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Cecilia Tall
Chef Strategisk forskning och affärsutveckling
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Innovation begins in the mine
How do you lead innovation in an organization undergoing a historic transformation? For LKAB, it’s not just about new technology – it’s also about developing an organization that can systematically identify opportunities, make wise decisions, and turn them into action.
– We often say that everything starts in the mine, says Markus Odevall, Innovation Strategist at LKAB.
Sweden’s largest mining company, LKAB, is one of the world’s leading producers of highly refined iron ore. With operations in the ore fields of northern Sweden, the company plays a crucial role in the Swedish industrial transition – with a vision to lead the development toward a sustainable future.
- If we don’t reduce our emissions and develop new products from iron ore, then other companies further down the value chain won’t be able to transition and reduce their footprint either, says Markus Odevall.
Innovation management as a key component
That’s what he means by everything starting in the mine.
- It means we’re not just adapting to changes in the industry – we’re actively leading and driving development forward. We want to be a pioneer in sustainability, innovation, and technology, rather than merely reacting to external demands, says Markus Odevall.
In this effort, innovation management has become a key component. It means steering innovation so that it doesn’t happen spontaneously or in isolated parts of the organization, but is aligned with strategy, business goals, and daily operations. Innovation management is about clarifying direction, creating space for experimentation and development, and building a culture where renewal is encouraged – not just hoped for.
- We’re currently working to improve everything from how we develop and implement new technology to how we work with process improvements, new business opportunities, and fostering a culture of curiosity at LKAB, says Markus Odevall.
- This is extremely important for us and the entire mining industry. Changes in climate and society are also changing the conditions for our operations. We need to meet the demands of legislators, owners, customers, the public – and of course ourselves. This is our shared future we’re talking about.
Innovation has always been central to LKAB and crucial in competing with the world’s largest mining companies, such as those in China and Australia.
- We’re not one of the largest iron ore producers globally, and we mostly mine underground in an Arctic climate. That means we can’t rely on scale or standard solutions – so our own innovation has been critical in everything from technology to processes. Thanks to that, we can already deliver high-quality products with industry-leading sustainability, says Markus Odevall.
It means we’re not just adapting to changes in the industry – we’re actively leading and driving development forward. We want to be a pioneer in sustainability, innovation, and technology, rather than merely reacting to external demands.
Idea study provided a clear picture
When Göran Tuomas, Senior Systems Analyst at LKAB, saw opportunities to improve how innovation is managed and developed within the company, he initiated a project to create a comprehensive picture of the company’s current capabilities. To support this, LKAB brought in Mälardalen University (MDU) and RISE. In a joint idea study, the current state was analyzed – focusing on how innovation work functioned, where the strengths lay, and which areas needed further development.
The study showed, among other things, that innovation and renewal must be carried out with a more systematic approach than before to meet LKAB’s needs.
- We saw that we had a solid foundation in a clear strategic direction and strong leadership commitment to the transition. However, LKAB has so far faced challenges in breaking down and clarifying what this means in practice for the organization, says Göran Tuomas.
Ingrid Kihlander, Senior Researcher at RISE, worked on the idea study together with MDU:
- Commissioning a project in innovation management requires both insight and courage. It’s not an obvious thing to pursue as a large organization – but LKAB saw the need and dared to take that step.
Innovation capability as a way to lead development
Based on the idea study, LKAB is now moving forward. A project has been launched to strengthen innovation capability throughout the organization. For a company at the center of Sweden’s industrial transition, this is not a side function – it’s a new way of leading.
- With a well-functioning innovation management system, we aim to create both short- and long-term business advantages – from how we continuously adapt to new legal requirements to how we increase existing and create new revenue streams. As first movers, it’s important that we work purposefully to create the freedom of action needed to implement both technologies and processes that support our transition, says Markus Odevall.
LKAB has chosen to continue its collaboration with RISE.
- Through our collaboration with RISE, we gain support with structure, insights, and facilitation in our work as we further develop how we work with innovation. For us, it’s about optimizing our capabilities, and we believe RISE can help us with that, says Markus Odevall.
What Is an Innovation management system?
An innovation management system is a structured approach to managing and leading innovation within an organization, where innovation activities are integrated into strategy and daily operations.
According to ISO 56002, the international standard for innovation management, the system includes the following components:
- Leadership and Culture: Foster innovation-friendly leadership and a culture that supports innovation through clear roles and responsibilities.
- Strategic Direction: Define a vision and direction for innovation work that supports the organization’s long-term goals.
- External and Internal Insights: Capture external trends and optimize internal processes to create conditions for successful innovation.
- Planning and Resources: Ensure sufficient resources – both financial and in terms of competence – to support innovation efforts.
- Evaluation and Learning: Continuously evaluate innovation work to adapt and improve processes, methods, and outcomes.
