Industry Innovation Business Cases Studies

Viirya March, 2008

Innovation Cases
AMI-4-SME  KISAs Case Studies of OECD  BRITE Project of CRC

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Emphasize systemic innovation not only technology view AMI-4-SME  Innovation on working environment OECE KISAs  Corporate level innovation  Business level innovation BRITE Project of CRC  Innovation based on existing advanced technologies  Innovation processes

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AMI-4-SME(2005-2008) a project funded by EU Revolution of industry environment as project target Conducting with technology and corporate aspects both to find systemic innovation approach of Ambient Intelligence to manufacturing SMEs The next step of industry process innovation falls in revolution of whole industry working environment  People factor  Use systemic innovation technology

Cases for AMI-4-SME
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AMI-4-SME includes 5 business cases of SME Advanced production control  Build to Order dynamic re-configuration produciton  Case: Brüggen Oberflächen- und Systemlieferant GmbH and TNS Sp.z.o.o  Re-plan production line works by current order status and resources  Case: Sidean Teo

Cases for AMI-4-SME


Mobile maintenance service improves management and control process

Case: OAS AG

Dynamical re-configuration high accurate measuring system at end-user site


Customer requirement modification

Schedule and update product specification by customer requirement changes

Case: Silcotec Europe


OECD (Organization for Economic Co-operation and Development) brings together governments of countries to support sustainable economic growth and share expertise KISA (Knowledge Intensive Service Activities) studies aim at identifying practices in provision, use and integration of KISAs that are provided internally or externally in industry

KISA in healthcare
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Case study of Pirkanmaa case in Finland Study steps  National statistics  Government policy and program  Interview KISA is expert services  Internal - consulting, training, education, financial, technology  External - business services (KIBS), public organization (RTO)

Pirkanmaa case in
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Pirkanmaa hospital district KISAs  Corporate level  Management methods and tools  Quality management  Training & education  Purchaser-provider dialogue  Business level  Coax hospital  Laboratory Centre  Mantta health Region  Imaging Centre

Coax hospital KISAs
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Improved continuity of care from patient’s point of view - seamless care The chain of activities in endoprosthetic surgery
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Diagnosis Surgery Rehabilitation

Before reorganization, surgery was performed by five public hospitals

Juha Nevalainen found surgery quality varied and not good sufficiently

Innovation process
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A window of opportunity to improve TAUH (Tampere University Hospital) collaborated with National Agency for Medicines to develop software monitoring quality A meeting among representatives to form a project for new forms of chain of activities related to surgery

Preliminary study conducted by neutrality and objectivity outsider at that time which is Finn-Medi Research

Set up new organization

The study indicates new organization could cut cost and reach better surgery quality The plan required approval of Council

Quality arguments strong enough to smooth out resistance

Organization form, stakeholder negotiations, building new premises, finance calculation and information system had been reviewed, prepared and joined by internal and external parts

The BRITE Project

Building Research, Innovation, Technology and Environment (BRITE) Project is one of the research projects of the Cooperative Research Centre (CRC) for Construction Innovation, which is an initiative developed by Government and industries Improve rate and quality of innovation in Australian building and construction industry  Case studies  Innovation surveys

Case Study of BRITE
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Meet environmental sustainability without compromising commercial objectives Stakeholders  Queensland Department of Public Works (DPW)  Barclay Mowlem Construction Project outcome  William McCormack Place  A four-storey commercial office building with a suite of air-conditioning innovations

William McCormack
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DPW wanted demonstracting office building to meet strict environmental targets while remaining commercially viable Archievement  First five-star energy rating commercial office building in Australia under Australian Building Greenhouse Rating Scheme  Cost no more to build than a comparable conventional building  Low energy & maintenance costs increase capital value and attract high rents

The Innovations in Case

Adoption of unique of proven technologies not a case of the development of complex or costly new technologies
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Additional cost resulted in cost savings in other places

Thermal storage tank Thermal wheel Variable speed motor drives Duty-standby operation

Modest cost savings achieved by Value Management study

The Implementation in

Key drivers
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DPW’s desire to improve its building energy efficiency MGF’s motivation to improve its reputation and competitive position

Monitoring tank performance internationally via industry newsletters and networks The ability to encourage client assisted by MGF’s review of technology developments overseas DPW could confirm the value of technology with internal engineers who knew it was widely used in Europe

The Implementation in

Queensland Government had interest in local employment through Local Industry Participation Policy MGF has expertise and experience with extreme local weather conditions and has linkages with technical experts in Australia, America and Europe

Regional firms can be technology leaders

Overcoming Difficulties

High up-front costs

Addressed in context of overall design and construction Clear objectives and design

Risk Aversion

Lack awareness from building users of environmental impacts

The trend towards concerns about energy related issues makes user savvy

Overcoming Difficulties

New delivery method of office building  The team responsible for management of building would deliver the project  Project decisions made not only on basis of time, budget and quality, but also functionality and manageability

Facilitate adoption of advanced technologies
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Guaranteed maximum price element of contract

Involve builder very early in design process No ‘rude shocks’