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RIS3 WORKBOOK (B) FOR PROJECTS
For project managers, designers, R&D staff and regional development
organizations 

Toni Pienonen and Mikko Markkanen, Business Arena Oy
SUMMARY
RIS3 WORKBOOK FOR PROJECTS provides practical insight for project managers and
designers, R&D staff at higher education institutes and regional development
organizations on how to create activity that meets the RIS3 requirements of EU
programme period 2014-2020.
Situation coincides with the Finnish economy struggling with the crisis. Funding instruments are
expected to generate more results with less money. New conditions require a new mindset to
questions such as What makes a good public development project? and How can HEIs and
other project organizations be more in tune with society via projects? At the same time, Finnish
regions are at different stages in adopting smart specialisation - others pioneering it with
participatory processes, laggards either treating the subject of smart specialisation as business
as usual or confused by uncertain expectations.
Contents of this workbook were documented by Toni Pienonen and Mikko Markkanen as part of
INNOFOKUS project and its Change2020 program. Throughout the year 2014, the program
organized several opportunities to create clarity on these issues. Following tens of participatory
workshops and bench-learning events for hundreds of participants, this workbook summarizes
the results.
Note that his workbook has a companion piece RIS3 WORKBOOK FOR LEARNING-DRIVEN
REGIONAL DEVELOPMENT, which is intended for larger scale activities. You can find at it at
www.innofokus.fi


* Please note that in this context, ”projects” mean specifically regional development projects or
applied and demand-driven research projects, unless otherwise stated.!
www.innofokus.fi
Change2020 development program was part of
the operations carried out by INNOFOKUS
project which was funded by European Social
Fund, Ministry of Education. INNOFOKUS
project was managed by Aalto University School
of Business Small Business Center (SBC).
Contents
We summarized the insight and results from various workshops of Change 2020
development program into five building blocks. Each block contains key steps that
help you to plan stronger project ideas with societal impact. They are key principles
that any projects should adhere to, if they intend to be more connected to surrounding
society and follow the ideals of smart specialisation.
1. Identify and formulate the need or opportunity
2. Co-create the vision
3. Co-create the solution
4. Share active ownership
5. Position the project
6. Take care of organizational integration
7. Have the right team
8. Make use of complementary strengths (you + partners + region)
9. Experiment!
10. Keep learning
This information was furthermore condensed into a PROJECT CANVAS that helps you
to design individual high-impact projects (see page 30 for more details). You can also
use the steps as a checklist for double-checking your own project plan and direction.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
”What could public projects learn from crowdsourcing platforms? First,
an exciting idea plays the key role and gets everyone interested.
Secondly, users and customers become part of the development from
the get-go, leading to shared ownership and commitment.”
- a Change2020 participant
Co-creation is the key
Co-creation starts already in the beginning at the planning
phase. All projects should must be externally focused,
demand-driven and rooted in the needs of the society, co-
created together with users and partners, following the
principles of open innovation. Society and businesses
must be at the core of the projects and their planning.
They bring out real-life problems, needs, opportunities
and wicked problems that are worth solving.
STEPS
1) Identify and formulate
the need or opportunity
2) Co-create the vision
3) Co-create the solution
4) Share active ownership
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Identifying need,
criteria, ideas,
hypothesizing
Iterating the
project plan
Designing and writing the
project, continuing with agile
and experimentation-driven
approach towards clear vision
1) Identify and formulate
the need or opportunity
Specifying the need in project planning is too
often left on intuition or simple statements. It
may take surprisingly many attempts and
iterations to the get it right. For example, in
reality needs are often unstated or latent - and
need to be formulated. Good projects spend
enough time in getting from ”fuzzy front end” to
actual idea stage - discovering, defining,
iterating and interpreting issues with
stakeholders and partners.
• is there societal or a market need?
• whose need or needs are we talking about?
• size of the market / problem?
• what is the project partners’ interest in solving the
problem?
• what is the business / customer / end-user interest
for the solution?
• quantify as much as possible - qualitative
statements are not persuasive
”We fail more often because we solve the
wrong problem, than because we get the
wrong solution to the problem.”
- Russel Ackoff
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Example: Remember the 5 whys in finding the root cause
and the real problem. When it seems that you might be on the
right track in identifying the need, remember to ask yourself
and others the ”5 whys” to get down to the root cause of the
problem. For example:
The vehicle will not start. (the problem)
1. Why? - The battery is dead. (first why)
2. Why? - The alternator is not functioning. (second why)
3. Why? - The alternator belt has broken. (third why)
4. Why? - The alternator belt was well beyond its useful
service life and not replaced. (fourth why)
5. Why? - The vehicle was not maintained according to the
recommended service schedule. (fifth why, a root cause)
(Wikipedia)
2) Co-create the vision
A shared and inspiring vision is an immensely powerful tool for shared
thinking and direction. Vision helps everyone in the project to understand
how small individual actions and roles are linked to each other as part of
the bigger picture. Since many projects operate in situations without power
structure or command hierarchy between the project manager and
organizations participating in the actions, oftentimes the vision is the only
tool that the manager can use to lead others.
Change2020 development program participants found out that when co-
creating the vision and attracting others around it, the power of stories
should not be underestimated. All good project visions have a story:
• root your story in the uniqueness of your place
• make the story easy to follow
• use vision to describe what will the world look like when project has
finished
• talk out loud about your vision as soon as possible - if your story catches
on, you’re probably on the right track.
The vision should contain a story that tells how the world will be different
when the project has finished, but it should also help the project charter to
articulate what are the boundaries, responsibilities, metrics and mutually
understood principles of how project participants work together.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
A shared vision helps the
project manager and everyone
else in the project to focus
activities in same direction
CASE EXAMPLE: BUILDING BLOCKS OF A STORY

When Change2020 participants were formulating an idea
and vision for a new project that would have several regions
participating, they started by looking at what makes Finland
special in the international context. One thing was clear.
Finland needed more internationally-oriented growth
companies. The participants started viewing Finland and its
neighboring countries, Nordic countries in particular, as a
global commercialization and entrepreneurship platform -
that they could be a role model for rest of the world. These
are the building blocks they put together for the story of
Finland, the best kept secret of the world?
