BUS604: Innovation and Sustainability

Meaning and Function

The 'concept' represents the bridge be- tween the creative (idea/vision) and operational phases (strategy, planning, implementation, iterative process). How is it defined and understood?

General

In its origin, the word 'concept' derives from the Latin concipere, to conceive, where the conceptum, is something conceived, a theoretical construct. According to the Stanford Encyclopaedia of Philosophy, "Concepts are the constituents of thoughts. Consequently, they are crucial to such psychological processes as categorization, inference, memory, learning, and decision-making". In the history of philosophy the structure, function and meaning of concepts are debated for their role in language, mathematics, science, representation, the mind and the creative arts.

In the Breakthrough series, we consider the role of the concept in innovation processes, which crystallizes the values of the vision, and spells out its specific goals and structure of organized activity in the context of a wider network. In this way, the concept prepares the ground for the masterplan, mission and strategy, where capabilities are matched with resources to achieve specific goals.

The Business Model and the (Gesamt) Konzept

In business literature, the 'business model' comes close to the way in which The Owls use 'concept', although 'business model' is defined in various ways, as 'statement', 'description', 'representation', 'architecture', 'conceptual tool or model', 'method', 'framework', 'pattern' or 'set'. A business model generally includes the offering and activities of an organization, resource, the model of the value chain, and the wider context of the market and competitors.

In one influential description, the business model is "an architecture of the product, service and information flows, including a description of the various business actors and their roles". These uses in business, however, are good at capturing the basic elements of structure, function and network, but are not as comprehensive as the concept is understood to be in Breakthrough.

In German policy, strategy and diplomacy, the Gesamtkonzept comes closer to our understanding of this concept. The Gesamtkonzept, literally 'total concept', is an "integrated and comprehensive governing concept," which expresses the "fundamental objective" to achieve in a process including the necessary means.

Some More Remarks on and Definitions of the Concept

In the concept we envisage vision and ideas meeting with capabilities for the first time. The realization of the thinking is confronted with the need to be linked to the capabilities. So the concept provides the architecture to present in headlines those elements which are necessary to achieve the set goal. You could also say: the concept is the design in headlines connecting the elements which are needed to bring success. It bridges 'what we want', 'what we need to succeed' and 'how we will execute'.

The concept has its own dynamics. It grows from headlines to- wards a sound basis suitable for developing a solid masterplan. Therefore it provides the essential input for the further mission, strategy and execution. In all the cases we researched we found that the trans- lation of what we want into precise goals and sub-goals is essential for success. So the concept and the masterplan are the drivers for the execution. They force us to define exactly what we want, divided into precise goals and targets.

This is shown in the figure 'The Owls Breakthrough Concept' which explains the generic factor concept. See page 196 and an example of a detailed concept on page 197: the Unilever Sustainable Living Plan.

Because the term concept is open to multiple explanations, here are a few additional alternatives and related wordings:

• Outline of the potential solutions.
• The first connection of what we want and what we think we need.
• Rough stage on main lines; from a concept it grows into a plan (masterplan).
• Linking to the elements necessary for realization.
• It is the preliminary stage for the design and architecture of the implementation.
• In principle, it connects the elements that are needed to achieve the set goal.
• Connects the creative phase (idea, vision, innovation, breakthrough) with the operational phase (mission & strategy and planning & execution).
• Leads to developing the basis for the masterplan.
• Provides input for the mission, strategy and execution.
• Gives the impetus for the iterative process.
• Provides the basis, structure and network for collaborating partners.

Source: Henk van den Breemen, Benjamin Bilski, and Theo Bosters, https://archive.org/details/Breakthrough2180910/page/n207/mode/2up
This work is in the Public Domain.