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INTERACTIVE INSTITUTE SWEDISH ICT ANNUAL REPORT 2014 IISICT2014


Content

Words from the CEO, Imagination is the key.

Highlights for the year 2014.

Key Area’s of Focus.

Financial.

Directors.

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p6–7

p10–17

p18–19 p20


Words from the CEO CHRISTINA VON DORRIEN

“Imagination is more important than knowledge, for knowledge is limited while imagination embraces the entire world.” —Albert Einstein

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Imagination is key An important part of what we do at the Interactive Institute has to do with exploration and experiences. Technology has fundamentally changed the way people interact with the world around them, and this development makes us constantly reinventing the world, piece by piece. Our job is to create great user experiences that involve and engage people – no matter if the challenge is to change the way museums communicate science to their visitors, to improve work environments, or to involve lead users to give companies a competitive advantage. We enable dialogue between different competencies by developing tools and processes that create transparency and mutual understanding.

In 2012, the diversity of what we have to offer and the never ending range of possible application areas reached new heights and created more exciting collaborations with extraordinary results than ever before. New user experiences can be created in all types of businesses and contexts. Therefore, imagination and the ability to think new are essential to our line of work. In order to be successful we cannot only work in the fields we know – we have to explore, experience and discover in order to find the perhaps unexpected intersections and collaborations where new ideas emerge. This is why I am especially proud to present all the different cases in this annual report, each taking on a different challenge and each working with partner companies from different industries. Imagination is also about using existing technologies and techniques in new ways. For instance, it is interesting to see that a lot of what drives product and service development today comes from the gaming industry. The gaming industry has increased the accessibility of qualified hardware, thus making powerful computers available and affordable. Gamification drives the development of mechanisms that create user involvement and participation. An application will not be better than the involvement it manages to create no matter if it deals with learning or home care. With our unique expertise in visualization and interaction design we create business opportunities in new and existing markets. A breathtaking user experience is the difference between failure and success in today’s competition. We believe imagination is the key.

CHRISTINA VON DORRIEN CEO, Interactive Institute Swedish ICT p5


Highlights

January

INTERACTIVE INSTITUTE RECEIVES 10 MSEK FOR DESIGN RESEARCH ON SMART GRIDS. Interactive Institute, Fortum, abb, Electrolux, jm, ncc, hsb, ByggVesta and kth secured funding from vinnova in order to create the first active house in Stockholm Royal Seaport, a new urban district in Stockholm. Interactive Institute was also granted funding by The Swedish Energy Agency for research in this area.

February

VIRTUAL AUTOPSY TABLE PART OF NEW INNOVATION EXHIBITION AT TEKNISKA MUSEET. The Virtual Autopsy Table is part of an exhibition about the 100 most important innovations of all time. The exhibition is called 100 innovations and opened at The National Museum of Science and Technology in Stockholm, Sweden in February.

March

INTERACTIVE INSTITUTE’S CEO AMONG COMPUTER SWEDEN’S 50 MOST POWERFUL WOMEN IN IT. For the second year, Christina von Dorrien, ceo of the Interactive Institute, was on Computer Sweden’s yearly list of powerful women in it that have a lot of influence and impact on Swedish business, technological development, policy and/or public opinion.

April p6

INTERACTIVE INSTITUTE NOMINATED TO REGIOSTARS AWARD. The Interactive Institute in Piteå was nominated to eu:s RegioStars Award in the category ‘Smart Growth - Connecting universities to regional growth’.


2014 May

INTERACTIVE INSTITUTE GRANTED FUNDING FOR OPEN INNOVATION AND LEAD USERS. Interactive Institute was granted funding by vinnova for two projects within the call ‘Open Innovation and Lead Users’. The projects are ‘Lead User Innovation Lab’, where Interactive Institute has teamed up with VeryDay and ikea, and ‘Product Development through Inclusion of Lead Users’ where Interactive Institute works together with Monki.

June

VISUALIZATION TECHNOLOGY FROM INTERACTIVE INSTITUTE REVEALED A 5,500 YEAR OLD MURDER MYSTERY. ICT and Norrköping’s Visualization Center C provided a virtual autopsy table to the British Museum in London in November 2012. This groundbreaking new technology allowed a virtual autopsy to be undertaken on one of the British Museum’s most well-known mummies and revealed that he was probably murdered.

