interaction of the r&d and business development in wooden housing

11.02.2005 Matti Kairi1

HELSINKI UNIVERSITY OF TECHNOLOGYWOOD PRODUCT TECHNOLOGY

Interaction of the R&D and Business Development in Wooden Housing Systems

Matti KairiHelsinki University of TechnologyLaboratory of Wood Product Technology

Enterprises, innovations and public policy related to forestry-wood value added chainJoensuu 11.-12.02.2005



Building with Wood Building System with Wood


HELSINKI UNIVERSITY OF TECHNOLOGYWOOD PRODUCT TECHNOLOGY Overview of the wood-constructing methods and -systems

Stabförmige SystemeJoist and Beam systems

Flächige SystemeSlab Systems

Development steps:

•Timber struss, Post and Beam, Timber Frame

•Load bearing with post, beams and columns

•Bracing in Timber Frame System with sheeting

Later development:

Construction parts with integrated functions:• Transmitting vertical- and horisontal loads• Shell, airtight compartment• Wind tightness if required• Part of the thermal insulation• Energy reserve



Overview of the wood-constructing methods and -systems

Wood-constructing methods and systemsBeam and Joist systems Massive

Con

stru

ctio

n m

etho

dSy

stem

/Sub

-pro

duct

Timber truss Log structures

Ballon-framePlatform frame Log structures

Post and Beam Timber frame Prefab elements

Timber frameModular systems Slab systems Slab systemsPost and BeamB e k o l o g S k e l e t t B l u e B o x 8 1 , 5 K M u l t i b o x B r e t t s t a p e lI n d u o C S - R a u m z e l l e n A g e p a n K M u l t i s t e g D u b e l h o l z

L i v i n g S t r u c t u r e H e r a k l i t L i g n a t u r H a a sM o d u l a r - T y p N T C S c h u l e r H o m o g e n 8 0S P P - M o d u l e T r u s J o i s t S t e k o L i g n o t r e n d

L i n o t e c

Log „sandwich“



Blockbau - Log Building



Holz- FachwerkbauTimber struss system



Holzskelettbau Post and Beam


HELSINKI UNIVERSITY OF TECHNOLOGYWOOD PRODUCT TECHNOLOGY Holzrahmenbau

Timber frame



Holzrahmenbau Timber Frame



Finnframe Software

FINNFRAME-Construction system

Overview of the single programmes

- Construction programme

- Designing programme

- Cutting - optimisation



Flächige Systeme Slab System

Later development:

Construction parts with integrated functions:

• Transmitting vertical- and horisontal loads

• Shell, airtight compartment

• Wind tightness if required

• Part of the thermal insulation

• Energy reserve



Ways for joining the lamellas, nailed, dowelled, glued

Brettstapel-Elemente, nailed Brettstapel-Elemente, dowelled Glulam element, glued



Surface, productionsharp edged

bevelled

interspersed

acoustics profile

Ways for joining the lamellas, nailed, dowelled, glued



Producer- Lignatur AG, CH-9104 Waldstatt

- System- Floor and Roofing elements

• slab system• structural• sound isolating• thermal insulating

o Box, slab and shell elements• coniferous, 3-Layer-Boards• industrial produced• glued (high-frequenz method)• production and measurements according DIN 1052• gluing permission• different visibilty- and surface quality• F 30 B

Lignatur


HELSINKI UNIVERSITY OF TECHNOLOGYWOOD PRODUCT TECHNOLOGY Lignotrend

o Producer- Lignotrend AG, D-79809 Weilheim-Bannholz

o System- Elements for wall, floor and roof

• structural and bracing• slab system



Overview of the wood-constructing methods and -systems

Wood-constructing methods and systemsBeam and Joist systems Massive

Con

stru

ctio

n m

etho

dSy

stem

/Sub

-pro

duct

Timber truss Log structures

Ballon-framePlatform frame Log structures

Post and Beam Timber frame Prefab elements Log „sandwich“

Timber frameModular systems Slab systems Slab systemsPost and BeamB e k o l o g S k e l e t t B l u e B o x 8 1 , 5 K M u l t i b o x B r e t t s t a p e lI n d u o C S - R a u m z e l l e n A g e p a n K M u l t i s t e g D u b e l h o l z

L i v i n g S t r u c t u r e H e r a k l i t L i g n a t u r H a a sM o d u l a r - T y p N T C S c h u l e r H o m o g e n 8 0S P P - M o d u l e T r u s J o i s t S t e k o L i g n o t r e n d

L i n o t e c



Timber, Glulam, Plywood,LVL, OSB etc.

