Originally published June 2025. The research behind the IIC has since been validated in a live accelerator study — read Before the Business Model for the full findings.
Originally published: June 26, 2025, by Damian Davies (B2B EVO) republished with permission
Introduction
When Damian Davies, strategist and creator of the B2B EVO newsletter, invited me to be the first guest for his new EVOlogue interview series, I knew it would be a different kind of conversation. Damian’s focus on practical strategy, innovation ecosystems, and thoughtful dialogue made this an ideal space to explore the why behind the Impact Innovation Canvas and how it’s helping teams move from purpose to practice.
We covered a lot: systems thinking, AI in innovation, ethical decision-making, and the messy middle where most good ideas either gain traction (or stall). I’m sharing the full interview here to offer deeper insight into the framework’s origins, applications, and future direction.
Top 3 Takeaways
- “Innovation isn’t an optimisation problem. It’s relational and contextual.”
- “The canvas helps teams zoom out before they zoom in, surfacing root causes, trade-offs, and ethical dilemmas.”
- “AI is not here to lead. It’s here to guide. Real innovation still happens in the room, with people.”
Full Interview Text
(Republished with permission from Damian Davies – B2B EVO)
1. The Foundations of Impact Innovation
Genesis of the Canvas
Damian: Steve, tell me, what inspired you to create the Impact Innovation Canvas, and how does it address the gaps you’ve observed in traditional business model frameworks?
Steve Mullen: The Impact Innovation Canvas was born out of frustration. I saw too many innovation teams stuck between purpose and execution. Traditional business model tools like the Business Model Canvas offer strong structure but often fall short when it comes to integrating impact, ethics, or real-world complexity. Tools like the BMC or Lean Canvas also tend to come later in the process. They assume you already have an idea to validate (Lean Canvas) or an existing business model to rework (BMC). I wanted a tool that helps teams move from idea to implementation while considering systems, sustainability, and stakeholder dynamics from day one. The IIC is designed to prompt better questions earlier—not just “Is this viable?” but also “Who does it serve, what are the risks, and what’s the intended impact?”
Bridging Ambition and Action
Damian: You mention a gap between ambition and action in innovation. How does the canvas facilitate moving from ideas to tangible outcomes?
Steve: Idea generation is not the problem. The hard part is communicating ideas to others, essentially, translating complex models into a compelling narrative that attracts early-stage stakeholder buy-in. By design, the canvas acts as a bridge, breaking things down into ten interlinked components that force you to get specific. You can’t just say, “We want to solve climate change.” You have to define the core problem, identify who’s affected, explore the trade-offs, and design for validation. That’s when ideas start to move and begin bringing people in, because only then will ideas for improvement, change, and doing things better gain traction.
Systems Thinking Integration
Damian: How does systems thinking influence the design and application of the Impact Innovation Canvas?
Steve: I’ve been very focused on embedding systems thinking throughout. We know innovation doesn’t happen in a vacuum. It happens in ecosystems, with feedback loops, constraints, and ripple effects. In a way, the canvas helps teams zoom out before zooming in. It asks you to consider root causes, unintended consequences, and ethical dilemmas, not just market fit, profits, or gains. It asks us to consider impact. When we focus on the triple bottom line (people, profit, and planet), that mindset shift changes the quality of innovation. It’s not just about being disruptive. It’s about being deliberate and purposeful.
2. Practical Applications and Outcomes
Real-World Impact
Damian: Steve, can you share a success story where the Impact Innovation Canvas significantly transformed a team’s approach to innovation?
Steve: One that stands out was a sustainability-focused startup struggling to communicate their value to investors. They had passion and a strong technical concept, but it was stuck in abstract terms. After a few Impact Innovation workshops, they were able to clearly articulate the problem they were solving, the ripple effects of their solution, and their go-to-market path. None of this was a magic pill. It took blood, sweat, and tears. But what they ended up with was alignment on idea flow and a compelling stakeholder pitch.
Workshop Dynamics
Damian: In your workshops, how do participants typically respond to the structured approach of the canvas? Any surprising feedback or results?
Steve: Most people come in thinking structure will slow them down, but the opposite happens. The canvas helps teams move faster by focusing their thinking and removing ambiguity. It gives people a shared language to explore ideas without spinning in circles, also known as the messy middle. One thing that often surprises teams is how deep the “Ethical Dilemmas” section goes. It tends to spark real, often uncomfortable conversations about risks, biases, and trade-offs—the kind that rarely happen in typical innovation sessions. That honesty tends to unlock trust and sharper thinking around their problem-solution fit.
IIC Adaptability Across Industries
Damian: How versatile is the Impact Innovation Canvas when applied to different industries or organizational sizes?
Steve: It’s been tested in very different settings, from early-stage startups to corporate teams and even student workshops. I really enjoy seeing how teams use it and watching the conversation spark and take shape. Startups need to move fast and use it to map an idea quickly. Larger organisations usually need more time to align teams or stress-test parts of a strategy within their internal systems and supply chain. It’s not one-size-fits-all, but the structure is flexible enough to meet teams where they are.