October

CARL HEATH INVITED SPEAKER AT THE 2012 STORYWORLD CONFERENCE IN HOLLYWOOD. Carl Heath, researcher at the Interactive Institute, was one of the invited speakers at the 2012 StoryWorld Conference that was held in Hollywood, California, in October.

November

INTERACTIVE INSTITUTE GRANTED FUNDING FOR CHALLENGE-DRIVEN INNOVATION. Together with a number of partners, the Interactive Institute participates in two of the 30 projects that have been granted funding from vinnova’s challenge-driven innovation program. p7


Offices Interactive Institute’s headquarter is located in Kista (Stockholm, Sweden), with operations in major Swedish cities and regions; Piteå, Eskilstuna, Gothenburg, Karlstad, Umeå and Norrköping.

PITEÅ

ESKILSTUNA

GÖTEBORG

KARLSTAD

UMEÅ

STOCKHOLM

NORRKÖPING

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SWEDEN

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Key Areas of Focus

OUR KEY AREAS DESIGN STRATEGY AND PARTICIPATORY INNOVATION FUTURE ENERGY USE GAME DESIGN AND GAMIFICATION INTERACTION DESIGN SOUND AND INTERFACE DESIGN VISUALIZATION

WE CREATE GROUNDBREAKING USER EXPERIANCES p10


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and improve the d and interact with

way people understan

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om me fr o c s ector lient c ublic s p r , y u m e O ad try, ac nd together with indus s, a

, encie trategy blic ag ture, s c and pu u tr s the orative e build collab w f o m e ip th sh leader ts. on and projec operati pment lo e v e d h and researc

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Key Area

DESIGN STRATEGY AND PARTICIPATORY INNOVATION

Design and innovation seek to improve people’s wellbeing by introducing products and services that respond to human values, human interests and experiences. While disciplines such as anthropology, sociology, and psychology have contributed social theory and methods to understand human behavior as a basis for design, design and innovation are also social processes. Valuable change is not created in isolation or through the work of a select few, but may originate from unlikely sources. How product, service or system concepts originate and are nurtured through a process has increasingly involved the users themselves, as well as other amateur or professional sources.

We find that drawing on valuable resources for design and innovation demands introducing new frames through which to view the objective and the processes of any initiative. ‘Context’ takes on special meaning in relation to both the ‘context of change’ and the ‘context of production.’ Learning about human behavior is very different from applying that knowledge to a process. Sometimes the context of change and the context of production can be one and the same, other times it is valuable to keep them separate. We have a long history of experimenting with valuable ways of engaging in change through design whether the starting point is societal priority, user interests, new technology, or business. We draw upon social theory, technological development and design to plan and participate in design processes with our partners. We specialize in introducing new ways of engaging unlikely contributors that address social and cultural values and interests. Critical and socially informed project planning, execution and facilitation:

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1.

Challenges conventional thinking throughout the process to socially valuable design.

2.

Avoids ill-conceived project directions while prioritizing others at early stages.

3.

Provides contextualized understanding and assessment in short-term and long-term efforts.

4.

Increases organizational learning through inclusive formats of engagement.


Key Area

FUTURE ENERGY USE DESIGN/ SUSTAINABILITY

The electrical grid as we know it has worked more or less in the same way for over a hundred years. However, great changes are taking place in this system forming the very core of modern society. New ‘smart’ technology is directed towards energy conservation and energy production without any environmental impact. To address issues oriented towards user aspects of the future electrical grid, our key area focuses on the role of design and design research in the transition to new behavioral patterns and social practices.

In the future electrical grid, people’s consumption of electricity will have to be managed in response to supply conditions. This entails adjusting electricity use to the supply at critical times or in response to energy market prices, which will involve a change of everyday practices in relation to optimal conditions for using electrical appliances. The major goals of the research program are:

1.

To develop knowledge concerning implications for people as users of the future ener-

gy system. Central issues concern how sustainable practices may be formed in relation to the future electrical grid, what kind of information is needed to attract and maintain people’s attention, and how to provide engaging interaction models. Other important aspects are privacy, automaticity of household appliances and systems, and private production of energy.

2.

To develop concepts and prototypes for communicating relevant information with

the purpose of engaging households in the energy shifting systems. Here we address questions dealing with how design may integrate feedback, aesthetics and playfulness to influence people’s motivation and engagement to change their practices relating to electricity consumption.

