Digiprocess Final Report

DigiProcess – Supporting digitalization of process industry ecosystems: Developing service ecosystems among process industry and SMEs (10/2019 - 9/2022) (NYPS 20202861) Final report 1

Process industries are entering the fourth industrial revolution (Industry 4.0) through capitalizing digitalization, which is revolutionizing the way business is conducted in industrial ecosystems.

Project background

Digitalization is: the use of digital technologies to innovate a business model and provide new revenue streams and value-producing opportunities in industrial ecosystems (Parida, Sjödin and Reim, 2019).

We are witnessing a new age, where industry is becoming increasingly ‘smart’ with the use of Internet of Things (IoT) technologies and big data, intensive data exchange and predictive analytics enabling optimization of processes and improving productivity and profitability by saving costs, speeding up production, and significantly reducing environmental effects.

Industry 4.0 is expected to increase efficiency by 15-20% and account for more than 20% of the revenue generation over the next five years. Thus, to not embrace it is not an option!

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A changing industrial landscape…

From a world of...

Key questions

To a world of…

Products/services

How can we take a bigger responsibility for our customers’ value creation?

Solutions

IT

How can digitalization enable new business values for us and our customers?

Digitalization

Closed value chains

How can we use partnerships to promote innovation and growth?

Open ecosystems

Linear economy

How can we create and utilize more resource effective and sustainable solutions?

Circular economy

New business models are needed to transition to a more sustainable and long-term competitive industry!

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Problem definition While digitalization of process industry is offering many opportunities it also presents significant threats to business in the Interreg Nord region: • Despite being innovative, SMEs are increasingly being challenged to sell services to the process industry as procurement is centralized and firms wish to reduce the number of suppliers.

• Process firms are challenged to digitalize fast to remain competitive on a global scale. They fear that SMEs are not able to scale up their solutions to digitalize their whole operations.

• On the other hand process firms are critically reliant of having a strong network of local SMEs to provide services for them (i.e. fast and flexible).

• There are many digitalization challenges, e.g.: ownership of data, data integration among suppliers, SME roles in larger firms business, and finding appropriate partners

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Problem definition • Digitalization can be less of a threat and more an opportunity if SMEs can join forces and together provide digital services to meet process industry needs. This can be a entry to national and global markets through the large process firm’s networks. As all competences needed may not be available within an SME collaborating with other SMEs can provide what is missing.

• Digitalization can also enable circular economy and support smart specialization strategies of Norrbotten and Finnish Lappland.

• Often SMEs can be more agile compared to bigger global service providers to meet the needs of a customer, especially when developing and applying new digital solutions. This gives competitive edge for SMEs towards global big players.

• SMEs lack knowledge and arenas to extend their ecosystems and need support to innovate their business models for digitalization and increased ecosystem collaboration.

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Project goals • Project overall objective is to support digitalization and the development of digital service eco-systems among SMEs serving process industry.

• Important sub-goals include:

• To identify digitalization development plans, needs and opportunities in the process industry (15 companies) • To identify digitalization potential and consult SMEs serving the industry: state-of-the-art; maturity; plans (support 50 companies) • To identify digitalization cases with potential with the help of intercompany cooperation incl. cross-sector and crossborder opportunities • To initiate cooperation and new ecosystem business models in digitalization ecosystems around specific needs and opportunities • To pilot and demonstrate digitalization cases with SMEs, industry and possibly large suppliers • To help company groups to search for funding in digitalization cases where development is needed • To prepare European projects (RIA, IA) when digitalization research is needed to support the development • To evaluate and analyse the work throughout the conduction of the project • To build a ecosystem digitalization method and piloting tool kit for further use • To build digitalization education and training material within digital technologies which will be used both by companies and in education 6

Project work approach Current state Process Industry –SME Challenges *SME ecosystem lacking understanding on how to profitably apply digital technologies *Lacking cross border cooperation between SMEs and process industry *SME ecosystem cooperation is reactive and short term focused lacking long term partnerships *SMEs is finding it harder to co-develop new digital innovations with process industry *Large suppliers are becoming more dominant in digitalization but less adapted to local process industry needs

