COLLABORATIVE NETWORKS AND INNOVATION · Trends in CNs – Business Ecosystems “An economic...

© L.M. Camarinha-Matos© L. M. Camarinha-Matos,2019 1

COLLABORATIVE

NETWORKS AND INNOVATION

Luis M. Camarinha-Matos

Universidade NOVA de [email protected]

PhD PROGRAM IN ELECTRICAL AND COMPUTER ENGINEERING


INNOVATION?

COLLABORATIVE NETWORKS?

INNOVATION IN COLLABORATION?


Innovation is creating new ideas and getting them to work.

Innovation must be user-focused.

Innovation is not science or technology.

Innovation creates economical prosperity rather then knowledge.

Innovation is turning an idea into a business success.

Innovation is a change in the economic or social environment.

Innovation is the exploitation of an invention.

Exploitation is everything involved in the implementation

or commercialization.

All these descriptions could be composed in a qualitative equation:

Innovation = Invention + Commercialization or Implementation.

[J. Dias, 2010]

INNOVATION?


Raw ideas provide no benefit, unless

pursued toward some end.

The Universal Industrial Success Curve shows a seven

stage segmentation scale of ideas: from 3,000

unwritten ideas, 300 will be formalized in written

form that perhaps leading to one success.

(Greg A. Stevens and James Burley, “3000 Raw Ideas = 1 Commercial Success!” Research

Technology Management, May-June 1997)

Innovation is not science or engineering, and it is not technology; it is about

taking ideas and developing them into products and services

and bringing them to the marketplace to generate new economic growth.

IDEAS ?


IdeaProject

proposalFeasibility Prototype Development

Launching &

commercialization

Hypothesis

& preparation Research DevelopmentCommercial

exploitation

THOUSANDS HUNDREDS TENS 1

IdeaProject

proposalFeasibility Prototype Development

Launching &

commercialization

Hypothesis

& preparation Research DevelopmentCommercial

exploitation

THOUSANDS HUNDREDS TENS 1

IDEAS ?

PhD thesis


A missing link in innovation

Innovation

“no man’s

land”

Innovation

“no man’s

land”

Research push Market pull

Phase 1Solution proposal

Phase 2Prototype

Phase 3Pre-commercial product/service

Phase 4Commercial

product/service

Phase 0Research

PhD thesis scope

© L.M. Camarinha-Matos© L. M. Camarinha-Matos,2019 7[J. Dias 2010]

Can this be done by a single organization?

What if it is a SME?

FROM IDEA TO MARKET


Eschenbächer et al, 2009

Inspired by Arthur D. Little 2006

Management of

distributed innovation processes


INNOVATION & COLLABORATION

Creation of new value …

by confrontation of ideas and practices,

combination of resources and

technologies, and creation of synergies

INNOVATION

Particularly important for SMEs!

Innovations are increasingly brought to the market by networks of enterprises, selected for their unique capabilities, and operating in

a coordinated manner

… but this demands that companies develop different skills, in particular,

the ability to collaborate with partners to achieve good innovation

performance


COLLABORATION – WHY?

“can’t do alone” /common or compatible goals

“size”

“survival”


A classical supply chain

Example: Automotive industry

NETWORKS IN INDUSTRY

Long-term, quasi-“stable”, coordinated

© L.M. Camarinha-Matos© L. M. Camarinha-Matos,2019

Movie industry

EXAMPLE OF CN

A typical example of a dynamic, temporary network


“A virtual enterprise is a temporary alliance of enterprises that come together to share skills or core competencies and resources in order to better respond to business opportunities, and whose cooperation is supported by computer networks.”

VIRTUAL ENTERPRISE


Spreading over many application domains

BECOMING PERVASIVE

... in different domains different terminologies might be used

... different terminologies also reflected in different roadmaps


MARKET TURBULENCE


COLLABORATION

Increased visibility

Increased level of visibility can help quick adjustments to

demand fluctuations & disruptions

Rapid shape reconfiguration(dynamic consortia formation)

adjusting to needs

Often presented as a mechanism to facilitate resilience and agility


COLLABORATION MOTIVATION

“can’t do it alone”

“survival”

“size”

Coping with market turbulenceIncrease chances of survivalIncrease activities / profitBetter chances to compete with larger companiesLobbying & market influence (branding / marketing)Easier access to loansCheaper group insuranceBetter negotiation power(e.g. Joint purchasing)Prestige, reputation, referenceAccess to /explore new market /product(e.g. Multidisciplinary sector)Expand geographical coverageIncrease potential for innovationEconomy of scaleDevelop brandingAchieve (global) diversity...Also regional strength

