Joint Procurement Methodology

Promoting Innovation through Pre-Commercial Procurement - Brussels, 23-24/Mar/2010

Álvaro de Oliveira

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Joint Procurement Methodologywith User Engagement


Big Global Challenges of our time

Finding solutions for clean energy sustainability

Finding solutions for climate change

Managing demographic shifts

Preventing and managing ageing problems

Providing safe water supplies

Maintaining food security

Optimizing mobility

Implementing security

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Solutions Requirements

To pull and stimulate diverse types of knowledge and To pull and stimulate diverse types of knowledge and resources. The scale of problems creates the need to harness resources. The scale of problems creates the need to harness the widest possible set of resources for problem solvingthe widest possible set of resources for problem solving

Solutions cannot force changing behaviour, they cannot be Solutions cannot force changing behaviour, they cannot be pushed down at peoplepushed down at people

Harnessing the motivation of millions of individuals and their Harnessing the motivation of millions of individuals and their communitiescommunities

We need new, distributed and highly participatory systems We need new, distributed and highly participatory systems in order to achieve user behaviour transformationin order to achieve user behaviour transformation

Social networks and Web 2.0 tools allows to design simple, Social networks and Web 2.0 tools allows to design simple, lowlow--cost and highly adaptive participatory systemscost and highly adaptive participatory systems

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Innovation Solutions

PrePre--Commercial Procurement of InnovationCommercial Procurement of Innovation

European Network of Living LabsEuropean Network of Living Labs

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What is a Living Lab?

Real living environment, where the user (citizen, resident, worker, student, visitor, customer) lives, works, studies, plays and entertains. In this real environment the user co-creates, experiments and tests new ideas, products and services. In the traditional research environment scientists and researchers are engaged in the development of new technologies, products and services to meet perceived market needs which many times don’t materialize or are not met by technology pushed solutions.A Living Lab is a user-driven open innovation eco-system.

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Driving changing factors of Living Labs

Internet is at the heart of the open co-creation

Platforms and open connectivity are key facilitators

Living Labs are citizen/user oriented environments, promoting innovation and pioneering new markets

Open innovation is the soul of competitiveness

(Social networks, open source)

Emergence of new services

Ecological sustainability

awareness enabling consumer

behaviour transformation

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Living Labs Methodologies

Increased collaboration between public authorities, research centers, businesses and user communities

Flexible and adaptive design process rooted in real-life experience with increased chances of succeeding with new products. Shorter lead time from concept to market (promote viral adoption)

Acceleration of innovation. Increased productivity of the RDI activities. Sharing good practices

Facilitate the international positioning and privileged access to the markets

Facilitate the development of human capital

Increased sustainability culture

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Living Lab Eco-system

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LivingLab

Enterprises

Local, Regional and National Government

Univeristies and Research

Institutes

Funding and Financing

RDI Stakeholders

Facilitation

User Communities


User Communities in Living Labs

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Comunidade Virtual

Comunidade de Usuários User Communities


European Network of Living Labs (ENoLL)

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NewNew83 Living Labs83 Living Labsfrom 4from 4thth wavewave

11stst Wave: 19Wave: 1922ndnd Wave: 32Wave: 3233rdrd Wave: 78Wave: 78


EU Presidencies Policies for ENoLL

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French Presidency bringing

Innovation to citizensAutumn 2008

Czech PresidencyRural Networks

Spring 20094th Wave ENoLL (?),

Autumn 2009

3rd Wave ENoLL, Autumn 2008

Slovenian PresidencyChallenging cross-

border and Pan European level Open

InnovationSpring 2008

Portuguese PresidencyRenewing Lisbon strategy for people

Autumn 2007

German PresidencyRegional innovation

Spring 2007

Finnish PresidencyHelsinki Manifesto

Autumn 2006 1st Wave ENoLL, Autumn 2006

Swedish PresidencyCross Border Networks

Autumn 2009

2nd Wave ENoLL, Autumn 2007

Spanish PresidencySpring 2010

4th Wave ENoLL, Autumn 2009


National and Regional Networks of Living Labs

Finnish Network

Swedish Network

Nordic Network

Cataluña Network

Slovenian Network

Portuguese Network

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Thematic Networks Domains of ENoLL LL’s

Clean energy sustainability

Climate change and environment

Well being and health

Mobility

Security

Sustainable urban development. Smart cities

Rural and regional development

Industrial and logistics development

Social innovation. Social inclusion

Electronic government. eParticipation

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SAVE ENERGY Living Lab ICT – CIP Project

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Goals:

Smart ICT Energy Efficiency model and platformSerious Game focused on Energy Efficiency at Public SpacesUser behavior transformation. Living Lab methodologyPilots committed to extend results beyond project completionEuropean wide dissemination of resultsPolicy Recommendations to the EU Commission


SAVE ENERGY

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PreCoProject

BrazilianPilot Vitória

(10.000 users)

Others

APOLLON Project

French Pilot

(10.000 users)

Portuguese Pilot (50.000

users)

Opening new Energy Efficiency and ICT Markets for SMEs

BrazilianPilot São Paulo(10.000 users)


