benefit from their future economic potential. Inside-out research: With this approach, companies develop new products and customer needs internally, without involving the tar- 318 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation get group. For this purpose, the companies frequently use scenarios and simulations. Interdisciplinary: combining or involving two or more professions, technologies, departments, or the like, as in business or industry. International Organization for Standardization (ISO): The International Organization for Standardization, known as ISO, is an international standard-setting body composed of representatives from various national standards organizations. Intrapreneurship: The act of behaving like an entrepreneur while working within a large organization. Intrapreneurship is known as the practice of a corporate management style that integrates risktaking and innovation approaches, as well as the reward and motivational. Job-to-be-done: The job customers want a company to be done by a specific product. Key Performance Indicators: A type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages. Knowledge-based innovation: Innovations or innovation attempts that are based on the emergence of new knowledge or technology. Landfills: An area where waste is buried under the ground: Lead time: The amount of time that elapses between the start of a process and its completion. Lead user: Leading buyers who are the early adopters of new methods, products, and technologies. Their needs and choices usually 319 Glossary portend the needs and choices of the general market, and provide significant opportunities for introduction of innovative products. Lean start up (six sigma): “Lean Start-up provides a scientific approach to creating and managing start-ups and get a desired product to customers’ hands faster. The Lean Start-up method teaches you how to drive a start-up, – how to steer, when to turn, and when to persevere – and grow a business with maximum acceleration. It is a principled approach to new product development.“ (Lean Startup, 2016) Learning-effects: The effect that learning has on a firm’s productivity, leading to lower costs per unit produced due to labour efficiency, product redesign, standardization, specialization, better use of equipment et cetera. Life Cycle Analysis: “An examination, like an audit, of the total impact of a product or service’s manufacturing, use, and disposal in terms of material and energy. […] This includes an analysis and inventory of all parts, materials, and energy, and their impacts in the manufacturing of a product but usually doesn’t include social impacts.“ (Sustainable Management, 2016) Life-cycle assessment (LCA): A technique to assess environmental impacts associated with all the stages of a product’s life, from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling. Livelihood: A way of earning money in order to live and survive. LOHAS (‚Lifestyle of Health and Sustainability’): Consumer groups, which follow a “lifestyle of health and sustainability”. This term defines a target group following a particular life style, where they place particular value on health awareness and care, and development in accordance with the principles of sustainability. The 320 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation members of this target group want to consciously and actively participate as a customer in the market for sustainable products and change the market offer. Malnutrition: The unhealthy condition that results from not eating enough food or not eating enough healthy food. Management system: A management system is the framework of processes and procedures used to ensure that an organization can fulfil all tasks required to achieve its objectives. Managerial inertia: The commonly observed phenomenon whereby managers fail to update and revise their understanding of a situation when that situation changes, a phenomenon that acts as a psychological barrier to organizational change. Market research: “Market research is systematically-driven research (retrieval, preparation, interpretation) of the sales and resourcing markets of a company” (Meffert et al., 2012, p. 96). Marketing: The action or business of promoting and selling products or services, including market research and advertising. Mega trend: Mega trends are global, sustained and macro-economic processes of development which impact business, economy, society, cultures and personal lives thereby defining our future world and its increasing pace of change. Mission (corporate): A written declaration of an organization’s core purpose and focus that normally remains unchanged over time. A mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment. (Business Dictionary, 2016) 321 Glossary Morphology: The form and structure of an organism or product considered as a whole. Needs analysis: A technique that businesses use to determine what steps need to be taken in order to move from its current state to its desired, future state. Niche market: A niche market is the subset of the market on which a specific product is focused, with its own rules for success. NIMBY (Not in my backyard)-effect: The NIMBY-effect refers to organized opposition by residents to a proposal for a new development because it is close to their homes. These residents often believe that though the developments are needed in society in general, they should be realized somewhere else. Opposing residents themselves are called ‚Nimbies’. The NIMBY effect may also apply more generally to people who advocate some change or proposal, but oppose implementing it in a way that would require sacrificing on their part: they support progress but they are not willing to change themselves. Non-Governmental Organization (NGO): “A non-profit group or organization that is run neither by business or government created to realize particular social or economic pursuits, through research, activism, training, promotion, advocacy, lobbying, or community service.“ (Sustainable Management, 2016) Normative approach: Observation-based technique that make normative statements about how things should or ought to be Novelty: The state of being original or new, and probably unknown before. Nurturing: To feed and protect, to support and encourage, as during the period of training or development. 