Examples of

motivation

factors


HISTORICAL PERSPECTIVE

1970s 1980s 1990s 2000s

Intr

aen

terp

rise

Inte

ren

terp

rise

Sh

op

flo

or

Inte

gra

tio

n

level

Extendedcontroller

Automationisland

FMS/FAS

CAD/CAM

CIM

IMS

Anthropocentric

systems

Balanced Automation

Extended enterprise

Virtual enterprise

Fractal company

Holonic systems

Virtual manufacturing

Autonomous systems

SCM

Lean manufacturing

Agile systems

ICT in industry

Collaborative Network

Evolvable systems

Self-organizingsystems

Service-oriented

architectures

Enterprise

portal

Machine & sensornetworks

VO breeding environment

& Business ecosystem

Learning organization

Virtual organization

Cloud

Enterprise

2010s

Glocal enterprise

Sensingenterprise

Product-Service

Systems

CRM / xRM

Social enterprise

CPS


COLLABORATIVE NETWORK

WHAT IS IN A CN ?

Variety of entities - organizations and people … even machines

largely autonomousgeographically distributedheterogeneous in terms of their:

operating environment, culture, social capital and goals

Collaborate to (better) achieve common or compatible goals

Interactions are supported by computer network.


FORMS OF COLLABORATIVE NETWORKS

Many forms of collaborative networks have emerged in last years


COLLABORATION REQUIRES PREPAREDNESS !

According to some empirical studies failure to achieve successful collaborations

nearly reaches 50 % of the cases !

(Kelly et al., 2002),

(Bamford et al., 2004),

(Blomqvist et al, 2005)

Diverse business practices

Different cultures

Heterogeneous infrastructures

Trust building takes time

Long negotiation times

Communication “overheads”

...


COLLABORATIVE NETWORKS – Main classes

VBE

VO

Long - termstrategy

Temporary(Opportunity

Driven)

VO BreedingEnvironment

Virtual Organization

VT

PVC

ProfessionalVirtual

Community

Virtual Team


SOME EXAMPLES OF VBEs

Metal-mechanics sectorSwitzerland, Germany

Aeronautics sectorSpain

Aeronautics sectorGermany

Watch industry sectorSwitzerland, China

Metal-mechanics sectorSpain

Electronics sectorIreland

netWork Oasis / Science ParkFinland

Engineering & ManufacturingMexico Telecommunications sector

Italy

Engineering Finland

TechMoldes

Moulds industry Brazil


COLLABORATIVE NETWORKS - Taxonomy

Collaborative Network

Collaborative Networked Organization

Long-term Strategic Network Goal-oriented Network

Virtual organizations

Breeding Environment

(VBE)

Professional

Virtual

Community

(PVC)

Grasping

opportunity

driven network

Continuous

production

driven

network

Industry cluster

Industry district

Business Ecosystem

Disaster

Rescue

NetworkVirtual enterprise (VE)

Virtual Organization (VO)

Extended enterprise

Virtual Team

Supply Chain

Collaborative e-government

Collaborative Smart grid

DistributedManufacturing

Ad-hoc

Collaboration

Collaborative

Innovation

Network

Flash mob

Informal

network

One-to-one

informal

collaboration

Mass

collaboration


WHERE ARE WE ?

ICT Infrastructures

VO Breeding Environments /

Business Ecosystems

VirtualOrganizations

Professional Virtual

Communities

Theoretical Foundation

Concepts?

Methodologies?

Support technology and tools?

Practices? Are we done?


BUILDING BLOCKS

Focus on

Theoretical

Foundation

Focus on

VBE Management

Focus on

ICT Infrastructure

Focus on

VO / VE Creation

Focus on

VO / VE Management

VO Creation Framework

VO Creation Services

Preparedness for

Collaboration

Negotiation

Contracting

Electronic Service

Markets

VO Governance principles &

models

Collaborative business

processes

Performance Management

Risk Management

Self-organizing Principles

VO Inheritance

Decision Support

Value Systems

VBE Management

System

Trust Management

Competency & Profiling

Evolution & Sustainability

VBE Reference

FrameworkNetwork Analysis

Service-

Oriented

Architecture

Security

Infra-

structureDistributed

info exchange &

sharingDistributed

processes /

workflow

CloudComputing,

CPS, IoT

Collaboration

Platforms

Inter-operability

Agent-based Approaches

Modeling

Framework

Soft

Modeling

Complexity

Models

Organizational

Ecology

Behavioural

Models

Reference

Modeling

Modeling

base

AffectiveComputing

Classes of CNs Technological Support


http://www.hbs.edu/research/pdf/07-079.pdf

COLLABORATION, WHEN?


