Innovation tool examples:AWOT-method

Innovation strategy

Miika KajanusSuceava 8.4.2008

AWOT method

• SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis provides the basic frame for the analysis

• Multi Criteria Decision Support (MCDS) methods assist in carrying out SWOT more analytically and in elaborating the results of the analyses so that decisions can be prioritized also with respect to the entire SWOT.

www.savonia-amk.fi

My background:Research and Innovation Manager in Ylä-Savo Region

• Ylä-Savo Regional Centre Programme • Savonia University of applied Sciences, Kuopio

University and Oulu University• Mission:

• Transfer Research Knowledge to SMEs• Start R&D projects with SMEs• Enhance the Regional Innovation System

Ylä-Savo Region

• Ylä-Savo region is located in central Finland as the

northernmost part of province of North Savo. • Ylä-Savo consists of the town of Iisalmi (21 000

inhabitants) and the surrounding rural districts.• 60.000 inhabitants, 3.000 enterprises, 1.000 farms,

10.000 forest owners • The main sources of livelihood come from services and

food, wood and metal industry. • The region has a powerful background based on dairy

production with forestry as a supplementary source of

income on the farms.

YLÄ-SAVO REGION

Challenges

• Small region and narrow knowledge capacity• Challenging location (far from markets and

knowledge centres• Multiple and diversified enterprises• Some enterprises world class top enterprises in

their markets, some top national, majority local market enterprises; majority SMEs, only couple of units belonging in bigger companies (owners and key persons lives in Ylä-Savo!)

• Practically no existing innovation culture (however, many success stories), trust and ability to cooperate

• Ageing and supply of skillful workforce• Competing globally in “know how hunting” • How market oriented innovation actions can be

integrated into other development actions

Ylä-Savo enterprise centered innovation environment

Markets- Global- National- Regional

Market position

InnovationInnovation

actions

strategy

Own resources /capabilities

production/organization

productionchains

Position in value chains

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Iisalmi, Keitele, Kiuruvesi, Lapinlahti, Pielavesi, Sonkajärvi, Varpaisjärvi, VieremäPohjois-Savo county, Eastern Finland Region

FinlandEuropean Union

Ylä-Savo Development Company Ldt.

examples the enterprises: Iisalmen Ponsse Ldt., Wärtsilä Findomo Ldt. Alueosuuskunta Veljeskoti Ldt. Normet Ldt. Biobower Ldt. Jokeri Talot Ldt. Promilk / Valio

Health and Metal and Energy and Forest cluster Milk products well-being mechanical engineering environment Mini-cluster expert and advisory boards

Savonia-University of AppliedSciences

Ylä-Savo Professional College

Savo Professional College

other educational institutes

KIBS-enterprisesEnterprise associationsCamber of commerce

GTKMETLAMTTVTTOther research institutes

Kuopio universityOulu universityUniversity Centre inKajaani

Pohjois-SavonEmployment and Economic Development Centre

TEKES

Kuopio TechnologyCentre Teknia Ldt.

Finnvera

Finpro

investors

Ylä-Savo success programme 2007-2013 Ylä-Savo Regional Centre Programme 2007-2010 Regional Development Programmes National Research, Development, Technology and innovation programmes Lissabon strategy andOther EU’s programmes

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Inventor associations

Ylä-Savo Industry Association.

How strategy was composed

• During the year 2006• Open discussions of stakeholders• Industry involvement by mini-

clusters• Web-based discussion forum

available

Regional innovation strategies: aspects to Ylä-Savo

=> Need to invest in local knowledge centres to make existing stronger and to establish new ones. However, this is not enough, there is a need for:

1. Enterprises who understand markets have to be in more central position!

2. Fast search for targeted knowledge for enterprises’ international projects!

3. Focus on the core of the issue: how innovation projects can be effectively executed!

Markets anddemandValue chains Miniclusters

Foodstuff

Industry

Services

Milk

Special vehiclesand equipments

Building andinterior

Bioenergy

Environment

Health andWell-being

Tourism

Publicproduction

Innovation activitiesIn enterprises andother organizations

New / better: Products, services Processes, practices Organizations, networks Structures, business models

Research Education

Development

Financiers

Municipalities

Target of the innovation strategy

Inter-mediatorsNew miniclusters

International knowledge networks

Market and technology information integrated and transferred into business

basement: strengthening the existing miniclusters and establishing new ones

Ylä-Savo innovation strategy: - basement: strengthening the existing miniclusters and establishing new ones

New miniclusters

Iisalmen Ponsse Ldt., Wärtsilä Findomo Ldt. Alueosuuskunta Veljeskoti Ldt. Normet Ldt. Biobower Ldt. Jokeri Talot Ldt. Promilk / Valio

Health and Metal and Energy and Forest cluster Milk products well-being mechanical engineering environment Mini-cluster expert and advisory boards

2) Innovation structures

3) Innovation culture and practices

Ylä-Savo innovation strategy :

1) Effectiveness of the innovation actions2) Innovation structures3) Innovation culture and practices

New miniclusters

Iisalmen Ponsse Ldt., Wärtsilä Findomo Ldt. Alueosuuskunta Veljeskoti Ldt. Normet Ldt. Biobower Ldt. Jokeri Talot Ldt. Promilk / Valio

Health and Metal and Energy and Forest cluster Milk products well-being mechanical engineering environment Mini-cluster expert and advisory boards

1) Effectiveness of the Innovation actions

Ylä-Savo innovation strategy 2007 – 2013

Objectives

1) Effectiveness of the innovation activities

2) Strengthening the innovation capacity of the region

Expected effects• More and better

innovations faster

• Better competitive advantages

• Strengthened existing knowledge centres and new established

• Region learn better capability to enhance enterprises in fast hunting of targeted information from global sources and in producing those into innovations

• Region internationalized and is attracting new skilful people and capable enterprises

1 Effectiveness of the innovation activities

1) Executing the innovation projects of enterprises', organizations' and private people

2) Innovation services3) Innovation toolbox)4) Innovation indicators and measurement,

follow-up of the strategy

3 Innovation culture and practices1) Innovation culture and practices2) Cooperation and networking3) Strengthening Innovation capabilities4) Cluster borders. 5) Internationalization.

2 Innovation structure and environment1) Strengthening existing knowledge centres 2) Establishing new knowledge centres3) Structures enabling fast hunting of targeted

information.4) Innovative environments

Focus and action plan

Ylä-Savo innovation strategy 2007 – 2013:

”Instead of speaking about innovations it’stime to take actions:

renew products, services and practices for market needs – also in public sector;

with best partners, local and international;

… and learn to do it better by doing it!”

Innovation Foresight: RPM - Robust Portfolio Modeling

• http://www.rpm.tkk.fi/• http://www.rpm.tkk.fi/Envitec