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RAMI Accelerated Commercialisation. Research Seminar 19.5.2010 Wanha Satama Iiro Salkari; Jari Kettunen; Ilari Kaarela; Magnus Simons. Agenda. Research topic and goals Case comparison Key challenges in forest cluster Potential solutions Final report structure. Research topic and goals.
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RAMI Accelerated Commercialisation Research Seminar 19.5.2010 Wanha Satama Iiro Salkari; Jari Kettunen; Ilari Kaarela; Magnus Simons
Agenda • Research topic and goals • Case comparison • Key challenges in forest cluster • Potential solutions • Final report structure
Research topic and goals Research topic • While developing new technologies, choices, that have an influence in their commercialization, are made. • Technologies can be commercialized at different maturity stages for different customer segments. • How do these topics affect commercialization in different stages of technology development? • What are the special characteristics of the forest cluster that may impact on commercialization? Goals • Models and methods that support accelerated commercialization at different stages of technology development. • Identifying the changes to existing value networks that successful commercialization may require.
Identified market Technology generations Identified market Market pull • Partners • Organising • Financing • Making space • Partners • Organising • Financing • Making space • Partners • Organising • Financing • Making space Technology push Identified market Identified market General challenges of innovation management Selected, initially targeted market
Key challenges of the forest cluster, 1/2 • Volume business paradigm • High volumes and operational efficiency alone count • If it does not scale-up fast, it is not interesting • Capital intensiveness • Need to secure a high capacity factor, ROI • R&D focus almost solely on the core process and equipment • Expensive pilots • Need for dedicated labs, facilities • High threshold for testing new ideas and concepts • Rigid value chain • Must convince a number of interlinked market participants • High costs and risks, and lack of trust discourage change
Key challenges of the forest cluster, 2/2 • Efficiency focus • People are not encouraged to ‘look around’ • “If it does not reduce costs, it is a cost item, not an investment” • Growth in emerging markets • Volume business paradigm works well in the emerging markets • What are the true incentives for radical change? • Silo thinking (Fordism) • Production process determines the organization • Expertise is fragmented, knowledge integration is challenging • Research vs. markets • The focus of R&D has been on the process, and researchers have not been expected to explore new business opportunities
Solutions, 1/2 • Business case for the whole value chain • Things won't proceed unless all participants will find it broadly beneficial to get involved • Full scale industrial pilot • Pilots are indispensable, but expensive • The implementation and financing of a pilot should be planned early on • Small internal businesses must be allowed space to grow • High volumes cannot be required in the short-term • Internal venturing organizations with capable people and a strong mandate and resources
Solutions, 2/2 • Concurrent commercialization • Technology and business development shall proceed in parallel • Experimental development and piloting around new product and service ideas and concepts • Short-term commercial interest cannot guide R&D work if the build it competitive advantage on deep technological know-how • Challenging the strategy • The investments decisions regarding technologies, products and services should reflect the best available understanding of one's opportunities in the market, not only the chosen strategy • Certain percentage of the firm's development funds should be reserved to the exploration of 'new frontiers'
Strategies Where do we want to go/ be? Higher level of abstraction Business models How are we going to make money? Process models Lower level of abstraction How to implement the business models? Final report structure • Strategy • Defining the strategy • Positioning • Competitive advantage • Implementing the strategy • Portfolio management • Resourcing • Organizing and networking • Challenging the strategy • Market / Value chain analysis • Concept and business model development • Technology risk and fit • Market risk and fit • Market structure evaluation • Innovation process • Parallel activies • Critical path?
