Developing new revenue streams in the Energy Transition
Due to climate change, the need to reduce emissions and move to cleaner forms of energy, the pressures on the oil and gas sector make its long-term future less certain. The industry has, to date, benefitted from sustained demand for its product over the long term irrespective of price cycles but it now looks like there will be a constant headwind. It will make the business environment challenging for all companies in the sector. How can a company respond?
Innovateer was engaged by one client that wanted to address this question, the CEO felt the company had skills and capabilities that could be applied more broadly in other parts of the energy sector. It was just unsure what steps to take in order to arrive at the strongest propositions with minimum investment.
Having led a series of business development, strategy and innovation workshops with other organisations, Innovateer proposed using a Design Sprint to identify potential propositions that played to the company’s strengths, select the strongest and test them within a concentrated 5-day programme. This amazingly creative and intensive process developed at Google Ventures is demanding but hugely effective, more details can be found here. Essentially, it is a faster and more cost effective way to develop new products as the diagram below illustrates.
The Sprint programme was designed and led by Innovateer. It led to the identification of three potentially strong propositions, one of which was selected and tested further with some trusted advisors and customers on day 5. The feedback received was resoundingly positive and provided the platform for Innovateer’s client to invest more in preparing and launching the product. Perhaps more importantly, it gave the CEO and wider organisation the confidence to boldly step into an area of the Energy Transition it had not considered before, to create new revenue streams that will help it endure the challenges ahead.