ambassadors of innovation on architectures
Post on 21-Oct-2014
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September 25th, the Ambassadors of Innovation network convened at the Philips Museum in Eindhoven. Philips Innovation Services, Industry Consulting, hosted the meeting with 45 participants from inside and outside Philips. Topic of this network event was Product and Business Architectures. - Paul Hissel, Senior Consultant at Industry Consulting kicked off, moving into the reasons why architectures for products and businesses are becoming more important. Speed, complexity and variety drive the business and product architectures can accommodate that. - Menno de Jonge, Innovation Manager at Ballast Nedam continued with his presentation on modular structures Ballast Nedam is using, e.g. to build housing modules in factory settings, to build, disassemble and reassemble parking garages and even football stadiums for the 2022 World Cup. - Leon van de Pas, General Manager Connected Lamps at Philips Lighting then presented how the hue lighting system is built up and how it has become such as success, e.g. by using the Apple store to launch and an open API which engaged more than 10,000 developers world wide. Participants had the opportunity to write down questions for each of the presenters, and after some clustering these were discussed in a forum setting to close off the formal part. Then the networking continued in the Philips Museum café. For more information on Architectures feel free to contact [email protected].TRANSCRIPT
25 September 2013
Philips museum Eindhoven
Ambassadors of Innovation
Ambassadors Event, Innovation Management, September 2013
Agenda 15:30 Registration 16:00 Welcome by Iason Onassis, Managing Consultant 16:15 Brief presentations about product and business architectures from • Leon van de Pas, Marketing & Business Development Manager, Philips Lighting Hue - the new wireless, user controlled lighting system, and how it changes the lighting business • Menno de Jonge, Innovation Manager, Ballast Nedam What modular building systems mean for the construction business, especially for niches that are still growing • Paul Hissel, Senior Consultant, Philips Industry Consulting The value of architectures for business from the consultancy practice view 17:15 Break 17:30 Forum discussion 18:30 Networking reception including tapas and drinks 20:00 Closure
Ambassadors Event, Innovation Management, September 2013
The Ambassadors of Innovation is a select circle of leaders who are responsible for Innovation in large Dutch industrial companies, including our own Philips innovation leaders. The aim of the Ambassadors for Innovation is to allow you to network with peers, stay up-to-date at the forefront of Innovation and discuss amongst each other innovation challenges you are facing.
Ambassadors Event, Innovation Management, September 2013
Industry consulting helps you create business excellence by developing and or optimizing your operational and innovation processes. Customer orientation, quality, speed and costs are our focus. With a team of seasoned industry professionals with in-depth experience and a hands-on approach.
Ambassadors Event, Innovation Management, September 2013
Ambassadors Event, Innovation Management, September 2013
Paul Hissel, Senior Consultant, Philips Industry Consulting The value of architectures for business from the consultancy practice view
Kees van der Klauw
Executive Sponsor Philips Architecture Community
March, 2013
The value of architectures for todays businesses
from the consultancy practice view
Ambassadors Event
Ambassadors Event, Innovation Management, September 2013 2
What is happening in today’s business environments ?
• Speed (time to market) is becoming more and more a competitive edge
– latest technology (performance)
– latest (lowest) cost level
– latest features
• shorter life cycles
• new value spaces, business models, value networks (changing the rules
of the game)
• fast technology evolution
• global and fast moving competition
• new standards & regulations (fast follow up)
- speed
Ambassadors Event, Innovation Management, September 2013 3
• Products using key components which are systems in itself
– Microcontrollers
– Embedded signal processing
– User interface panels, electronic power supplies
• Products becoming connected
– Product to product
– Product to ‘the cloud’
• Diagnostic systems (MR, X-Ray, …)
• Lighting systems (City Touch, Hue, …)
• Software, upgrades, extensions, interfaces
• … and data services based on third party systems and subsystems
– The Cloud, telecom networks and storage
– General purpose computing platforms
- complexity
What is happening in today’s business environments ?
