Harri Haapasalo in the Oulu Smart City seminar on Wed 6th May, 2015

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FACULTY OF TECHNOLOGY Business in Built Environment – results from ongoing research Harri Haapasalo, Professor Head of IEM 1. Current challenges 2. Solutions Business models Idea of lean – value + waste removal Stakeholder management Implementation of IPD - Alliance

Transcript of Harri Haapasalo in the Oulu Smart City seminar on Wed 6th May, 2015

FACULTY OF TECHNOLOGY

Business in Built Environment –results from ongoing research

Harri Haapasalo, ProfessorHead of IEM

1. Current challenges2. Solutions

• Business models• Idea of lean – value + waste removal

• Stakeholder management• Implementation of IPD - Alliance

FACULTY OF TECHNOLOGYFACULTY OF TECHNOLOGY

Fundamental problem:Fragmentation and sub-optimisationper project in construction industry

Main designer

Sub designer 1

Sub designer 2

Sub designer 3

Sub designer 4

Sub designer N

Main contractor

Sub contractor 1

Sub contractor 2

Sub contractor 3

Material supplier

Client

Construction services

Customer

Client consultant 1

Client consultant 2

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Verification vs Validation• Waterfall vs incrmental delivery

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Business models

INCOMINGMONETARY FLOW

Logic of Business modelrelated on core processes

NPD

OD

CUSTOMER

Dimensions ofBusiness Model

1. Offering2. Value creation

system3. Revenue modelProducts/Services

Product families

S

INCOMINGMONETARY FLOW

NPD

OD

CUSTOMER

INCOMINGMONETARY FLOW

NPD

OD

CUSTOMER

INCOMINGMONETARY FLOW

NPD

OD

CUSTOMER

Different business models for different businessesTo enable efficiency through repeatability

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Company 1

BM for X

BM for Y

BM for Z

Project 1Project 1Projects in

market X

Project 1Project 1Projecs in

market Y

Project 1Project 1Projects in

market ZDeci

sions

base

don

busin

ess

case

s

Corporate strategy Business strategy Marketing strategy Operational strategy

NOTES:CS: Which businesses? How these businesses create synergies and/or add to the competitive advantage as a whole?BS: Corporate strategy of a strategic business unit in a diversified corporation.MS: Part of functional strategies that are derived from broader corporate strategies. BM = value proposition!OS: Deals with operational activities. Is business models design same as creating an operational strategy?

Levels of business planning(Aki Pekuri)

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Strategy Businessmodel X

Businessmodel Z

Decision-making

guided by BMX

Projects that fitwith BM X

Process todeliver

projects that fitwith BM X

Business management Project managementMarkets

Project selection guided bybusiness models (Aki Pekuri)

INCOMINGMONETARY FLOW

Logic of Business modelsrelated on core processesin value chains of projects

CUSTOMER

DIEM

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Complied value chains - businessecosystem based on actors’ businessmodels

DIEM

Implementation of IPDAlliance

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The main idea in (IPD-Alliance)early involvement and integration

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The framework for stakeholder identification andclassification (Aapaoja & Haapasalo 2014).

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Stakeholder salience assessment(Aki Aapaoja)

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Synthesis

• Systematicism on businessplanning – defining theoffering and OD

• EARLY INVOLVEMENT andINTEGRATION– Enterprise and

organisation level– Project level

• Identify the key stakeholdersfor the project – integrate andinvolve

• Client procurement – enableimprovement and innovation