322 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Nutrition: The process of eating the right kind of food so you can grow properly and be healthy. Observation (observational research): “An extensive array of research methods used with the intention of observing consumer interactions with products and services in their natural surroundings. The main advantage to conducting observational research in business is that the consumer is often unaware they are being monitored allowing the researcher to make an objective analysis.“ (Business Dictionary, 2016) OECD: The Organization for Economic Cooperation and Development (OECD) is a unique forum where the governments of 34 democracies with market economies work with each other to promote economic growth, prosperity, and sustainable development. Open innovation: Paradigm to use external as well as internal ideas to accelerate internal innovation, and expand the markets for external use of innovation. Original equipment manufacturers (OEMs): An OEM is a company that makes a part or subsystem that is used in another company’s end product. Outside-in research: With this approach, companies include the customer in the product development at a very early stage – e.g. as lead-user or through the use of customer focus groups. Perception: The organization, identification, and interpretation of sensory information in order to represent and understand the environment. In essence how we see/perceive things. Phase concept (customer insight): The research of customer insight is based on a phase concept, which should be continuously designed within a company. At the end of the phase concept is the con- 323 Glossary crete implementation of the customer insight through marketing activities. The process of customer insight consists of 5 phases: 1) Clarity of target, 2) creating a multi-dimensional customer scenario, 3) the actual customer insight process, 4) adjusting customer frequency, and 5) implementation of the customer insight. (Wenzlau et al., 2003, p. 106ff) Pivot: “A structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.” (Ries, 2014, p. 103) Premium prices: Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favourable perceptions among buyers, based solely on the price. The practice is intended to exploit the tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. Problem identification: Process of identifying the causes for defect or disruption within a company or organisation. Problem solving: The term problem solving describes the process of working through details of a problem in order to reach a solution for each kind of problem including sustainability issues. Problem statement: A problem statement is a concise description of the issues that need to be addressed and should be agreed on by all stakeholders (or created by them) before they try to solve the problem. Problem: A problem expresses the difference between the desired and the actual situation. Product: Possibility (good or service) to satisfy a need. 324 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Profit creaming: A metaphor for the perceived business practice of a company providing a product or a service to only the high-value or low-cost customers, while disregarding clients that are less profitable for the company. Prototype: An original or first model of something from which other forms are copied or developed. Public goods: Public goods are freely available for all the potential consumers. Furthermore, no one can be excluded from their benefit. They are made available both by the state (e.g. roads, internal security) and by private providers (e.g. Google or Wikipedia). Quality management (QM): Quality management (QM) has the task of formulating aims and organising these through structural and procedural organisational rules (Oeldorf/Olfert, 2004, p. 67). R&D (research and development): The term R&D describes the systematic activity combining both basic and applied research to discover solutions to existing problems or to create new goods and knowledge. Thus, R&D may result in ownership of intellectual property such as patents. The term is also used as name for the department where this process takes place. Real innovation: A new solution and a new customer benefit. There is no alternative available on the market: the market might have no need, but there possibly is a desire. Recycling: Process of converting waste materials or useless products into reusable material. Renewable energy: Energy resource that is replaced rapidly by a natural process such as power generated from the sun or from the wind. 325 Glossary Renewable: “Any material or energy that can be replenished in full without loss or degradation in quality.“ (Sustainable Management, 2016) Risk-aversion: The behaviour of humans (especially consumers and investors), when exposed to uncertainty, to attempt to reduce that uncertainty. When innovating, a risk-averse culture is detrimental. Scoping phase: Initial step in the project development process where the most important details of a project (project purpose, financial parameters, customer needs etc.) are defined. Sense of urgency: State of realizing that change is going to be needed. Social Entrepreneurship: “The act of creating, organizing and managing an income-earning venture to serve an explicit social purpose. […]“ (Sustainable Management, 2016) Social sustainability: Social sustainability describes responsible handling of all the people involved in a process. The aim is to keep social tensions limited and to settle conflicts in a peaceful and civil manner. Soil sealing: Covering of the ground by an impermeable material. Story telling: Sharing messages by telling a story that engages the audience and drives it to take a desired action. STP strategy: A marketing strategy is based on expected customer behaviour in a certain market. In order to know the customer and its expected buying process of segmenting, targeting and positioning is needed. Sunk Costs: “Used in business decision-making, costs which have already been incurred and which cannot be recovered to any sig- 326 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation nificant degree and, thus, should be ignored.