Panels, Headers, Beams,Posts,

Designed, produced and installed floor,wall, roof and exterior Systems,

Raw Materials

Components

Sub-products

Integrated SystemSolutions

Integrated building systems offeringfull range supply chain solutions

I-joists, Trusses

I-joists, Trusses

Dis

tribu

tion

mar

ket

Solu

tion

mar

ket

Re-

man

ufac

ture

rpl

ans,

prod

uces

and

erec

ts th

e „p

rodu

ct“

The building industry is demanding system solution (adapted from Sandberg 1999)



Check list:−The Innovation system must be completed−The plan to avoid Chasm must be done carefully−Check list of concept helps the planning:

·Enterprise’s Business idea for the product·R&D portfolio of the enterprise·Product’s Value Chain·100% product’s contents·Stratified product’s contents·Operating System of the product·Is the Product platform suitable for the product·Is the Partnering based on win-win principle·Can the Key Technology Model be used



In order to become an innovation (I), a technological invention has to gain the type approval of the marketplace, technological institutions and of society. In other words, it has to fulfil the following criteria:

•Technological applicability•Economic profitableness•Social acceptability

Techno-logy

Society

MarketI

Innovation acceptance (Kettunen 2000).



In order to become an innovation (I), a technological invention has to gain the type approval of the marketplace, technological institutions and of society. In other words, it has to fulfil the following criteria:

•Technological applicability•Economic profitableness•Social acceptability

Techno-logy

Society

Market

Uneconomical case

Innovation acceptance is not fullfilled. Dominated by technology(Meristö et al. 2001, 434).



The Technology Adoption Life Cycle of an innovative product. According to Moore (1995, 19), the Chasm represents the critical point of this approach



Innovative products initially enjoy a warm welcome in an Early Market from technology enthusiasts and visionaries, but will then fall into a Chasm if they fail to gain acceptance within a Mainstream Market dominated by pragmatists and conservatives (Moore 1995, 19-20).

The figure represents a situation where visionaries introduce new products to the market at a too early stage, whilst they areincomplete. Pragmatists are only happy with the whole product, because they want a 100% solution to their problem.

The 100% product is defined as the minimum set of products and services necessary to ensure that the target customer will achieve his or her compelling reason to buy (Moore 1995, 20-21).



Added valueB

asic

prod

uct

prod

ucer

Com

pone

ntpr

oduc

er

Sub-

prod

uct p

rodu

cer

Mai

nten

ance

and

reno

vatio

n

Prop

erty

bus

ines

s-b

ased

on

owne

d pr

oper

ty-b

ased

on

rent

ed p

rope

rty

End

user

Mai

n co

ntra

ctor

Inte

grat

ed sy

stem

solu

tion

prod

ucer

Technology push

Market pull:needs of the market

A barrier in the added value chain, demanding the restruction of the product and business development processes (Jumppanen 2003).




Markets Product

Known to theenterprise

New to theenterprise

New to theWorld

Known to theenterprise 70 % 50 % 30 %

New to theenterprise 40 % 20 % 10 %

New to theWorld 20 % 7 % 1 %

Uncertainty

Uncertainty

R&D portfolio (Moore 1991, 109). The percentual figures correspond to the relative amount of successful new products. The figures are indicative (Klus 2004).



Products and services,“advantage” for thecustomer

Market segment and itsrequirements

COMPATIBILITY

StructureResourcesOperating methods, i.e.-leadership system-incentives-production mechanism-problem solutions

The main parts of the business idea (Jahnukainen et al. 1980, 16)



BASIC PRODUCT

Assisting PartsCut-to-size com-ponents

Typeapproval

Trade mark

Value Adding Services

Installed Product Component

EducationLife CycleAssessment(LCA)

Integrated System Solutions

Standardisation

Turnkey Operation

TotalMaintenance

Stratified product concept (Lahtinen et al.1993, 21-23)



Operating system is known from IT industry (source: diana.icu.ac.kr/ICE0120/workshop_C/Introduction_to_Operating_System.ppt thttp://www.freepapers.net/essays/ Operating_systems.science.shtml):

An operating system is a program that acts an intermediary between a user of a computer and the computer hardware. The purpose of an operating system is to provide an environment in which a user can execute programs. The main purpose of an operating system is to make the computer system convenient for the user to use the computer hardware in an efficient manner.

http://www.freepapers.net/essays/Operating_systems.science.shtml

http://www.freepapers.net/essays/Operating_systems.science.shtml



•Operating system (OS) in wood industry shall mean a structural wooden product that is specified in either a standard or technical type approval as a material with reference to other standards for adapting material usage for structural construction, i.e. jointing by gluing or with mechanical fasteners. •OS includes all the services contained in a stratified/100% product that enable the customer to use the product in an approriate, efficient and effortless manner, regardless of his/her level of competence. •OS includes in different readiness grade of re-manufactured products or solutions with all the needed information how to design, assembly in the factory, erect in building site and how to bring wooden construction into use taken into account technical matters relating to humidity.



