Ambassadors of innovation on architectures

Ambassadors of Innovation

25 September 2013
Philips museum Eindhoven

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

Ambassadors Event, Innovation Management, September 2013

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


The value of architectures for todays businesses
from the consultancy practice view
Ambassadors Event
Kees van der Klauw
Executive Sponsor Philips Architecture Community
March, 2013

What is happening in today’s business environments ?

- speed
• 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)


2

Philips perspective
- complexity
• 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

3

Philips perspective
- complexity
• 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.

4

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


5

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”


6

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 …….

7

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


8

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”.

9

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


10

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


11

Some examples:
internal Philips:
• XRay systems
• electric toothbrushes
• shavers

external:
• automotive: Volkswagen
• tunnels (RWS)


12


13


14

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

18

Architecture Consultancy
Our contributions:

Industry
Consulting

• support to improve system architectures
(content)
• transferring approaches and competences
for better architecting

Where consulting
gets hands-on

19

Menno de Jonge,
Innovation Manager, Ballast Nedam
What modular building systems mean for the construction business,
especially for niches that are still growing


The Effect of Modularization on
Business Architecture of Ballast Nedam
Philips Ambassadors for Innovation
25 September 2013
Menno de Jonge

Innovatiemanagement

[1]

Content
Introduction Ballast Nedam
Modular Building Systems
Effect on business architecture
Summary and Conclusions

Innovatiemanagement

[2]

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)

Innovatiemanagement

[3]

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

Innovatiemanagement

[4]

Core activities in four areas of work

Innovatiemanagement

[5]

Core Activity - Housing

Innovatiemanagement

[6]

Core Activity - Mobility

Innovatiemanagement

[7]

Core Activity - Energy

Innovatiemanagement

[8]

Core Activity - Nature

Innovatiemanagement

[9]

Content
Effect on Business Architecture

Innovatiemanagement

[10]

Modular building systems Ballast Nedam

•
•
•
•

iQhome® (concrete housing)
Ursem® Modular Building Systems (wood frame housing)
ModuPark® (steel / concrete parking garage)
Plug and Play Core® (steel / concrete stadium)

Innovatiemanagement

[11]

iQhome®

Innovatiemanagement

[12]

iQhome®

Innovatiemanagement

[13]

iQhome® - The Factory

Innovatiemanagement

[14]

iQhome® Logistics / Construction process

Construction process

Innovatiemanagement

[15]

iQhome® – Charactaristics

•

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

Innovatiemanagement

[16]

iQhome® - Freedom in Architecture

Innovatiemanagement

[17]

Ursem®

Innovatiemanagement

[18]

City Living Student Hotel Amsterdam

Innovatiemanagement

[19]

The Student Hotel Business Model

Innovatiemanagement

[20]

Ursem® – The Factory

Innovatiemanagement

[21]

Ursem®
Logistics / Construction process

Innovatiemanagement

[22]

Ursem® – Characteristics

•

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

Innovatiemanagement

[23]

Ursem® - Freedom in Architecture

Innovatiemanagement

[24]

ModuPark®

Innovatiemanagement

[25]

Parking Meander Hospital, Amersfoort

Innovatiemanagement

[26]

ModuPark®
Logistics / Construction process

Innovatiemanagement

[27]

ModuPark® - Charactaristics

•

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, …)

Innovatiemanagement

[28]

ModuPark® - Freedom in Architecture

Innovatiemanagement

[29]

Plug and Play Core®

Innovatiemanagement

[30]

P&P Core® - Qatar Soccer WC 2022

Innovatiemanagement

[31]

P&P Core® - Qatar Soccer WC 2022

Innovatiemanagement

[32]

Plug and Play Core® - The Movie

Plug and Play Core Movie

Plug and Play Core Magazine

Innovatiemanagement

[33]

Content

Innovatiemanagement

[34]


traditional

Business Architecture
Construction
Use
Site
preparation

Land
scaping

Assembly
Use
Site
preparation

Land
scaping

Assembly
Use
Site
preparation
and
Landscaping

Innovatiemanagement

Shortening
[35]


•
•
•

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, ...)

Innovatiemanagement

[36]


•
•
•
•
•
•
•

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”

Innovatiemanagement

[37]

iQhome® - Web configurator

Innovatiemanagement

[38]


Innovatiemanagement

[39]


Innovatiemanagement

[40]


Innovatiemanagement

[41]

Content

Innovatiemanagement

[42]


•

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

Innovatiemanagement

[43]

The Effect of Modularization on
Business Architecture of Ballast Nedam
Philips Ambassadors for Innovation
25 September 2013
Menno de Jonge

Innovatiemanagement

[44]

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


WHAT LIGHT CAN DO FOR YOU: CONNECTED LIGHTING
LEON VAN DE PAS, GENERAL MANAGER CONNECTED LIGHTING

1

Key takeaways
• 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

2

SHAPING THE FUTURE OF CONNECTED LIGHTING

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

3

Key takeaways
• 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

12

Contact details
Philips Innovation Services,
Industry Consulting
Innovation Management

Operations management

Iason Onassis

Jan-Edzard Talsma

Managing Consultant
Industry Consulting, Philips Innovation Services
High Tech Campus 7, HTC 7.3A.016
5656 AE Eindhoven, Netherlands

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: iason.onassis@philips.com

Mob: +31 6 20440472
email: jan-edzard.talsma@philips.com

Support Office:
Nicole.de.koning@philips.com +31 40 27 40827
Website:
Innovation Flash:

http://www.innovationservices.philips.com
http://www.innovationservices.philips.com/innovation-flash-newsletters


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