Philips perspective
Ambassadors Event, Innovation Management, September 2013 4
• Philips becoming an integration company
– Selected technology developments
– Open Innovation, ODM, OEM
– No way of owning, managing and knowing everything yourself
– Partnering, licensing: BoL (Bill of Licences) in addition to BoM (Bill of Material)
– Dependency on others, eco-systems, lock-in, control points: risks
• Moving up in the value chain
– Recurring revenues
– From products to systems, services and solutions
• Products becoming connected
– Internet of things, Big data
– entering the world of: Apps, mobility, security, privacy, new business models,
new Control Points and multi-party businesses, etc.
- complexity
What is happening in today’s business environments ?
Philips perspective
Ambassadors Event, Innovation Management, September 2013 5
Impact on a business?
• Diminishing returns… saturating (high) market shares no longer justify
increasing investments in new products with shorter lifecycles
• R&D cost (people) becoming a dominant factor (beyond BoM)
• Independent lifecycles of components, subsystems, products, systems
• constant need for adaptations (costs, resources, time)
• increased complexity to be managed (SKU’s, phase in/out)
• lower efficiency (shorter life cycles, lower Economy of Scale) & profitability
• disturbances / problems in the supply chain and operations
• lagging performance, Time to Market & flexibility
Ambassadors Event, Innovation Management, September 2013 6
Needs from a business point of view?
• integral solution: taking care of all requirements & constraints
• decomposition in manageable parts
• balanced trade-off’s and integral optimization
• leveraging of all opportunities (suppliers, technologies, intern/extern)
• keeping this consistent over time (managing the impact of the dynamics)
• for the whole “system”
Ambassadors Event, Innovation Management, September 2013 7
And this is where “system architecture” comes in…
• defines the technical structure of a system:
- the functional decomposition and physical partitioning in sub-systems
and the specification of the interfaces
- the underlying technology choices
- the principles & guidelines governing the implementation and evolution
over time
in order to cover all requirements and stakeholder purposes.
• covering many aspects like:
- costs
- performance & quality
- Time To Market
- Supply Chain performance
- warranty, service
- compliance
- Business Control Points …….
Ambassadors Event, Innovation Management, September 2013 8
Platform
• a set of building blocks & standardised interfaces compliant with a defined
reference architecture, that forms a common structure from which a
stream of derivative products can be efficiently developed and produced.
• a platform consists of strategically motivated and operationally coordinated
modular product and process architectures, designed to create specific
forms of strategic flexibility for achieving a defined set of business goals.
• including:
- management of the range & variation over time
- technology evolution
- new supply options
- coherence over time
Ambassadors Event, Innovation Management, September 2013 9
architecture capabilities
• market coverage
• alignment
• anticipation
• external development
• performance
• standardization
capability to efficiently develop & produce
product variants to cover effectively the
segmentation and opportunities in the market:
initially and over time
capability enabling an optimal fit with the
organization / operations to guarantee solid
performance and cost effective execution
built-in capability to react or adapt to future:
changes / opportunities / uncertainties
by keeping certain options open
capability to embed superior capabilities
(innovation, development, production) of
suppliers in the product architecture, taking
care of technical & organizational decoupling
and maintaining control
capability to realize the required functionality,
performance and robustness and costs
capability to leverage the benefits of internal
or external standardization: e.g. commonality,
re-use, economies of scale, faster TTM,
reduced risks, proven quality
>> architecture capabilities are created “by design”.
Ambassadors Event, Innovation Management, September 2013 10
System Architecture ensures:
• a feasible solution covering all stakeholder requirements
• tuning with the business strategy, - technology and – organization from
the start
• integration of: business, market, application, product, design, technology,
industrial and financial aspects in one solution and a set of architecture
capabilities
• pro-active addressing of uncertainties (market, technology, availability)
and opportunities (options to be kept open)
• a roadmap and platform view towards future business
• support by a structured approach and a solid business case
and decision trajectory
Ambassadors Event, Innovation Management, September 2013 11
So, who in the business will take care of this ?