Nordic countries
• unique position as global role
models
• brand value for Finland
• shared cultural values and safe
operating environment
Russia and Asia
Finland as a gateway for
• Russian companies to enter
European market
• Russian researchers to
commercialize their research
for international markets
• international businesses to
enter Russian market
Baltic Sea region
• testbed and business accelerator for
entrepreneurs
• 80 million people market area
Europe
Arctic region
• unique testing and
commercialization opportunities
• investment boom
• strong international links between
arctic regions
Northern Growth Zone
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
3) Co-create the solution
Involve stakeholders and users in designing the solution from the get-go. You should
involve all actors of quadruple helix from institutional bodies, research sphere and
business sector to citizens. Remember - pull, not push. Listen to the stated needs, or help
to formulate unstated and latent needs into explicit form. Leverage existing personal
connections around you to reach the needed level of trust.
However, don’t be too quick to freeze the details and idea of the solution in the planning
phase. You don’t need to get it all right on the first attempt. Projects are often about
finding workable solutions, not the perfect ones. The most important thing to remember
is make sure that the project plan allows agile and experimentation-driven development.
The project itself should be a tool for discovering the answers to different questions with
the help of real-life testing and series of iterations. This helps to create inertia and early
interest with low-hanging fruits and immediate benefits for different stakeholders.
Examples of questions that you should keep in mind when designing the project’s
solution and experimenting different approaches:
• what are the benefits for those partners involved in the project?
• what less explicit outcomes might be realized in the long run?
• what existing does the solution replace?
• why your is solution superior to existing models / solutions?
• why hasn’t it been possible to solve the problem until now?
• what is the social impact of the solution?
• what is the value and benefits for the customer and/or end-user?
• how is the solution delivered?
• what is the ”minimum viable product” for the solution?
Remember that in order to create value, it’s better to have something concrete ready as
early as possible, a working prototype or a pilot, rather than aiming for one big release.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
”The timing of long range plans is
screwed up too.You have the most
information when you’re doing
something, not before you’ve done
it.Yet when do you write a plan?
Usually it’s before you’ve even
begun.That’s the worst time to
make a big decision."
- Jason Fried 

& David Heinemeier Hansson
Example: Rigid vs agile goal-setting in project planning
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
(Tapio Järvenpää & Ilkka
Kankare, ”Veikö Moolok
vallan? Vapauta
projektisi
tuhlaajakultista”)
1) 2) 3)
A A A
(B)
B
B’
A is the starting point when a decision is made to initiate a project. B is the desired future state. (B) is the assumption
of the future. ’B is the real future state.
1) Traditional planning-driven waterfall project plan makes strong assumptions on the desired future B. Rigid
sequential project plan doesn’t allow room for maneuvering. Changes in the real world mean that the future state
B isn't desired after all nor rooted in realism (it should be ’B), meaning that the project misses the mark by far.
2) Starting point is the same as in 1), but the project plan takes into account the possibility of changes and surprises
in the environment. Updating the assumption of the desired goal (B), the process forces the project to return to
the starting point. Retracing the steps backwards several times results in increased length and overspending,
however.
3) Agile and experimentation-driven project plan has a vision of the desired future state, but the path isn’t locked
beforehand. Project makes several experiments and iterations on the way, as knowledge and certainty increase.
4) Share active ownership
Active ownership is the key for ensuring that
project creates permanent results and that it’s not
forgotten once funding ends.
Active ownership of a project doesn’t happen
without determined individuals and organizations,
who have been sufficiently given an opportunity to
participate in planning and execution of the
project. People only support the ideas in which
they have played a part of creating.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Before the project During the project After the project
Partners
Project
organization
Beneficiaries / end users
(e.g businesses)
Financing
authority
1) co-creating research
hypothesis with HEI,
planning the R&D
project
3) piloting proof
of concepts and
demonstrations
with HEI
4) IPR exchange,
commercializing
research / project
results with HEI
5) HEI integrating
student start-ups in
commercialization,
creating entrepreneurs
for the society
2) co-creating new
services or
products with HEI
Example: What are could be the role businesses in active ownership during a project’s lifecycle?
(see the separate canvas for active ownership, page 34)
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
PROJECTS NEED TO BE
ATTACHED TO THE BIG
PICTURE
Projects are just tools to attain a desired level of
change. They are always part of something bigger -
organizationally and activity-wise.
Specifically HEI-managed projects must integrate
their outcomes and outputs into the two other
missions of university - research and education.
STEPS
5) Position the project
6) Take care of
organizational
integration
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
5) Position the project
In particular for international project bidding, it is important to be able to position your individual
project in the big picture - what activities, projects and key people are related to the project? Is the
project itself more about capacity building, creating something new or applying innovation in
practice?
( ) Capacity building:
Helping businesses and HEI
to build groundwork for
cooperation - skills, business
advisory services, networks,
infrastructure, demonstration
( ) Creating new: research
and development with
(international) partners -
pilots, key enabling
technologies, world class
frontier research
( ) Research to market:
Applying latest research and
knowledge in practice. From
research to market - new
business innovations and
procurement.
?
?
?
?
?
??
?
What is the
type of your
project?
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Example: the role of universities is
changing
”In addition to research and education,
universities are having more societal
options and responsibilities ahead, with
the need to modernize the Triple Helix
model:
1. Universities can and should focus
more on societal challenges and as a
result, broadening the innovation base
2. Universities are natural platforms for
entrepreneurial discovery
3. Universities have a crucial role in
creating regional innovation ecosystems
to be based on the co-creation culture
and the network of innovation hubs
4. Universities are the knowledge base
in defining and implementing regional
research and innovation strategies
based on smart specialisation RIS3”
Markkula M. 2013 developed from Markkula M., Pirttivaara
M. & Miikki L. 2009 and Lester R. & Sotarauta M., Tekes
report 2007 ”Innovation, Universities, and the
Competitiveness of Regions”.
More in the article “The Knowledge Triangle Renewing the
University Culture” by Markku Markkula in the Knowledge
Triangle book 2013.
Tradi&onal*Interac&on*between*University*and*Society*
University*–*Industry*
coopera&on*concepts*
Educa&on*
Research**
Research,*Educa&on*and*Innova&on*
!
