john shaw, mainstream renewable power: open innovation@ mainstream
DESCRIPTION
John Shaw is CIO and Head of Information Services, based at Mainstream’s Global Headquarters in Dublin, Ireland. John joined Mainstream in September 2008 to lead the company’s Business Technology Strategy. A Chartered Engineer (C Eng MIEI) and a registered European Professional Engineer (Eur Ing) with 20+ years experience. John holds an MBA in Technology Management and a Bachelor’s Degree in Electronics Engineer from University College Dublin. A senior member of the IEEE (SMIEEE), joined Mainstream from Pfizer where he was Director of Information Services at one of Pfizer’s largest manufacturing facilities, having previously held senior IS executive positions in Accenture and General Electric. John is an active member of technical institutes, including The International Society of Automation, The Institute of Marine Engineering, Science and Technology and The Innovation Value Institute which researches and develops unifying frameworks to create more value from Business Technology innovation.TRANSCRIPT
Open Innovation @ Mainstream
Eur Ing John P. Shaw BE MBA CEng MIEI SMIEEE MISA
CIO
Mainstream Renewable [email protected] – 11.30 Wednesday 13 June 2012
Dublinked Open Innovation Event Wed 13 June 2012
Introduction
Mainstream’s business
is all about
Innovative Sustainability
Successful Innovators
are Open Disruptive Innovators with
Strong Management Processes
Sustainable Cloud
is on the way
• Mainstream’s Vision
• Mainstream’s Innovation Culture
• Mainstream’s IT Innovation
• Sustainable Cloud
Open Innovation @ Mainstream
• Mainstream’s Vision
• Mainstream’s Innovation Culture
• Mainstream’s IT Innovation
• Sustainable Cloud
Open Innovation @ Mainstream
Vision
Mainstream Renewable Power was founded by Dr. Eddie O‟Connor in February 2008.
“ Our vision
is of thriving economies and communities
liberated from the restrictions of fossil fuels,
using
renewable energy
as their
mainstream source of power. “
These 4 key drivers influence the pace of the transition to sustainability
Mainstream develops, constructs and operates large-scale Wind and Solar projects.
The world is experiencing a once-off historical transition to sustainable fuels: Each one of our
195 countries must go through it.
4 fundamental issues drive this transition ;
•Climate change
•Ever-increasing Demand for Energy
•Rising Fossil Fuel Prices
•Energy Security
Driver 1 :
Climate Change
“British adventurer and swimmer Lewis Gordon
Pugh has become the first person to swim in
the icy waters of the North Pole.”
16 July 2007
2011 : 2nd Biggest Arctic Ice Melt in Recorded History
In 2009 China surpassed US to become world’s largest Energy Consumer
Driver 2 :
Exploding Global Demand for Energy
•China is adding 100,000 MW to it‟s grid annually
•Equivalent to „ Adding Germany „ each year
•By 2030, China & India will add „ 23 Germanys „
Driver 3 :
Rising Fossil Fuel Price
General JN Mattias, USMC
March 2010
Richard Branson, Virgin
Ian Marchant, SSE
February 2010
1,600% Oil Price Rise 1997 – 2007..... Will it do it again by 2020 ?
Driver 4 :
Security of Supply
European Commission has intervened to catalyse the switch to Sustainable Energy
Source: Allianz 2010
Source: EGL 2007
Europe will become dependent on large Gas
Imports, Cash Outflows without EC
intervention...
... Via a Continent-wide Grid for Natural Gas
yet no equivalent for Electricity exists yet
Crisis, what crisis ?
A transition to Sustainable Energy permanently extracts us from the Energy Crisis
Government Policy
Project Development
Project Construction
Asset Operation & Maintenance
3 Revenue Streams = Profit
from sale
Long-term
O&M contract
Asset out-
performance fee
Sustainability as a business is what we do at Mainstream : large wind & solar.
