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How to use industrial design in B to B industry to make more money.
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Make money by using Industrial Design
Mr Lauri Aaltio, founder of Jukola7 OyMaster of Arts / Industrial and Strategic Design
Master of Science / Automotive Engineering
www.jukola7.com DESIGN&ENGINEERING
1 What is industrial design?
Direct costs of product
Profit
General costs of product
General costs of organizati-
on
Reve
nue
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a sketch a rendering a prototype
Which one has better industrial design?
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When its raining, the keys are in your pocket and you dont want to take them out and anyway you would not see any-thing...
SYKSY5
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! SUCCESS! :) ! YOU FAIL! :(
Ford Motor Company revenue was 13 Billion $ 2013
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We had an ex-cellent man-agement pro-cess behind this product.
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What is industrial design?
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a sketch
a standard
a rendering
a patent
The Product
a product
”Design is the fundamental soul of a man-made creation that ends up expressing itself in suc-cessive outer layers of the prod-uct or service.” Steve Jobs
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What would You buy?
Lantmännen Cerelia revenue was 1.5 Billion EUR 2013
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When You are in a hurry!
How many minutes to boil?13
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We have ALL the nutrition-al facts in the package!
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Timetravel!
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Lopputuote
sketching, concept de�nition
Prototypes, models, 3D rapid models
�nal designBrief
Inspiration
Implementation
Ideation
Tim Brown, Harvard Business Review: Design Thinking, 84
Design ThinkingEmpathy, optimism, experimentality, co-operation
... way of things
traditional...
Design......Thinking
Timetravel!
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Lopputuote
Luonnostelu, konseptointi
Prototyypit, kapalevymallit, 3D printit
Tarkentava suunnitteluTehtävänanto(brie�)
Market and competitors
Subcontrac-tors ability to
produce
D e s i g n r e s o u r c e s and skill le-
vel
St rate gi c a l hopes of
company
Kuvallinen toimintatapa, Get physical fast, Runsas mallien ja 3D-printtien käyttö, Ideointimenetelmät, ryhmätyö, Pajamaisuus, Mallinrakennus, hyvä dokumentointi, tiedon jakaminen, kohtaaminen, hyvä työnteon ilmapiirin
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MuotoiluajatteluEmpatia. Optimismi. Kokeellisuus. Yhteistyö.
! Observe the real life situ-ation cheaply in advance.
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! 1:1 models
-make changes
-cheap
-flexible
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! Fail! ” The goal for VR’s operations is a sat-isfied customer. The Group aims to provide its custom-ers with high-qual-ity services that are easily available.”
68 million travels year 2011
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We had excel-lent meetings during this project!
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! Success :)
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It is about people. 80% communication and psychology.20 % design.
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Samppa J. Salminen, Develop-ment manager, Valmet
Be brave. Dare to think dif-ferently. Lead people to pos-sible futures.
Enjoy the short moments in between, that could be all that you ever get...
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Lopputuote
Luonnostelu, konseptointi
Prototyypit, kapalevymallit, 3D printit
Tarkentava suunnitteluTehtävänanto(brie�)
! Conclusion
make money and sound products by using industrial design:
A development process inside your own company and organization
Market and eventually a single user / buyer
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R&D time, gained information, number of decisions made
Pro
du
ct p
rice
(bu
yin
g in
)
Old p
roduc
t
Conv
entio
nal d
esign
Comp
etito
rs pr
oduc
t
Desig
nThin
king
Pro�
t
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Kiitos!Lauri Aaltio
www.aaltio.fi
www.jukola7.com
DESIGN&ENGINEERING
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan tuotantovas-
taava
subcontractor stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor producer
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design con-cept usability concept
stress analysis con-cept
cost conceptenergy efffi-ciency concept
produc tion concept
m a r k e t i n g concept
dynamics simulati-on concept
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan tuotantovas-
taava
subcontractor stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor producer
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design con-cept usability concept
stress analysis con-cept
cost conceptenergy efffi-ciency concept
produc tion concept
m a r k e t i n g concept
dynamics simulati-on concept
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan tuotantovas-
taava
subcontractor stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor producer
design physical mockup
design Catia-model for FEM analysis
subcontractor engi-neer Catia Sheetme-
tal model
subcontractor engineer stress analysis model
design Catia-model (solid)
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renderings
drawings and partlists
emails and No-tes-folders
stress analysis sketches
written text in a nap-king
A lot of com-munication (should be a
lot)
Many perspectivesA lot of people
design physical mockup
design Catia-model for FEM analysis
subcontractor engi-neer Catia Sheetme-
tal model
subcontractor engineer stress analysis model
design Catia-model (solid)
design con-cept usability concept
stress analysis con-cept
cost conceptenergy efffi-ciency concept
produc tion concept
m a r k e t i n g concept
dynamics simulati-on concept
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan tuotantovas-
taava
subcontractor stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor producer
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! ”Eikä tässäkään vielä kaikki...”
Strategical industrial design in concept development:
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! Visual way of telling stories and concepts.
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market situation
logistics
production costs
production
competitors customers
value proposition
sketch of a product
! ”Eikä tässäkään vielä kaikki...”
Strategical industrial design in concept development:
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Revenue Streams
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
Channels
Customer Relationships Customer Segments
channel phases:1. Awareness How do we raise awareness about our company’s products and services?
2. Evaluation How do we help customers evaluate our organization’s Value Proposition?
3. Purchase How do we allow customers to purchase specific products and services?
4. Delivery How do we deliver a Value Proposition to customers?
5. After sales How do we provide post-purchase customer support?
Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform
examplesPersonal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
Value PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
characteristicsNewnessPerformanceCustomization“Getting the Job Done”DesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability
categoriesProductionProblem SolvingPlatform/Network
types of resourcesPhysicalIntellectual (brand patents, copyrights, data)HumanFinancial
motivations for partnerships:Optimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities
is your business more:Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven ( focused on value creation, premium value proposition)
sample characteristics:Fixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope
www.businessmodelgeneration.com
The Business Model CanvasOn:
Iteration:
Designed by:Designed for:Day Month Year
No.
types:Asset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising
fixed pricingList PriceProduct feature dependentCustomer segment dependentVolume dependent
dynamic pricingNegotiation( bargaining)Yield ManagementReal-time-Market
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or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
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Kiitos!Lauri Aaltio
www.aaltio.fi
www.jukola7.com
DESIGN&ENGINEERING
