Innovation Pathways Towards Creating Integrated Value: 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, I am proposing Integrated Value 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, I begin 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. My contention is that this disintegration in society occurs in at least five principle ways, which I call the five forces of fragmentation: disruption, disconnection, disparity, destruction and discontent.

I then ask: how might this this value destruction in society be countered or reversed? And I 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. I call these 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.

Keywords: Integrated Value, Sustainability, Innovation, Shared Value, CSR, Social Responsibility, Circular Economy

JEL Classification: M14, Q01, O35, O44