Mainstream’s business model spans 4 key areas ;
Mainstream’s Business Model
Recycle
Cash
For New
Projects
A sustainable pipeline of Renewable Energy Projects secured
845 MW : Canada
994 MW :Chile
420 MW : Scotland
4,086 MW : South Africa
6,000 MW : England
Mainstream’s 14,000+ MW Projects’ Pipeline
Offices
Offshore
Onshore
1,000 MW : Germany
947 MW : USA
11 Office, 150 Employees, 8 Countries
The Big Picture
“...We can get 100 percent of
our energy from wind, water,
and solar (WWS) power. And
we can do it today—efficiently,
reliably, safely, sustainably, and
economically...
...The obstacles to this
transformation are primarily
social and political, not
technical or economic...”
Dr Mark Delucchi
University of California
IEEE Spectrum
September 2011Supergrid is the key technology for this transformation
230,000 MW Wind Power installed globally by December 2011
25 % of this in China
20 % in USA
12 % in Germany9 % in Spain
Wind50%Solar
30%
Other Renewables10%
Nuclear10%
Supergrid is the key enabler for the Renewable Energy Future
1,800,000 MW of installed Wind Power needed
• Based on projected 2050 energy
requirements
200,000 MW from Onshore Wind : the limit
• Europe is the most crowded Continent
1,600,000 MW from Offshore Wind
• Plenty of space to grow further
• Achievable at €3,600,000.00 per MW
Investment :
• €5.8 Trillion for Offshore Wind Turbines by 2050.
• €0.6 Trillion for associated Offshore transmission
and distribution: Supergrid.
Where is the Wind Resource?2050 Energy Mix
Europe’s Energy Mix in 2050
Europe’s Supergrid in 2050
Dr Eddie O’Connor, Mainstream Renewable PowerSupergrid LaunchLondon, March 2010
7 Innovation Trajectories are needed;
1. Bigger Wind Turbines
2. HVDC Transmission Cables
3. Supernode
4. Next-Generation Civil Engineering
5. Bigger Construction Vessels
6. Bigger Ports
7. Better IT:
• Intelligent Market for Energy
• Risk Management & Modelling
• Real-time Pervasive Monitoring
An inevitable transition to sustainability with 7 Innovation Trajectories
An electricity transmission
system,
mainly based on HVDC
designed to
facilitate large scale sustainable
power generation in remote
areas
for transmission to
centers of consumption,
thereby
enhancing the energy market
Supergrid Consortium
The consortium represents companies and organisations with a
mutual interest in promoting the policy agenda for the Supergrid.
CEO Ana Aguado run the Consortium which exists to accelerate
the Supergrid via a 5 point strategy:
1. Develop Standards
2. Create Offshore Transmission Operator
3. Establish EU Regulations
4. Create Single Electricity Market
5. Establish legal basis for trading
The Consortium has 23 members
Surveying & Modelling the Sea
Wind Turbine Control Systems
Hi-Speed Wireless Communication
Power Distribution Management
Supernode Power Controls
Monitoring & Controlling Risk
Reduce Project Risk & create the Intelligent Market
Innovation # 7 :
Better IT
• Mainstream’s Vision
• Mainstream’s Innovation Culture
• Mainstream’s IT Innovation
• Sustainable Cloud
Open Innovation @ Mainstream
Innovation ?
Source:
WikipediaInnovation drives our civilisation
Innovation is the creation of better products, processes, services or ideas that are readily available to society.
Innovation differs from Invention in that innovation refers to the use of better and novel ideas or methods whereas invention
refers to the creation of the idea or method itself.
Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the
same thing better.
Open Innovation ?
Open Innovation = a Virtuous Helix of Public + Private + Academic
Open innovation is a paradigm that assumesOrganisations can use external and internal ideas, and internal and
external paths to market, as the organisations look to advance their technology
Open Innovation is Innovating with partners by sharing risk and reward
Prof Henry ChesbroughCenter for Open Innovation
University of California, Berkeley
Disruptive Innovation ?
