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Product innovation in a global context!

Tobias C. Larsson | Professor | tlr@bth.se!

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Tobias Larsson?!!  Grew up in Jämjö, 20km outside Karlskrona!

»  Nice to be back!!

!  Spent past 15 years with Luleå University of Technology!»  Left as a hockey player, returned as researcher, interesting journey ;-)!

!  Applied research and development within aerospace, automotive, manufacturing, healthcare!»  Support innovation processes and value creation!

!  Education within product innovation, service engineering, product-service systems!»  How do you train ability develop solutions to needs, on demand? !

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Remember! !!!  Behind the presentation is a large number of papers and

research projects together with industry!»  We are some 30 researchers in this venture, and work with lots of

companies, organisations and universities!

!  If you are interested, contact me at tlr@bth.se and I’ll provide you with scientific papers and related material!»  http://www.bth.se/ing/tlr!

!  You’ll get the presentation as PDF afterwards by mailing me.!»  tlr@bth.se!

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Challenges on global scale!

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Global triggers & challenges…!!  Changed business models !

»  Product-Service Systems!»  Life cycle commitments!

!  Changed mode of operation!»  Virtual Enterprises!

»  Systemic/holistic solutions!»  Extended responsibilities!

!  Changed ‘society’ !»  Knowledge based!»  From cost to value driven!

!  Globalisation!»  World wide actors!»  ‘Forced into’ collaboration!»  Inclusion of both developed and developing

areas!

!  Sustainability!»  Environmental consciousness!»  Need for waste reduction!»  Legislations !»  Awareness!

Reduced emissions – one of the challenges!

Lean + Innovation!

Cultural diversity in teams!

Framework for Strategic "Sustainable Development!

Product-Service Innovation!

Value networks!

Increased competitiveness for Swedish industry on global market!

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Competitiveness - good tradition to build on…!

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Sweden #1 globally; Global Creativity Index!

Creativity and Prosperity: The Global Creativity Index

4 | Creativity and Prosperity: The 2010 Global Creativity Index

Exhibit 1The global R&D investment map

1st 80th

Rank10 20 30 40 50 60 70

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THE GLOBAL TECHNOLOGY MAPS

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Economic output linked to ranking?"!

www.martinprosperity.org | 15

TOTAL RANK COUNTRY TECHNOLOGY TALENT TOLERANCE GLOBAL CREATIVITY INDEX

1 Sweden 5 2 7 0.923

2 United States 3 8 8 0.902

3 Finland 1 1 19 0.894

4 Denmark 7 4 14 0.878

5 Australia 15 7 5 0.870

6 New Zealand 19 5 4 0.866

7 Canada 11 17 1 0.862

7 Norway 12 6 11 0.862

9 Singapore 10 3 17 0.858

10 Netherlands 17 11 3 0.854

11 Belgium 16 12 13 0.813

12 Ireland 20 21 2 0.805

13 United Kingdom 18 19 10 0.789

14 Switzerland 6 22 20 0.785

15 France 14 23 16 0.764

15 Germany 9 26 18 0.764

17 Spain 24 28 6 0.744

18 Taiwan — 32 21 0.737

19 Italy 26 18 23 0.707

20 Hong Kong 22 37 12 0.691

21 Austria 13 30 35 0.663

22 Greece 38 9 37 0.638

22 Slovenia 23 10 51 0.638

24 Serbia 28 35 27 0.614

24 Israel 4 20 66 0.614

Exhibit 12Top 25 overall Global Creativity Index rankings

Also true for - Competitiveness - Entrepreneurship - Human development -  Happiness

Sweden is considered being in frontline of innovation, sustainability, education, healthcare, technology, …

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What do we do?!

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!  Research and education; we empower people!»  We invest time and resources in people!

»  We deliver skilled personnel as our “product”!

»  Products-Services are “side effects”!

!  Collaboration with industry!»  Improving competitiveness for Sweden "

by deploying results in real life!

“It’s all about people”!

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“With science and practice we want "to support innovative teams in "sustainable product-service innovation "through new work methods and processes” !

We work to create competitiveness…!

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How do you meet innovation in daily life?!

Innovation; creation of better or more effective products, processes, technologies, or ideas that create value… "(on markets, for governments, for society etc.) !

