Enhancing Innovation Capacity Through ISO 56002 Compliance: A Case Study in The Energy Sector

Abstract

Abstract This study aims at assessing the readiness of a company that delivers solutions to the global energy industry to comply with the ISO 56002, which is part of the ISO 56000 family of standards from the International Organization for Standardization (ISO). ISO 56002 provides a systematic framework for establishing, implementing, maintaining, and continuously improving an innovation management system. By examining the company's compliance with this standard, the study highlights opportunities for enhancing its innovation capacity. A team of business students from Montana State University Billings interacted with the company's innovation team and senior management to evaluate the degree of ISO 56002 compliance and to provide recommendations for further developments. The assessment included five analytical categories: context of organization and leadership, planning and support, operations, performance evaluation, and continuous improvement. The team used a rating scale from 1 to 5 (with 5 indicating the highest level of compliance) to evaluate innovation-related competencies in each analytical category. As innovation is one of the main competitive differentiators for organizations within the energy industry, effectively managing innovation is crucial for both the current and future performance. Therefore, following the guidelines from ISO 56002 can be highly beneficial, as the standard provides guidelines to help the company sustain long-term results by managing innovation in a more systematic and organized way. The outcome of this study showed critical competencies necessary to maximize innovation success, such as having leaders who can manage innovation effectively, a workforce that can conduct research and identify uncertainties, systems in place to recognize market opportunities, and initiatives to empower employees to be creative and have their concepts validated. Although this list is not exhaustive, it represents the core organizational competencies towards a more effective innovation management. Within this context, the team of students estimated that the unit investigated is 2/3 compliant with the ISO 56002 guidelines. In addition, the students made recommendations to enhance compliance with the standard, with emphasis on restructuring the organization's approach to capturing innovation opportunities and improving its methods for measuring the performance and impact of its innovations. This study revealed potential benefits of implementing ISO 56002 standard in the energy sector, highlighting likely improvements in innovation performance, competitiveness increase, and stakeholder engagement. However, despite the benefits, the adoption of the standard is still limited to a few organizations in the global scenario, making its overall effectiveness unclear. This case study provides insights onto practical implications and possible outcomes of adopting ISO 56002 standard in oil and gas companies.