How to use industrial design in B to B industry to make more money.

1. Make money by using Industrial Design
Mr Lauri Aaltio, founder of Jukola7 Oy
Master of Arts / Industrial and Strategic Design
Master of Science / Automotive Engineering
www.jukola7.com DESIGNENGINEERING

2. 1 What is industrial design?
Direct costs
of product
Profit
General costs
of product
General costs
of organizati-on
Revenue
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3. 3 www.Jukola7.com
a sketch a rendering a prototype

4. Which one has better industrial design?
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5. When its raining, the keys are in your pocket and you dont
want to take them out and anyway you would not see any-thing...
SYKSY
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6. ! SUCCESS! :) ! YOU FAIL! :(
Ford Motor Company revenue
was 13 Billion $ 2013
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7. We had an ex-cellent
man-agement
pro-cess
behind
this product.
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8. What is industrial design?
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a sketch
a standard
a rendering
a patent
The Product
a product

11. ”Design is the fundamental soul
of a man-made creation that
ends up expressing itself in suc-cessive
outer layers of the prod-uct
or service.” Steve Jobs
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12. What would You buy?
Lantmännen Cerelia revenue
was 1.5 Billion EUR 2013
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13. When You are in a hurry!
How many minutes to boil?
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14. We have ALL
the nutrition-al
facts in the
package!
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15. Timetravel!
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Lopputuote
sketching, concept denition
Prototypes, models, 3D rapid models
Brief nal design
Inspiration
Implementation
Ideation
Tim Brown, Harvard Business Review: Design Thinking, 84
Design Thinking
Empathy, optimism, experimentality, co-operation
... way of things
traditional...
Design...
...Thinking

17. Timetravel!
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18. Lopputuote
Luonnostelu, konseptointi
Prototyypit, kapalevymallit, 3D printit
Tehtävänanto Tarkentava suunnittelu
(brie)
Market and
competitors
Subcontrac-tors
ability to
produce
D e s i g n
r e s o u r c e s
and skill le-vel
Strategical
hopes of
company
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Muotoiluajattelu
Empatia. Optimismi. Kokeellisuus. Yhteistyö.

19. ! Observe the
real life situ-ation
cheaply
in advance.
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20. ! 1:1 models
-make changes
-cheap
-flexible
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21. ! Fail!
” The goal for VR’s
operations is a sat-isfied
customer.
The Group aims to
provide its custom-ers
with high-qual-ity
services that are
easily available.”
68 million travels
year 2011
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22. We had excel-lent
meetings
during this
project!
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23. ! Success :)
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24. It is about people.
80% communication
and psychology.
20 % design.
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Samppa J. Salminen, Develop-ment
manager, Valmet

25. Be brave. Dare to think dif-ferently.
Lead people to pos-sible
futures.
Enjoy the short moments in between, that
could be all that you ever get...
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26. Lopputuote
Luonnostelu, konseptointi
Prototyypit, kapalevymallit, 3D printit
Tehtävänanto Tarkentava suunnittelu
(brie)
! Conclusion
make money and sound products by using industrial design:
A development process inside your
own company and organization
Market and
eventually a
single user /
buyer
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RD time, gained information, number of decisions made
Product price
(buying in)
Old product
Conventional design
Competitors product
DesignThinking Prot

27. 27www.Jukola7.com
Kiitos!
Lauri Aaltio
www.aaltio.fi
www.jukola7.com
Lauri@jukola7.com
DESIGNENGINEERING

28. product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan
tuotantovas-taava
subcontractor
stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor
producer
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29. design con-cept
usability concept
stress analysis con-cept
energy efffi- cost concept
ciency concept
production
concept
m a r k e t i n g
concept
dynamics simulati-on
concept
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan
tuotantovas-taava
subcontractor
stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor
producer
29www.Jukola7.com

30. design con-cept
usability concept
stress analysis con-cept
energy efffi- cost concept
ciency concept
production
concept
m a r k e t i n g
concept
dynamics simulati-on
concept
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan
tuotantovas-taava
subcontractor
stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor
producer
design physical
mockup
design Catia-model
for FEM analysis
subcontractor engi-neer
Catia Sheetme-tal
model
subcontractor
engineer stress
analysis model
design Catia-model
(solid)
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31. renderings
drawings and
partlists
emails and No-tes-
folders
stress analysis sketches
written text in a nap-king
A lot of com-munication
(should be a
lot)
A lot of people Many perspectives
design physical
mockup
design Catia-model
for FEM analysis
subcontractor engi-neer
Catia Sheetme-tal
model
subcontractor
engineer stress
analysis model
design Catia-model
(solid)
design con-cept
usability concept
stress analysis con-cept
energy efffi- cost concept
ciency concept
production
concept
m a r k e t i n g
concept
dynamics simulati-on
concept
product ow-ner
program director
design
subcontractor engineer
engineer
stress analysis
Alihankkijan
tuotantovas-taava
subcontractor
stress analysis
product line chief
buyer
seller
marketing
inspectors
subcontractor
producer
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32. ! ”Eikä tässäkään vielä kaikki...”
Strategical industrial design in concept development:
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33. ! Visual way of telling stories and concepts.
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market situation
logistics
production costs
production
competitors customers
value proposition
sketch of a product

34. ! ”Eikä tässäkään vielä kaikki...”
Strategical industrial design in concept development:
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Revenue Streams
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
Channels
Customer Relationships Customer Segments
channel phases:
1. Awareness
How do we raise awareness about our company’s products and services?
2. Evaluation
How do we help customers evaluate our organization’s Value Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support?
Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
examples
Personal assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
Key Partners Key Activities Value Propositions
Key Resources
Cost Structure
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
characteristics
Newness
Performance
Customization
“Getting the Job Done”
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
categories
Production
Problem Solving
Platform/Network
types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
motivations for partnerships:
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
is your business more:
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven ( focused on value creation, premium value proposition)
sample characteristics:
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
www.businessmodelgeneration.com
The Business Model Canvas On:
Iteration:
Designed for: Designed by:
Day Month Year
No.
types:
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
fixed pricing
List Price
Product feature dependent
Customer segment dependent
Volume dependent
dynamic pricing
Negotiation( bargaining)
Yield Management
Real-time-Market
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Kiitos!
Lauri Aaltio
www.aaltio.fi
www.jukola7.com
Lauri@jukola7.com
DESIGNENGINEERING