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PRODUCT INNOVATION moving towards PRODUCT-SERVICE INNOVATION

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IS A CAR ABOUT THE TECHNOLOGY? IS IT ABOUT IMAGE? IS IT ABOUT IDENTITY? IS IT ABOUT FEELINGS? IS IT ABOUT PASSION? IS IT ABOUT FUNCTIONALITY?!

…if you meet the expectations of women, you will exceed the expectations of men...?!

...what is the value of owning a car...?!

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Boeing 787 Dreamliner “People Friendly” “The Dreamliner will provide higher humidity levels in the cabin and a more comfortable, lower cabin altitude. State-of-the-art acoustics, innovative lighting, constant internet connectivity, wider seats and aisles, bigger overhead bins, and bigger windows…”

Wicked problems – more than ”just” integration of technical solutions! Global, multidisciplinary teams are needed! You can’t always travel to meet! New methods of work necessary for global collaboration!

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Companies need: Become more efficient in global product innovation. Use knowledge from all over the world (not all good people are employed, wisdom of crowds). Create global virtual teams that collaborate across distance, as well as geographic, cultural and functional boundaries.

Different worlds, context, language Different rooms, different tools. Physical objects ”lives” at one place. Informal knowledge transfer is harder, no day-to-day meetings. Virtual meetings? (CO2 – wellbeing) How to support big global teams in creative, high intensity, innovation tasks?

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Where do we come in?!

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Toolbox 2.0 for engineer of tomorrow !

What goes into the toolbox?!

© 2007-09-17 Andreas C. Larsson, andreas.c.larsson@ltu.se 18

INSPIRATION | IDEATION | IMPLEMENTATION

Where do ideas come from?

Having good ideas.

Getting ideas out into the world.

Tim Brown, IDEO ”Innovation Through Design Thinking” http://mitworld.mit.edu/video/357/

Ability to identify needs/opportunities and transform them into solutions!

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Support ideation through methods and tools!

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"Stanford University d.school, partner in research!

1.  Human Values: �What is desirable to people? What are people�s needs?�!

2.  Technology: �What is possible to do with technology?�!

3.  Business: �What is the capacity for survival?�""What happens in the intersections?""Design Innovation = the sweet spot we’re all looking for?!

Mixing disciplines to deliver innovation!!

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Understanding needs is a core capability…!

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A word on implementation…!

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+50 global research partners!

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Product-services for sustainability; Product vs function

Product •  The focus on the physical artefact as value carrier •  Services are aftermarket add-ons to delivered product •  Responsibility of product lies on buyer •  Methods and tools suited for development of product and service

Function •  Focus the function as value carrier •  For the provider the aftermarket is “cost-of-function” •  Possibilities in sustainability

•  Reengineer, recycle, reuse over life-cycle of function, maintenance ownership •  New methods and tools needed

•  Enterprise product development, knowledge sharing, “coopetition”

EU projects CRESCENDO & VIVACE (120M€)

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Transformation to value innovation!

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Value visualization – Aircraft view!

Value additions (Better logistics for these components, i.e. less number of parts)

Value losses (Worse logistics of these components, i.e. need to include more parts, etc.)

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Important considerations for value creation!!  Cost cutting is only part of the equation, "

increasing profits by adding "value is also part of the game!»  Costs; established methods exist!»  Value; lack of methods at same "

level as cost elimination!

!  Competing in existing market is "different from entering/creating "new markets!»  Red; Performance indicators known"

and goals can be set!

»  Blue; Open design space for indicators!

Blue Ocean Strategy illustrations

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“How do we know that we are innovative?” "Measure innovation!!

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System

Components

Part suppliers “Supply chain”

Other cars

Other disciplines

Product concepts for lighter and more sustainable car

Partners for value systems and sustainability scaling

Joint Business systems

From cost competition to value creation networks!

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Airbus'Digital'Corridor'(ADC)'Main'Report'

Page'12'of'16''

''The'Dream

'Time'Team

''

Blekinge'Institute'of'Technology''

Karlskrona,'Sweden'

' $$

Figure(6:(Passenger(Flying(Experience(Map(

Come collaborate!!!  Through !

»  Seminars !

»  Courses!

»  Student projects!

»  PhD candidates !

»  Research projects !

Airbus Digital Corridor in "Product-Service Innovation

programme MSPI;" reduce environmental load via

innovative interaction along flight experience !

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“With science and practice we want to support innovative teams in sustainable product-service

innovation through new work methods and processes” "

"Thx!!

Tobias C. Larsson | tlr@bth.se!