• functional focus: insufficient in most cases
• role for the “system architect”
- not only about a technical solution
- but an integral solution for the business in line with the business strategy
- including the management of:
speed
flexibility
uncertainties
complexity
costs
coherence over time
Ambassadors Event, Innovation Management, September 2013 12
Some examples:
internal Philips:
• XRay systems
• electric toothbrushes
• shavers
external:
• automotive: Volkswagen
• tunnels (RWS)
Ambassadors Event, Innovation Management, September 2013 13
Ambassadors Event, Innovation Management, September 2013 14
Ambassadors Event, Innovation Management, September 2013
Backgrounds of “Rijkswaterstaat” project
The problems regarding tunnels:
• Large overrun in cost and schedule
for tunnel projects
• Frequent closure of tunnels
• Discussions on political level
Solution:
• Appointment of a national
tunnel coordinator/conductor (LTR)
Ambassadors Event, Innovation Management, September 2013
PInS contributions to LTR
• Specific competences:
– extensive experience and know-how in the field of: specification, architecture,
design and verification of complex systems;
– experience and know-how regarding proven safe design (incl. trade-offs) and
implementation for safety related systems;
– (business) independency regarding infrastructure- and construction providers;
• Content related:
– the approach for the specification and documentation of the tunnel system
– the system architecture for the tunnel system
– analysis and reduction of variation points in the development of tunnels
– standard specification and design for tunnel technical installations (tunnel
platform)
– definition of the standard procedure for the application of the LTS
– training regarding the tunnel standard for RWS and it’s suppliers
16
Ambassadors Event, Innovation Management, September 2013
What has been achieved ?
• Solid and transparent specification, design and decision trajectory,
starting point for at this moment 8 running projects.
• Standardized reliable and safe tunnel operation and installations
• Included in and enforced by newly approved legislation (the
WARVV, 1-7-2013)
• manageable costs and planning for tunnel projects (to be proven)
17
Ambassadors Event, Innovation Management, September 2013 18
How are we at Philips addressing this ?
• We are convinced that architectures & platforms are crucial
for our current and future business !
• processes as distinguished:
- Architecture Creation Process
- Platform Development & Management Process
- Platform Release Process
(harmonization going on)
• building great architecture capabilities on a global level:
- Philips Architecture Initiative
- numbers & levels of system architects
- competence (training, sharing, coaching, community)
- organizational embedding (architect roles & framework)
PAI
Ambassadors Event, Innovation Management, September 2013 19
Architecture Consultancy
Our contributions:
• support to improve system architectures
(content)
• transferring approaches and competences
for better architecting
Industry Consulting
Where consulting
gets hands-on
Ambassadors Event, Innovation Management, September 2013
Ambassadors Event, Innovation Management, September 2013
Menno de Jonge, Innovation Manager, Ballast Nedam What modular building systems mean for the construction business, especially for niches that are still growing
Innovatiemanagement [1]
The Effect of Modularization onBusiness Architecture of Ballast Nedam
Philips Ambassadors for Innovation25 September 2013
Menno de Jonge
Innovatiemanagement [2]
Introduction Ballast NedamModular Building Systems Effect on business architectureSummary and Conclusions
Content
Innovatiemanagement [3]
Ballast Nedam
• Construction and Real Estate company• Corporate headquarters in Nieuwegein, The Netherlands
• Turnover 2012: € 1,30 billion• Turnover The Netherlands: € 1,15 billion (88%)• Turnover International: € 0,15 billion (12%)
• Top-5 construction firm in The Netherlands• EBITDA 2012: € 2 million• Net margin 2012: - € 41 million• Order book January 2012: € 1,8 billion
• 3860 employees (December 2012)• 136 year in operation (established in 1877)
