ICT – Page 2 – Insight Foresight Institute

Advise to Andalusia in the industrial transition towards carbon neutrality

The CEO of IFI, Totti Könnölä advises the Joint Research Centre of the European Commission in its work to support the Andalusian Government to create industrial transition towards carbon neutrality. Within the frame of the project RIS3 Support to Lagging Regions, the JRC has launched a Working Group on Understanding and Managing Industrial Transitions.

The Working Group aims to support regional (and where appropriate national) authorities facing major industrial transitions, away from declining sectors and activities and charting actionable paths towards employment-intensive economic growth. The Working Group comprises of JRC staff, an Advisory Board and external experts engaged in reviews of industrial transition, coordinated by Ken Guy (Advisory Board Member of IFI).

The core activity of the Working Group are the reviews of industrial transition following a common methodology (POINT, Projecting Opportunities for INdustrial Transition) that draws on expertise on system innovation/transition management, foresight, industrial policy and innovation governance.

The reviews focus on an industrial theme of growing global importance suggested by the relevant territorial authorities (for instance, but not confined to: climate change, electrification of transport, circular economy, digitalisation, artificial intelligence) to collect evidence and examine the scope for developing adequate territorial responses that harness cross-portfolio complementarities (e.g. between ministries and between levels of governance) and cross-stakeholder coordination (e.g. between businesses and broad constituencies of consumers/users). In each territory under review and for an industrial theme suggested by the authorities the final report will:

(a) Map the affected orientation, resource mobilisation, production and consumption systems in the territory;

(b) Document existing planning arrangements and directions of deliberate change (e.g. as described in thematic policy and business strategies, or evident in momentum-gathering social concerns and movements, consumer trends, common territorial values etc.) of various stakeholders in the affected systems that could later form the basis for a broadly-supported transition vision;

(c) Make concrete suggestions for the advancement of the transition and for managing its downsides. Given the nature and magnitude of the transition challenge, adequate territorial responses will include not just research and innovation policies that are already part of RIS3, but also industrial and employment policies more generally, including provisions for education and skills, for complementary large public infrastructures (e.g. in energy, transport, waste), urban planning, fiscal policy and social security reform, among others. Therefore the recommendations of the review will place a particular emphasis on fostering alignment and coordination within government.

The reviews aim to build the evidence base for appropriate “Actions to Manage Industrial Transitions”, as stipulated in fulfilment criterion No.6 of the enabling condition of good governance foreseen in the next multi-annual financing period of the EU Structural Funds (without prejudice to the final decision of the European Commission). The reviews can further inform RIS3 design and implementation (e.g. refining or extending priorities, broadening the EDP, fostering synergies with other funding streams) as well as informing, and been informed by, industrial policies and other territorial strategies for economic and social development. More broadly, it is hoped that the reviews can be an input to a participatory process of stakeholder engagement leading to the development of credible positive visions for the future that can be the source of pride and inspiration for the region (or country) and a rallying point for the mobilisation of actors and resources from all levels.

The JRC plans to complete three such reviews (Andalucía, Bulgaria and Greece) in the current phase of the project in 2020.

For more information

Working Group on Understanding and Managing Industrial Transitions

Towards Entrepreneurial Innovation Ecosystem in Montenegro

The European Commission expert panel applied the entrepreneurial innovation ecosystem model developed by IFI in expert advice in Montenegro. In this assignment, Totti Könnölä, CEO if IFI, was the rapporteur of the panel that was set up to provide external advice and operational recommendations on how the country could develop its entrepreneurial innovation ecosystem.

The expert panel provided advice on the necessary legislative changes, the design of a functional entrepreneurial innovation and startup support ecosystem model and the necessary funding schemes for startups and other actors of the ecosystem.

For more information

The Commission project website
The final report available here for free

Digitalisation as the gear for circular economy

Totti Könnölä, experto en economía circular. FUNDACIÓN RAMÓN ARECES — Totti Könnölä, expert in circular economy. FUNDACIÓN RAMÓN ARECES

El Mundo, the leading newspaper in Spain, interviews Totti Könnölä on digitalisation and circular economy.

