Innovation at Western Water · • Strategic Plan 2013, Innovation one of 3 key themes: •...
Transcript of Innovation at Western Water · • Strategic Plan 2013, Innovation one of 3 key themes: •...
Innovation at Western Water Les McLean, General Manger Strategy & Performance
11 July 2013
Overview
• Strategic context
• Innovation Pipeline process
• Case Study: Class A for Clothes Washing Machines
• Case Study: Intelligent Metering Trial
• Case Study: Environmental Offsets Framework
• Risk Appetite
Strategic context • Innovation Statement (Board endorsement)
• BAU thinking won’t address some new complex challenges
• Innovation is about taking risks
• New ideas come from all levels
• Need leadership, time and money
• Need ideas management process and tool
• Strategic Plan 2013, Innovation one of 3 key themes:
• “Build the capacity for, and encourage innovation, particularly to improve
liveability and to deliver efficient solutions.”
• Innovation Strategy developed
Innovation Pipeline – Ideas Management Process
Case Study: Class A Recycled Water in Clothes Washing
Machine Investigations
Where did the idea come from? • Clothes washing machines use an
average of 45L of drinking water per
person per day (DSE, 2008)
• Class A recycled water use in clothes
washing machines is approved by
regulators
• Western Water has a goal of fit-for-
purpose potable substitution
• Financial benefits
• Potential water quality risks Typical Breakdown of Indoor
Water Use (DSE, 2008)
Stage Assessment Key Findings
1. Literature review Identified work completed to date and potential limitations.
2. Water quality desktop analysis Concerning levels of colour and TDS when compared against ADWG, which has the potential to cause discoloration of fabric
3. Laboratory material testing All materials complied with laundry standards with the exception of those washed with eco-friendly detergent
4. In-house Ecofriendly detergent trial
All materials (both potable and Class A RW) washed with eco-friendly detergents failed to comply with all laundry standard
5. Eynesbury pilot trial Participant feedback was positive despite high levels of colour and TDS
6. Class A Customer perception survey
There is strong interest from Eynesbury community in implementing this new use. Results highlighted need for further community education.
What was the process?
Barriers to implementation • Colour
• Customer perceptions
• Detergent type
• Risk appetite
Benefits of implementation • Customer choice and value
• Reduced operational costs
• Consistent with strategic direction
• Consistent with government policy
Case Study: Intelligent Meter Trial
Intelligent Meter Trial
• Detect leaks in the supply system, defer augmentation
• Customer segmentation, water usage, customer leakage • Individualise customers via value added services • Operational efficiencies, meter replacements, automate manual processes
Staff Trial • Proceed on the basis of replacing meters with “digital” meter • No Community engagement yet… recognise political climate! • 20 sites installed – 25% (5) of these experienced internal leaks…!
Case Study: Environmental Offsets Framework for the Victorian Water Industry
• VicWater released a position paper
‘Recycled Water Returned to Stream for
Environmental Flows’ -2007
• Reuse to Waterways discussion paper -
2008
• Environmental Offsets Discussion Paper
• Draft Environmental Offsets Framework -
2011
• Environmental Offsets Framework identified
as a strategic project
Where did the idea come from?
Degraded environment
What is an example of an environmental offset?
Weed removal and revegetation
Improved water quality, habitat and community amenity
What is the process?
• No approved process
• Risk of regulatory and stakeholder acceptance
Barriers to implementation
Benefits of implementation • Deferred capital investment
• Cost effective environmental compliance
• Lower cost to customer
• Tangible environmental benefits
• Potential to improved Social value
• Holistic perspective, paradigm shift to
regulations
Risk Appetite
These case studies all took a different approach to Innovation:
• Class A recycled water for clothes washing was focussed around the pursuit
of new markets
• Intelligent Metering Trial links into both transforming the customer
experience as well as fostering new capabilities
• Environmental Offsets Framework is about re-defining the solutions and
value proposition
Risk Appetite Strategic level
• Innovation as an opportunity
• Innovation as a mitigation measure for strategic risks
• Strategic Risk Register as a source of ‘challenges’ for our people to focus ideas on
• Risk management in idea delivery
Ask yourself “What is the risk of doing nothing/not having an innovation
program?”