Competence*
Development*
Lifelong*
Learning*
Scien&fic*
Knowledge*
Industry*
Society*
Industry)
and))
other)
Organi1
za3ons)
Society:)
Innova3ons)
and))
Well1being)
(Products,)
Processes,)
Services…))
Produces)
Educates)
Lifelong)
Learning)
Inven3ng)
the)Future)
NEW)JOINT)ARENAS)for)Integra3on,)
Collabora3on,)and)Co1crea3on;)Access)to)
Global)Resources)and)Talent)
Aalto)Living)Labs)
Mega1Endeavours)
Aalto)Factory)Park) Competence)
Development)
Competent)
People)
Mindset)Change)&)New)Arenas)in)More)Detail)
Students)
Faculty)and)other)Staff)
Knowledge)
MINDSET)CHANGE)
Aalto)Values)and)Aalto)Working)Culture)
Development)Processes)
Other)Impacts)
Other)Impacts)
Scien3fic)
Knowledge)
)
)
)
Aalto)
Research,)
Educa3on)
and)
Innova3on)
Areas)
Aalto)Research))
Focus)Areas)as)
Drivers)of))
Development)
Learning)
)by)RDI)
)
)
)
Collabora3ve)
Knowledge)Crea3on)
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Example: What outputs and outcomes the
project provides for HEI?
( ) R&D projects
( ) Teaching and research content
( ) Service sales
( ) Research commercialization
( ) New entrepreneurs
( ) Study credits
( ) Journal articles
( ) Lifelong learning
( ) Staff mobility: staff-business-cooperation
( ) Student mobility: student-business-
cooperation
( ) Strategic participation for HEI
( ) International connections and networks
( ) New partners
( ) Societal engagement and place-making
6) Take care of organizational
integration
For example, in projects managed by higher
education institutes, any activity undertaken in the
project must be aligned to leverage and utilize the
different types of university-society-cooperation.
Involve teachers, researchers and students in
projects as much as possible in planning and
execution of the project.
This creates spillover benefits and integrates the
project work results into other missions of the
university - research and education.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Example: How to measure the outputs and outcomes with new metrics and
indicators in HEI-based projects
HEI-managed projects do not sufficiently measure their impact on the surrounding society or the
ecosystem. Also official indicators are limited in scope and often unsuited for measuring this.
Projects need to make use of voluntary metrics and indicators to make their contribution visible and
justified.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
CULTURE AND ATTITUDE
- change in knowledge
- motivation and attitude change
- impact on career advancement and
possibilities
- feedback from the HEI staff,
students and business
VOLUME AND SCOPE
- number of businesses participating
in co-creation activities
- increase in R&D
- volume and scope of R&D projects
- utilization rate of R&D infrastructure
- co-publications and journals with
business
- students involved in project
€ IMPACT
- new HEI-based start-ups and spin-
offs
- employment from HEI-based start-
ups and spin-offs
- outside investments on HEI-based
start-ups
- patents and commercialized
research results
- license fees from commercialized
HEI research
- income and volume from service
sales and contract research
- secured competed domestic and
international funding for the region
- impact of activities on regional /
municipal economy
(Derived and modified from ”Tutkimustoiminnan vaikuttavuus yliopistojen rahoitusmallissa – selvitys” and ”Länsi-Suomen Hankehelmet”)
Create focus and relevance by
building on your strengths
STEPS
7) Have the right team
8) Make use of
complementary
strengths: you + partners
+ region
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
7) Have the right team with individuals with
complementary competencies for different
tasks
Project-tasks should be organized around self-organizing teams according to
needed competencies, not by organizational basis. Projects should take a careful
look at what kind of skills and expertise is required from individuals to make plans
happen. Here are some archetypes of possible team roles needed in a project.
Note that one person may fulfill several roles and ideally there should be several
people involved - a proper team with complementary skills and focus areas.
Orchestrator: A producer who sees the big picture of activities, people and
knowledge transfer. Facilitates activity. Removes impediments and documents
learning. Similar to the role of ”Scrum Master” in Scrum methodology.
Productizer and commercializer: Makes sure project results are taken into practice.
Business-minded and practical. Represents the interests of the stakeholders and
ensures that project brings value for everyone involved, not just project and project
organization. Similar to the role of ”Product Owner” in Scrum methodology.
Specialist & Researcher: Acquires and analyzes information. Has specific substantive
competence that is relevant for the project.
Boundary spanner: Works in the field. Connects businesses and HEI. Helps to
overcome sectoral and disciplinary silos.
Communicator: Helps to crystallize information into explicit form.
Bureaucrat: Takes care of paper work and smooth function of the project
administration.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Team-related problems in
typical Finnish projects are
often two-fold:
Lack of team: one person,
the project manager, has to
do everything from A to Z.
+
Project manager is hired
purely on the merit of
substantive competence, but
projects need a variety of
skills (from organizing events
to sales, productization,
communication and
bureaucracy)
8) Make use of complementary strengths:
you + partners + region
Projects should make use of the specific strengths that are
unique to people, organization and regions behind the
project. This is particularly important for international projects.
Make your uniqueness a key selling point, a value proposition,
for domestic and international partners. Your claims need to
be backed by proof - success stories, quantitative metrics.
Remember that what knowledge or expertise you don’t have,
it is often more straightforward and more convincing, if you
source it from your networks or partners, rather than built it
from the scratch.
Take a look at the list on the right. List what are your own
unique elements. What you don’t have, you should source-in
from partners and elsewhere - other HEI, RDAs, businesses
and service providers.
For example, a university of applied sciences can focus on
applying newest technology from Horizon 2020 research to
businesses with the help of a regional development agency, or
it can find a place alongside a more scientifically-minded and
credited university in a Horizon 2020 project.
Example: What are your strengths and where do
they come from? What do you source-in from
partners? How do you complement each other?