Disruptive Innovation is challenging and exhilarating
A disruptive innovation helps Create a new market and
eventually disrupts an existing market, displacing an earlier technology
Source:
Wikipedia
What are the Ingredients for success ?
Open Disruptive Innovation fails the Cross the Chasm without 3 key ingredients
EC Innovation Index 2011:
Finland is consistently in the “ Innovator Leaders “ since the mid-1990s
http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovation-scoreboard/index_en.htm
“ All of the innovation leaders have higher than average scores in
Public-private co-publications per million populations,
which suggests good linkages between the science base and enterprises. “
Source: Innovation Union Scorecard 2011
Ingredient #1 : The Virtuous Helix
What’s so special about Finland?
Finland is no accidental success
A focus on Science….. .…. An Integrated, Free Education System from Birth to PhD
Ingredient #1 : The Virtuous Helix
Open Innovators are different.... .... And can be Identified in Aptitude tests
We can all learn from the Great Innovators
Ingredient #2 : The Right People on the Bus
THE INNOVATOR’s DNA : HBR May 2012
5 Key Traits of the Innovator
1. Associational thinking: I creatively solve challenging
problems by drawing on diverse ideas or knowledge.
2. Questioning: I often ask questions that challenge others'
fundamental assumptions.
3. Observing: I get innovative ideas by directly observing how
people interact with products and services.
4. Idea Networking: I regularly talk with a diverse set of people
(e.g., from different functions, industries, geographies) to find and
refine new business ideas.
5. Experimenting: I frequently experiment to create new ways
of doing things.
Source: HBR, Jeff Dyer, Hal Gregersen, and Clayton M. Christensen
Sometimes you’ll meet an exceptionally Disruptive Innovator
Ingredient #2 : The Right People on the Bus
The Course of History is set by the Unreasonable Man
Dis
cip
lin
e
Innovation
Start Up
Bureaucracy
Hierarchy
Great
Organisations
Good to Great
(http://www.jimcollins.com/)
Ingredient #3 : A Culture of Innovation
Great Organisations have a Structured Innovation Processes
Innovation Culture can be measured by Outcomes
Culture ?
Organizational culture is
the set of values and beliefs
shared by an organization's members.
How can we “ see “ Culture ?
Values
AssumptionsBeliefs
BehaviorVISIBLE
INVISIBLE
Ingredient #3 : A Culture of Innovation
Strategic planning
Management leadership
Vision
Portfolio management
Collaboration
Rewards and recognition
Funding and resource allocation
Acceptance of risk taking
Roles & responsibilities
Capability development
Strategy
&
Management
Process,
Tools, and
Metrics
People
&
Culture
Frameworks
Processes
Measurement & communication of value
Assessing Innovation Culture ( scale of 1 – 5 )
Culture is ...
The way we do things around here
Innovation Value Institute
( http://ivi.nuim.ie )
Innovative Values form the Foundation of an Innovative Culture
Values inform our inner motivation
Mainstream VISION
To lead the global transition to sustainable energy
Ingredient #3 : A Culture of Innovation
Mainstream MISSION
To increase our customers‟ renewable energy portfolio, safely, profitably, efficiently and reliably by working with them to deliver their needs with
innovation, respect and entrepreneurial spirit
Mainstream VALUES
Safety : A safe environment for our people
Sustainability : A sustainable approach to everything we do
Teamwork : Working together to deliver more
Respect : Personal respect for everyone we deal with
Entrepreneurial approach : find solutions others can‟t see
Innovation : seek novel ways to deliver technology & services
Customer Service : focus on customer service excellence
Backed up with Strong Management Processes
Innovation Management Discipline differentiates the Winners
Ingredient #3 : A Culture of Innovation
Innovation Value Drivers Innovation Management Process
Backed up with Leadership
Leadership always differentiates the Winners
Ingredient #3 : A Culture of Innovation
1. Set a vision and goals for Innovation in your group
2. Assess the current state of Innovation
3. Purposefully execute an innovation plan that builds on innovation strengths and breaks down barriers that inhibit Innovation
4. Enact the right level of innovation training and enabling tools for your organization
5. Effectively communicate your innovation vision and plan
6. Use performance management as a key innovation driver
7. Visibly show passion for Innovation; role model the behaviors you want to drive; expect the same of your leaders
8. Measure progress to goals
9. Reward and recognize innovation results
10. Repeat these 10 steps
Innovation Value Institute
( http://ivi.nuim.ie )
Thought Leaders on Open Disruptive Innovation?
