Presentation

LUT School of Industrial Engineering and Management

Vesa Harmaakorpi, Dean

Global threat of sustainable value creation

− ”Triple debt”1. Ecological: Natural resources are 1,5 times over-utilized.

2. Economic: Europe, countries and municipalities are living on credit. We are eating from the plates of our children.

3. Social: People feel bad under growing pressure.

Weakened competitiveness of companies, public sector and society.

Preventing the triple debt is offers business opportunities.

Areas and challenges of sustainable value creation

− Development of innovation systems − Innovation systems cannot respond to the challenges of open innovation− Insufficient dialogue between science and practice leads to unnecessary use of

limited resources− Exploitation of innovation potential is weak

− Development of management and processes − Productivity is taken from people not processes− Knowledge in organizations is poorly utilized. − Benefits of networks are not used

− Development of ICT− ICT is seen only from a technical point of view, not as part of business processes− ICT is not applied in novel ways− Openness is just on the way, closed systems prevent open innovation

Our response: Productivity innovations

“Productivity is not everything but in the long run it is almost everything” (Krugman 1994)

“Production and use of knowledge is at the core of value-added activities, and innovation is at the core of growth” (Archibugi and Michie 1995)

“Europe suffers of productivity gap preventing sustainable growth“ (EU)

“80% of growth is explained by increased productivity; 80% of the increased productivity is explained by innovation” (Cooke, 2005)

Development of Innovation Systems

Development ofManagement and

Processes

Development ofICT

PRODUCTIVITYINNOVATIONS

Productivity Innovations in Sustainable Value Creation

Public SectorBusiness

Research at the School of Industrial Engineering and Management

“The aim of the research is to produce state-of-the-art scientific research by combining practice and theory and applying them effectively”

Faculty research is based

on three areas of expertise:

School of Industrial Engineering and Management- figures

− Number of students: − Industrial Management: 839− Information Technology: 358

− Number of postgraduate students: − Industrial Management: 75 − Information Technology: 13

− Number of staff members: 130 − Number of professors: 17

Graduates (year 2012)

IEM IT

Bachelor of Science 78 18

Master of Science 125 42

Doctor of Science 7 2