Transcript Internationalization of R&D Case Metso

Internationalization of R&D
Markku Karlsson
Metso Technology
Metso briefly
Business areas
Business area
Products
Metso Paper
No. 1
Pulp and paper
machinery and processes
Metso Minerals
Rock and mineral
processing systems
Automation and flow
Metso Automation control systems
Metso Ventures
3
Panelboard machinery
Gears
Specialty cars
Global market position
No. 1
No.3 in pulp and
paper automation
Metso R&D
Investment in technology
M€
3.7 %
200
150
Metso Paper
3.8 %
3.7 %
3.3 %
3.6 %
3.3 %
Metso Minerals
Metso Ventures
100
50
1999
4
Metso Automation
2000
2001
2002
2003
E2004
Metso R&D
Investments in R&D 2002
Voith
4.6
R&D, % of sales
4.6
Sandvik
4.0
Bold figures according to annual reports,
italic figures according to “2003 R&D Scoreboard”
published by Britain’s Dept. of Trade and Industry
Wärtsilä
3.7
3.5
Atlas Copco
3.4
3.1
Metso
3.2
3.1
2.5
Andritz
3.0
Astec
1.6
5
Metso R&D
RTD locations
Oulu
Ersmark
Colorado Springs
Toronto
Sundsvall
Belleville
Surahammar
Kelowna
Karlstad
M ilwaukee
Pittsburg
Sherman
York
Biddeford
Shrewsbury
Clarks Summit
Danville
Lansdale
Düsseldorf
Willich
Orléans
Metso Paper
Metso Automation
Metso Minerals
Metso Ventures
6
Mâcon
Hannover
Kajaani
Varkaus
Jyväskylä
Tampere
Valkeakoski
Hollola
Pori
Anjalankoski
Nastola
Järvenpää
Raisio
Turku Helsinki
Sala Karkkila
Trelleborg
Metso R&D
RTD project portfolio management
Metso's RTD Projects 2001 - 2003
Percentage of Metso's
Portfolio
60 %
50 %
40 %
2001
2002
30 %
2003
20 %
10 %
0%
A
B
C
D
E
Project Category
Timeframe
Novelty
A - product development
B - concept development
C - research
7
D - Improvements
E - New to us
F - New to market
F
Metso R&D
RTD Project portfolio 2003
Novelty/
Potential
High •
(F:New to
Market)
8%
Radical
Innovations
(30%)
9%
7%
Systematic Technology Management
forms the
common R&D-language in international
corporation
• It is a pre-requisite
for transparent
and (to certain
17%
4%
18%
degree) commensurate decision-making
Medium
(E:New to
Metso)
• It promotes continuous development and
learning
Low
24%
11%
2%
(D:Improvements)
8
Technological
Uncertainty
Low
Medium
High
(A: Product
Development)
(B: Concept
Development)
Medium term
(C: Research)
Short term
Long term
Innovation
Innovation
Metso Innovation Process
Metso Innovation Process will provide
a framework for capturing Metso’s
technology synergies and developing
solutions for the customer’s needs
Idea
mgmt
Gates
10
Feasibility
Research
& Development
Project phases
Solution
development
Launch
Review
Innovation
Example of MIP project phase: R&D
Research
&
Development
Objectives and Tasks
• Design and describe
•
•
•
•
11
product operations and
functions
Generate and select
product concept
Assess technical viability
Check IPR issues
Define preliminary design,
cost structure, operational
plans
•
•
•
MG2
Make cash flow estimation
and financial projections
Define product offering &
launch plan for each
segment,
Develop operational model
and plans
MG2 requirements
• Technical concept and
•
•
•
•
viability solved
IPR issues solved
Business plan version 2
Marketing and launch plan
Operational model and
plans
Innovation
Innovation process - example
Performance
• effenciency
• cost reduction
Curtain coating
Dry coating
Spray coating/sizing
MSP coating
Moment for
long-term
strategic
decision
Blade coating
1990
12
2000
2010
Time
Innovation
Combining different disciplines
Industrial
Design
Manufacturing
technologies
Honeycomb
structures
Materials
Technology
13
Innovation
“Smart Grinding Mill” example
• Common Innovation Process adds important
transparency and builds the R&D-culture in
international corporation
14
Challenges
Challenges
Business trends for heavy industry
•
Declining total market for heavy industry world-wide
-
•
-
Commodity trap – poor product differentiation
-
•
•
16
Growth opportunities in mature businesses stay difficult to
identify
Only few big global competitors
Differentiation is vital in all business processes
Quality and differentiation important success factors on mature
markets
Ability to forecast and react
-
Trends change faster
Listening to the customer interface is important
Mental attitude downwards - lack of drive to create growth
Challenges
Future competence
Focus today
Focus in the future
Business
models
Technology
fusion
Partner
network
Focus in past
• Integration of different competencies
• Speed and customer-orientation
• Specialization and differentiation
• Flexibility and quality
• Networking
17
Challenges
Life-cycle management
• Interaction
of business
model, technology
SERVICE
BUSINESS
development and partnerships & alliances CONCEPT phase
early on in the development
Customer persons
Metso persons
Service and
• Emphasis
on life-cycle thinking
- also R&D
maintenance
Customer Systems
Metso Systems
must focus
on
the
best
life-cycle
performance
orchestration
Machine
Remote
Service concept
Service
information
management
18
Research networking
Research networking - forest cluster
LWC paper making roadmap
North
America
Finnish
orchestration
capability?
China
Central Europe
&
Scandinavia
20
Research networking - forest cluster
Metso technology focus
TEKES
EU
Forest
cluster
research
Efficiency
improvement
Metso
RTD
Product
development
programs
Strategic
research
Metso
RTD
21
Joint
development
programs
Research networking - forest cluster
Horizontal and vertical innovation
Future interactive business system
• Omya
• Basf
• Springer
Publisher
Raw
material
supplier
Technology
Productio
n
concepts
Pulp &
Paper
Maker
Technology
• Voith
• Voith Fabrics
22
Product
concepts
Printer
Demand
concepts
Technology
• Heidelberg
Consumer
Research networking
Building competencies
Åbo Akademi,
Finland
• International market requires global thinking in
R&D - orchestration of business
and research
• Paper technology
Beijing
knowhow
partners’ resources
• Pilot facility
• Partner networks build new qualifications for
Jinan
innovation - both
horizontal
• Wet
end chemistry & vertical
knowledge center
Shanghai
Yueyang
• Process line start-up
23
• Paper quality
measurements
• Sensor calibration
Competitiveness from technology
Competitiveness from technology
New breakthrough technologies
Biotechnology
opens new
opportunities
ProsessiautoWireless
maation kehitys
process
alusta muuttuu
automation
langattomaksi
Virtual reality
and simulations
in design, R&D,
and training
Customized
digital printing
25
Micro
machines,
sensors,
nanotech
Lite
designs
Summary
Summary
Internationalization of R&D
•
•
•
•
Systematic Technology Management provides the necessary
transparency for continuous improvement and learning
- a pre-requisite for effective R&D in an international company
Coupling of R&D with business model and partnership
development is necessary - increased focus on life-cycle thinking!
Active orchestration is vital for effective and international R&D ensure critical mass in developing the well focused core of your
business; Develop simultaneously your capabilities to orchestrate
everything around it
The human factor - personal relationships and trust - should
never be underestimated; Promote international mobility of R&D
staff!
Partners
Core
27
Certified
partners
Core