Extended

Product /service

Design /

Production

process

Enterprise

Customer

What

How Who

Why

Extended

Product /service

Design /

Productionprocess

Co-innovationnetwork

(enterprises + customers)

What

How Who

TOWARDS CO-CREATION NETWORKS

From customer-centric ...

... to co-innovation networks


SERVICE-ENHANCED PRODUCTS

Physical

product

Product design

& sub-systems

Remote

supervisionRemote

monitoring &

diagnosis

Predictive

maintenance

Product usage:training, assistance,

interaction

Product

design

Product

assembly

Which services?

How to deliver?

Extended Product

Product-Service System

Service-enhanced Product

Product kernel Product shell

Physical components and

technical functions

(Tangible product)

Packaging

(Business) services

Intangible

‘surroundings’ of the

product


AN EXAMPLE

Pool of

European Manufacturers

Local

supplier

Customer

Collaborative

solution space(co-creation playground)

Service provision

space(along PLM)

Cloud-based

pool of resources

Deploy

Product

design

Product model

+ support services

Geo-region AGeo-region BP

hy

sica

l sp

ace

Cy

be

r sp

ace


AN EXAMPLE ...

Manufacturers network

Small & relatively stable VBE

Mostly localed in Europe

Little overlapping

Loose interactions?

... Not yet a VBE !

Customer “network”

Not clearly organized as a

network

Local suppliers

Other entities – R&D, regulators,

etc

Product development

network

Product servicing

network

Virtual enterprise (product life cycle)

Members from “manufacturers

network” & “customer network”

Long duration, evolution

Inheritance ?


SERVICE CO-CREATION / CO-INNOVATION

Co-creation team

Location: Near desert

Problem: Power loss

due to accumulation

of dirt on the solar

panels (soiling loss)

Trigger

panel

cleaning

New service

“Involvement of the customer

... and local stakeholders ...

in the process of

collaboratively creating new

products / services”


VOVO

Core Solar

Energy VBE

GloNet: Glocal enterprise view


Collaboration issues in Through Engineering

Full life-cycle of product

Customer involvement(co-design)

Service-enhanced products


1990’s 2000’s 2010’s

Virtual Enterprise /

Virtual Organization

VE/VO

+

VO Breeding Environments

Interplay of multiple

networksSupply chain

Extended

Enterprise

Ecosystem / community

Blurring borders

Formal & informal networks

Multiple membership

Dynamism, evolving structures

Long term allianceDiferent degrees of membership

Dynamic goal-driven VOs

Single networks

Trends in CNs


Trends in CNs – Business Ecosystems

“An economic community supported by a foundation of interacting organizations

and individuals - the organisms of the business world. This economic

community produces goods and services of value to customers, who

themselves are members of the ecosystem”. [Moore 1993]

The actors of the ecosystem “coevolve their capabilities and roles” [Moore

1996]

Business Ecosystem: a kind of VBE

Collaborative Business Ecosystem – a term that emphasizes the role of collaboration


INDUSTRY 4.0 DIMENSIONSDimension Some relevant topics

1 Vertical integration or networking of smart production systems

Extensive CPS Interoperability Decentralization Virtualization Real-time availability of data Service orientation

Modularization Enterprise wide data analytics &

Augmented reality support Needs-oriented & Individualized Optimization

2Horizontal integration through global value

chain networks

Collaboration Transparency Interoperability, Data sharing Decentralization Business ecosystem / business

community Track and tracing

Safety & security Global optimization Global flexibility Suppliers orchestration Resilience Regulatory framework

3 Through-engineering across the entire value

chain

Product life-cycle Co-engineering End-to-end integration Circular economy Connecting & integrating customers

Availability of data at all stages Tracking & tracing Service-enhance products Creating new product-service

offerings

4Acceleration of manufacturing

IoT, CPS Mobile computing Robotics and drones Artificial Intelligence Additive manufacturing Industrial biology

Neuro-technologies Nanotechnologies Sensing technologies Cloud, big data & analytics Collaborative machines