“ (Sustainable Management, 2016) Supply Chain: “A network of individuals or organizations that performs the functions of procurement of materials; transformation of these material into intermediate and finished products; and distribution of these finished products to customers.“ (Sustainable Management, 2016) Survey (market research): A detailed study of a market or geographical area to gather data on attitudes, impressions, opinions, satisfaction level, etc., by polling a section of the population. (Business Dictionary, 2016) Sustainability marketing: Sustainable marketing is constructive marketing and promotes clear sustainability positions of companies, develops relationships to the customer and other partners in the market. Sustainability: Capacity to endure. Sustainable Development: “An approach to developing anything that recognizes the need to meet the challenges of the present without compromising the ability of future generations to meet their own needs.“ (Sustainable Management, 2016) Sustainable innovation: “Creation of new market space, products and services or processes driven by social, environmental or sustainability issues” (Arthur D. Little, 2004). Accordingly, sustainable innovation couples the notion of business innovation with the protection of natural systems while delivering essential goods and services that serve social goals of human health, equity, and environmental justice. 327 Glossary Systematic Innovation: The process of methodically analysing and solving problems with a primary focus on identifying the correct problem to be solved and then generating innovative solution concepts free from mental inertia. Technical nutrients: Technical nutrients are basically inorganic or synthetic materials manufactured by humans – such as plastics and metals – that can be used many times over without any loss in quality, staying in a continuous cycle. Technology: Possibility to create a product. The chasm: a gap between the early adopters of the product (the technology enthusiasts and visionaries) and the early majority (the pragmatists). Theory of inventive problem solving (TRIZ): TRIZ is the Russian acronym for “the theory of inventive problem solving”. Tragedy of the Commons: “A term used to illustrate the conflict between individual interests and the common good, based on the assumption that when individuals use a public good, they do not consider the impact – or externalities – of their use on the good itself; as a result, public resources become overexploited. […]“ (Sustainable Management, 2016) Triple Bottom Line: “An addition of social and environmental values to the traditional economic measures of a corporation or organization’s success. Triple Bottom Line accounting attempts to describe the social and environmental impact of an organization’s activities, in a measurable way, to its economic performance in order to show improvement or to make evaluation more in-depth. […]“ (Sustainable Management, 2016) 328 Pastoors · Scholz · Becker · van Dun: Towards Sustainable Innovation Unique sustainability buying reason (USBR): Through USBR, reasons for buying a product from a specific company are sought from the point of view of the customer. Obviously, on the one hand, this can be the ecological view of the customer, but it can equally be the ambition of the customer to belong to an elite group. Unique sustainability selling proposition (USSP): By means of the USSP, the reason why customers should demand products from a particular company and what is special about the products is communicated from the company’s point of view. The more evidence the company can bring with regard to its environmental strategy, the more it is perceived/acknowledged as credible. This can be equally demonstrated by adherence to ISO standards as by the publication of the environmental performance. Up cycling: Process of converting waste materials or useless products into new materials or products of higher quality or value than the original. Value proposition: A companies promise to solve customer problems and satisfy customer needs with a specific product. Value: “The concept of general economic or financial worth of a product or service. Also, a customer’s assessment of the ability of a product or service to meet their needs and desires. […]“ (Sustainable Management, 2016) Values: “Human beliefs and ideals that affect someone’s perspective of themselves and others. Values are a socially-constructed phenomenon and relate both to identity and the establishment of behaviour. They represent a level of significance between emotion and meaning.“ (Sustainable Management, 2016) Vision (Corporate): “[…] Whereas a mission defines an organization’s direction and priorities, its vision is the description of the 329 Glossary destination this direction is heading. A vision is often a description of an organization, market, or world that is different than current and embodies its values and objectives.“ (Sustainable Management, 2016) Visualization: Process of representing abstract business or scientific data as images that can help in understanding the meaning of the data. Waste disposal: Destruction, transformation or recycling of garbage.

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With sustainability having gained a lot of momentum over the last years and companies implementing strategies to create corporate sustainability, there are lots of opportunities for innovation. Thus, the two concepts of sustainability and innovation should not be considered separately – they are closely interlinked with one another. The main goal of sustainable innovation is to develop new products and technologies that have a positive impact on the company’s triple-bottom-line. To meet this aim, they have to be ecologically and economically beneficial as well as socially balanced.

In order to help companies to improve their sustainable innovation process practically, this book is structured into five possible phases of a sustainable innovation process:

Awareness of a sustainability problem

Identification & Definition of the problem

Ideation & Evaluation of the solutions

Testing & Enrichment of the solutions

Implementation of the solutions & Green Marketing