3. The Role of AI and Future Directions
Introducing AI
Damian: You’ve developed an AI-powered assistant. How does it complement the Impact Innovation Canvas in facilitating innovation?
Steve: Let me be clear. AI is not here to replace thinking. It’s here to support it and augment the ideation process. The AI acts as a structured co-pilot during workshops or design sprints. It helps teams ask better questions, spot gaps, and generate ideas faster. It’s especially useful for surfacing blind spots or offering examples when a team is stuck. But the value still comes from the people in the room. The AI simply helps maintain momentum and focus. It’s a tool to augment, not lead, the innovation process. This approach is known as Human-in-the-Loop, and I believe it’s where firms will maintain real competitive advantage.
AI in Innovation Processes
Damian: What are the advantages and potential challenges of integrating AI tools into innovation workflows?
Steve: The upside is speed and structure. AI can help teams move faster through early-stage work, especially when working with their own data, operations, and sales documentation. It enhances everything from mapping ideas to testing assumptions. It’s like the team can interact with their own company expert. But the clear risk is relying on it too heavily or skipping the hard conversations. The way I see it, innovation isn’t just an optimisation problem. It’s relational and contextual, and often sits in what I call the messy middle of innovation. So, AI should guide, not lead. You still need humans to make sense of trade-offs, the finesse, the detail, and the nuances that drive decisions with intention.
Future Developments
Damian: Are there any upcoming enhancements or new tools you’re working on to further support impact-driven innovation?
Steve: I’m refining how the AI integrates with the canvas, making it more responsive to different team types and challenges. Beyond that, I’m exploring a diagnostic tool to help assess the maturity of an innovation model across the ten canvas components. It’s early days, but the goal is to give teams a clearer sense of where they’re strong and where they need to dig deeper. Alongside this, I’m keen to become more involved in the Open Innovation movement, as set out by Henry Chesbrough at UC Berkeley. I believe in the value of shared knowledge, cross-sector collaboration, and designing systems that make innovation more accessible, participatory, and purpose-driven.
4: Navigating Challenges and Embracing Change
Overcoming Resistance
Damian: What common obstacles do organizations face when adopting new innovation frameworks, and how can they be addressed?
Steve: The biggest one is inertia, especially in larger organisations. People are busy, stretched thin, and change feels like more work. There’s also fear of exposing weak spots or challenging existing assumptions. I also see that conversations are created in silos, both within organisations and between them. True innovation sparks from multiple perspectives, teams, skill sets, and experiences. What helps is my Impact Innovation Workshops, where we start by framing the canvas as a conversation tool, not a system to enforce. It creates space to think differently without blowing up what already exists. It provides structure, and we have fun doing it!
Measuring True Impact
Damian: In your view, what metrics or indicators are most effective in assessing the real impact of an innovation initiative?
Steve: There’s no one-size-fits-all metric, but I look at a mix of leading and lagging indicators. Are ideas moving from talk to test? Is there evidence of learning, iteration, and stakeholder feedback? Are unintended consequences being flagged early? And in the long term, is the initiative delivering value beyond financial ROI, such as improved equity, resilience, or environmental performance? The canvas encourages teams to define what these might look like upfront, build them into strategic decision-making, and avoid bolting them on as an afterthought.
Advice for Innovators
Damian: What guidance would you offer to individuals or teams striving to implement impactful innovation in their organizations?
Steve: Start where you are. What I mean by that is don’t wait for perfect conditions, because there are none. Use structure to make space for better questions, not to tick boxes. Focus less on being innovative and more on being useful, curious, and willing to learn. And don’t underestimate the value of facilitation. People are natural problem-solvers. Often, the real unlock is simply a neutral space, the right conversation, at the right time, with the right people.
The EVO Close
Damian: Steve, now I have a couple of closing questions for you inspired by EVO, and what I like to call, The EVO Close, and you’ll also get a chance to ask the next guest on EVOlogue a question, so here we go…
E: Explore
Damian: What’s one belief or idea you’re currently exploring that’s reshaping how you think about innovation?
Steve: I’m exploring what it really means to innovate ethically in AI-human-in-the-loop collaboration.
V: Value
Damian: What’s one underrated practice, tool, or mindset that consistently adds value to your work?
Steve: Taking a walk before big decisions. No phone, no podcasts, just fresh air and birdsong. Sounds simple, but it works every time!
O: Open Loop
Damian: OK, Steve I’ve asked all the questions so far so now we’ve got to the end of the interview, I’d like you to leave me with a question: What should I ask our next guest?
Steve: What have you un-learned lately?
Explore Further
If this conversation sparked ideas, or surfaced some questions, you can explore the full Impact Innovation Canvas framework come and join the conversation on LInkedin