You Partner
( ) ( ) finances
( ) ( ) tangible assets, capabilities
( ) ( ) research expertise
( ) ( ) knowledge
( ) ( ) experience
( ) ( ) ideas
( ) ( ) business connections
( ) ( ) networks and social capital
( ) ( ) influentiality
( ) ( ) credibility
( ) ( ) flexibility of the organization
( ) ( ) geographical location
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
EXAMPLE: Ways for regional development agencies
(RDA) and HEIs to cooperate and co-create utilizing their
individual strengths and networks
Invest-in cooperation: helping to position the region and its
ecosystem as R&D platform and utilizing HEI’s international
connections in invest-in activities
Start-again with start-ups: connecting HEI-based student and
staff start-ups in regeneration of existing companies
Finland as a testbed and business accelerator: commercializing
international research via Finland to European or Russian markets
Innovation excellence: helping local SMEs to apply the latest
Horizon2020 research in practice, instead of developing it from
the scratch
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Understand your regional
strengths
How is the project linked to the unique
strengths of the region? This is a required
element for international projects and
increasingly more demanded by Finnish
financing authorities. However, as the
example from Lapland on next page shows,
you should think of the strengths from a
wider perspective, rather than what is listed
in strategy papers.
What are the regional strengths?
( ) specific field or industry
( ) research / innovation capability
( ) R&D infrastructure
( ) business knowledge
( ) business capabilities
( ) geographical location
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
CASE EXAMPLE: LAPLAND
During a Change 2020 workshop in Lapland, the
participants found out that in addition to
region’s specific strategic smart specialisation
fields in mining, tourism and bioeconomy, the
Finnish Lapland has plenty of other strengths
and characteristics that make it a unique region
in Europe and globally. Here are some examples
that we took a note of.
International aspect is
everywhere: three border
countries, a long-history of cross-
border activity and good logistics
connections help to make
”Lapland the most international
region in Finland.” Internationality
should be present in every
development activity.
Global megatrends are likely to
promote Arctic growth drive: Global
megatrends help to make Lapland’ s
arctic environment extremely
important - technology, trade,
investments and resources.
Lapland is the location for applying and testing
technology in a unique setting: Lapland and its
ecosystem is not necessarily the best-suited place
for developing and researching ”from the scratch”,
but the location and arctic conditions provide an
unique setting for applying and testing new
technology and solutions in practice.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Regional learning: Active staff
exchange and shared active
ownership are typical of the
daily work of Lapland’s regional
developers
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
9) Experiment!
Current Finnish projects are too planning-driven. There should be more
experimentation. After all, one of the key purposes of public
development projects is often to test radically new solutions that would
be deemed to risky or unaffordable otherwise. When developing
something entirely new, it is difficult to be certain where results lead to
beforehand.
This is why working agile and learning by experimentation - by doing,
testing and failing - is needed more in projects, as opposed to more
planning-driven development. In this mindset, failure is a success; it
merely proves that something doesn’t work. You don’t freeze the idea
until you know for sure it works in practice. In an experimentation-driven
project model the key driver is to learn rapidly in order to create
something unique.
Steps how to proceed:
1. Identify and prioritize the idea or possibility to you wish to test.
2. Formulate a hypothesis based on the idea.
3. Make small-scale experiments and gather feedback from
users / customers. Iterate. Scale up. Move gradually from
assumptions to fact. Demonstrate the impact of your idea and
solution. Repeat.
4. As certainty increases, iterate, pool in more resources with
larger scale experiments.
5. Freeze idea only after you have gathered enough real-life
evidence basis to back your idea.
Experiments
CERTAINTY
Pilots
Experiments
Final product / service
(material on this slide is derived from the work of
Anssi Tuulenmäki, MIND / Aalto University)
TIME
”Think big.Act small.”
- Anssi Tuulenmäki, MIND / Aalto University
Example of how experimentation-driven model could be used in the structure of a project
1) Project executes 6 different small-
scale experimentations to find the
best method. Project plan describes
the number of pilots and gives a
rough outline how testing and
analysis is done.
2) Project analyzes the experiments.
eliminates out those methods that
don’t work and continues with 3
larger-scale pilots with the rest.
3) The solution is born out of the best
of three larger-scale pilots. Since the
solution undergone extensive real-life
piloting, there should be enough
inertia and evidence to help it survive
on its own.
Feedback, analysis, documentation
Iteration &
improvements,
scaling up
Iteration & improvements,
scaling up to market
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Feedback, analysis, documentation
Examples for identifying ideas to experiment and designing experiments
Which project-related ideas and
possibilities you prioritize for testing first?
SPEED
COMPLEXITY OF EXPERIMENT
SlowQuick
Complex Simple
Identify and
prioritize what
ideas you want
to experiment
first based on its
value for
customer / end
user and
yourself.
VALUE FOR CUSTOMER / USER
BUSINESS VALUE / POTENTIAL
BigLow
Low Big
€
Once you have
chosen the idea.
initiate a quick
and simple
experiment with
customer / user.
Focus on those
experiments that
are preferably
quick and
simple.
How do you test the ideas in practice with
quick and simple small-scale experiments?
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
(SDT – Palvelumuotoilun Työkalupakki, www.sdt.fi)
Example video: Sitra -
kokeilukulttuuri 

http://youtu.be/1YEM2pQQNEc
10) Keep learning!
Learning should be a the core of development
projects. By focusing on learning and self-
reflection, it would be easier for projects and
financing authorities to talk out loud about
failures and mishaps without fear of
punishment.
Projects should reflect what kinds of internal
learning processes they apply in practice and
continuously ask themselves to what extent
results of the experiences are shared with rest
of the project organization, and how aware
stakeholders are of what is happening. With
project work and its limited time, perfection
should not be the goal.
To make this happen, all projects should
integrate a proper learning process into the
project plan. Ask and give rapid feedback.
Show a clear link between things, allow people
to experience this experimentally.
Double-loop learning should be integrated in
projects’ daily work
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Plan
Do
CheckAssume
Adjust
Think again
Example: How does your project’s steering
group support learning?
Do you utilize the project’s steering group for
setting the direction, or does the group exist for
merely administrative responsibilities? Does the
steering group work for advancing the direction
towards desired change, or are the members in
the group merely appointed because of their
roles? We hope not.
Reflect these four questions on regular basis:
- what has worked?
- what hasn’t worked?
- what we will do differently next time?
- what we will take into practice?
Share and document your learnings - with
steering group, financing authority and
colleagues. Use steering group in similar fashion
to Board of Advisors of companies.
