A new way of scaling technologies and business models to tackle the dual energy challenge
The need for innovation has never been more urgent
The world needs more energy. More than 30% more energy. To lift people out of poverty and to bring the advantages and opportunities from heat, light and mobility to everyone in the world. But we need do it with fewer emissions. We call it the dual energy challenge. It’s one of the toughest our planet faces, but it’s those kinds of challenges that inspire us at BP. Innovation lies at the heart of the solution. Finding new sources of energy, new ways to use the energy more productively and efficiently, new methods of reducing and containing greenhouse gases. We can’t rely just on the technologies we have today; we have to invent new ones. And we can’t only rely on the people with whom we always we work and on the ways in which we’ve always worked.
We need something different. A new way to solve the dual challenge.
Enter BP Launchpad...
- Our mission is to take new and exciting technologies and business models and help grow them fast to become BP’s future business units, generating a significant portion of BP Group’s gross margin by 2025.
- BP has a good track record of originating innovative concepts on one hand and managing billion-dollar businesses on the other. But like many corporates, we find it challenging to take an idea and scale it from a pilot to a full-blown business.
- Geoffrey Moore described it as ‘Crossing the chasm’ almost 30 years ago. And it’s still proving elusive.
- BP Launchpad is the way we will ‘cross the chasm’, building a new set of capabilities to create and accelerate value.
- We believe BP Launchpad will become a powerful engine for competitive advantage and help BP play its role in tackling the dual energy challenge
The case for a new way of building new businesses
We’ve developed a lot of technologies in our time and, through our ventures and partnerships, we have preferential access to many others. But taking ideas and turning them into fully-scaled, global businesses is hard for many large corporations. A challenge made all the more complex by the speed with which our world is changing.
So we need a new work of working – one that lets us scale up our ideas before others get the chance.
If we don’t, we will miss out on opportunities, wasting precious time and money. And since we’re determined to deliver heat, light and mobility to more people with fewer emissions, it’s not just our bottom line that will suffer.
- Big companies are increasingly vulnerable to disruption. Even companies with high value assets, like BP, with its oil, gas and renewable asset portfolio.
- Young upstarts are challenging big corporates every day. Because they’re small, they can be nimble, responding fast to opportunities.
- But global scale, trusted relationships, recognised brands all bring advantages too.
- A blend of the start-up mindset and model with a 100 years of global energy experience.
- We think that’s a winning combination to bring the vital innovation we need into the energy sector.
- And it’s what lies behind BP Launchpad.
What does BP Launchpad do?
We have recognised that scaling technologies and early stage businesses requires a different skillset than either R&D or managing billion-dollar businesses.
So the team at BP Launchpad looks pretty different from other teams in BP...
- Our approach to funding and performance management is more like private equity: Operating Partners release cash based on milestones and are tough on missed targets.
- We don’t believe in five year plans – instead we’ve hired Growth Hackers who are more experimental in marketing, sales and product development.
- Entrepreneurs in Residence guide and support our start-ups as they build businesses and go to market
- Dynamic Talent Specialists focus on finding really special people, designing novel compensation terms and putting the right teams together
- We co-locate and work strictly agile and at pace, supported by Scrum Masters.
How we are different?
We are still BP. Our values persist in all parts of the company, including BP Launchpad. But in addition, we have a Launchpad Code, making it feel very different to work in BP Launchpad.
Speed is the formula to win; the fastest will own the market, not the one with the most detailed plan
Think big, different, new, lower cost, faster
Learn from failure, mistakes, new information – get into action and
Take responsibility for the businesses we are building, don’t wait for permission
We don’t know all the answers, so seek out experts, build teams who think and share differently
What is success for BP Launchpad?
The businesses we set up will disrupt and create markets, either through new technology or new business models. They will scale to become BP’s future business units, contributing material gross margin to the Group by 2025.
The world needs to solve the dual energy challenge head through innovation; and through BP Launchpad, they will fundamentally and irrevocably change BP for the better – how it works, its pace and impact.
Innovation is the key to solving the dual energy challenge