Innovatiemanagement [4]
Strategy Ballast Nedam
• Work together for a better living environment, today and tomorrow• Creating “enduring quality” in the lifecycle of development,
construction, management and the recycling of our living environment
• Five strategic pillars• life cycle thinking and acting• our people, standards and values• value chain collaboration• innovation• being at the heart of the community
• Four core activities• housing• mobility• energy• nature
Innovatiemanagement [5]
Core activities in four areas of work
Innovatiemanagement [6]
Core Activity - Housing
Innovatiemanagement [7]
Core Activity - Mobility
Innovatiemanagement [8]
Core Activity - Energy
Innovatiemanagement [9]
Core Activity - Nature
Innovatiemanagement [10]
Introduction Ballast NedamModular Building SystemsEffect on Business ArchitectureSummary and Conclusions
Content
Innovatiemanagement [11]
• iQhome® (concrete housing)• Ursem® Modular Building Systems (wood frame housing)• ModuPark® (steel / concrete parking garage)• Plug and Play Core® (steel / concrete stadium)
Modular building systems Ballast Nedam
Innovatiemanagement [12]
iQhome®
Innovatiemanagement [13]
iQhome®
Innovatiemanagement [14]
iQhome® - The Factory
Innovatiemanagement [15]
iQhome® Logistics / Construction process
Construction process
Innovatiemanagement [16]
• High quality living environment• Wall-to-wall room size 5,40m and 6,30m• High quality finishes
• High speed development in 6 weeks (from 3 units)• Shortening construction process• Sustainable (Energy Performance):
• EPC 0.6 (A++)• EPC 0.4 (A+++)• EPC 0.0 (A++++)• EPC - 0.4 (A+++++)
• Attractive pricing schemes• Adaptable / transformable / easily
disassembled and re-usable• Freedom in architecture
iQhome® – Charactaristics
Innovatiemanagement [17]
iQhome® - Freedom in Architecture
Innovatiemanagement [18]
Ursem®
Innovatiemanagement [19]
City Living Student Hotel Amsterdam
Innovatiemanagement [20]
The Student Hotel Business Model
Innovatiemanagement [21]
Ursem® – The Factory
Innovatiemanagement [22]
Ursem®
Logistics / Construction process
Innovatiemanagement [23]
• Market segments• Newly build: Student housing, Hotels, Schools, Care institutions• Renovation: Modular sanitary units
• Completely furnished rooms• High speed realization• High-rise up to 10 stories• Easily disassembled and re-usable• Low development / building costs• Sustainable construction method• Optimal logistic processes• Constant high quality
Ursem® – Characteristics
Innovatiemanagement [24]
Ursem® - Freedom in Architecture
Innovatiemanagement [25]
ModuPark®
Innovatiemanagement [26]
Parking Meander Hospital, Amersfoort
Innovatiemanagement [27]
ModuPark®
Logistics / Construction process
Innovatiemanagement [28]
• Anticipate in changing parking requirements• Location, Capacity
• Market Segments• Shopping centers, University / college campuses, Hospitals,
Educational institutes, Offices, Public Transport Terminals• Flexible in shape and scalable in size• Sustainable• High speed realization• Easily disassembled and re-usable• Affordable, several financial schemes (rent, lease, buy, …)
ModuPark® - Charactaristics
Innovatiemanagement [29]
ModuPark® - Freedom in Architecture
Innovatiemanagement [30]
Plug and Play Core®
Innovatiemanagement [31]
P&P Core® - Qatar Soccer WC 2022
Innovatiemanagement [32]
P&P Core® - Qatar Soccer WC 2022
Innovatiemanagement [33]
Plug and Play Core® - The Movie
Plug and Play Core Magazine
Plug and Play Core Movie
Innovatiemanagement [34]
Introduction Ballast NedamModular Building SystemsEffect on Business ArchitectureSummary and Conclusions
Content
Innovatiemanagement [35]
Use
Site preparation
and Landscaping
Assembly
Business Architecture
Construction
Landscaping
Sitepreparation
Sitepreparation
Assembly
Landscaping
Use
Use
Shortening
Mod
ular
Bui
ldin
g S
yste
ms
tradi
tiona
l
Innovatiemanagement [36]
• Increase efficiency of processes from development through operation phase (intensive use of BIM)
• 3D insight for client in modular housing options (configurator)• Modular Housing object libraries
• prefab elements and finishes• Kitchens, bathrooms, stairs, installations, doors&windows, ...)