5 Digitalization of products and services

Self-identification History record and tracing Augmented reality Data availability

Service-enhanced products Assistance Self-diagnosis, self-configuration

6 New business models and customer access

Customer experience Customer intimacy Co-design / co-creation Value chain Link to smart infrastructures

Product-service ecosystem Sustainability Social responsibility Glocal enterprise

Infr

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uct


OPEN INNOVATION

Open Innovation is the process of doing new things with outsiders that deliver value

It’s as much about attitude

Involvement of people outside core task

Involvement of non-employees

Open Innovation - Sources

• Inside

– Employees in different divisions…

– Geographies

– Functions

• Outsideo Suppliers

o Customers

o Consumers

o Partners

o Universities & research institutes

o Retirees

o Anybody


Open Innovation stages collaborative climb – who and why

Closed Innovation – the lab is

our world

Open Innovation – the world

is our lab

Hire the best and the smartest Recognize that lots of smart

people work elsewhere, so

find ways to interface with

them

Put them in special conditions Open your networks to diverse

talents

Innovators are free from

market pressures to innovate

from within

Innovators are exposed to real

world needs, pressures and

information exchange to

innovate by engagement

Very pushy - move technology

pipeline from ideas to

products

Push and Pull - non-linear

process of ideation advances

products and services

Delivered to passive customers Delivered to engaged

customers

http://slideplayer.com/slide/5892246/


OPEN INNOVATION ...

Open source communities

Social networks ?

A social network is a description of

the social structure between actors,

mostly individuals or organizations. It

indicates the ways in which they are

connected through various social

familiarities ranging from casual

acquaintance to close familiar bonds.

LinuxArduino


OPEN INNOVATION ...

A ”Living Lab” is a ...

citizen-business-public partnership operating

in real life/work environment providing

human-centric (user-driven) innovation

service

A living lab is a research concept. A living

lab is a user-centered, open-innovation

ecosystem, often operating in a territorial

context (e.g. city, agglomeration, region),

integrating concurrent research and

innovation processes within a public-

private-people partnership. [Wikipedia]

Living Labs ?

http://www.openlivinglabs.eu/


CROWDSOURCING

Crowdsourcing - outsourcing tasks, traditionally performed by an employee or sub-contractor, to an undefined, large group of people or community (a "crowd"), through an open call.

“Crowdsourcing" - “crowd” + “outsourcing”

Jeff Howe, June 2006

Wire Magazine

Frequently there is a “prize” for the winning idea

(prize competitions)


CROWDSOURCING - Examples

http://www.innocentive.com/



http://reports.crowdsourcing.org/



http://www.onebillionminds.com/



http://crowdsourcing.dsi.uminho.pt/iniciativas-em-portugal



https://www.yet2.com/active-projects/

https://www.ideaconnection.com


CROWDSOURCING – Tools (example)

http://ideascale.com/crowdsourcing-tool.html


CROWDSOURCING ....

Why would people participate?

Is it effective?

Is it a collaborative process?

Crowd or individuals?


“Wikipedia seems like a good example of a crowd of people who have created a great resource. But at a conference last year I asked Wikipedia founder Jimmy Wales about how articles were created.

He said that the vast majority are the product of a motivated individual. After articles are created, they are curated--corrected, improved and extended--by many different people. Some articles are indeed group creations that evolved out of a sentence or two. But if you took away all of the articles that were individual creations, Wikipedia would have very little left. “ Dan Woods, 29-9-2010

Also

The Myth of Crowdsourcinghttp://www.forbes.com/2009/09/28/crowdsourcing-enterprise-innovation-technology-cio-network-jargonspy.html


CROWDFUNDING

Crowd financingEquity crowdfundingHyper funding

The collective effort of individuals who network and

pool their money, usually via the Internet, to support

efforts initiated by other people or organizations[Wikipedia]

http://crowdfunding.com/ http://ppl.com.pt/en

MORE ...

