Sustainable Upgrades for the Industry of Tomorrow Introduction to the project

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1 Sustainable Upgrades for the Industry of Tomorrow Introduction to the project Use-it-Wisely Final Dissemination Event Göran Granholm, VTT 18 th October, 2016

2 Background Change the only constant Gradual or disruptive, but increasing in pace Digitalisation as the main driver of change IoT, Industrial internet, Digital factory, Cloud, Industry 4.0, Platforms, ecosystems, Things in general get more connected and more complex

3 Industrial Internet at the doorstep The Industrial Internet will change the basis of competition, redraw industry borders and create a new wave of disruptive companies The vast majority of companies are still struggling to understand the implications on their businesses. * Not only about technology impact on existing industries, value chains, business models and work Opportunities for fast movers Interoperability challenge - Advantage for emerging economies starting from fresh Upgrading systems designed for long life-cycles? * Source: World Economic Forum. (2015). Industrial Internet of Things : Unleashing the Potential of Connected Products and Services.

4 The Use-it-Wisely project Innovative Continuous Upgrades of High-Investment Product-Services Use-it-Wisely - An EU-funded research project focused on improving the quality of products and product-based services through collaboration Schedule: Budget: 8.6 M For industry that struggles with keeping abreast of global competition, new technologies and changing requirements UIW will offer a comprehensive solution for improving products and services through effective upgrade innovation, in order to achieve sustainable solutions for demanding customers.

5 UIW Approach and Impact A generic approach for impact across industries The UIW approach is based on a collaborative way of working and comprehensive system modelling to identify business opportunities and develop technical solutions within industrial value networks. A comprehensive systems approach covering three viewpoints: Business, Technology and People Boosting Employment Increasing Competitiveness Innovation, digitalisation, collaboration, sustainability Reducing waste Enhancing Customer Experience New Business Opportunities

6 Project themes Systems approach A comprehensive analysis to support strategic decision making Tools and processes to support digital, model-based engineering Collaboration Innovation Sustainability Important systems knowledge exists outside the firm Actor involvement, value networks, knowledge exchange External sources of innovation Creativity and innovation beyond preconceptions Sustainable solutions for extended life and reduced footprint Environmental sustainability, social, economic and technical Tools, Processes, Best practice, New business models Products as services, outcome economy, ecosystems Circular economy, alternative revenue streams

7 Twenty partners - six pilot cases Six different industries, six regional clusters

8 Tools and methods Key assumptions Successful system upgrades require a holistic approach Important system knowledge exists outside the firm Continuous demand-led innovation steps to reduce risk and improve upgrade agility Sharing of knowledge can be facilitated through virtual collaboration between actors Market dynamics and business modelling Identification of benefits, enablers and barriers Understanding network value creation Developing new business models Causal context models (CMM) System Dynamics (SD) Business An integrated digital system model A Model-based Systems Engineering approach An Actor-Product-Service (APS) system model Reference data models Collaboration System modelling Collaboration tools Virtual and Augmented Reality (VR / AR) applications Web-based system configurators 3D scanning technologies Virtual system reviews

9 UIW Platform A Community of Practise for collaboration, innovation and creativity within manufacturing industries A knowledge sharing platform for manufacturing industry that provides innovation and creativity supporting life long adaption of high investment product-service in rapidly changing industrial markets. Focused on collaboration and cooperation as a creative way of working. Tools and methods Expert knowledge Virtual collaboration Problem solving Information sharing Joint efforts to provide solutions to small and greater challenges Access to information Advice and Consulting, Specific domain knowledge On-line peer support, dedicated work spaces Downloadable and off-line tools and related services

10 Conclusions Upgrading high-investment products and services requires A comprehensive, strategic, long-term approach Continuous outlook for opportunities: market dynamics, emerging technologies, new value creation Innovation and creativity beyond current preconceptions Access to knowledge and technologies Capacity to act quickly Requires collaboration on several levels Horizontal over the life cycle, Vertical shop floor to top floor Between research and industry Across industries Good ideas emerges from the intersection of diverse social worlds, across structural holes in knowledge networks 1 Industrial Platforms, Innovation hubs, Knowledge Exchange Platforms,.. 1. Burt, R. S. (2011). Structural Holes and Good Ideas. The American Journal of Sociology, 110(2)

11 For further information: Visit our website: Follow Use-It-Wisely on For specific enquiries: Project Coordinator: Göran Granholm, VTT Technical Research Centre of Finland Ltd: The research leading to these results has received funding from the European Union's Seventh Framework Programme (FP7/ ) under grant agreement no

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