Project objective: To support digitalization and the development of cross border service ecosystems among SMEs in process industry WP3 ANALYZING POTENTIAL FOR DIGITAL SERVICE ECOSYSTEMS

WP 4. DEVELOPMENT SUPPORT 4.1 Business modelling

3.1 Identification of needs and opportunities for cross-border process industry

3.2 Consulting SMEs on digital maturity and business opportunities

3.3 Cross border workshops to identify ecosystem opportunities

4.2 Technical piloting 4.3 Preparing proposals for research and innovation funding 4.4 Ecosystem collaboration with larger suppliers

WP2: Project management

WP1: DISSEMINATION Ongoing dissemination activities through project virtual platform, articles, events and workshops towards: -SMEs -Process industry -Regional policy makers -Internationnal process industry (customers) -and other actors

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Work Package 1 - Dissemination

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WP 1 (Dissemination)

• Communication plan was created which is then followed to spread info and results of Digiprocess –project • Industry 4.0 knowledge is shared to stakeholders etc. SMEs • Learning material for digital solution implementation is created and shared • Material is shared equally for all genders and minority groups

RESULTS • Communication plan • Virtual platform • Publications: digital challenges, ecosystem business models • Education, learning and workshop materials • Events: trainings and workshops • Final seminar

Sub-workpackages 1.1 Virtual platform 1.2 Practical publications 1.3 Learning material 1.4 Events 1.5 Final Seminar

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Communication plan

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Communication plan

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1.1 Virtual platform (Knowledge sharing) Project webpage (digiprocess.eu): blogs, news, events & materials

LinkedIN DigiProject profile

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1.2 Practical publications

WP1.2 Practical publications 1.

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Sjödin, D. and Parida, V. (2019) Gruvautomation kräver nya former av samverkan, Debattinlägg i Dagen Industri, Oktober 2019 Sjödin, D. and Parida, V. (2019) Innovation genom resultatbaserade kontrakt — Hur innovationsprocesser för industriella affärsmodeller går till Management of Innovation and Technology, November 2019 Sjödin, D. and Parida, V. (2019) Gruvautomation kräver nya former av samverkan, Debattinlägg i Veckans affärer, December 2019 Sjödin, D. and Parida, V. (2019) Gruvautomatisering kräver innovativ samverkan, Artikel i Ny Teknik, https://www.nyteknik.se/sponsrad/gruvautomatisering-kraver-innovativ-samverkan-6980170 , December 2019 Sjödin D. and Parida, V. (2020) De_vill_hjälpa_mindre_foretag_kopplade_till_processindustrin, Processneet https://www.processnet.se/article/view/689584/de_vill_hjalpa_mindre_foretag_kopplade_till_processindustrin Sjödin D. and Parida, V. (2020) http://esbribloggen.blogspot.com/2019/03/langsiktig-samverkan-en-nyckel-till.html Sjödin D. and Parida, V. (2020) Miljonprojekt ska hjälpa företag i norra Sverige, Norbottensaffärer https://norrbottensaffarer.se/na/miljonprojekt-ska-hjalpa-foretag-i-norra-sverigenm5254456.aspx Sjödin D. and Parida, V. (2020) Från hot till möjlighet, Artikel i Norrbottens Affärer https://etidning.nsd.se/2183/Norrbottens-Affarer/297789/2020-04-24/13227063/FRAN-HOT-TILL-MOJLIGHET Kamalaldin. A., Linde, L., Sjödin, D. and Parida, V (2020) Relational Transformation 4.0: How digitalization and servitization transform industrial relationships Management of Innovation and Technology. May 2020 Sjödin, D., Parida, V. and Oghazi, P. (2020) Editorial: Digitala gruvor kräver nya affärsmodeller, Dagens Industri, April 2020 Sjödin, D., Parida, V. and Oghazi, P. (2020) Samverkan och nya affärsmodeller stärker svensk processindustri, Dagens Industri, April 2020 Sjödin, D (2020) The Digital Mine: connected, optimised, sustainable, Axora Mining Report https://www.axora.com/insights/digital-mine-connected-optimised-sustainable/, November 2020 Parkkila, L. (2020) Process industry digitalisation opportunities for SMEs and micro-enterprises Digiprocess blog post. 4.1.2021 https://digiprocess.eu/2021/01/04/process-industry-digitalisationopportunities-for-smes-and-micro-enterprises/ Virkkala, V. (2020) How to successfully shift to outcome-based business model Digiprocess blog post. 13.8.2020 https://digiprocess.eu/2020/08/13/how-to-successfully-shift-to-outcome-basedbusiness-model/ Halonen, S. (2020) Corona crisis spurring companies to develop customer experience through digitalization Digiprocess blog post. 15.4.2020 https://digiprocess.eu/2020/04/15/corona-crisisspurring-companies-to-develop-customer-experience-through-digitalization/ Sjödin, D (2021) Process industry digitalization requires new forms of sme-ecosystem collaboration, Digiprocess Intereg blog post https://digiprocess.eu/2021/01/19/process-industrydigitalization-requires-new-forms-of-ecosystem-collaboration/ , Januari 2021