6 Inspirational Books on Open Disruptive Innovation
Ingredient #3 : A Culture of Innovation
• Mainstream’s Vision
• Mainstream’s Innovation Culture
• Mainstream’s IT Innovation
• Sustainable Cloud
Open Innovation @ Mainstream
Remember this guy ?
Imaging the future in 1959 wasn’t easy, it is still difficult.....
What is IT Innovation ?
Invention
Combining existing technologies in new architectures
Improvements
Incrementally improving service levels
Unique creation
Introducing new products and systems
Value creationDeploying and realizing value from new IT
technologies services
Novel implementation
Supporting new business models through IT
Problem solving
Delivering efficient solutions to business needs
Innovation Value Institute
( http://ivi.nuim.ie )
Inc
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IT Innovation = a tension between the WOW and the NOW
Mainstream’s Business Context
A company operating exclusively in the Renewable Energy Sector
A New company, established in early 2008
A company operating Globally, 11 offices in 8 countries
A company growing fast, a Big Company by 2014
Secure, Accessible IT Services are key to the success of Mainstream
A Secure, Sustainable IT Strategy delivered via a Structured Process
Geospatial
Information
Project
Management
Business
Intelligence
Document Management
Predictive Performance
Finance & HR
Customer Relationship
Management
Asset Management
Key Innovation: 8 Integrated Business Systems to deliver Value
Deal
Making
A Single Version of
the Truth
ValueBusiness Need Integrated Business Systems
Faster Decision-
Making
Increase Personal
& Team
Productivity
Cash generation &
Management
Efficient Work Flow
Project
Execution
Collaboration &
Fast Replication
1. Innovative IT Vision : Focus on Business Value
Primary Datacenter : Eircom CityWest DR Datacenter : Eircom Clonshaugh
Dublin, Ireland Office
Toronto, Canada Office
Chicago, USA Office
Santiago, Chile Office
4 ‘small’ Offices:
London,
Glasgow,
Berlin,
Capetown
SCHEMATIC PARTNERS
• Microsoft : Software
• Eircom-Orange : Communications
• HP -DSS : Hardware
STANDARDS
• Microsoft : 32 Products
• HP : Client & Infrastructure h/w
• Cisco : Data Communications
• Intel : Infrastructure Architecture
PRINCIPLES
• Align with SERA
• Understand what you Outsource
• Build for global growth
• Build for 24 x 7 availability
• Build for Security : ISO27001
• Single User Signon
• Standardise components
• Configure not customise
• Partner with 4 Strategic IT vendors
• Service Level Agreements
Key Innovation : A Private Cloud built for High Availability & Security
2. Innovative IT Execution : Focus on Delivery
Business Technology Projects Forum
Finance
Business Technology Council
OffshoreDevelopment
ProjectManagers
System Owner
IS PMO
Business Technology Council Tollgate Program Management
Monthly
Weekly
This Council meets monthly to agree where investment is needed in Business Technology.
This is aligned with a Business Technology Projects forum which tracks projects progress and escalates issues for decision
OnshoreDevelopment
IS SHEQTechnicalServices
1.
Initiate
4.
Go-Live
Verification
3.
Build &
Test
Tollgate 1 Tollgate 2 Tollgate 3
2.
Plan &
Design
5.