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Key Area

GAME DESIGN AND GAMIFICATION

Games, gameplay and gamification are becoming increasingly pervasive in our society. Not only are games becoming one of the main leisure activities and more and more being seen as having a cultural value, they are being possible to play nearly anywhere through the use of smartphones and other mobile IT. In addition, the mechanics within games are also seen as possibilities for transforming all types of task and activities to be more engaging and stimulating.

Gamification, the use of game mechanics and game design techniques in non-game contexts, has also emerged into an area of much interest from both society and business. At the Interactive Institute, we explore how novel gameplay can be combined with novel technologies to create synergies that can affect all areas of society. With leading expertise in game studies, gameplay and gamification, Interactive Institute plays an important part in the exploration and innovation within the field.

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Key Area

INTERACTION DESIGN EXTREME ENVIRONMENTS

We devise and implement new and innovative interaction design solutions in extreme environments, for instance within industrial settings, outdoor environments, and public spaces. While substantial resources are being invested into interaction design intended to support office work, mobile office users, and more recently into design for home settings and leisure users, these more unusual application domains have been largely overlooked even though they provide very interesting challenges and opportunities from a research perspective as well as a business perspective.

For instance, how should we design an oil rig service technician’s support system to provide the right information at the right time? When riding their bikes fast downhill a mountain, is there a way to convey information to the riders in a safe but yet informative manner? Is it possible to design interactive public displays so that many users can interact with them and each other simultaneously? These three examples show that the problems with interaction design today is concerned, in developing technology behaviors and understanding the interaction between these technologies and people within different environments, have grown considerably in complexity. Such complexity has shifted the kinds of problems interaction researchers and designers are involved from relatively well-defined, controlled problems with the overall aim to improve usability of a product or service to more ill-structured and open problem situations; so-called ‘wicked problems’. In order to be able to take on and tackle such wicked problems together with our partners, we at the Interactive Institute combine leading academic research in Human-Computer Interaction (hci) with practical knowledge and skills in design and information technology. For us, the context of use itself and our situated users’ problems and concerns are the center of attention, not the actual technology being applied. Our contextual, user-centered approach in combination with strong technology knowhow leads to new insights and help us shape innovative solutions for our partners. In all our projects, we use working prototypes to quickly explore, test, and verify our novel interaction design concepts. p15


Key Area

SOUND AND INTERFACE DESIGN

Sound is a natural part of everyday life. Talking and listening is perhaps the most important way of interacting with other people. Sound reaches our ears from all directions and informs us about events, materials, distances, directions and much more. Still, however, interactive applications are strangely silent, with a few exceptions.

In increased information load in many user contexts requires designers to focus on multimodal solutions rather than purely visual solutions. By using a multimodal approach, we will be able to build interfaces that lead to more efficient human-machine interactions as well as more attractive working environments. Using sounds creates opportunities for eyes-free interaction, which in many situations is safer and less demanding as it does not require the users’ full attention. Today, sound as a medium for interaction is very underused in most user contexts. Unfortunately, existing auditory solutions are typically neither good nor inspiring. In order to change the existing view on the use of sound in interfaces, it is important to develop good examples, build solutions that users accept, and stop contributing to bad sound environments. At the Interactive Institute, we commonly make use of participatory design in our projects. This, in combination with our competencies in cognition research, sound design, acoustics, sound analysis, sound programming, interface design and concept development, makes a good platform. We are experienced in project and innovation management, and most of our projects result in working prototypes. Using our mixed competencies and experiences, we can go from problem and idea - through a research-based design process - to prototype and evaluation. We see a great potential for the use of sound interaction in a range of domains, including the vehicle industry, the process industry, and other areas involving intense information flow and demanding decision-making. Other interesting areas are the service industry, the media industry, the creative industry and product design. p16


Key Area

VISUALIZATION FOR INTERACTIVE & COLLABORATIVE EXPERIENCES

Today we see an enormous increase in data and information generation. Trends and technologies such as more powerful computers, internet of things, open data, ubiquitous sensors, new imaging and measurement devices, digitalization, simulations, social media and mapping technologies are becoming more and more advanced and wide spread. We are entering the era of Big Data.