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WP1.2 Practical publications 17.

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Sjödin, D., Parida V., and Vesterberg, J. Barriers to digital transformation in Swedish industry, Report for näringsdepartementet 2021 Sjödin, D (2021) Process industry digitalization requires new forms of sme-ecosystem collaboration, Digiprocess Intereg blog post https://digiprocess.eu/2021/01/19/process-industrydigitalization-requires-new-forms-of-ecosystem-collaboration/ , Januari 2021 Garcia, P. (2021) Transforming the process industries: Why you should partner with SMEs, digiprocess blog post Parkkila. L. (2021) Technology risks as part of companies development work. Digiprocess blog post 8.12.2021. https://digiprocess.eu/2021/12/08/technology-risks-as-part-of-companiesdevelopment-work/ Koivisto. L. (2021) On the way to the digitalization of industrial service companies. Digiprocess blog post 8.11.2021 https://digiprocess.eu/2021/11/08/on-the-way-to-the-digitalization-ofindustrial-service-companies/ Saarela, M and Virkkala P. (2019). Digital business ecosystems. Press release DigiProcess launching. (University of Oulu website).

Parkkila, L. (2021) What does industry expect from its digital service providers Digiprocess blog post. 5.11.2021 https://digiprocess.eu/2021/11/05/what-does-industry-expect-from-its-digitalservice-providers/ Turska, M. (2021) Changes and benefits of digitalization in industry Digiprocess blog post. 14.10.2021 https://digiprocess.eu/2021/10/14/changes-and-benefits-of-digitalization-in-industry/ Virkkala, V. (2021) Transforming the Swedish process industry: why you should partner with SMEs to succeed in digital age Digiprocess blog post. 28.6.2021 https://digiprocess.eu/2021/06/28/transforming-the-swedish-process-industry-why-you-should-partner-with-smes-to-succeed-in-the-digital-age/ Virkkala, V. (2021) Value Mine crossborder event: SME talks Digiprocess blog post. 8.6.2021 https://digiprocess.eu/2021/06/08/value-mine-crossborder-event-sme-talks/ Virkkala, V. (2021) Value Mine crossborder event: industry talks Digiprocess blog post. 4.6.2021 https://digiprocess.eu/2021/06/04/value-mine-crossborder-event-industry-talks/ Garcia, P. and Sjödin D., (2022) Managing asymmetric partnership in process industry: insights from the collaboration process between incumbents and small innovative firms. digiprocess blog post https://digiprocess.eu/2022/10/03/managing-asymmetric-partnerships-in-the-process-industry-insights-from-the-collaboration-process-between-incumbents-and-small-innovativefirms/October 3, 2022 Volmberg (2022) Business model innovation with SMEs, September 12, 2022 digiprocess blog post https://digiprocess.eu/2022/09/12/business-model-innovation-with-smes/ Volmberg (2022) BMI Sprint project report, June 10, 2022 Koivisto (2022) Challenges and opportunities of international and cross-border market growth. Digiprocess blog post. September 29, 2022. https://digiprocess.eu/2022/09/29/sme-matchmaking2022/ Turska, M and Sipola, J. (2022). Cooperation between large and small companies – Case Stora Enso. Digiprocess blog post. May 9. https://digiprocess.eu/2022/05/09/cooperation-between-largeand-small-companies-case-stora-enso/ Koivisto. L. (2022) Competitors can be partners in an industrial ecosystem Digiprocess blog post. 8.12.2021 https://digiprocess.eu/2022/01/24/competitors-can-be-partners-in-an-industrialecosystem/ Parkkila, L. (2022) Pk-yritysten mahdollisuudet ja haasteet kansainvälistymisessä 27.10.2022 https://blogi.eoppimispalvelut.fi/lumenlehti/2022/10/27/pk-yritysten-mahdollisuudet-ja-haasteetkansainvalistymisessa/ (Lapland UAS webmagazine)

