SOCIAL INNOVATION

Geoff Mulgan

Source: PISA 2009

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Reading Maths Science

UK

Singapore

% of 15 year olds with cognitive skills at the

highest level

1. WHY NOW?

The priorities for innovation are changing

How we innovate is changing

Elberfelder Farbenfabriken

vorm. Friedrich Bayer & Co

Bell Labs, Holmdel, NJ

Elberfelder Farbenfabriken

vorm. Friedrich Bayer & Co

Open innovation

Social innovation

Innovation in

services

User innovation

Bell Labs, Holmdel, NJ

Health spend as % GDP (2005) versus adult mortality rate (2006)

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40 60 80 100 120

Healt

h s

pen

d a

s %

GD

P

Adult mortality rate

Source: OECD Health Data 2010

0.0%

0.5%

1.0%

1.5%

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0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

% g

row

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hare

of

GD

P (

p.a

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% improvement in mortality rate (p.a.)

Change in health spend share of GDP

versus % improvement in adult mortality rate

• Evolution of civil society’s economic roles – eg 11m

jobs in Europe

• Growth of socially oriented commercial economy: US

Congressional Budget Office: projections forecast total

spending on health care will rise from 16% of GDP in

2007 to 25% in 2025, 37% in 2050 and 49% in 2082.

• Visible exemplars: Grameen, BRAC, Pratham,

Mondragon ...

2. WHAT SKILLS?

Technologist III

“Work involves testing patient

samples for efficacy/exploratory

biomarkers and pharmacokinetic

measurements using established

protocols and written procedures.

You should have experience in

techniques such as ELISA,

multiplex assays, and enzymatic

assays, as well as experience in

handling human samples.”

What skills for what kinds of innovation?

A craft that combines:

• Understanding of science, social science, evidence,

experience …

• The subtle realities of taking ideas into effect and then

scale

• What works in terms of impact, results

• What works in terms of public acceptability, politics

• How to organise, finance, assess innovations

• ???

3. THE NATURE OF THE FIELD

http://www.ssireview.org/

Social entrepreneurs

Policy makers

Design advocates

Service design companies

User groups/NGOs

Public sector managers

Consultancies

IT/egovernment

Professions

Politicians and parties

Web entrepreneurs. innovators

Mutuals, coops Social scientists

Community projects

CONTRIBUTORS TO THE FIELD

4. A THEORETICAL MODEL ON THE NATURE OF INNOVATION AND TECHNOLOGY

1. OBSERVE natural processes and

social phenomena (light, electricity,

care, exchange), REPLICATE and

AMPLIFY

2. BUILDING BLOCKS- the web, portals,

paraprofessionals, the universal

benefit/tax credit, personal account,

each forming a domain …

3. Innovations evolve systems and sub-systems

with their own logics and architecture

4. Innovations give to rise to other innovations

and combinations drive evolution

5. Radical innovation comes from

‘redomaining’, applying ideas from one field

to another

Applying the model to social and public

innovation

• Observation

• Replication/amplification leads to

building blocks

• Evolution

• Combination

• Redomaining

5. THE SCALE OF PRACTICE

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

THE INNOVATOR’S PERSPECTIVE

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

1.Mutation

2.Selection

3.Replication

THE SYSTEM’S PERSPECTIVE

1. prompts and triggers diagnosis ethnography

political mandates

critical walking

failure demand

data and evidence

cost escalation

petitions, campaigns

complaints choirs

new technology

user feedback

reviewing extremes, positive deviance

surveys and sousveys needs mapping

new paradigms

visits

crisis

rights to time for ideas

Customer journey maps 1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

GATHERING INSIGHTS

Customer journey maps

Ethnography

Asset mapping

ISSUE TREES

SYSTEMS THINKING

2. proposals and ideas inspiration Idea marketplaces

Hybridisation, recombination

Design tools

collaborative networks

User led design

A teams brainstorms

creative meeting methods

Competitions and prizes

Artists in residence Creativity methods

incubation

Living Labs

reflection

crowdsourcing

SI Camps

Skunkworks

Staged prizes TRIZ

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

http://www.sicamp.org/

3. prototypes and tests trials beta testing

proof of concept

Randomised control trials

pathfinders

rapid prototyping

trailblazers

simulations

pilots

experimental zones test marketing

open testing

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

INCUBATORS AND ACCELERATORS

FORMAL PILOTS

• RCTs and random assignment – eg Creative

Credits, J-PAL

• Experimental zones

• Living Labs

4. sustaining embedding

Professional development

policy commitment loans, equity, quasi-equity

Commissioner commitment

Crowd-funding

Public share issues

programme funding

Refining business models

formal validation

Ownership structures

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

Implementing

involves

putting

resources

and

structures

around the

innovation

Money and business model

Know-how

People and governance

Reputation

and effectiveness

Physical Resources

INNOVATION

Business planning

Charities Shareholders agreements

Non-executive Directors

Independent evaluation and benchmarking

Advertising

Sales and business development

Banking and working capital

PR

Pricing

Purchasing

Leasing

xxxx

Money and business model

Know-how

People and governance

Reputation

and effectiveness

Physical Resources

INNOVATION

Developing strategy

Industrial and Provident

Society

Partnerships

Supply chain management

Distribution channels and systems

Management information

systems

Intellectual property

protection

Community Interest Company

Co-operatives

•Developing a business model •Securing initial funds – customers and investment

•Acquiring the premises and equipment to deliver the innovation •Accessing the raw materials the innovation requires

•Evaluating effectiveness •Building brand, profile,

reputation •Switching from previous

solutions

•Setup up governance •Recruit leadership and team

Building operational systems and processes to deliver for users

5. scaling and growth diffusion

Strategies for diffusion and adoption

licensing

Brands

franchises

investment for growth – loans, equity, quasi-equity

commissioning

federations

National policy directives

professional networks

growth through people takeover

policy and programme funding

consumer advocacy

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

Money and business model

Know-how

People and governance

Reputation

and effectiveness

Physical Resources

INNOVATION

UNDERSTANDING THE POTENTIAL FOR SCALE

Is there a viable business model and evidence of demand / market?

Is there evidence of the effectiveness of

the innovation? Is that known, understood,

accepted by others?

Are the systems / processes capable of

operating at higher volume, or capable

of expansion?

What are the aspirations and

motivations of the key people behind

the innovation? How critical are they?

Are the resources necessary for expansion readily available, affordable, controllable?

6. systemic change new mentalities

regulation

recalibrated markets

changed scripts whole system demonstrators

technical diffusion through supply chains

fast colleges

finance for outcomes

changed power relationships

new metrics

law

coalitions for change

1 Prompts

2 Proposals

3 Prototypes

4 Sustaining

5 Scaling

6 Systemic change

Sonoma Mountain Village, Northern California USA

Hiriko City Car,

Spain

46

HEALTH AND CARE

• Whole system demonstrators

• Social Networks for support

• Patient peer influence

Which tools could be useful to you as an

innovator? What’s good about what you see –

but where is scope for evolution, combination?

SOCIAL DESIGN TOOLS

^ inversion (peasants become bankers, patients become doctors)

∫ integration (personal advisers, one stop shops, portals, speeding flow)

x extension (extended schools, outreach)

∂ differentiation (segmenting services by groups, or personalisation)

+ addition (getting GPs to do a new test, libraries running speech therapy)

- subtraction (no frills, cutting targets, decluttering)

t translation (airport management into hospitals, business planning into families)

g grafting an element from one field into another, creating a new fusion (coaching into a secondary school)

∞ creative extremism – pushing ideas and methods to their furthest boundaries

r random inputs (eg dictionaries, Yellow Pages)