PPPs and the Platform Economy: Impact on Smart Cities and Urban IoT Solutions10.05.2019Ilkka Lakaniemi

Research Director, CKIR, Aalto University School of BusinessDirector, Combient Industry NetworkChair, TIEKE, the Finnish Information Society Development Centre

Background

• Nokia corporate venturing, 2000-12• EU FI-PPP experience, 2012-17• German-Finnish industrial partnership for Industrie 4.0, 2014-• Finnish national strategies for digital economy, digitalization...,

2012-• Industry-academia co-operation - Aalto• Swedish-Finnish industry consortium - Combient

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Intelligent Ways of Working

Intelligent Tools: Driving and enabling progress

• Automation and robotics• Augmented workforce• Artificial Intelligence (AI)• Cybersecurity• Data flows• Mobility – 5G

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Key Parameters• Searching for Growth• Lamenting over sectoral productivity and performance• Moving from technology-mindset to business mindset• Really shortening the time to market (e.g.venture-client approach)• From industry-led and public sector enabled to real partnerships

and value creation• Skills, skills, skills…people matter even more, not technology!

Competitiveness is the Goal

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Platforms/Innovation

ecosystems

AI and Smart Data

1 2Computation

Intensive Automation/Augmented Workforce

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PPPs in the Smart City/Urban Context• Pro-innovation public procurement: By describing

the object of procurement through its intended effect, the public sector creates space for innovation and activates the development of new solutions.

• The right to challenge: the right to challenge gives the opportunity for different actors to analyze and point out the shortcomings in public sector operating procedures and suggest better functioning services or procedures.

• Opening up public information: open public information resources give incentives to the development community to develop new services which in turn further the public sector’s own goals.

• Openness of planning: open long-term service and operational planning among public organizations provides an overall outlook of future needs and an incentive to invest in and prepare for them.

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Defining Platforms and Examining Value Creation

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Platform Value Now (PVN)• Innovation ecosystems are increasingly regarded as important vehicles to create and

capture value from complex value propositions. • Value propositions can be known ex-ante and an appropriate ecosystem design derived

from them.• However, technological innovations enabling unbounded range of potential value

propositions offer no clear guidance to firms. • Thus ecosystem creation in such conditions needs to be a systemic process driven by

coupled feedback loops, which organizations must try to control dynamically.• Ecosystem dynamics require continuous roadmapping and pre-empting. • Dynamic control further entails counteracting the drifting away of the nascent

ecosystem from the firm's idea of future value creation and the sliding of its intended control points for value capture.

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EU IoT LSP: SynchroniCity• Synchronicity opens up a global IoT market where cities and businesses develop shared digital

services to improve the lives of citizens and grow local economies. • The SynchroniCity project has received funding from the European Union’s Horizon 2020 research

and innovation programme and it is part of 104m€ Large Scale Pilots Programme. • 38 partners worldwide from business, academia, municipalities and NGOs are contributing to the

project.

OASC• Open & Agile Smart Cities (OASC) is a non-profit, international smart city network that has the goal

of creating and shaping the nascent global smart city data and services market. • OASC connects 117 smart cities globally organised in national networks from 24 countries and

regions. • Together, we strive to establish the Minimal Interoperability Mechanisms (MIMs) and standards

needed to create a smart city market.

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Learnings from bIoTope-Use Cases

1. IoT has been shown the potential to provide companies theopportunity to open up new business channels as well as to createnew value adding services to smart cities

2. Gaining business benefits requires IoT to be made beneficial for theones that implement it, allowing them to offer a product or servicethat is applicable to a wider range of potential customers• Business models should not only target one specific sector

3. The environment needs certain stability and trust to supportimplementation

Recommendations• Aligning objectives from industry and public sector

• Investments: Growth opportunities, sustainability…• Co-creation: Smart Hubs, community, shared services…• Continuous learning: workforce, community, talent…• From traditional innovation processes to new partnerships: Old

models do not apply…• Security and trust as the key components in European initiatives!

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Thank You!

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