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WP1.2 Practical publications List of some other articles done during the project (this is not comprehensive list) Blog articles in the LUAS “Pohjoisen tekijät” blog posts, University of Oulu and Digipolis web site: ‒ Suurteollisuuden digitalisaation avainalueet ja mahdollisuudet pk- ja mikroyrityksille (LUAS Leena Parkkila 8/2021) ‒ Mitä teollisuus odottaa digitaalisten palvelujen tarjoajiltaan? (LUAS Leena Parkkila 9/2021) Digitalisaation tuomat muutokset ja hyödyt teollisuudessa (LUAS Mika Turska 10/2021) ‒ Teknologiariskit osana yritysten kehitystyötä (LUAS Leena Parkkila 12/2021) ‒ Yhteistyön toimivuus isojen ja pienten teollisuusyritysten välillä (LUAS Mika Turska and Jani Sipola 4/2022) ‒ Matchmaking-työpajat pk-yritysten ekosysteemiyhteistyön edistäjänä (LUAS Leena Parkkila 8/2022) ‒ Teollisessa ekosysteemissä kilpailija voi olla kumppani (Digipolis, Liisa Koivisto 1/2022, published Kerttu-Saalasti blogpage) ‒ Ruotsalaisen kumppanin kanssa ruotsin markkinoille? (Digipolis, Liisa Koivisto, 5/2022) ‒ Mikro- ja pienyritykset mukana suurteollisuuden digitaalisessa muutoksessa. 13.10.2021. Saarela. MicroENTREs website: Pk-yritysten kommunikaatiohaasteet teollisuuden digitalisaatioprojekteissa. Virkkala, 2021. ‒ ‒ Press release. University of Oulu website. Itsearviointitesti Industry 4.0 ratkaisuja tarjoavien mikro- ja pienyritysten tueksi julkaistu. 22.5.2022.Saarela

Below is example of the final Value Mine event and how this event is informed afterwords in the DigiProcess Blog / News articles from Value Mine event published on the DigiProcess web site and LinkedIn:  1.8.2022 KEYNOTE SPEAKER JYRI ARPONEN – VALUE MINE CROSSBORDER EVENT 2022 https://digiprocess.eu/2022/08/01/keynote-speaker-jyri-arponen-value-mine-crossborderevent-2022/  9.8.2022 BOSCH REXROTH KEYNOTE – MINING INDUSTRY TALKS @ VALUE MINE 2022 https://digiprocess.eu/2022/08/09/bosch-rexroth-keynote-mining-industry-talks-valuemine-2022/  15.8.2022 BOLIDEN KEYNOTE – MINING INDUSTRY TALKS @ VALUE MINE 2022 https://digiprocess.eu/2022/08/15/boliden-keynote-mining-industry-talks-value-mine-2022/  22.8.2022 EPIROC KEYNOTE – MINING INDUSTRY TALKS @ VALUE MINE 2022  29.8.2022 HANNUKAINEN KEYNOTE – MINING INDUSTRY TALKS @ VALUE MINE 2022  5.9.2022 SME TALKS KEYNOTE – MINING INDUSTRY TALKS @ VALUE MINE 2022 (Liisa Koivisto, Kemin Digipolis Oy).

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Academic publications Journal publications 1.

