innovation i byggereit

1. innovation i byggereit building innovation Professor David Gann SPRU, University of Sussex Copenhagen, 5 November 2002 © David Gann

2. outline • what is innovation • general purpose technologies • innovation in project-based firms • integrating processes • pointers to the future © David Gann

3. 1930s style customer-focused retail © David Gann

4. Sainsbury’s first self-service store, Croydon - 1950 © David Gann

5. Eastbourne, 1952 © David Gann

6. © David Gann

7. what is innovation? “Successful exploitation of new ideas”DTI • innovation – the introduction of new and improved products, processes and services • invention – the first step • inputs • R&D • design • development • diffusion © David Gann

8. innovation process type and degree of innovation • product innovation – what is offered • process innovation – how it is created or delivered • service innovation • degree of novelty – incremental, radical and disruptive • primary source – ‘technology-push’ v. ‘market pull’ © David Gann

9. why innovate? innovation is the driving force behind the modern economy • underpinning economic growth • forcing the pace of business competitiveness • providing improvements to quality of life © David Gann

10. (Her havde Gann en række slides med ophavsretligt beskyttede illustrationer, som vi har været nødt til at fjerne) © David Gann

11. managing innovation why is management of innovation important? • 85% of new ideas never reach a market • 60% of R&D projects are market failures • 40% of consumer products and services fail • 40% of alliances fail to deliver objectives • 30% of technology-based new ventures fail • 20% of business products and services fail © David Gann

12. innovation process phases • scanning internal and external environments • filtering potential opportunities • acquiring resources – technical, financial, organisational • implementing and commercialisation • reviewing and learning from experience © David Gann

13. innovative organisations • bureaucracy is not bad, but bad bureaucracy is • strong communications • not always ‘one best way’ • train for widespread use of tools – QFD, KM • capture and re-use experiences • embed knowledge in processes, products & services • create space for disagreement – ‘creative abrasion’ • reward ‘risk-takers’ – create room for failure • learn from customers - customer-focus, not customer-driven • learn from competitors - compare, differentiate, develop and maintain innovation advantages © David Gann

14. general purpose technologies © David Gann

15. general purpose technologies • ICTs • processes • products - embedded software • service delivery • New materials (composites, ceramics, nano) • Standardised pre-assemblies © David Gann

16. Applications of new technologies for innovation • Pharmaceuticals - gene sequencing, combinatorial chemistry • Aerospace - the Boeing 777 • Construction - the Bilbao Guggenheim Museum • Automotive - design, engineering & testing in GM • Mining - process simulations in Rio Tinto • Banking - data mining tools, e.g. IBM’s Intelligent Miner • Utilities and communications systems - design of large complex systems, e.g. hydroelectric power plants, ATC systems © David Gann

17. Boeing 777 Development cost: $7 billion Design team: 5000 Design/Build Teams: 250 3D parts: 100,000 Entirely designed by computer - CATIA EPIC - 2,200 computer terminals in design team linked to 8 IBM mainframes © David Gann

18. Sculpted buildings: learning from aerospace Iterations between architect’s drawings and models, computer-cut models, wire frame and surface analysis © David Gann

19. Rapid prototyping © David Gann

20. Computer-controlled site assembly No tape measures: CATIA linked through BOCAD to CNC steel fabrication - all parts unique and bar-coded - on-site laser surveying linked to CATIA model for positioning © David Gann

21. Frank Gehry’s Bilbao Guggenheim 1991-97 © David Gann

22. technical know-how generates tangible and intangible assets ... © David Gann

23. project-based industries • growing use of project-based forms of organising production and service delivery • wide number of industries • film and media • advertising • complex products and systems • research and consultancy • software • construction © David Gann

24. strategies of project-based firms Customer satisfaction Improved Products Enhanced Reputation Technical Support Function and Resource Base of the Firm New Business Lower Costs Experience Improved profitability © David Gann

25. project cycles reputation for technical excellence complex projects attract talented students build capabilities © David Gann

26. work cycles Time pressures Individual heroics Crisis mentality Consequences for individuals and organisations Constant interruptions © David Gann

27. project cycle pressures design changes buildability client preferences regulatory requirements Time pressures (to meet the programme) © David Gann

28. consequences of project cycles Lack of investment Fatigue Limited engineering time Consequences for individuals and organisations Poorplanning Poor reputation for delivery Cycles of falling behind and catching-up © David Gann

29. Project processes bidding project management project organisation post-project reviews research in projects systems integration Business processes R&D human resources corporate strategy finance integrating project and business processes © David Gann

30. strategic issues • managing internal competition for resources between different project teams • ensuring the resource base is in touch and appropriately funded • developing coherence and shape in technical resources (keep teams intact) • developing capability for learning across the business • selling resources as ‘technical reputation’ to new clients © David Gann

31. strategic goals • generating a reputation for technical expertise • translating expertise into new projects • gaining new experience in specific areas at lowest cost to the organisation • gaining new business without over stretching internal resources © David Gann

32. innovation strategy is only successful set in the context of other goals ... • growth generating a stream of new orders • diversity finding new areas of business • initiative motivating people to solve problems and seek new opportunities • focus maintaining organisational cohesion © David Gann

33. if not there are dangers of ... • diversity without growth • initiative without focus • focus without initiative • growth without diversity © David Gann

34. managing project cycles • generating a reputation for technical expertise • translating this expertise into new contracts • gaining new experience in specific technical areas at lowest cost to the organisation • gaining new business without over stretching internal technical resources © David Gann

35. integrating processes Clients Management The Firm R&D & technical support R&D & technical support © David Gann

36. integrating processes Clients Management The Firm R&D & technical support R&D & technical support Know-why Know-how Projects Know-who Know-what Business Processes Project Processes © David Gann

37. integrating processes Clients Management The Firm Ideas Research R&D & technical support R&D & technical support Know-why Know-how Projects Know-who Partnerships Know-what Suppliers Business Processes Project Processes © David Gann

38. pointers to the future © David Gann

39. bio-molecular age • Engineering at the nano-scale • Designing with organic and inorganic materials • Understanding whole-life attributes • Minimising waste of resources • Re-using resources • Creating economic, social and environmental sustainability © David Gann

40. Be prepared - the future is uncertain ‘I cannot conceive of any vital disaster happening to this vessel’ (Captain of Titanic, 1912) ‘I think there is a world market for about five computers’ (T. Watson, 1948) ‘The war in Vietnam is going well and will succeed’ (R. MacNamara, 1963) ‘Only the paranoid survive’ (A. Grove, 1999) ‘Chance favours only the prepared mind ......... ’ (L. Pasteur, 1854) © David Gann

41. www.sussex.ac.uk/spru/imichair www.rethinkingconstruction.org.uk www.rethinkinghousebuilding.org.uk © David Gann

42. © David Gann