BLOCKS
Co-creation
Big picture
Strengths
Experimentation
Learning
Material and
official reports
Tacit knowledge
and experiences
Relationships
and networks
Things that are created in projects - Learning and self-reflecting
makes it possible to make use of the whole palette
The workbook
comes with an
additional canvas
template for
practice purposes.
You can use the
project canvas to
summarize your
project idea and
to iterate it
several times
Find it at
www.innofokus.fi
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CO-CREATION
1) NEED OR OPPORTUNITY
!!
3) SOLUTION
4) ACTIVE OWNERSHIP
See different canvas for more information
BIG PICTURE
5) POSITION THE PROJECT
Is the project more about capacity building, creating new
or building new innovations (research-to-market)? What
are the key activities, people and projects to which it’s
related?
6) INTEGRATION INTO ORGANIZATION
What outputs and outcomes the project provides for rest
of the organization?
STRENGTHS
7) RIGHT TEAM
What kind of team is needed to make the project
happen?
!!
8) STRENGTHS: ORGANIZATION, PARTNERS,
REGION
What are the key strengths upon which project builds?
EXPERIMENTATION +LEARNING
9) EXPERIMENTATION
How does the project use experimentation-
driven development?
10) LEARNING
How does the project learn? See different
canvas for more information
VISION
2) VISION
What is the shared vision for which every
activity aims?
NAME%OF%THE%PROJECT
CHANGE2020 PROJECT CANVAS
© Business Arena Oy, Aalto University School of Business Small Business Center
Project canvas
contains two
additional
canvas
templates for
deeper
understanding
of active
ownership and
learning.
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What is the role of different
participants such as project
organization, partner organizations,
customers, end-users and beneficiaries?
Before the project After the project
ACTIVE OWNERSHIP IN DIFFERENT PHASES OF THE PROJECT
© Business Arena Oy, Aalto University School of Business Small Business Center
During the project
LEARNING CYCLE WITHIN PROJECT
© Business Arena Oy, Aalto University School of Business Small Business Center
!
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How does the project learn?
!
When and how do you reflect key decisions 

and results in finding new direction?
!
How do you share insight and results 

with your organization or partners?
!
When and how do you utilize steering 

group for setting the direction?
!
Put the important milestones in 

the year cycle along with key activities.
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January
July
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!
!
CO-CREATION
1) NEED OR OPPORTUNITY
!!
3) SOLUTION
4) ACTIVE OWNERSHIP
See different canvas for more information
BIG PICTURE
5) POSITION THE PROJECT
Is the project more about capacity building, creating newor building new innovations (research-to-market)? Whatare the key activities, people and projects to which it’srelated?
6) INTEGRATION INTO ORGANIZATIONWhat outputs and outcomes the project provides for restof the organization?
STRENGTHS
7) RIGHT TEAM
What kind of team is needed to make the projecthappen?
!!
8) STRENGTHS: ORGANIZATION, PARTNERS,REGION
What are the key strengths upon which project builds?
EXPERIMENTATION +LEARNING
9) EXPERIMENTATION
How does the project use experimentation-driven development?
10) LEARNING
How does the project learn? See differentcanvas for more information
VISION
2) VISION
What is the shared vision for which everyactivity aims?
NAME%OF%THE%PROJECT
CHANGE2020 PROJECT CANVAS© Business Arena Oy, Aalto University School of Business Small Business Center
Authors’ concluding words
In their commentary, Change2020 development program
participants relished the opportunities they’d been given to try
out new methods, create space for informal networking and
sharing viewpoints. We’d like to thank everyone of them for the
fun time we had.
Innovation activity is moving out of laboratories into the open,
from enclosed living labs to real-life testbed environments and
bottom-up platforms. Until now, Finnish regional development
projects have been planned, financed and - to some extent-
executed in enclosed systems. Risk-taking has been minimized.
Can we afford that anymore?
Open Innovation 2.0 thematic board (see right) contains many
similar themes that also Change2020 tackled. They serve to
remind us on what European Union expects from policy makers
and innovation actors in solving key European challenges by
embracing change.
Our answer could be: ”Maximize the coincidence. Prototype
rapidly and experiment. Harness the bottom-up activity and
nurture the first followers - don’t restrict too much. Pull up your
sleeves and act as much as you can. Keep learning.”
Open Innovation 2.0 thematic board. (http://ec.europa.eu/digital-
agenda/en/open-innovation-20)
This material was analyzed, written and put together by Toni Pienonen and Mikko Markkanen from Business
Arena Oy in April 2014 - January 2015. We’re a Finnish company specializing in university-business-
cooperation, high-impact projects and learning networks. For more information, see: www.businessarena.fi
Toni Pienonen
toni.pienonen@businessarena.fi
0400 737 238
Mikko Markkanen
mikko.markkanen@businessarena.fi
+358 40 758 8712
Change2020 development program was part of the operations
carried out by INNOFOKUS project which was funded by
European Social Fund, Ministry of Education.
INNOFOKUS project was managed by Aalto University School of
Business Small Business Center (SBC).
www.innofokus.fi

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Change2020 RIS3 workbook for projects

  • 1. RIS3 WORKBOOK (B) FOR PROJECTS For project managers, designers, R&D staff and regional development organizations 
 Toni Pienonen and Mikko Markkanen, Business Arena Oy
  • 2. SUMMARY RIS3 WORKBOOK FOR PROJECTS provides practical insight for project managers and designers, R&D staff at higher education institutes and regional development organizations on how to create activity that meets the RIS3 requirements of EU programme period 2014-2020. Situation coincides with the Finnish economy struggling with the crisis. Funding instruments are expected to generate more results with less money. New conditions require a new mindset to questions such as What makes a good public development project? and How can HEIs and other project organizations be more in tune with society via projects? At the same time, Finnish regions are at different stages in adopting smart specialisation - others pioneering it with participatory processes, laggards either treating the subject of smart specialisation as business as usual or confused by uncertain expectations. Contents of this workbook were documented by Toni Pienonen and Mikko Markkanen as part of INNOFOKUS project and its Change2020 program. Throughout the year 2014, the program organized several opportunities to create clarity on these issues. Following tens of participatory workshops and bench-learning events for hundreds of participants, this workbook summarizes the results. Note that his workbook has a companion piece RIS3 WORKBOOK FOR LEARNING-DRIVEN REGIONAL DEVELOPMENT, which is intended for larger scale activities. You can find at it at www.innofokus.fi 
 * Please note that in this context, ”projects” mean specifically regional development projects or applied and demand-driven research projects, unless otherwise stated.! www.innofokus.fi Change2020 development program was part of the operations carried out by INNOFOKUS project which was funded by European Social Fund, Ministry of Education. INNOFOKUS project was managed by Aalto University School of Business Small Business Center (SBC).
