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1 Design&Technology! 16th 17th January Aalto Design Factory in Otaniemi! Lauri Aaltio!! Industrial Design as a competitive advantage.!

2 How to Start Up making money with Industrial Design. Lauri Aaltio Master of Arts / Industrial and Strategic Design Master of Science / Automotive Engineering

3 1 What is industrial design? General costs of organization Profit General costs of product Revenue Direct costs of product Jukola7 2

4 Which one has better industrial design? Jukola7 3

5 When its raining, the keys are in your pocket and you dont want to take them out and anyway you wouldnt see anything... SYKSY Jukola7 4

6 ! How to do it right! How to do it wrong Jukola7 5

7 2 Industrial design at different levels World Society Company Product line Product Conseptual work R&D projects before sales Delivery projects, when you already are late 2 months... Service design, after delivery... Industrial design 6 Business strategy

8 2 Industrial design at different levels Moon World Society Company Product line Product Conseptual work R&D projects before sales Delivery projects, when you already are late 2 months... Service design, after delivery... Industrial design 7 Business strategy

9 Industrial design 8 Design startup? Iron Sky, profit 8 M euros

10 What is industrial design? Industrial design 9

11 Industrial design 10

12 Materiaalikustannus, 8 /kg vanha Foilbox -58% uusi Foilbox muotoiluajattelu uusi Foilbox perinteinen suunnittelu Industrial design 11

13 Historical design principles are always valid: Light design Look and Feel R aymond Loewy Clean design with few parts Modularity simple structures cheaper to produce understanding of the business and lasting products global serial production Industrial design 12 Risto Väätänen. The Kaj Franck Design Prize 2003 Raymond Loewyn esimerkki raskaan metalliteollisuuden muotoilusta 1920-luvulta. Niitattu rakenne muutettiin hitsatuksi ja rakennetta yhtenäistettiin.

14 Design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service. Steve Jobs Industrial design 13

15 Design Thinking / Integrative Thinking design... Brief traditional... sketching, concept definition final design Prototypes, models, 3D rapid models Lopputuote...thinking Implementation Industrial design Ideation Inspiration 14 Tim Brown, Harvard Business Review: Design Thinking, 84

16 Industrial design 15

17 a sketch of what could be a rendering of a 3D model a prototype Industrial design 16

18 Muotoiluajattelu -Yhdistävä ajattelu D e s i g n r e s o u r c e s and skill level Market and competitors Luonnostelu, konseptointi Tehtävänanto (brieffi) Tarkentava suunnittelu Lopputuote Prototyypit, kapalevymallit, 3D printit Industrial design Strategical hopes of company Subcontractors ability to produce 17

19 ! In R&D phase 3D-models give us the possibility to bring the product closer to real physical world months before it is actually produced. Industrial design 18

20 ! Observe the real life situation before anything big and expensive has been built. Industrial design 19

21 ! 1:1 models demonstrate characteristic with low cost. -People are willing to make changes. -None of the real machine tooling routes has been done yet. -The real drawings has not been finalised. Industrial design 20

22 ! How to do it wrong. The goal for VR s operations is a satisfied customer. The Group aims to provide its customers with high-quality services that are easily available. 68 million travels year 2011 Industrial design 21

23 ! How to do it right. SmartPost by Itella Industrial design 22

24 ! Visual way of telling stories and concepts. production logistics market situation competitors customers Industrial design 23 production costs value proposition sketch of a product

25 Business Model Generation-book Key Partnerships Key Activities Value Proposition Customer Relationships C u s t o m e r Segments Key Resources Channels Cost Structure R e v e n u e Streams Industrial design 24

26 engineer marketing subcontractor engineer product owner inspectors design stress analysis Industrial design 25 subcontractor producer seller buyer program director Alihankkijan tuotantovastaava subcontractor product line chief stress analysis

27 dynamics simulation concept engineer marketing produc tion concept m a r k e t i n g concept subcontractor engineer product owner stress analysis concept inspectors design stress analysis Industrial design 26 design concept usability concept energy effficiency cost concept concept subcontractor producer seller buyer program director Alihankkijan tuotantovastaava subcontractor product line chief stress analysis

28 design Catia-model (solid) subcontractor engineer Catia Sheetmetal model design physical mockup design Catia-model for FEM analysis subcontractor engineer stress analysis model dynamics simulation concept engineer marketing produc tion concept m a r k e t i n g concept subcontractor engineer product owner stress analysis concept inspectors design stress analysis Industrial design 27 design concept usability concept energy effficiency cost concept concept subcontractor producer seller buyer program director Alihankkijan tuotantovastaava subcontractor product line chief stress analysis

29 design Catia-model (solid) stress analysis sketches subcontractor engineer Catia Sheetmetal model design Catia-model for FEM analysis design physical mockup subcontractor engineer stress analysis model A lot of communication (should be a lot) s and Notes-folders drawings and partlists renderings written text in a napking A lot of people Many perspectives dynamics simulation concept engineer marketing produc tion concept m a r k e t i n g concept subcontractor engineer product owner stress analysis concept inspectors design stress analysis Industrial design 28 design concept usability concept energy effficiency cost concept concept subcontractor producer seller buyer program director Alihankkijan tuotantovastaava subcontractor product line chief stress analysis

30 Industrial design 29

31 It is about people. 80% communication and psychology. It's about people % design. Samppa J. Salminen, Development manager, Metso

32 It's about people 31

33 Be brave. Dare to think differently. Lead people to possible futures. It's about people 32 Enjoy the short moments in between, that could be all that you ever get...

34 It's about people 33 Explore multiple solutions to a given challence.

35 Prototypes 34

36 5 Conclusion How to make money and sound products by using industrial design: Product price (buying in) Old product Conventional design Competitors product DesignThinking Profit R&D time, gained information, number of decisions made Luonnostelu, konseptointi Tehtävänanto (brieffi) Prototyypit, kapalevymallit, 3D printit Tarkentava suunnittelu Lopputuote Prototypes 35 A development process inside your own company and organization Market eventually single user and a

37 6 Eikä tässäkään vielä kaikki... Strategical industrial design in concept development: Prototypes 36

38 This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. 7 Eikä tässäkään vielä kaikki... Strategical industrial design in concept development: Day Month Year No. Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What value do we deliver to the customer? Which one of our customer s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? For whom are we creating value? Who are our most important customers? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? Prototypes What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? 37

39 8 Eikä tässäkään vielä kaikki... Strategical industrial design in marketing products: Prototypes 38

40 Links and books: - nsf/webwid/wtb f-7a30f/$- File/ Salminen.pdf -Tim Brown, Harvard Business Review: Design Thinking, MP.nsf/BYWID/WID E-B21D9/$- File/Pages12_13_from311_ResultsPP-2.pdf?OpenElement Kiitos! Lauri Aaltio /