Joint Procurement Methodology

Joint Procurement Methodology
with User Engagement

Álvaro de Oliveira

1
Promoting Innovation through Pre-Commercial Procurement - Brussels, 23-24/Mar/2010

Big Global Challenges of our time

Finding solutions for clean energy sustainability
Finding solutions for climate change
Managing demographic shifts
Preventing and managing ageing problems
Providing safe water supplies
Maintaining food security
Optimizing mobility
Implementing security

2

Solutions Requirements
To pull and stimulate diverse types of knowledge and
resources. The scale of problems creates the need to harness
the widest possible set of resources for problem solving
Solutions cannot force changing behaviour, they cannot be
pushed down at people
Harnessing the motivation of millions of individuals and their
communities
We need new, distributed and highly participatory systems
in order to achieve user behaviour transformation
Social networks and Web 2.0 tools allows to design simple,
low-cost and highly adaptive participatory systems

3

Innovation Solutions

Pre-Commercial Procurement of Innovation
European Network of Living Labs
4

What is a Living Lab?
Real living environment, where the user (citizen,
resident, worker, student, visitor, customer) lives,
works, studies, plays and entertains. In this real
environment the user co-creates, experiments and
tests new ideas, products and services.
In the traditional research environment scientists and
researchers are engaged in the development of new
technologies, products and services to meet perceived
market needs which many times don’t materialize or
are not met by technology pushed solutions.
A Living Lab is a user-driven open innovation eco-
system.
5

Driving changing factors of Living Labs
Internet is at the heart of the open co-creation
Platforms and open connectivity are key facilitators
Living Labs are citizen/user oriented environments,
promoting innovation and pioneering new markets
Open innovation is the soul of competitiveness
(Social networks, open source)
Emergence of new services
Ecological sustainability
awareness enabling consumer
behaviour transformation

6

Living Labs Methodologies
Increased collaboration between public authorities,
research centers, businesses and user communities
Flexible and adaptive design process rooted in real-life
experience with increased chances of succeeding with new
products. Shorter lead time from concept to market
(promote viral adoption)
Acceleration of innovation. Increased productivity of the
RDI activities. Sharing good practices
Facilitate the international positioning and privileged
access to the markets
Facilitate the development of human capital
Increased sustainability culture
7

Living Lab Eco-system

Local, Regional Univeristies
and National and Research
Government Institutes

Living
Lab

Funding and
Financing Enterprises

RDI Facilitatio User Communities
Stakeholders n

8

User Communities in Living Labs

User Communities
Comunidade de Usuários
Comunidade
Virtual

9

European Network of Living Labs (ENoLL)
New
83 Living Labs
from 4th wave

1st Wave: 19
2nd Wave: 32
3rd Wave: 78

10

EU Presidencies Policies for ENoLL
4th Wave ENoLL,
Autumn 2009 Spanish Presidency
Spring 2010

Swedish Presidency
Cross Border Networks
Autumn 2009

Czech Presidency
4th Wave ENoLL (?), Rural Networks
Spring 2009
Autumn 2009
French Presidency
bringing
Innovation to citizens 3rd Wave ENoLL,
Slovenian Presidency Autumn 2008
Challenging cross- Autumn 2008
border and Pan
European level Open
2nd Wave ENoLL,
Portuguese Presidency Innovation
Autumn 2007 Spring 2008
Renewing Lisbon
strategy for people
Autumn 2007

German Presidency
Regional innovation
Spring 2007

Finnish Presidency
Helsinki Manifesto
Autumn 2006 1st Wave ENoLL,
Autumn 2006

11

National and Regional Networks of Living Labs

Finnish Network
Swedish Network
Nordic Network
Cataluña Network
Slovenian Network
Portuguese Network

12

Thematic Networks Domains of ENoLL LL’s
Clean energy sustainability
Climate change and environment
Well being and health
Mobility
Security
Sustainable urban development. Smart cities
Rural and regional development
Industrial and logistics development
Social innovation. Social inclusion
Electronic government. eParticipation
13

SAVE ENERGY Living Lab ICT – CIP Project

Goals:
Smart ICT Energy
Efficiency model and
platform
Serious Game focused
on Energy Efficiency at
Public Spaces
User behavior
transformation. Living
Lab methodology
Pilots committed to
extend results beyond
project completion
European wide
dissemination of
results
Policy
Recommendations to
the EU Commission
14

SAVE ENERGY
Opening new Energy Efficiency and ICT Markets for SMEs

French
Pilot
(10.000
users)

APOLLON Portuguese
Project Pilot (50.000
users)

Brazilian
Pilot São Paulo
(10.000 users)

Brazilian
Pilot Vitória
PreCo (10.000 users)
Project

Others

15

APOLLON objectives and expected results
Objectives
Demonstrate the positive impacts of cross-border domain-specific Living Lab networks
Addresses four major domains in which ICT products and services innovation may benefit
Real-life experiments will be designed and implemented to pilot and validate the cross-
border domain-specific collaboration between LL’s