  • 3. Contents We summarized the insight and results from various workshops of Change 2020 development program into five building blocks. Each block contains key steps that help you to plan stronger project ideas with societal impact. They are key principles that any projects should adhere to, if they intend to be more connected to surrounding society and follow the ideals of smart specialisation. 1. Identify and formulate the need or opportunity 2. Co-create the vision 3. Co-create the solution 4. Share active ownership 5. Position the project 6. Take care of organizational integration 7. Have the right team 8. Make use of complementary strengths (you + partners + region) 9. Experiment! 10. Keep learning This information was furthermore condensed into a PROJECT CANVAS that helps you to design individual high-impact projects (see page 30 for more details). You can also use the steps as a checklist for double-checking your own project plan and direction. BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 4. BLOCKS Co-creation Big picture Strengths Experimentation Learning ”What could public projects learn from crowdsourcing platforms? First, an exciting idea plays the key role and gets everyone interested. Secondly, users and customers become part of the development from the get-go, leading to shared ownership and commitment.” - a Change2020 participant
  • 5. Co-creation is the key Co-creation starts already in the beginning at the planning phase. All projects should must be externally focused, demand-driven and rooted in the needs of the society, co- created together with users and partners, following the principles of open innovation. Society and businesses must be at the core of the projects and their planning. They bring out real-life problems, needs, opportunities and wicked problems that are worth solving. STEPS 1) Identify and formulate the need or opportunity 2) Co-create the vision 3) Co-create the solution 4) Share active ownership BLOCKS Co-creation Big picture Strengths Experimentation Learning Identifying need, criteria, ideas, hypothesizing Iterating the project plan Designing and writing the project, continuing with agile and experimentation-driven approach towards clear vision
  • 6. 1) Identify and formulate the need or opportunity Specifying the need in project planning is too often left on intuition or simple statements. It may take surprisingly many attempts and iterations to the get it right. For example, in reality needs are often unstated or latent - and need to be formulated. Good projects spend enough time in getting from ”fuzzy front end” to actual idea stage - discovering, defining, iterating and interpreting issues with stakeholders and partners. • is there societal or a market need? • whose need or needs are we talking about? • size of the market / problem? • what is the project partners’ interest in solving the problem? • what is the business / customer / end-user interest for the solution? • quantify as much as possible - qualitative statements are not persuasive ”We fail more often because we solve the wrong problem, than because we get the wrong solution to the problem.” - Russel Ackoff BLOCKS Co-creation Big picture Strengths Experimentation Learning Example: Remember the 5 whys in finding the root cause and the real problem. When it seems that you might be on the right track in identifying the need, remember to ask yourself and others the ”5 whys” to get down to the root cause of the problem. For example: The vehicle will not start. (the problem) 1. Why? - The battery is dead. (first why) 2. Why? - The alternator is not functioning. (second why) 3. Why? - The alternator belt has broken. (third why) 4. Why? - The alternator belt was well beyond its useful service life and not replaced. (fourth why) 5. Why? - The vehicle was not maintained according to the recommended service schedule. (fifth why, a root cause) (Wikipedia)
  • 7. 2) Co-create the vision A shared and inspiring vision is an immensely powerful tool for shared thinking and direction. Vision helps everyone in the project to understand how small individual actions and roles are linked to each other as part of the bigger picture. Since many projects operate in situations without power structure or command hierarchy between the project manager and organizations participating in the actions, oftentimes the vision is the only tool that the manager can use to lead others. Change2020 development program participants found out that when co- creating the vision and attracting others around it, the power of stories should not be underestimated. All good project visions have a story: • root your story in the uniqueness of your place • make the story easy to follow • use vision to describe what will the world look like when project has finished • talk out loud about your vision as soon as possible - if your story catches on, you’re probably on the right track. The vision should contain a story that tells how the world will be different when the project has finished, but it should also help the project charter to articulate what are the boundaries, responsibilities, metrics and mutually understood principles of how project participants work together. BLOCKS Co-creation Big picture Strengths Experimentation Learning A shared vision helps the project manager and everyone else in the project to focus activities in same direction
  • 8. CASE EXAMPLE: BUILDING BLOCKS OF A STORY
 When Change2020 participants were formulating an idea and vision for a new project that would have several regions participating, they started by looking at what makes Finland special in the international context. One thing was clear. Finland needed more internationally-oriented growth companies. The participants started viewing Finland and its neighboring countries, Nordic countries in particular, as a global commercialization and entrepreneurship platform - that they could be a role model for rest of the world. These are the building blocks they put together for the story of Finland, the best kept secret of the world? Nordic countries • unique position as global role models • brand value for Finland • shared cultural values and safe operating environment Russia and Asia Finland as a gateway for • Russian companies to enter European market • Russian researchers to commercialize their research for international markets • international businesses to enter Russian market Baltic Sea region • testbed and business accelerator for entrepreneurs • 80 million people market area Europe Arctic region • unique testing and commercialization opportunities • investment boom • strong international links between arctic regions Northern Growth Zone BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 9. 