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Kamalaldin, A., Sjödin, D., Hullova, D., & Parida, V. (2021). Configuring ecosystem strategies for digitally enabled process innovation: A framework for equipment suppliers in the process industries. Technovation. https://doi.org/10.1016/j.technovation.2021.102250 Sjödin, D., Kamalaldin, A,, Parida, V., Islam, N. (2021) Profiting from Digitalization through Procurement 4.0: How Leading Companies are Transforming Their Procurement Processes for Digital Innovation, Accepted IEEE Transaction on Engineering Management https://doi.org/10.1109/TEM.2021.3110424 Kolagar, M, Reim, W., Sjödin, D. and Parida, V. (2021) Digital Servitization Strategies for SME Internationalization: The Interplay Between Digital Service Maturity and Ecosystem Involvement Accepted, for publication in Journal of Service Management Kolagar, M., Parida, V., and Sjödin, D. Ecosystem transformation for digital servitization: A systematic literature review, In review with Journal of Business Research Kohtamäki, M., Rabetino, R., Parida, V., Sjödin, D., & Henneberg, S. (2022).

Managing digital servitization toward smart solutions: Framing the connections between technologies, business models, and ecosystems. Industrial Marketing Management, 105, 253-267.

Sjödin, D, Parida, V. and Visnjic, I. How can large manufacturers digitalize their business models? A framework for orchestrating industrial ecosystems, Accepted California Management Review Saarela, M., Simunaniemi, A. M., Virkkala, P., & Muhos, M. (2022). Value propositions of micro-and small enterprises in digital transformation of the global process industry. In Sustainable International Business Models in a Digitally Transforming World (pp. 175-190). Routledge.

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Kolagar, M. Reim, W., Sjödin, D. and Parida, V., (2020) SME internationalization through digital servitization, 2020 Spring Servitization Conference, Birmingham, UK. Sjödin, D, Parida, V. and Visnjic, I. (2020) Opening business models to ecosystem partners: How manufacturers orchestrate ecosystems in digitalization, World Open Innovation Conference, Berkeley Garcia Martin, P. C., Sjödin, D., & Parida, V. (2022). The role of innovation intermediaries in managing corporate – start-up collaboration. Proceedings of the 29th Annual EurOMA Conference, Berlin, Germany.

Marko SSC Framing the path towards autonomous solutions – The role of ecosystems, business model configurations and digital technologies.

Virkkala, P., Saarela, M., Muhos, M., & Parkkila, L. (2022). Vendor Selection in Industry 4.0-Large Process Industry Companies' Requirements for MSE Technology Providers. MakeLearn & TIIM International Scientific Conference.

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Academic publications

+ More academic publications are under development 18

Academic publications – examples of practical methods

Fail fast, learn fast: Conceptualizing the process of learning from failure in SMEs

A process method for learning from failure

Digital servitization strategies for SME internationalization: The interplay between digital service maturity and ecosystem involvement

A method for identifying strategies for ecosystem collaboration for international markets

Managing Start-Up – Incumbent Digital Cocreation: A Process Framework for Innovation Intermediaries

A process method for managing SME-large firm collaboration 19

Academic publications – examples of practical methods

A method for process industry digitalization leveraging on ecosystem cocreation

A method for ecosystem transformation including key phases and activities

A Procurement process method for capitalizing on digital offerings for process industry 20

WP1.3 Learning Material

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WP1.3 Learning Material

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1.3 Learning material

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WP1.3 Learning material

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WP1.3 Learning material

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WP1.4 Events (marketing, participating, knowledge sharing) Value Bio & Forest 2020

Value Steel 2021

SME-SME matchmaking 2022

Value Mine 2021 and 2022

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WP1.4 Events (marketing, participating, knowledge sharing) Trade fairs, entrepreneurship events and seminars

We have created infoposters, rollups and other materials to share knowledge to existing and potential stakeholders

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WP1.4 Events (marketing, participating, knowledge sharing) 1.

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Presentation for tillväxtverket Onlinge, 2020 Presentation vid Innovationsdagen LTU 2020: Hue man lyckas med affärsmodellsinnovation? Luleå, 2020 Barrier vinnova presentation 2020 Barrier näringsdepartemeentet presentation 2020 Presentation to Riksdagens näringsutksott 2021 Innovation och omställning av svensk industri Digitalisering och affärmodellsinnovation, Norrlandsnavet Webinar, 2021 Presentation at PiiA board meeting May 2021 Norllandsnavet webinar Skellefteå science park presentation University Business Forum, Oulu, 16.10.2019. Poster presentation and stand. (Virkkala and Saarela) Boostia kansainvälistymiseen – yrityskehitystapahtuma, Siikalatva 27.11.2019. Poster presentation and stand. (Saarela and Virkkala) XX Kerttu Saalasti Seminar. 21.9. 2020. Nivala, Finland. Project stand in (Virkkala ja Saarela) International Cafe – SMEs internationalization event. Project presentation.Webinar. 15. 10. 2020. (Kalajoki and webinar). (Saarela).