Expected Results
A set of validated methodologies to set up and conduct cross-border Living Lab networks
A recommended toolset for facilitating cross-border Living Lab activities
The set-up of European thematic Living Lab clusters
A platform and practical guidelines for involving SMEs
An impact assessment of the specific added value in terms of results as well as
operational efficiencies of the cross-border approach
Recommendations and action plans for viable, sustainable and scalable roll-outs to
further domains and sectors

16

APOLLON Approach


SMEs Internationalisation
Luleå LL Helsinki LL

Kyab PV

Business Partnership
rsh
ip Vitória LL
r tne
Pa
ions
lut
So
ted
egra ship
Int rtner
es s Pa
Busin

Technology Transfer

ISA
PW
Integrated
Solutions Partnership
Lisbon LL Amsterdam LL
HAE

ISA internationalization strategy to establish business partnerships in Luleå and Vitória (equipment
distribution), integrated solutions in Helsinki and Amsterdam (incorporating added value with other
equipments and services) and adding value by technology transfer from Amsterdam.

18

European Network of Urban Living Labs
SAVE ENERGY Pilots have co-created common Energy Efficiency solutions
adopting Living Lab user-driven open innovation methodologies
The Project has identified common needs, best practices, technologies and
service suppliers, and new business models
User Behaviour Transformation methodologies enabled by ICT have been
designed, implemented and are being evaluated
A cross-border eco-system sustained by strong trust between the pilot cities
has been established
SAVE ENERGY 5 Pilot cities have created the European Urban Network of Living
Labs (To be formalized in November 2010). The Network is open for other city
members and will liaise with other networks already in the field, such as
Connected Cities, Convener of Mayors, etc.
Public-Private Partnerships will be established to engage in the development
and implementation of Energy Efficiency solutions adopting Pre-Commercial
Procurement of Innovation methodologies

19

Pre-Commercial Procurement Good Practice
Procure R&D in steps (solutions, prototypes, test series) to
reduce risk and give SMEs a chance
– Grow size of tasks gradually, make bridge from ideas to first test product,
procurer = SME first customer reference
Risk-benefit sharing with suppliers
– Less risk procurer, commercialisation opportunity suppliers
Competing development with multiple suppliers
– Better value for money. US defense report: in-development competition
reduces first unit acquisition cost with 20-30%
Sharing R&D costs with other procurers
– Cooperation across borders can help develop a European market and
common standard

Source: Lieve Bos DG INFSO

20

Living Labs and the European Network of LL’s
Living Labs are user driven open innovation eco-systems
which can bring about the massive social changes that are
required by the societal challenges we are facing.
Living Labs operate from a human perspective – from the
standpoint of people, their relationships and connectivities,
desire and culture. The participating communities
contribute with ideas reflecting their needs and
experiencies followed by cycles of rapid prototyping,
testing and improvement until the early adoption. The
methodology allows to generate immediate user
engagement and feedback in a way that no report,
blueprint or document could have done.

21

Conclusions
Pre-Commercial Procurement of Innovation requires
awareness, trust and motivation with a clear
understanding of risks and benefits. This requires a
collaborative environment among all the stakeholders.
Furthermore the effective application of these solutions
imply user behaviour transformation which can only be
achieved by the motivated participation of citizens / users
who are part of the innovation co-creation.

Living Labs and the European Network of Living Labs can provide a
natural platform for faster and successful adoption of
Pre-Commercial Procurement of Innovation at European scale.

22

Thank You

Álvaro de Oliveira
alvaro.oliveira@alfamicro.pt
Phone: +351 21 486 67 84
Mobile: +351 91 666 66 66
Skype: alvaroduarteoliveira
Address: Alfamicro
Alameda da Guia, 192-A
2750-368 Cascais
PORTUGAL

23

Living Labs Innovation Positioning

InI
Internal RDI InI
Open Innovation Platforms Pilots

Prototyping
Social Pilots

Field Living Labs
Experiences Pilots
In the
Market
Testbeds

Low Maturity High

24

SAVE ENERGY Dissemination Strategy
Web Portal, Web 2.0 Tools and Services and Social Networking

25

Living Labs Methodologies (1/2)
Easier to understand end-user needs and wishes
Flexible and adaptive design process rooted in real-life
experience with increased chances of succeeding with
new products
Shorter lead time from concept to market, promote
viral adoption
Better access to ideas outside the organization
Better and more intensive use of internal ideas
Acceleration of innovation. Sharing good practices
Usage of methodologies and tools for Co-creation

26

Living Labs Methodologies (2/2)
Increased collaboration between public authorities,
research centers, businesses and user communities
Increased productivity of the RDI activities
Creation and exploitation of new technologies,
products, services and business models
Improved cooperation in International networks
Facilitate the international positioning and privileged
access to the markets
Facilitate the development of human capital
Increased sustainability culture

27

Joint Procurement Methodology

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