Innovation appears to come naturally to the creative and digital sectors. Brands such as Apple, Google and Asos are regularly heralded for the way they embed innovation into the fabric of their businesses − from the frequency with which they develop products and services through to their working environments and policies.
Looking at the markets in which these companies operate, it is hardly surprising that they have a different ambition, pace and mindset. The worlds they inhabit are fast-moving and characterised by falling unit costs, consumer trends and a young workforce that is engaged and motivated. These market conditions, along with enlightened leadership, have helped to shape their culture.
Compare this with our own industry and the differences are clear. In an industry where the market conditions centre on security of supply and employment, keeping the lights on and delivering on the promise of a low carbon future, the culture of innovation has had considerably less freedom to develop.
However, conditions in our market are changing. As a consequence, there is a growing recognition that we need to learn from our more agile counterparts.
At the 2014 UK Energy Innovation Awards in April this year, the Best Smart Grid Innovation category was won by a collaboration between Glasgow-based small business Smarter Grid Solutions and SSE Power Distribution. The partnership has created the UK’s first smart grid in Orkney, enabling the same amount of renewables generation as conventional network reinforcement at a fraction of the cost and responding to growing consumer demand for power generated from renewable sources.
News of such projects is encouraging, but should also serve as a warning. We need to react quickly to external change; we also need to ask ourselves if we have the enlightened approach to leadership that is required to build an innovation culture. Getting employees to want always to do the right thing – first for the customer and then for the business – is not for the faint hearted.
Keeping up with the pace of innovation and being bold enough to take a new leadership position represent huge opportunities for the energy industry. Those networks that have already started creating the conditions and commitment required to foster innovation are the ones that will ultimately come out on top.
The deadline for entries to the 2015 UK Energy Innovation Awards is 12 December 2014; for full details visit www.energyinnovationcentre.com.
Denise Massey, managing director, Energy Innovation Centre