Interreg Nord projects’ presentationts to Council of Lapland.Webinar. 20. 10. 2020. Organized by Centria University of Applied Science. Project presentation. (Saarela).

Chydenius Institute. project presentation.Webinar. 24.2.202, (Saarela).

Future Manufacturing Technology Days. University of Oulu. Project presentation.Webinar. 26.5. 2021.(Saarela) XXI Kerttu Saalasti Seminar. 20.9.2021. Nivala, Finland, Project presentation and stand. (Saarela,Virkkala, Simunaniemi, Hänninen) + ”European Cooperation Day” 21. 9.2022.

Yrityskehitysfoorumi. Project presentation.Webinar 25.11.2021. (Parkkila).

Pohjoinen Teollisuus messut. 18.5.2022 Oulu. Project stand (Parkkila).

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WP1.5 Final seminar Final seminar was organized as part of Value Mine 2022 with the hybrid implementation (Euro Mine Expo Skellefteå) Key outcomes of the project were presented

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Work Package 2: Management

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WP 1 (Management) Meetings Kick-off meeting ‒ Kick-off meeting in Kemi 2.10.2019, time schedule and detailed work packages were planned Project operative group meeting ‒ Seven meetings during project in the Teams. Status and future actions planning ‒ May 2020, January 2021, June 2021, October 2021, February 2022, June 2022, August 2022 ‒ + additional meetings when it was needed Steering group meetings ‒ Six meetings during the project (12.6.2020, 9.12.2020, 12.5.2021, 10.11.2021, 11.5.2022, 23.11.2022)

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RESULTS Microsoft Teams for DigiProcess project and steering group ‒ Digital platform for project data (interviews etc.) and communication ‒ Steering group: DigiProcess Teams  WP2 Management  Steering Group –folder Cooperation agreement ‒ Cooperation Agreement was approved in the beginning of October 2020 ‒ Legal departments had some issues concerning of agreement and signing took time Gender equality training session ‒ Gender equality training session for project members were held December 2021 by Renaz Ebrahimi ‒ Session recording can be found https://digiprocess.eu/2022/03/16/digiprocess-news-gender-equalitytraining-session/

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RESULTS

Project payment and interim reports periods (Interreg and Lapin liitto) ‒ Period 1 (10/2019 – 01/2020) ‒ Period 2 (02/2020 – 05/2020) ‒ Period 3 (06/2020 – 09/2020) ‒ Period 4 (10/2020 – 01/2021) ‒ Period 5 (02/2021 – 05/2021) ‒ Period 6 (06/2021 – 09/2021) ‒ Period 7 (10/2021 – 01/2022) ‒ Period 8 (02/2022 – 05/2022) ‒ Ongoing Interim report period 9 (06/2022 – 09/2022) ‒ Ongoing final reporting Second level control by Finnish and Swedish authorities ‒ DigiProcess project and LUAS, UniOulu and LTU were chosen projects audit, so-called second level control. ‒ The audit covered the costs of reporting periods 1-3 (First year) as well as project implementation and outputs during that period. ‒ The Authority 's findings mainly concerned to some persons minor salary costs of project (financier´s calculation formula).

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Work Package 3: Analyzing potential for digital service ecosystems

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WP3.1 Identification of needs and opportunities for crossborder process industry • Developed semi-structured interview protocol for large process industry companies • Total 14 large process industry were interviewed (Finland 8) and (Sweden 6) from mining, pulp and paper, steel sectors • Interview data were analyzed and results were used in the WP4 • Results of analyzed data were presented at the blogs and articles.

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WP3.2 Consulting SMEs on digital maturity and business opportunities

• Developed semi-structured consulting interview protocol for SME companies • 50 SME companies were interviewed and consulted • Finland 25 and Sweden 25.

