What do you do if your innovative initiatives aren't yielding financial success?

It is so very important at the start of any project to be realistic about the your goals When setting your objectives for new projects, make sure that you have identified the key players in that product area Work with them to set the Product Design Specification or PDS Use risk assessment tools such as PESTLE Analysis and FMEA to identify potential issues before you start Have alternative product pathways as backup plans in the same way that you would use a sat nav to find a way around road obstructions in a car journey If you set realistic goals up front, liaising closely with all stakeholders before starting you reduce risks of going through repeated backtracking in your project Example problems with the introduction of the BEV

Speaking from personal experience whenever my innovative initiatives in renewable energy encountered financial challenges, I found it imperative to reevaluate objectives and explore alternatives. For example, if a solar energy project is falling short of financial expectations, switching the market segment or fine-tuning pricing strategies could help. Likewise, a large RE portfolio up against tough return targets might find solutions thru strategic asset management partnerships or by tapping into alternative financing avenues such as green bonds. Adapting to market dynamics while maintaining alignment between innovation and financial sustainability is crucial for long-term success in most industries, just as in the renewable energy sector.

Two good examples here. The introduction of the BEV and the heat pump Setting over ambitious goals makes hitting targets an impossible task Continuous subsidies by government demonstrates you have problems with the 4 'P's of marketing. Product, Price, Place and Promotion. If you have any of these wrong you don't have a market fit and risk missing your financial targets for the concepts In the case of both the BEV and heat pump the government has confused the goal with the means of getting there You cannot determine the best technology for each application up front before you have carried out the research. This is confusing the goal with the technology Ultimately innovation has to meet the market requirements or it will fail financially

Let's clear this up from the beginning here If your innovation doesn't fit market requirements no amount of cost cutting will get you across 'the line' The whole purpose of up front market analysis is to set realistic achievable objectives If you use incremental innovation as a means of reaching your goal, say decarbonisation, you have less risk as there are greater knowns in the technology A complete change of technology can work but this approach must be carried out with a substantial amount of involvement before hand with the intended consumers. This has not been done in the case of either the heat pump or the BEV Remember the goal is not the means of getting anywhere it is the destination & there is usually more than one route

Using the example of the BEV and heat pump again, lower cost means of achieving decarbonisation are available Again match your 4 'P's for best market fit With the BEV smaller designs are cheaper and can be competitive but remember this. With the BEV you can have low cost or lo g range with current technologies. You cannot have both Match your technology against market requirements & use alternative technologies to provide a better fit in the market With the heat pump system this is expensive to retrofit due to its different operating characteristics to the gas boiler. In a new build you don't have the change costs Finally there is more than one type of heat pump. Multi fuel designs offers greater flexibility & can be cheaper

Up front market research is crucial is crucial to project success The heat pump and BEV have both encountered problems with their introduction because the consumer was ignored in setting the PDS. You just cannot do that and expect to get away with it The customer must be involved in the the project progress. Lobbyists must be held at bay. They have their own agenda and this is not the same as the customers Having said that, using existing routes to market and the key suppliers can, properly managed, is important. People are change resistant as they are being taken out of their comfort zone. But they will change with 'baby steps' that also meet their needs. Expensive big step changes are however fraught with difficulties