Totti Könnölä defends the role of ‘big data’, industry 4.0 or the economy and collaborative platforms as spurs to achieve economic and environmental sustainability.

A total of 16 tons. That is the amount of materials that each European consumes during a year. Of them, six tons end up turned into waste. And, of these, around 50% end up forgotten in a landfill with the consequent environmental impact and for the health of all.

This is an untenable situation for anyone with some common sense and who has driven political efforts of various kinds (recycling, restrictions on industrial waste, …), BUT often without addressing the root of the matter: the real nature of products and how they are generated, consumed and reused. We better talk about designing products thinking of their future beyond the life-cycle. To change our mindset from a model with beginning and end, to another where there are no extremes and everything flows forever.

“What we have now is a totally linear value chain, in contrast to what is being proposed by the circular economy: a systemic change that will allow us to reuse the products to create new ones and thus close the entire life cycle of the goods.“, Says Totti Könnölä, executive director of the Insight Foresight Institute. This man, whose life is halfway between Finland and Spain, is a recognized expert in innovation and sustainability.

The reason that the circular economy has not been firmly committed is that “typical chains have many actors and each of them seeks to optimize its business, but only does so with its share”. That inevitably results in a problem that is not technical (the recycling of materials takes years), but a business model. «The question is mainly organizational. Even in many cases, the waste is separated and then it ends up coming together again because it can not be used,” says Könnölä in an interview with INNOVADORES held at the Ramón Areces Foundation.

Faced with this panorama, marked by the dissonance between theory and practice, we asked Könnölä about the disruptor that makes this philosophy take off once and for all, not from production, but from survival as a species. «Digitization is key. Thanks to trends such as big data, we can take full traceability of the materials, know what their history is and how we can make better use of them, “he explains.

“concepts such as the collaborative platforms [e.g. Airbnb] allow better use of existing resources, avoiding the production of more goods than necessary. In addition, digitalization also facilitates that many products that were previously bought and sold, are now marketed as a service. By controlling the whole life cycle of the product, companies can design for future recycling or perform a more efficient preventive maintenance that reduces the need for spare parts.

Betting on the circular economy is the simplest solution to avoid reputational potholes derived from the purchase of materials (such as metals or minerals used in electronics) to countries in conflict, while reducing installed volatility in the commodity markets.

The platforms, adds this guru of the second opportunities, are especially interesting because, “as has happened with the music industry, intermediaries are removed from the chain, causing the different agents to abandon their traditional roles to connect or even be themselves both the producers and consumers of the same good ».

Some meeting points between two vertices can also be extended to the less glamorous area of waste. “In Atlanta (USA) they have created a platform to coordinate the collection of garbage and make matching with companies that can take advantage of it. That is to make an innovative use of waste. turning the problem of garbage into tremendous opportunities ». If we add to this equation the 4.0 industry and its capacity to personalize products and adjust the use of materials to the maximum, we have the perfect bases to make the circular economy a reality.

But first, as with any great revolution, we have to change our mentality. The citizens, of course, but also the companies. “As consumers we are vague, we do not look at the data where a product comes from and, furthermore, it is difficult to know. Now, with big data, we generate more information for users and that is an opportunity for companies that want to differentiate themselves in the market because of their transparency and trust, “Könnölä summarizes.

“Companies must also change the chip with what they understand with sustainability. For example, Apple boasts in its reports of the use of clean energy in its servers, but then uses different combinations of materials in its mobile phones that are very difficult to separate once their life cycle is over. Also, they prevent their equipment from opening easily, which makes it difficult to recycle other components. It is a question of your brand, but it is essential that you design your products thinking about their future uses.“

All this without forgetting the primary role of the public sector in these issues. “The Administration should guide and accelerate the adoption of the circular economy through environmental policies and reducing legal uncertainties in these matters. For example, stop crushing collaborative platforms and blocking new technological possibilities. But everything is a process of learning and continuous adaptation, not only in terms of the circular economy, but also for the digital economy and society in general”.

The interview available in English in El Mundo.