• Interview data were analyzed and results were used in the WP4 • Results of analyzed data were presented in the forms of blogs and articles.

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WP3.2 Consulting SMEs on digital maturity and business opportunities Digital maturity tool

• Digital maturity tool was created and focused to micro –and SMEs • Digivalmius-questionnaire was sent to Finnish SMEs.  a total of 54 respondents • Questionnaire was translated to Swedish and sent to Swedish SMEs  26 self-

assessments done • Digivalmius –questionnaire in Finnish can be found on the webpage www.kasvavayritys.fi

• Analysis of the Digital maturity result

• Project Report: Current state of digital maturity in SMEs can be found on the project webpage: https://digiprocess.eu/learning-material-for-smes/ 37

WP3.3 Cross border workshops to identify ecosystem opportunities Cross-border workshop and matchmaking event between large- and SME companies – Cross-border workshops were organized to identify digital service ecosystem opportunities – Concept for cross-border workshops was developed and used 1. Inspirational speaker 2. Industry speakers: 4 speaker from large process company (Finland 2 and Sweden 2) and 6 speaker from SMEs (Finland 3 and Sweden 3) 3. Matchmaking event between large companies and SMEs – Four cross-border workshop and matchmaking event were organized • 3 online events(due to covid) • Final event was hybrid 1.

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Bio & Forest webinar was held online on the 19th of November 2020 (Participant 70) Value Steel webinar was held online on the 23rd of March 2021 (Participant 73) Value Mine webinar was held online on the 3rd of June 2021 (Participant 143) Value Mine 16th of June 2022 (Hybrid event, IUC Norr as a main organizer). Value Mine is a side-event of the Euro Mine Expo. (Participant 100) 38

Work Package 4: Supporting the development of cross-border digital service ecosystems 39

WP4.1 Business modelling • Business model innovation sprints The companies work hands-on with their own business challenge

They learn methodology to succeed with business model innovation through customerecosystem involvement

“We are extremely pleased with the result! The tools from the workshops have been very useful and we feel that our thinking has developed several steps. ” (Participating CEO)

• Sweden 2021: Three Swedish SMEs participated in four-month program: Widefind, FieldRobotix and Optimation.

• Finland spring 2022: Three Finnish companies participated in four-month program: M-Solutions, Muon Solutions, and Timegate.

• Oucomes: • • • •

Developed value propositions Increased customer understanding Market growth New ecosystem constellation

• Deliverable: Ecosystem business modelling method • Systematic four phase methods (ppt slidepack) • Blog post • Report reflecting on the method application

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Example outcomes: So what happened…

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"Reframing" of which problem they should solve and how.

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Complete turnaround regarding business strategy.

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Letter of intent from Boliden regarding multimillion project – “The solution to our problems”

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Novel ecosystem constellations

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Acquired by Mobilaris Industrial Solutions at significantly higher valuation

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Provoked understanding of organizational challenges Complete turnaround regarding the view of the company Significant value proposition "pivot“ Acquired by Flasheye at significantly higher valuation

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Improved customer relations Understanding of customer-driven product development Challenge to go from consulting company to product company Barrier: The company is more of a "lifestyle business" than scalable growth

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WP4.1 Business modelling Strengthening ecosystem collaboration for business model innovation • Coordination of SME-SME digital matchmaking May 24

• Digital event combined roundtable talks and matchmaking • Matchmaking sessions with 15 participating SMEs from Finland and Sweden

• Agenda • • • •

Inspiratonal speaker how to succeed with cross-border sales SME presented their company Round table discussion of challenges working cross-border Matchmaking event between companies • 20 matchmaking meetings held

• Excellent discussions

• Initial discussion on 5+ high potential ecosystems collaborations • Increased knowledge of cross-border market opportunities • Cross-sharing of customer insights

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WP4.1 Business modelling – method for ecosystem development PHASE 1:

PHASE 2:

PHASE 3:

ECOSYSTEM INITIATION

ECOSYSTEM ACTUALIZATION

ECOSYSTEM RECONFIGURATION

Opportunity screening  Evaluating novel digital technology potential  Identifying target customer segment  Assessing changing and emerging customer needs and requirements o Partnership exploration  Identifying complementarities with core ecosystem partners  Exploring linkages with peripheral and new ecosystem actors o