1. Kickstarter

2. IndieGoGo

3. GoFundMe

4. ChipIn

5. RocketHub

6. GiveForward

7. Fundable

8. Crowdtilt

9. Crowdfunder

10. AppBackr

http://crowdfunding.pbworks.com/w/page/10402176/Crowdfunding


Fab Lab - A small-scale workshop offering (personal) digital fabrication

OTHER TRENDS – FAB LAB

Typical fab lab equipment:

Laser cutter, plasma cutter, water jet cutter, knife cutter: sheet material cutting

3-axis CNC machines: 3 or more axes, computer-controlled subtractive milling or turning machines

Rapid prototyper: typically a "3D printer" of plastic or plaster parts

Printed circuit board milling: 2 dimensional, high precision milling to create circuit traces in pre-clad copper boards

Microprocessor and digital electronics design, assembly, and test stations

https://www.fablabs.io/labs/fablabedp

https://www.fablabs.io/labs/fctfablab

Concept was developed in the Center for Bits and Atoms (CBA) of the Massachusetts Institute of Technology (MIT)

Large network: http://fab.cba.mit.edu/about/labs/


OTHER TRENDS – SOCIAL INNOVATION

Social innovation refers to new strategies, concepts, ideas and organizations that

meet social needs of all kinds — from working conditions and education to

community development and health — and that extend and strengthen civil society.

[Wikipedia]

https://www.socialinnovationforum.org

/social-innovator-acceleratorhttp://ec.europa.eu/growth/industry/innovation/policy/social_en


OTHER TRENDS – Hybrid value chains

Hybrid Value Chain (HVC) is a business model that leverages the capabilities

of the business and citizen sectors to enable the delivery of needed goods and

services to low-income populations in a more cost-effective way.

https://www.ashoka.org/en/search/hybrid%20value%20chain


OTHER TRENDS – Mass collaboration

Mass collaboration is a form of

collective action that occurs when

large numbers of people work

independently on a single project,

often modular in its nature.

Such projects typically take place

on the internet using social

software and computer-supported

collaboration tools such as wiki

technologies, which provide a

potentially infinite hypertextual

substrate within which the

collaboration may be situated.

[Wikipedia]


OTHER TRENDS – Mass collaboration …

Stigmergy

... a mechanism of indirect coordination,

through the environment, between agents

or actions. The principle is that the trace

left in the environment by an action

stimulates the performance of a next

action, by the same or a different agent.

Wikipedia


SCIENCE SHOPS

A Science Shop is a facility, often attached to a specific department of a university or an NGO, that provides independent participatory research support in response to concerns experienced by civil society. It's a demand-driven and bottom-up approach to research.

Wikipedia

http://www.livingknowledge.org/science-shops/how-does-a-science-shop-work/

… often involving students


OTHER TRENDS – Crowd science

http://emeraldinsight.com/loi/ijcs


FURTHER READING

L.M. Camarinha-Matos, H. Afsarmanesh, Collaborative networks: A new scientific

discipline, J. Intelligent Manufacturing, vol. 16, Nº 4-5, pp439-452, 2005.

Luis M. Camarinha-Matos, Hamideh Afsarmanesh, Classes of Collaborative Networks, in

Encyclopedia of Networked and Virtual Organizations, Edited by Goran D. Putnik and Maria

Manuela Cunha (Idea Group), Jan 2008.

https://www.academia.edu/244458/Collaborative_networks_a_new_scientific_discipline

https://www.researchgate.net/publication/227067444_Collaborative_networks_A_new_scientific_discipline

https://www.academia.edu/248754/Classes_of_Collaborative_Networks

https://www.researchgate.net/publication/289670799_Classes_of_Collaborative_Networks

Christopher Durugbo, Collaborative networks: a systematic review and multi-level framework,

International Journal of Production Research, 54(12): 3749-3776DOI: 10.1080/00207543.2015.1122249

Francesco P. Appio, Antonella Martini, Silvia Massa & Stefania Testa (2016): Collaborative

network of firms: antecedents and state-of-the-art properties, International Journal of

Production Research, DOI: 10.1080/00207543.2016.1262083

Camarinha-Matos L.M., Fornasiero R., Afsarmanesh H. (2017) Collaborative Networks as a Core Enabler of Industry 4.0. In: Collaboration in a Data-Rich World. PRO-VE 2017. IFIP Advances in Information and Communication Technology, vol 506. Springer•https://www.researchgate.net/publication/319230983_Collaborative_Networks_as_a_Core_Enabler_of_Industry_40


A. Identify three reasons why SMEs should pursue innovation in collaborative networks.

B. Give two clear examples of contexts / scenarios in Industry 4.0 in which innovation in networks is more promising than innovationin-house. Briefly explain.

C. Suggest an example of social innovation where collaborativenetworks could be relevant.

D. Suggest an example of hybrid value chain where collaborativenetworks could be relevant.

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