3) Co-create the solution Involve stakeholders and users in designing the solution from the get-go. You should involve all actors of quadruple helix from institutional bodies, research sphere and business sector to citizens. Remember - pull, not push. Listen to the stated needs, or help to formulate unstated and latent needs into explicit form. Leverage existing personal connections around you to reach the needed level of trust. However, don’t be too quick to freeze the details and idea of the solution in the planning phase. You don’t need to get it all right on the first attempt. Projects are often about finding workable solutions, not the perfect ones. The most important thing to remember is make sure that the project plan allows agile and experimentation-driven development. The project itself should be a tool for discovering the answers to different questions with the help of real-life testing and series of iterations. This helps to create inertia and early interest with low-hanging fruits and immediate benefits for different stakeholders. Examples of questions that you should keep in mind when designing the project’s solution and experimenting different approaches: • what are the benefits for those partners involved in the project? • what less explicit outcomes might be realized in the long run? • what existing does the solution replace? • why your is solution superior to existing models / solutions? • why hasn’t it been possible to solve the problem until now? • what is the social impact of the solution? • what is the value and benefits for the customer and/or end-user? • how is the solution delivered? • what is the ”minimum viable product” for the solution? Remember that in order to create value, it’s better to have something concrete ready as early as possible, a working prototype or a pilot, rather than aiming for one big release. BLOCKS Co-creation Big picture Strengths Experimentation Learning ”The timing of long range plans is screwed up too.You have the most information when you’re doing something, not before you’ve done it.Yet when do you write a plan? Usually it’s before you’ve even begun.That’s the worst time to make a big decision." - Jason Fried 
 & David Heinemeier Hansson
  • 10. Example: Rigid vs agile goal-setting in project planning BLOCKS Co-creation Big picture Strengths Experimentation Learning (Tapio Järvenpää & Ilkka Kankare, ”Veikö Moolok vallan? Vapauta projektisi tuhlaajakultista”) 1) 2) 3) A A A (B) B B’ A is the starting point when a decision is made to initiate a project. B is the desired future state. (B) is the assumption of the future. ’B is the real future state. 1) Traditional planning-driven waterfall project plan makes strong assumptions on the desired future B. Rigid sequential project plan doesn’t allow room for maneuvering. Changes in the real world mean that the future state B isn't desired after all nor rooted in realism (it should be ’B), meaning that the project misses the mark by far. 2) Starting point is the same as in 1), but the project plan takes into account the possibility of changes and surprises in the environment. Updating the assumption of the desired goal (B), the process forces the project to return to the starting point. Retracing the steps backwards several times results in increased length and overspending, however. 3) Agile and experimentation-driven project plan has a vision of the desired future state, but the path isn’t locked beforehand. Project makes several experiments and iterations on the way, as knowledge and certainty increase.
  • 11. 4) Share active ownership Active ownership is the key for ensuring that project creates permanent results and that it’s not forgotten once funding ends. Active ownership of a project doesn’t happen without determined individuals and organizations, who have been sufficiently given an opportunity to participate in planning and execution of the project. People only support the ideas in which they have played a part of creating. BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 12. Before the project During the project After the project Partners Project organization Beneficiaries / end users (e.g businesses) Financing authority 1) co-creating research hypothesis with HEI, planning the R&D project 3) piloting proof of concepts and demonstrations with HEI 4) IPR exchange, commercializing research / project results with HEI 5) HEI integrating student start-ups in commercialization, creating entrepreneurs for the society 2) co-creating new services or products with HEI Example: What are could be the role businesses in active ownership during a project’s lifecycle? (see the separate canvas for active ownership, page 34) BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 13. PROJECTS NEED TO BE ATTACHED TO THE BIG PICTURE Projects are just tools to attain a desired level of change. They are always part of something bigger - organizationally and activity-wise. Specifically HEI-managed projects must integrate their outcomes and outputs into the two other missions of university - research and education. STEPS 5) Position the project 6) Take care of organizational integration BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 14. 5) Position the project In particular for international project bidding, it is important to be able to position your individual project in the big picture - what activities, projects and key people are related to the project? Is the project itself more about capacity building, creating something new or applying innovation in practice? ( ) Capacity building: Helping businesses and HEI to build groundwork for cooperation - skills, business advisory services, networks, infrastructure, demonstration ( ) Creating new: research and development with (international) partners - pilots, key enabling technologies, world class frontier research ( ) Research to market: Applying latest research and knowledge in practice. From research to market - new business innovations and procurement. ? ? ? ? ? ?? ? What is the type of your project? BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 15. Example: the role of universities is changing ”In addition to research and education, universities are having more societal options and responsibilities ahead, with the need to modernize the Triple Helix model: 1. Universities can and should focus more on societal challenges and as a result, broadening the innovation base 2. Universities are natural platforms for entrepreneurial discovery 3. Universities have a crucial role in creating regional innovation ecosystems to be based on the co-creation culture and the network of innovation hubs 4. Universities are the knowledge base in defining and implementing regional research and innovation strategies based on smart specialisation RIS3” Markkula M. 2013 developed from Markkula M., Pirttivaara M. & Miikki L. 2009 and Lester R. & Sotarauta M., Tekes report 2007 ”Innovation, Universities, and the Competitiveness of Regions”. More in the article “The Knowledge Triangle Renewing the University Culture” by Markku Markkula in the Knowledge Triangle book 2013. Tradi&onal*Interac&on*between*University*and*Society* University*–*Industry* coopera&on*concepts* Educa&on* Research** Research,*Educa&on*and*Innova&on* ! Competence* Development* Lifelong* Learning* Scien&fic* Knowledge* Industry* Society* Industry) and)) other) Organi1 za3ons) Society:) Innova3ons) and)) Well1being) (Products,) Processes,) Services…)) Produces) Educates) Lifelong) Learning) Inven3ng) the)Future) NEW)JOINT)ARENAS)for)Integra3on,) Collabora3on,)and)Co1crea3on;)Access)to) Global)Resources)and)Talent) Aalto)Living)Labs) Mega1Endeavours) Aalto)Factory)Park) Competence) Development) Competent) People) Mindset)Change)&)New)Arenas)in)More)Detail) Students) Faculty)and)other)Staff) Knowledge) MINDSET)CHANGE) Aalto)Values)and)Aalto)Working)Culture) Development)Processes) Other)Impacts) Other)Impacts) Scien3fic) Knowledge) ) ) ) Aalto) Research,) Educa3on) and) Innova3on) Areas) Aalto)Research)) Focus)Areas)as) Drivers)of)) Development) Learning) )by)RDI) ) ) ) Collabora3ve) Knowledge)Crea3on) BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 16. Example: What outputs and outcomes the project provides for HEI? ( ) R&D projects ( ) Teaching and research content ( ) Service sales ( ) Research commercialization ( ) New entrepreneurs ( ) Study credits ( ) Journal articles ( ) Lifelong learning ( ) Staff mobility: staff-business-cooperation ( ) Student mobility: student-business- cooperation ( ) Strategic participation for HEI ( ) International connections and networks ( ) New partners ( ) Societal engagement and place-making 6) Take care of organizational integration For example, in projects managed by