Find out also about our training on platforms.

Platform Strategy: Keys for Exponential Growth

Platforms play a fundamental role in digital ecosystems; they are the “medium” in which these ecosystems are developed through the interactions between users, developers and other stakeholders. The irruption of platforms and their associated digital ecosystems generates profound changes in the economy.

Insight Foresight Institute faces this challenge by offering a training program. We usually develop these executive and in-house programs in ‘partnership’ with our collaborators and clients, such as:

Foundations
Business schools and universities
Business
Public administrations.

Our approach is to support entrepreneurs and intrapreneurs to design and develop their scalable platform business strategy within the larger ecosystem. The manager of incumbent business learn to anticipate the impacts of new platform entrants and react to the emerging challenges.

Attendants

Entrepreneurs with ambition to develop high growth companies.
Managers interested in transforming their business.
All those with an interest in digital platforms and the platform-based economy.

Concept

Presentations and debate.
The students develop a group work during the course.
Classes are complemented by online work.

As a general rule we recommend 6 modules each of 4-8 hours. Each module consists of two sessions:

1 session of papers and debate.
1 session of practical application workshop.

It is advisable to leave several days between the modules that allow:

Learning through reading and exercises.
Involvement of colleagues and organization.

We are also flexible to co-design the program to specific circumstances.

Contents

The ‘boom’ of platforms

We will immerse in the world of digital platforms and their role in the digital transformation and the fourth industrial revolution; and we will learn how platforms create entirely new markets and transform existing ones. We will learn about different perspectives and platform models and learn to recognize their key characteristics.

The platforms ‘unboxed’

Learn how the understanding on the management of the platforms has evolved. The management literature has evolved from the mechanical optimization of platform infrastructures to the coordination of ecosystems of digital platforms that involve actors with different roles and ambitions. As a result, the unit of analysis for organizing a business has changed from a company to a business ecosystem.

Scenarios of the platform-based economy

We will explore different scenarios of the evolution of the economy based on the platforms and the consequences of the platforms both in the economy and its implications in different sectors that force managers in both companies and public administrations to redesign their strategies and operations. We will raise awareness about the advances in different regions (US, Asia, Europe …).

Strategies and business models of platforms

We will learn the essence of planning and strategic design of digital platforms. We will explore different radical and disruptive business models and discuss current cases to identify their strategies and value creation. We will know different tools to facilitate the strategic design of platforms.

Platform architecture

We will immerse ourselves in the technical challenges of how to build a platform that is attractive to engage and that creates value for the entire ecosystem of users.

We learn how to provide the tools and services that facilitate all the users and to design the scaling up of business. We will explore different technologies, for instance blockchain, how to monetize and create trust.

Roadmaps for platforms

The success of platforms depends largely on their ability to generate network effects and achieve increasing returns. We study strategies how to achieve these effects and how to overcome the problem of ‘chicken and egg’. We learn how to plan the development of the platform and its ecosystem to achieve the desired vision. We will also explore the relationships between the platforms and their ‘stakeholders’, including relations with public administrations.

To know more contact: info@if-institute.org

Find out about our other courses.

SMEs, Innovation and Industrialisation for Europe 2030

The ‘deep dive’ workshop for the EURO-CASE Innovation Platform was organised by the Royal Academy of Engineering of Spain (RAI), with José Manuel Sanjurjo as chair and Francisco Jariego, member of the Innovation Council of IFI, in colaboration with Totti Könnölä, CEO of IFI, in Madrid on January 30-31, 2017. The workshop focused on ‘SMEs, innovation and industrialisation’. The work built on the background discussion paper and the results of the Euro-CASE survey. This provided a basis for the integrated analysis on industrial innovation towards the year 2030 through industrial platform ecosystems that engage value networks of industrial providers, customers but also research and technology organisations (RTOs), Universities, startups and other SMEs as well as investors, public sector agencies and regulators. Particular attention was given to the future role of SMEs and the barriers to scale-up. Also recommendations were drawn to provide inputs to European policy-making.

You may request the full report by email: info@if-institute.org