Operate
Tollgate 4
All Business Technology Projects are managed using a 6 Phase 5 Tollgate Modeldesigned to trap issues early and improve the quality of the delivered Solution :
Projects Progress is tracked and communicated weekly to all stakeholders.
New Projects are force-ranked against a set of business criteria;
1. Project Payback2. Support Business Growth3. Innovation4. Reduce Business RiskA Plan of Record is maintained, high-lighting the
strategic plan behind all projects.
The Governance Model delivers Business Value via; 1. Business Technology Council ; Business led
2. Tollgate Program Management ; clear steps, clear outcomes3. Focusing on Business Benefits 4. Prioritising Projects around Business Needs : Growth, Cost Reduction5. Tracking all projects consistently: Progress, benefits, costs
6.
Benefits
Harvest
Tollgate 5
Key Innovation : Tollgates to fast-track progress
3. Innovative IT Controls: Focus on Service
IT Innovation enables Sustainable Business Activities
IT Innovation 2008 - 2011
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Private Cloud Minimises Energy
Combining existing technologies in new architectures
Strategic IT Partnerships Deliver Value
Incrementally improving service levels
Electronic Workflow reduces Paper
Introducing new products and systems
Video Conferencing Reduces TravelDeploying and realizing value from new IT
technologies services
Managed Print Reduces Ink
Supporting new business models through IT
PCs are Energy Efficient
Delivering efficient solutions to business needs
4 key IT Innovations delivered by 2015 :
An Integrated Sea Information System ( ISIS ) reduces project risk
Wind Turbine Control Systems are highly available
The Supergrid avails of advanced Digitisation
Sustainable Energy powers Cloud Datacenters
IT Innovation to accelerate Sustainable Renewable Energy
IT Innovation 2012 - 2015
• Mainstream’s Vision
• Mainstream’s Innovation Culture
• Mainstream’s IT Innovation
• Sustainable Cloud
Open Innovation @ Mainstream
What if we miss the Next Big Thing ?
We need to understand the 4 Mega IT Trends of 2030.....
Mega-Trend #1 : Democratised IT for 5 Billion users
In a world of 15 Billion microprocessors
Energy Costs have risen for ICT Organisations;
$ 7.00 the annual recurring energy cost for every $1,000.00 invested in Datacenter kit, in 2000.
$ 1,000.00 the annual recurring energy cost for every $1,000.00 invested in Datacenter kit, in 2010.
Source:
Bathwick Group
Energy Drivers:
• In 2000 ICT organisations didn’t talk about Energy: by 2010 Energy was firmly on the Agenda
• This change was driven by reduced cost for Hardware, increased price in energy
• What are the 3 attributes of an effective Energy Strategy for an ICT Organisation?
– Guaranteed Secure Energy Supply
– Guaranteed Fixed-Price Energy Supply
– Guaranteed Green Energy Supply
Mega-Trend # 2 : Energy Dominates the IT Debate
Company Proprietary & Confidential Information Sustainability Challenge meets Cloud Challenge
Mega-Trend # 3 : The Internet of Everything
The Future is already here, only it is not evenly distributed William Gibson
An Exploding demand for Data:
An increasingly Digitised world via Pervasive Monitoring
Highly Democratised IT drives demand for data
The Oil Crunch will influence IT Strategy, Cloud Strategy
A Digitised Renewable Sector :
New Renewable Energy Infrastructure is highly-data Intensive
Digitised decision-making drives demand for more data
What this means for any enterprise:
The IT experience at work must match or exceed that at home
Inevitable Public Cloud via New, Big, Sustainable Datacenters
The Cloud will host civilisation’s exponential growth in data demand
Mega-Trend # 4 : Cloud Computing is Everywhere
Gartner’s 10 year view : Cloud Hype-Cycle
Software as a Service is Maturing
Sustainable Cloud ?
Cloud computing is the delivery of Computing as a service rather than a product, whereby shared resources,
software, and information are provided to computers and other devices as a
utility over the internet
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social
dimensions, and encompasses the concept of stewardship, the responsible management of resource use.