To be able to tackle the tidal wave of data that we are experiencing within all areas of society such as health care, city planning and architecture, science, education, engineering, business or just plain everyday life, we need to refine and develop powerful visualization tools that transform data to meaningful information and generate insights instead of overload. Visualization aids us to see what cannot be seen, to generate insights from large and complex data and imagining the future. The applications of visualization is ever expanding, it helps us with everything from saving lives at a hospitals and creating a more effective production process in industries to helping students to understand complex problems as well as creating a more democratic city planning process. At the Interactive Institute we combine powerful visualization technologies with novel interaction design and display technology to create innovative interactive visualization tools and experiences. Positioned in between academia, industry and public sector we work with a practical and prototype driven approach together with partners from a variety of sectors, ranging from smes to large companies and universities. Our projects always result in working prototypes or applications ready to enter the market. The goal is to develop innovations and experiences that help our partners to deal the new era, the era of Big Data.

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Financial Statement of Profit and Loss for 2014, KSEK Income

Dec 31, 2014

Dec 31, 2013

Net Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 534. . . . . . . . . . . . 43 676

TOTAL INCOME . . . . . . . . . . . . . . . . . 45 534 . . . . . 43 676 Operating expenses

Other external costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -16 992. . . . . . . . . . . -13 502

Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-28 504. . . . . . . . . . . -30 401

Depriciation and write-downs of tangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . -149. . . . . . . . . . . . . -272

Operating profit/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -111 . . . . . . . . . .

-499

Result from financial investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136. . . . . . . . . . . . . 646

Profit/loss after financial items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . 147

NET PROFIT/LOSS FOR THE YEAR. . . . . . . . . 25 . . . . . .

299

Balance Sheet 2014, KSEK Assets Fixed Assets

Tangible assets (machinery). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214. . . . . . . . . . . . . 425

Financial Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425. . . . . . . . . . . . . 447

Total Fixed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 666 . . . . . . . . . . . 872 Current Assets

Work in progress. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 249. . . . . . . . . . . . 9 259

Receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 196. . . . . . . . . . . . 4 064

Cash and bank deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 792. . . . . . . . . . . . 9 357

Total Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23 237 . . . . . . . . . 22 680

TOTAL ASSETS . . . . . . . . . . . . . . . . . 23 903 . . . . . 23 552 Equity and Liabilities Equity

Share capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100. . . . . . . . . . . . . 100

Reserve fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. . . . . . . . . . . . . . 20

Profit brought forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 281. . . . . . . . . . . . 8 052

Profit for the year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. . . . . . . . . . . . . 229

Total Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 426 . . . . . . . . . . 8 401 Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 477 . . . . . . . . . 15 151

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TOTAL EQUITY AND LIABILITIES. . . . . . . . 23 903 . . . . . 23 552


Total Operating Expenses -45 509 (after investment returns)

External Costs

37%

Personnel

62%

Depreciation

.003%

Net Sales 45 534

Total Income

100%

NET PROFIT/LOSS FOR YEAR

+25 KSEK p19


Organization

CEO Christina von Dorrien

BOARD OF DIRECTORS Madeleine Caesar Mikael Genberg Hans Hentzell Sören Sjölander Tomas Lagerberg Hans Malmqvist Staffan Truvé (Chairman) Christina Öhman, employee’s representative Carin Torstensson, employee’s representative, deputy

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SWEDISH ICT ORGANIZATION CHART FMOF 20%

FAV 20%

RISE HOLDING 60% Swedish ICT

ACREO

SICS

INTERACTIVE INSTITUTE

VIKTORIA

The ownership of the Interactive Institute is held by Swedish ict, which is a group of world-class research institutes in the field of ict (information and communication technologies), with expertise that ranges from sensors and actuators, communication networks and data analytics to visualization, interaction design and service development. Swedish ict is owned by the Swedish government through rise (60%), and by two stakeholder associations (40%) with member companies from Swedish industry.

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Interactive Institute Swedish ICT AB Box 1197 164 26 Kista, Sweden www.tii.se info@tii.se Š Interactive Institute Swedish ICT 2013 Production and Graphic Design: Jason Quintanilla p22


“The Interactive Institute is a truly unique initiative, which focuses on esthetics and creativity by combining artistic development with research in design and technology. In addition, it is a real-life experiment in the organization of cross-discipline research combining art, design, anthropology, computer science, interaction design, ethnography and many other disciplines. It is hard to pinpoint what makes the Interactive Institute so completely different, but I am convinced that the secret is that it is a unique platform for creative people to pursue their dreams and ideas. The results are creations that combine esthetics and novel information technology, and in almost every case there is also a story to be told.�

Staffan TruvĂŠ Chairman, Interactive Institute Swedish ICT Chief Scientist and co-founder of Recorded Future

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