Exposibram 2011 Belo Horizonte Chris Twigge-Molecey

Transcription

1 Challenges to Innovation in the Consulting Engineering Business Exposibram 2011 Belo Horizonte Chris Twigge-Molecey

2 What is Innovation? Innovation is a practice, object or idea perceived as new that has commercial value. How is value to be created? Needs Understanding Imagination Permission 2

3 3 Different Areas Product Reputation Profitability Corporate Survival Internal Processes Safety Efficiency Quality Delivery Methods 2D vs. 3D Drawings Data-Centric Models Web Applications Mobile Applications 3

4 Barriers to Innovation The race to be second Owner demands Fear of failure Lack of capability Lack of supporting systems Commercialization Process 4

5 Innovation Requires Permission Five Permissions Required The owner/client The organization Line supervision Peers But key: Permission to fail Requires appropriate risk management 5

6 Innovation Management Process Capture ideas Many ideas for one success Availability of money/time to test ideas Process must be lean (Rio Tinto Alcan) 6

7 Owner Attitude and Demands On every project I want one significant innovation But only one. Pat McCullough Chairman BP Minerals (Canada) 7

8 Reasons for Failure Lack of strategic alignment with the business The Innovation Management process Lack of corporate champion Lack of adequate, appropriate resources Momentum (pet projects) Lack of skills to drive commercialization 8

9 Key Steps to Mitigate Risk Established development approach Do the homework Do appropriate test work Fully understand the operations Fully understand the process Bring together best suppliers (not cheapest) Fully integrated team 9

10 Time Frames for Innovation Years to decades 3 Drivers Disaster Driven (pull) Project Driven (pull) Engineer Driven (push) 10

11 Disaster Driven Innovation FeNi Electric Furnace Coolers Issue Identification Theoretical Evaluation Commercial Application 30MW Commercialization 2 nd Installation 45MW FeNi Electric Furnace Coolers Years Initial Solution Proposal Initial Trials Initial Patent File 5 year gap 11

12 Project Driven Innovation Arsenic Removal System Issue Identification Commercial Design Commercial Start-Up Commercialization 2 nd Installation 3 rd Installation Arsenic Removal System Years Lab Testwork Patent Filing 6 year gap 12

13 Engineer Driven Innovation FeNi Furnace Power Control (SPLC) Issue Identification Test Work Phase Commercial Start-Up 8 year gap Years Initial Concepts Patents Filed Commercial Design Second Sale Second Start-Up 13

14 The Engineers Risk: Continuous Steelmaking Concept Conceived Process Evaluation First Patent Filed Fundamental Metallurgical Tests Full Feasibility Study Negotiation with Operators Years Conceptual Design Preliminary Cost Estimates Plant Simulations First Pilot Run 8 tons Second Pilot Run 8 tons 14

15 Client Driven Innovation Noranda Reactor Opportunity Identified Theoretical Evaluation 100 Ton Pilot Plant Commercial Start-Up Start-Up of Second Plant Years Approach Identified Patent Filed Laboratory Testwork Commercial Deveolpment 15

16 Hot Strip Mill Coil Box Opportunity Identified Test Work Proto Type Trials Second Commercial Installation 24 Further Installations Years Theoretical Evaluation of Options First Patent Filed First Commercial Installation Start-up 10 Further Installations 16

17 Traditional Product Innovation Process Needs and Wants R&D Product Development Manufacturing Sales and Marketing Capabilities 17

18 Open Innovation Process Customers Needs and Wants R&D Product Development Manufacturing Sales and Marketing Capabilities Universities Inventors Suppliers 18

19 Hatch Innovation Process Hatch Client Capabilities Experience Technologies Execution Project Needs and Wants Universities Inventors Operational Improvements Suppliers 19

20 Leaders Innovation Must Lead Understand the issues Set the climate Inspire Identify Champions Early adopters Emphasize Sound practices Risk management flexibility 20

21 Innovation is Difficult We must Make innovation a priority Give everybody permission But not everybody will innovate Manage the risks Well known methodologies Focus on communication It starts with us. 21

22 Thank You 22

23 Client Driven Innovation Koniambo 1995 Concept Test Work Phase Patent Filing PFS Rescoping Start-Up Years Scoping Study Pilot Tests BFS Construction 23