Ambassadors of innovation on architectures

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


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.


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.



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


• 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


Philips perspective


• 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


Philips perspective


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


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”


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 …….


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


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”.


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


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


Some examples:

internal Philips:

• XRay systems

• electric toothbrushes

• shavers

external:

• automotive: Volkswagen

• tunnels (RWS)




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)


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


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


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


Architecture Consultancy

Our contributions:

• support to improve system architectures

(content)

• transferring approaches and competences

for better architecting

Industry Consulting

Where consulting

gets hands-on



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


Introduction Ballast NedamModular Building Systems Effect on business architectureSummary and Conclusions

Content


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)


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


Core activities in four areas of work


Core Activity - Housing


Core Activity - Mobility


Core Activity - Energy


Core Activity - Nature


Introduction Ballast NedamModular Building SystemsEffect on Business ArchitectureSummary and Conclusions

Content


• 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


iQhome®


iQhome®


iQhome® - The Factory


iQhome® Logistics / Construction process

Construction process


• 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


iQhome® - Freedom in Architecture


Ursem®


City Living Student Hotel Amsterdam


The Student Hotel Business Model


Ursem® – The Factory


Ursem®

Logistics / Construction process


• 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


Ursem® - Freedom in Architecture


ModuPark®


Parking Meander Hospital, Amersfoort


ModuPark®

Logistics / Construction process


• 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


ModuPark® - Freedom in Architecture


Plug and Play Core®


P&P Core® - Qatar Soccer WC 2022


P&P Core® - Qatar Soccer WC 2022


Plug and Play Core® - The Movie

Plug and Play Core Magazine

Plug and Play Core Movie



Content


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


• 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, ...)



• 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”



iQhome® - Web configurator









Content


• 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


The Effect of Modularization onBusiness Architecture of Ballast Nedam

Philips Ambassadors for Innovation25 September 2013

Menno de Jonge



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

4

5

6

7

8

9

10

11

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




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


Date post:	21-Oct-2014
Category:	Business
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