Catalysing Innovation in the Water Sector

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1 User:Colin / Wikimedia Commons / CC BY-SA 3.0 Catalysing Innovation in the Water Sector

2 Giles Rocholl

3 Catalysing Innovation in the Water Sector Catalysing innovation? A UK Water Industry Accelerator could act as the bridge between early stage technology companies and the needs of utilities and the wider water industry. The conclusion, drawn as a result of numerous interviews and a desktop study, is that a strategic accelerator programme would catalyse innovation in the UK water sector by creating a bridge between early-stage technology companies and water utilities that would facilitate the adoption of innovation. That bridge would ensure that only the technology companies that are most aligned to water utility needs receive the right kind of support, whether in the form of mentorship, access to finance, and/or access to market data. The best structure for the accelerator (for-profit or non-profit, and Investor, Corporate or Government-lead, or a combination) would need to be market-tested as each structure has its own merits. A UK water accelerator would have the benefit of making the water sector more coherent, more competitive on the global stage, and more attractive to investors at a time when investment in water technology is declining due to the multiple barriers to innovation identified in the study. Early Stage Technologies UK Water Accelerator Water Industry Needs Drive Growth Further investment into the water industry Integrated Water Sector Faster rate of adoption of innovation to address societal needs Drive Exports More competitive on the global scale

4 Catalysing Innovation in the Water Sector Overview The UKWP, Arup, Apsara Capital, and Twenty65 co-funded a study to identify whether the UK would benefit from a Water Accelerator Programme. Key findings The findings demonstrate that innovation in the water sector is currently slow and lacks structure. Several emerging best practice examples exist in the UK, but much still remains to be done to increase the market uptake of innovations. Numerous examples of best practice exist around the world, and lessons can also be learned from other industries that are responding to the challenge of innovation. The conclusion to be drawn is that an accelerator programme would benefit the UK water sector, however some preparatory work is required first in order for innovations to be more easily adopted within the water utilities. Innovation Uptake Slow. Lacks structure UK Behind Eight Ball Lessons to be learned from other countries Varied Performance Some examples of best practice in the UK Accelerator programme would benefit the UK water industry How is innovation currently managed in water utilities? The issue of innovation is uniquely complex within water utilities, where numerous conflicting drivers, enablers, and blockers are simultaneously at play. A water utility s structure and processes are designed and delivered for reliability, repeatability, and public health. Whilst in the UK this approach delivers high quality drinking water and acceptable (most of the time) environmental impacts, this approach can also stifle innovation through fostering a risk-averse culture and a reluctance to try new, innovative technologies. Complexity Various barriers, drivers and enablers Structure Designed for reliability & repeatability Risk Averse Culture Stifles Innovation Quality UK renowned for high quality drinking standards and lower environmental impacts

5 Catalysing Innovation in the Water Sector Recommendations A strategic accelerator programme would catalyse innovation in the UK Water Sector. Recommendations to catalyse innovation for the Water Utility? Water utilities face numerous and complex challenges in their delivery of innovation. To address these challenges, and remove them as blockers to innovation, water utilities need to better understand their current capability to match innovations with strategic needs and provide for the requisite implementation skills. This will enable the individual organisations to develop capability areas, which will enable them to maximise and fully exploit an innovation (which in turn will lead to competitive advantage) and will result in financial efficiency, and environmental improvements. To address challenges and remove blockers the water utility could focus on the figure below: An Innovation Readiness Audit would provide a baseline understanding of where water utilities are on the innovation spectrum Define current capability Measure understand current innovation needs / relevant challenges Match innovations and needs Develop required implementation processes and skills Enable innovation uptake

6 Catalysing Innovation in the Water Sector Recommendations Innovation audit Innovation Audit 1. Clear snapshot of water utilities organisational readiness for innovation and technology transfer; 2. Encourage each water utility to change its culture to address the capability issues raised 3. Align the teams involved in the delivery of innovation. Innovation Framework Develop clear internal processes that tailor the level of risk management to the innovation. Such a framework would generate clear pathways to impact, and create a culture of innovation where risk is accepted but managed (and it becomes acceptable to fail). Strategic Accelerator Programme Innovation Framework will result in the removal or improved management of many barriers to the adoption of innovations. This will then open the way for a strategic accelerator programme to be launched. Giles Rocholl

7 Febrouary

8 User:Colin / Wikimedia Commons / CC BY-SA 3.0