Value proposition development  Evaluating pains and gains for customer/end users  Experimenting with offer configuration  Exploring fit between customer needs and internal capabilities o Ecosystem formation  Directing division of ecosystem roles and responsibilities  Establishing resource allocation processes  Creating effective and transparent communication channels o

Agile value creation  Redesigning operational routines to changing demands  Agile approach to value cocreation (i.e. continuous innovation)  Adapting to emerging technology o Ecosystem restructuring  Realigning incentives among ecosystem actors  Promoting ecosystem synergies and expansion  Dissolving un-productive cooperation o

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WP4.2 Technical piloting

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WP4.3 European networking • Work approach

• Scouting European research funding opportunities

• Monitoring of calls, participation in 10 + brokerage events,

• Supporting networking for building research applications • Facilitating contacts towards international customers

• 15 + consortia suppoerted

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Finland European networking (WP 4.3)

• Digitally participated Efecs 2021 info and brokerage event at January 2021 • Digitally participated Efecs 2021 event 23-25 November • Participated KDT kick-off and brokerage event 3-4.5.2022 in Brussels • Key Digital Technologies KDT is a partnership program under Horizon Europe.

• About 30 project ideas were presented and can be found https://ecscollaborationtool.eu/ • Some project ideas were found and consortium building was started.

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Ecosystem development Process IT. Corresponding to WP4.1, 4.3, 4.4 National ecosystems towards international market (WP4.1, 4.3, 4.4) Vinnväxt - ERFA AI Sweden

Industry council

Software stakeholders in mining industry

Cybersecurity in process and energy indusry (incl suppliers)

European ecosystems towards internatioanl markets (WP4.3, 4.4) SIMS – Mining comanies and supplier, Europe

European Digital innovation hub

SPIRE – processindustry Europe

NIC

Interoperability European industry AutoPID

AH cont.

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ECO system and Networks - Sweden Process IT. Corresponding to WP4.1, 4.3, 4.4

Planned projects Ongoing projects Networks

Digitalisation in forestry Self-financed Horizon Europe Strategy AIDIHN – AI for SME Regional

LUV (H2) LUV2 (H2)

NIC-SE National strategic interoperability PiiA Research .

Postdoc programme AI Sweden Purescrap – AI sorting of metal scrap National

ProcessIT - Industry council Cybersecurity in industry

”un-financed”

Mine2Mill 2Market Auto P&ID 2

Digitala stambanan ZDM 2

SEIIA – national interoperability

Secondary Raw materials

NEXGEN SIMS – Next generation sustainable mining

European INDtech EDIH Smart Steel 3 NIC – nordic interoperability

PVNI – production value networks Processes4planet

Nation-Wide Partners (Sweden) Process IT. Corresponding to WP4.1, 4.3, 4.4

Nation-Wide Partners (Finland) Process IT. Corresponding to WP4.1, 4.3, 4.4

Partners in Sweden and Finland Process IT. Corresponding to WP4.1, 4.3, 4.4

Events

Process IT. Corresponding to WP4.1, 4.3, 4.4

ECS Brokerage event 12-13/1 ECS-SRIA workshops SW in ECS based digitisation - W1 4/5 AI, IoT, Advanced Control and Edge Computing - W4 18/5 Better Factory Smart Manufacturing and industry 4.0, 30/6 Open Autoamtion – Innovation talk

WP4.4 Ecosystem collaboration with larger suppliers

• Key results

• Involvement of large suppliers (ABB, Epiroc, Bosch Rexroth) in cross border events (e.g. value mine) • Supporting matchmaking with SMEs

• Supporting large suppliers in understanding the potential of SME ecosystem collaboration • New collaboration logic

• Pilot case: Active support of Mobilaris • Developed method for SME collaboration with large firms • Mapping of challenges and solutions with SME-large firm collaboration • Role of intermediary actors in managing the process

• Discussions around idea for cross-border collaboration for regional maintenance planning discussed within maintenance manager group 53

Thank you for your time!

More info at: digiprocess.eu

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