At the core of Shell’s success in identifying new growth opportunities in recent years has been its Technology Futures initiatives that have been led by GameChanger – the company’s corporate innovation programme. In 2003 the remit of the GameChanger team was shifted from an internal focus on idea exploitation to more of a strategic innovation role. Given the future challenges for the energy sector, Shell recognised the need to be more proactive in identifying and clarifying probable future areas of opportunity outside its traditional operations.
Shell already had a long-established reputation for long-term thinking with a dedicated scenarios team that produces a regular 20 year view on how the world is changing from a socio-economic and demographic perspective. What the new Technology Futures programme brought to the mix was an understanding of how technology from outside the energy sector fitted into the picture - in terms of how and where new technologies could both impact the world and, more specifically, the varied areas of Shell’s current and future business operations. This programme led to the identification of a number of major potential spaces of opportunity as well as major threats to the business.
Amongst other outcomes, this programme led to significant investments in renewable energy technologies that will potentially develop into multi-billion dollar businesses. In one area, that of bio-fuels, Shell has been leapfrogging the mainstream. Where others are focused on grasping the immediate opportunity of transforming food into bio-diesel and bio-ethanol, Shell is interested in a more sustainable competitive approach. Driven by new insights, the company has been exploring next generation renewable feed-stocks such as agricultural waste as well as the production of marine based algae. Subsequent investments have secured future options and are building experience outside the company’s traditional focus.
Within conventional fuel markets, in areas such as gas to liquid Shell has started to explore the viability of synthetic jet fuels as another way of improving emissions and fuel economy. Across the board, Shell’s investment in innovation is paying off as it is gaining insight from developments outside its own sector and is finding opportunities in new areas. As the energy sector stands on the edge of dramatic change, Shell, one of its early pioneers, is well positioned to lead the move into a new generation of power options for the future.
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