Business Architecture
Innovatiemanagement [37]
• CAD-CAM integration (3D model factory)• New customer approach Webconfigurator• Development of “Serious Game” Woonvisualisatie• iPad supported sales process• 3D printing• “Where used” database for re-use of elements (RFID)• Development of “Serious Game”
Business Architecture
Innovatiemanagement [38]
iQhome® - Web configurator
Innovatiemanagement [39]
iQhome® - Web configurator
Innovatiemanagement [40]
iQhome® - Web configurator
Innovatiemanagement [41]
iQhome® - Web configurator
Innovatiemanagement [42]
Introduction Ballast NedamModular Building SystemsEffect on Business ArchitectureSummary and Conclusions
Content
Innovatiemanagement [43]
• Constant, high quality, healthier end product through production in factory with a conditioned and controlled environment
• Favorable working environment for construction workers
• Energy reduction by more efficient use of (raw) materials, waste reduction and the production of re-usable and adaptable end products with a residual value
• Fast production, shortening site construction time and reduction of nuisance for the environment through industrialization of the construction process
• Favorable pricing from suppliers, efficiency in logistics
• Customer experience and flexibility using custom made options, through online web configurators
Summary and Conclusions
Innovatiemanagement [44]
The Effect of Modularization onBusiness Architecture of Ballast Nedam
Philips Ambassadors for Innovation25 September 2013
Menno de Jonge
Ambassadors Event, Innovation Management, September 2013
Ambassadors Event, Innovation Management, September 2013
Leon van de Pas, General Manager Connected Lamps, Philips Lighting Hue - the new wireless, user controlled lighting system, and how it changes the lighting business
1
LEON VAN DE PAS, GENERAL MANAGER CONNECTED LIGHTING
WHAT LIGHT CAN DO FOR YOU: CONNECTED LIGHTING
2
• We are shaping the future of Connected Lighting with disruptive innovations
• Our connected lighting innovations enable unprecedented personalization of the lighting experience at home, office and beyond
• Philips’ hue connected lighting system for the home achieved instant global recognition and adoption in over 75 countries
• Our revolutionary new connected lighting system for offices uses light as a pathway for information to deliver value for our customers and enhance user comfort
Key takeaways
3
In the Office, now light is a pathway for information, enabling a more cost efficient use of resources
At Home, now everybody can personalize his lighting system with a simple push of a button
SHAPING THE FUTURE OF CONNECTED LIGHTING
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6
7
8
9
10
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12
• We are shaping the future of Connected Lighting with disruptive innovations
• Our connected lighting innovations enable unprecedented personalization of the lighting experience at home, office and beyond
• Philips’ hue connected lighting system for the home achieved instant global recognition and adoption in over 75 countries
• Our revolutionary new connected lighting system for offices uses light as a pathway for information to deliver value for our customers and enhance user comfort
Key takeaways
Ambassadors Event, Innovation Management, September 2013
Ambassadors Event, Innovation Management, September 2013
Ambassadors Event, Innovation Management, September 2013
Contact details
Innovation Management Iason Onassis Managing Consultant Industry Consulting, Philips Innovation Services High Tech Campus 7, HTC 7.3A.016 5656 AE Eindhoven, Netherlands Mob: +31 6 300 333 94 email: [email protected]
Support Office: [email protected] +31 40 27 40827 Website: http://www.innovationservices.philips.com Innovation Flash: http://www.innovationservices.philips.com/innovation-flash-newsletters
Operations management Jan-Edzard Talsma Managing Consultant Industry Consulting, Philips Innovation Services High Tech Campus 7, HTC 7.3A.016 5656 AE Eindhoven, Netherlands Mob: +31 6 20440472 email: [email protected]
Philips Innovation Services, Industry Consulting
Ambassadors Event, Innovation Management, September 2013