Creating Integrated Value Through Sustainable Innovation: A Conceptual Framework

Abstract

In the context of a plethora of worsening social, environmental and ethical negative conditions often associated with economic growth and industrial activity, Integrated Value is proposed as a conceptual and practical framework for business to respond credibly and effectively as a force for innovation and solutions. In order to do so, the chapter begins by asking: how is value to society currently being destroyed by economic activities? Taking a systems science perspective, the answer is: whenever it causes fragmentation, or disintegration. This disintegration in society occurs in at least five principle ways, namely the five forces of fragmentation: disruption, disconnection, disparity, destruction and discontent. The next question is: how might this value destruction in society be countered or reversed? We find clues in innovations that are occurring in five emerging economic spheres: the resilience, exponential, access, circular and wellbeing economies. In each of these areas, there are breakthrough business models, practices, products and services that are building, rather than destroying, societal value. These are the five pathways to innovation, defined in terms of the desired future state they are trying to advance, which is a society that is more secure, smart, shared, sustainable and satisfying. Four strategic value-creation options are then described (singular, focused, diffuse and integrated value) before citing illustrative cases and describing the seven steps of a methodology to implement integrated value.