WÄRTSILÄ TRADITIONAL INDUSTRY AND VISIONARY INNOVATION ENHANCING BUSINESS BY COMBINING THE TWO WORLDS
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1 WÄRTSILÄ TRADITIONAL INDUSTRY AND VISIONARY INNOVATION ENHANCING BUSINESS BY COMBINING THE TWO WORLDS T. HOTTINEN GM, BUSINESS INNOVATION SERVICES BUSINESS DEVELOPMENT
2 Content Wärtsilä in brief Innovation management in Wärtsilä Open innovation Wärtsilä Innovation Node
3 THIS IS WA RTSILA WӒRTSILӒ POWER PLANTS SHIP POWER SERVICES
4 OUR PERSONNEL 17, PROFESSIONALS COUNTRIES LOCATIONS
5 OUR NATIONALITIES Finland India Italy China Netherlands Norway Great Britain Brazil Pakistan France Singapore Germany Philippines Spain Poland South Korea Switzerland Denmark Bangladesh U.S. Indonesia Sweden Russia Japan Ecuador Kenya Myanmar Canada Turkey Malaysia Dominica Guyana Greece South Africa Lithuania Senegal Colombia Nigeria Argentina Guinea Australia Sri Lanka Saudi Arabia Hungary Uganda Cameroon Puerto Rico Tanzania Azerbaijan Estonia Zambia Portugal Madagascar Romania Gabon Taiwan Venezuela Mexico Ukraine Uruguay Chile Jordania Antigua Panama Dominican Republic Vietnam Peru Yemen Iran Cuba Cyprus Guatemala Croatia Pap.NewGuinea Salvadorian Thailand Egypt Ireland Serbia Morocco Slovenia Austria Bulgaria Jamaica Mozambique Nepal Netherlands Antilles Ghana Falkland Islands Latvia New Zealand East Timor Albania Czech Republic Ethiopia Iraq Macau Mauritius Rwanda Somalia Cape Verde Surinam Syria Togo Zimbabwe Unit.Arab Emirates Belgium Burkina-Faso Burundi Belarus Belize DR Congo Congo Australia Algeria Faroe Islands Haiti Iceland Cambodia Cayman Islands Kazakhstan Lebanon Macedonia Mauritania Namibia Paraguay Sudan Slovakia Tunisia
6 POSITIONED FOR GROWTH SMART POWER GENERATION The transition to modern, sustainable energy systems is driving demand for smart power generation. GAS AS FUEL Economic and environmental forces are increasing the growth of gas fuels in the marine and power plant markets. ENVIRONMENTAL SOLUTIONS Environmental regulation and focus on improved efficiency are driving demand in the marine industry
7 FINANCIAL HIGHLIGHTS MEUR Order intake Order book at the end of the period Net sales Operating result % of net sales Earnings/share, EUR ) Figures exclude non-recurring items 2) Figures related to the statement of income in the comparison period 2013 have been restated due to the two-stroke business being classified as discontinued operations. Figures in comparison periods 2010, 2011 and 2012 have not been restated. 3) The figures in the comparison period 2012 have been restated during year 2013 according to the revised IAS 19. Figures in comparison periods 2010 and 2011 have not been restated
8 WÄRTSILÄ INNOVATION MANAGEMENT
9 Wärtsilä Innovation Management Strategy in Action Areas of innovation management Services and deliverables of Innovation Management Internal and external stakeholders Business Operational Technologies, products and solutions Idea management portal and process development Innovation campaigns, tools and methods Open innovation activities, spin-offs, start-up collaboration, corporate venturing model development Internal and external communications Developing ways of working to support transformational activities Business Divisions Customers, Suppliers Universities, start-ups External business incubators Private and public investors
10 Open Innovation Activities Wärtsilä has traditionally been active in front-end outside-in collaboration only with R&D partners Idea Development Commercialisation Idea generation Idea evaluation Portfolio mgmt Development Validation Delivery After sales Idea collection Idea portfolio Research Business assessment Marketing Distribution Customer feedback Experience with spin-off scene giving leverage for outside-in startup collaboration Core market Company core boundary External commercialization Inside-out: external commercialization through spin-offs Innovaton funnel: from idea to implemented added value 10 1/15/2016
11 Inside-Out: Spinning off Non-Core IP Case 1: intelligent camera surveillance Potential spin-off cases: Technology Product Service, function, knowledge Business model idea Divestment, restructuring Case 2: existing product Case 3: technical invention Case 4: business model idea Case 5: digital service solution
12 Inside-Out Turning into Outside-In Spin-off with strategic/tactic interest may turn into outside-in open innovation: Spin-along when matured enough and/or shown fit with the strategy Targeted development through partnership or dedicated suppliercustomer relationship Perfect approach e.g. for digitalized service offering that require lean and agile solution development AND simultaneous earnings logic development Experience and internal governance model lowers hurdle for outside-in start-up collaboration Enables chasing the hypes w/o need to invest heavily into own development too early 12 1/15/2016
13 Wärtsilä Marine Mastermind Open Innovation Contest Digitalized service offering in marine business Targeted for start-ups and growth companies Objective for Wärtsilä to Explore the disruptive initiatives Learn from lean start-up mindset 47 applicants with high quality and wide spread. Finals in February January 2012
14 Wärtsilä Innovation Node InnovationNode Touch point for innovation Wärtsilä Innovation Node unites business professionals and students Study & research projects Window to Wärtsilä (R&D) activities Industrial Design Studio
15 Located at Open Innovation House in Otaniemi, Espoo at Aalto University Campus Physical presence enables close collaboration between Wärtsilä and other key players located at the campus area in Otaniemi (e.g. Aalto University, Aalto factories, VTT, Open Innovation House)
16 Wärtsilä Innovation Node in Practice Collaborative activities with stakeholders in the area, e.g. facilitating joint student projects such as Augmented Reality Working place for both Wärtsilä employees and externals knowledge sharing & learning Activities supporting research work (company supervision / mentoring, peer group support) Place for Wärtsilä events and raising awareness among campus stakeholders Industrial design studio enhances the end user oriented innovation practices in R&D work
17 New Innovations and Business Opportunities Augmented Reality on bridge Augmented Reality in Services New business model innovations: Parallel business model and technology development Enabling new markets and/or customers Showing technology leadership and creating new business growth opportunities Entrepreneurial mindset and incubation Intelligent Engine & Big Data 3D Printing
18 Thank You Tero Hottinen General Manager, Business Innovation Tel
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