In wood industry a Product's platform is the basis and the environment, which gives a new industrial process enough support for it to enter an immediate development path.The new industrial process needs to run parallel with its platform environment with regard to

•technology•raw materials•commercialization•related norms•production method,

to avoid a fundamental conflict situation with other products from the same platform environment. The new procedures have to result in a high enough turnover to have a significant impact on the company's overall business.



Partnering

Organisational and Personal Trust in Asymmetric Technology Partnership (Blomqvist 2002, 163).

Finding the right partner and establishing a truly interactive relationship is an essential part of the integrated development project.



As the wood industry follows the added value chain partner relationships are of vital importance especially when the company decides to transfer its products to a higher value levelin the export market. It then becomes possible to create a positive win-win situationshown in a situation with a real Technology Push and Market Pull effect.



Added valueB

asic

prod

uct

prod

ucer

Com

pone

ntpr

oduc

er

Sub-

prod

uct p

rodu

cer

Mai

nten

ance

and

reno

vatio

n

Prop

erty

bus

ines

s-b

ased

on

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d pr

oper

ty-b

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on

rent

ed p

rope

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End

user

Mai

n co

ntra

ctor

Inte

grat

ed sy

stem

solu

tion

prod

ucer

Technology push


Partnering is one good option to avoid a barrier in the added value chain.



Traditional R&D project

Time needed

Business

Product andprocessdevelopment

Basic research

Appliedresearch

Key Technology Model

Implementation of the key technology area (Tekes 1997, 7 adapted by Hirvensalo).

Time needed

Basic research

Appliedresearch

Product andprocessdevelopment

Business

Classical innovation chain where a company's R&D activities utilize results from basic and applied research (Tekes 1997, 7).



ConclusionIn order to develop the competitiveness of building with wood compared with concrete and steel, one must operate according the dominant rules of construction practice at least in the beginning. In addition to material and components delivery, wood industry should offer sub-products regarding to concrete and steel industrial habits as well.Know-how and skills must be trained first in the domestic market, before even starting to think of export.The Focus of development is in new wooden building components, systems and sub-products. Those are typically developed by active SMEs. To be successful in business they must take the represented main steps into account when developing a new sub-product into market.


HELSINKI UNIVERSITY OF TECHNOLOGYWOOD PRODUCT TECHNOLOGY References:•Blomqvist, K. 2002. Partnering in the Dynamic Enviroment: The role of Trust in Asymmetric Technology Partnership Formation. Acta Universitatis Lappeenrantaensis 122, Diss. Lappeenranta University of Technology. ISBN 951-764-638-0.•Jahnukainen, I., Junnelius, C., Sonkin, L. 1980. Liiketoiminnan kehittäminen liikeidean pohjalta. Ekonomia 66, Espoo, ISBN 951-35-2400-0•Jumppanen, P. Interview 16.09.2003•Kettunen, J. 2000. Driving forces for changing customer attitudes, Summary of conference presentations, European Industrial Research Management Association (EIRMA). Paris•Klus, J. and Hirvensalo, R. 1997. The Mechanical Wood Processing (PMT) and Wood-based Panels (PLT) Technology Programmes 1992-1996. Evaluation report. Technology Development Centre Finlamd (TEKES), Technology Programme Report 7/97, Helsinki, ISBN 951-53-0759-7.•Klus, J. 23.09.2004. Interview•Lahtinen, J., Isoviita, A. and Hytönen, K. 1993. Asikassuuntainen markkinointi (Customized marketing), ISBN 951-96199-3-3.•Meristö, T., Karjalainen, J., Ahvenainen, M. and Leppimäki, S., 2001. Values and Technology Scenarious in Context of Strategic Planning. IAMSR. Helsinki University of Technology Publications in Machine Design 1/2001, ISBN 951-22-5312-7 •Moore, G.A., 1995. Inside the Tornado, HarberBusiness, ISBN 0-88730-765-5•Sandberg, L.-G. 1999. Global trends in the wood product industry an adress at RILEM Symposium on Timber Engineering, Stockholm, September 15, 1999.•Tekes 1997. Puun mekaanisen jalostuksen PMT ja PLT teknologiaohjelmat (The Technology programmes of Mechanical Wood Processing (PMT) and Wood-Based Panels (PLT)). Tekes brochure.

interaction of the r&d and business development in wooden housing

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