Source:
Wikipedia2 Great Concepts Collide
Sustainable Cloud ?
Company Proprietary & Confidential Information
Sustainable Cloud computing is the delivery of computing as a service over the internet
in a manner which utilises renewable energy sources, energy efficient
technology and low-carbon footprint hosting facilitiesto deliver
Highly Available, Secure and Confidential Services.
Sustainable Energy + Public Cloud = Sustainable Cloud
Sustainable Cloud : National Perspective
Cushman & Wakefield : “ Data Centre Risk Index 2012 “
Where with Sustainable Cloud Data Centres be built ? Ireland is 16th, Iceland is 4th
“ Ireland falls into the
bottom half of the table for
Energy Security and Sustainability “
Sustainable Cloud : Innovative Design ?
Company Proprietary & Confidential Information
Features
1. Sustainable Cloud Service
1. Availability
2. Security
3. Confidentiality
2. Sustainable Energy Supply
1. Secure Grid connection
2. Fixed Price contract
3. Direct Energy Asset ownership
3. Sustainable Energy Distribution
1. UPS is a storage medium
2. DC powered Servers
3. DC in, DC out
4. Sustainable Energy Use
1. Energy Efficient Management
2. Virtualisation
3. Certified Devices
5. Sustainable Building
1. Low carbon Design
2. Low carbon Materials
3. Certified
The Cloud will be built on Sustainable Principles
The right Attitude helps....
Henry Ford
“Today & Tomorrow”
1926
... And don’t forget Vision
We choose to go to the moon in this decade
and do the other things,
not because they are easy,
but because they are hard,
because that goal will serve to organize and
measure the best of our energies and skills,
because that challenge is
one that we are willing to accept,
one we are unwilling to postpone,
and one which we intend to win.
President John F. Kennedy
September 12, 1962
Conclusion
Innovative Sustainability
is what Mainstream’s business
is all about
Successful Innovators
are Open Disruptive Innovators with
Strong Management Processes
Sustainable Cloud
is on the way
Mainstream ‘s Business Modelhttp://www.mainstreamrp.com/
Mainstream’s Innovation : A winner in the 2011 Computerworld Innovation Awardshttp://www.eiseverywhere.com/ehome/CWHONORS2011/35791/?&
Mainstream’ ICT Strategy: Described by Silicon Republichttp://www.siliconrepublic.com/strategy/item/14728-in-the-mainstream
Mainstream & Intel: joint White-Paper & Video on Offshore Wind Farmshttp://www.intel.com/content/www/us/en/energy/wind-turbine-availability-excellence.htmlhttp://www.youtube.com/watch?v=oOlWSWujw8s
Mainstream & Microsoft: Blog on SERA adoption & link to SERA documenthttp://blogs.msdn.com/b/mspowerutilities/archive/2010/06/24/sera-succinctly.aspxhttp://www.microsoft.com/industry/manufacturing/utilities/default.mspx ( see „Spotlight‟ Section )
Friends of the Supergrid : driving policy and standards http://www.friendsofthesupergrid.eu/
Energy Trends : Oil refinery bottleneck report from Richard Branson & from US Militaryhttp://peakoiltaskforce.net/wp-content/uploads/2010/02/final-report-uk-itpoes_report_the-oil-crunch_feb20101.pdfhttp://smallwarsjournal.com/blog/joint-operating-environment-2010
IEEE September 2011 : 100 % Renewable Futurehttp://spectrum.ieee.org/energy/renewables/wind-water-and-solar-power-for-the-
world/?utm_source=techalert&utm_medium=email&utm_campaign=092211
Fortune September 2011 : The need for a Federal Approach to Supergridhttp://tech.fortune.cnn.com/2011/09/14/the-power-struggle-for-wyomings-wind/
The Economist September 2011 : Arctic Sea Ice is melting faster than the Climate Models predicthttp://www.economist.com/node/21530079
Further Information