APOLLON objectives and expected results

ObjectivesDemonstrate the positive impacts of cross-border domain-specific Living Lab networks

Addresses four major domains in which ICT products and services innovation may benefit

Real-life experiments will be designed and implemented to pilot and validate the cross-border domain-specific collaboration between LL’s

Expected ResultsA set of validated methodologies to set up and conduct cross-border Living Lab networks

A recommended toolset for facilitating cross-border Living Lab activities

The set-up of European thematic Living Lab clusters

A platform and practical guidelines for involving SMEs

An impact assessment of the specific added value in terms of results as well as operational efficiencies of the cross-border approach

Recommendations and action plans for viable, sustainable and scalable roll-outs to further domains and sectors

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APOLLON Approach


SMEs Internationalisation

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LuleLuleåå LLLL Helsinki LLHelsinki LL

Lisbon LLLisbon LL Amsterdam LLAmsterdam LL

ISAISA

KyabKyab PVPV

PWPW

Busi

ness

Par

tner

ship

Busi

ness

Par

tner

ship

Integrated Solutions Partnership

Integrated Solutions Partnership

Technology TransferTechnology Transfer

VitVitóória LLria LL

Business Partnership

Business Partnership

HAEHAE

Integrated Solutions PartnershipIntegrated Solutions Partnership

ISA internationalization strategy to establish business partnerships in Luleå and Vitória (equipment distribution), integrated solutions in Helsinki and Amsterdam (incorporating added value with other

equipments and services) and adding value by technology transfer from Amsterdam.


European Network of Urban Living LabsSAVE ENERGY Pilots have co-created common Energy Efficiency solutions adopting Living Lab user-driven open innovation methodologiesThe Project has identified common needs, best practices, technologies and service suppliers, and new business modelsUser Behaviour Transformation methodologies enabled by ICT have been designed, implemented and are being evaluatedA cross-border eco-system sustained by strong trust between the pilot cities has been establishedSAVE ENERGY 5 Pilot cities have created the European Urban Network of Living Labs (To be formalized in November 2010). The Network is open for other city members and will liaise with other networks already in the field, such as Connected Cities, Convener of Mayors, etc.Public-Private Partnerships will be established to engage in the development and implementation of Energy Efficiency solutions adopting Pre-Commercial Procurement of Innovation methodologies

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Pre-Commercial Procurement Good Practice

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Procure R&D in steps (solutions, prototypes, test series) to reduce risk and give SMEs a chance

– Grow size of tasks gradually, make bridge from ideas to first test product, procurer = SME first customer reference

Risk-benefit sharing with suppliers– Less risk procurer, commercialisation opportunity suppliers

Competing development with multiple suppliers – Better value for money. US defense report: in-development competition

reduces first unit acquisition cost with 20-30%

Sharing R&D costs with other procurers– Cooperation across borders can help develop a European market and

common standard

Source: Lieve Bos DG INFSO


Living Labs and the European Network of LL’s

Living Labs are user driven open innovation eco-systems which can bring about the massive social changes that are required by the societal challenges we are facing.

Living Labs operate from a human perspective – from the standpoint of people, their relationships and connectivities, desire and culture. The participating communities contribute with ideas reflecting their needs and experiencies followed by cycles of rapid prototyping, testing and improvement until the early adoption. The methodology allows to generate immediate user engagement and feedback in a way that no report, blueprint or document could have done.

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Pre-Commercial Procurement of Innovation requires awareness, trust and motivation with a clear understanding of risks and benefits. This requires a collaborative environment among all the stakeholders. Furthermore the effective application of these solutions imply user behaviour transformation which can only be achieved by the motivated participation of citizens / users who are part of the innovation co-creation.

Living Labs and the European Network of Living Labs can provide a

natural platform for faster and successful adoption of

Pre-Commercial Procurement of Innovation at European scale.

Conclusions

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Thank You

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Álvaro de [email protected]

Phone: +351 21 486 67 84 Mobile: +351 91 666 66 66Skype: alvaroduarteoliveiraAddress: Alfamicro

Alameda da Guia, 192-A 2750-368 CascaisPORTUGAL


InI

Living Labs Innovation Positioning

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InIInternal RDI Open Innovation Platforms Pilots

MaturityLow High

Prototyping

Living LabsFieldExperiences

Testbeds

PilotsIn the Market

Social Pilots


SAVE ENERGY Dissemination Strategy

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Web Portal, Web 2.0 Tools and Services and Social Networking


Living Labs Methodologies (1/2)

Easier to understand end-user needs and wishes

Flexible and adaptive design process rooted in real-life experience with increased chances of succeeding with new products

Shorter lead time from concept to market, promote viral adoption

Better access to ideas outside the organization

Better and more intensive use of internal ideas

Acceleration of innovation. Sharing good practices

Usage of methodologies and tools for Co-creation

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Living Labs Methodologies (2/2)

Increased collaboration between public authorities, research centers, businesses and user communities

Increased productivity of the RDI activities

Creation and exploitation of new technologies, products, services and business models

Improved cooperation in International networks

Facilitate the international positioning and privileged access to the markets

Facilitate the development of human capital

Increased sustainability culture

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Joint Procurement Methodology

Business

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