higher education institutes, any activity undertaken in the project must be aligned to leverage and utilize the different types of university-society-cooperation. Involve teachers, researchers and students in projects as much as possible in planning and execution of the project. This creates spillover benefits and integrates the project work results into other missions of the university - research and education. BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 17. Example: How to measure the outputs and outcomes with new metrics and indicators in HEI-based projects HEI-managed projects do not sufficiently measure their impact on the surrounding society or the ecosystem. Also official indicators are limited in scope and often unsuited for measuring this. Projects need to make use of voluntary metrics and indicators to make their contribution visible and justified. BLOCKS Co-creation Big picture Strengths Experimentation Learning CULTURE AND ATTITUDE - change in knowledge - motivation and attitude change - impact on career advancement and possibilities - feedback from the HEI staff, students and business VOLUME AND SCOPE - number of businesses participating in co-creation activities - increase in R&D - volume and scope of R&D projects - utilization rate of R&D infrastructure - co-publications and journals with business - students involved in project € IMPACT - new HEI-based start-ups and spin- offs - employment from HEI-based start- ups and spin-offs - outside investments on HEI-based start-ups - patents and commercialized research results - license fees from commercialized HEI research - income and volume from service sales and contract research - secured competed domestic and international funding for the region - impact of activities on regional / municipal economy (Derived and modified from ”Tutkimustoiminnan vaikuttavuus yliopistojen rahoitusmallissa – selvitys” and ”Länsi-Suomen Hankehelmet”)
  • 18. Create focus and relevance by building on your strengths STEPS 7) Have the right team 8) Make use of complementary strengths: you + partners + region BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 19. 7) Have the right team with individuals with complementary competencies for different tasks Project-tasks should be organized around self-organizing teams according to needed competencies, not by organizational basis. Projects should take a careful look at what kind of skills and expertise is required from individuals to make plans happen. Here are some archetypes of possible team roles needed in a project. Note that one person may fulfill several roles and ideally there should be several people involved - a proper team with complementary skills and focus areas. Orchestrator: A producer who sees the big picture of activities, people and knowledge transfer. Facilitates activity. Removes impediments and documents learning. Similar to the role of ”Scrum Master” in Scrum methodology. Productizer and commercializer: Makes sure project results are taken into practice. Business-minded and practical. Represents the interests of the stakeholders and ensures that project brings value for everyone involved, not just project and project organization. Similar to the role of ”Product Owner” in Scrum methodology. Specialist & Researcher: Acquires and analyzes information. Has specific substantive competence that is relevant for the project. Boundary spanner: Works in the field. Connects businesses and HEI. Helps to overcome sectoral and disciplinary silos. Communicator: Helps to crystallize information into explicit form. Bureaucrat: Takes care of paper work and smooth function of the project administration. BLOCKS Co-creation Big picture Strengths Experimentation Learning Team-related problems in typical Finnish projects are often two-fold: Lack of team: one person, the project manager, has to do everything from A to Z. + Project manager is hired purely on the merit of substantive competence, but projects need a variety of skills (from organizing events to sales, productization, communication and bureaucracy)
  • 20. 8) Make use of complementary strengths: you + partners + region Projects should make use of the specific strengths that are unique to people, organization and regions behind the project. This is particularly important for international projects. Make your uniqueness a key selling point, a value proposition, for domestic and international partners. Your claims need to be backed by proof - success stories, quantitative metrics. Remember that what knowledge or expertise you don’t have, it is often more straightforward and more convincing, if you source it from your networks or partners, rather than built it from the scratch. Take a look at the list on the right. List what are your own unique elements. What you don’t have, you should source-in from partners and elsewhere - other HEI, RDAs, businesses and service providers. For example, a university of applied sciences can focus on applying newest technology from Horizon 2020 research to businesses with the help of a regional development agency, or it can find a place alongside a more scientifically-minded and credited university in a Horizon 2020 project. Example: What are your strengths and where do they come from? What do you source-in from partners? How do you complement each other? You Partner ( ) ( ) finances ( ) ( ) tangible assets, capabilities ( ) ( ) research expertise ( ) ( ) knowledge ( ) ( ) experience ( ) ( ) ideas ( ) ( ) business connections ( ) ( ) networks and social capital ( ) ( ) influentiality ( ) ( ) credibility ( ) ( ) flexibility of the organization ( ) ( ) geographical location BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 21. EXAMPLE: Ways for regional development agencies (RDA) and HEIs to cooperate and co-create utilizing their individual strengths and networks Invest-in cooperation: helping to position the region and its ecosystem as R&D platform and utilizing HEI’s international connections in invest-in activities Start-again with start-ups: connecting HEI-based student and staff start-ups in regeneration of existing companies Finland as a testbed and business accelerator: commercializing international research via Finland to European or Russian markets Innovation excellence: helping local SMEs to apply the latest Horizon2020 research in practice, instead of developing it from the scratch BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 22. Understand your regional strengths How is the project linked to the unique strengths of the region? This is a required element for international projects and increasingly more demanded by Finnish financing authorities. However, as the example from Lapland on next page shows, you should think of the strengths from a wider perspective, rather than what is listed in strategy papers. What are the regional strengths? ( ) specific field or industry ( ) research / innovation capability ( ) R&D infrastructure ( ) business knowledge ( ) business capabilities ( ) geographical location BLOCKS Co-creation Big picture Strengths Experimentation Learning
  • 23. CASE EXAMPLE: LAPLAND During a Change 2020 workshop in Lapland, the participants found out that in addition to region’s specific strategic smart specialisation fields in mining, tourism and bioeconomy, the Finnish Lapland has plenty of other strengths and characteristics that make it a unique region in Europe and globally. Here are some examples that we took a note of. International aspect is everywhere: three border countries, a long-history of cross- border activity and good logistics connections help to make ”Lapland the most international region in Finland.” Internationality should be present in every development activity. Global megatrends are likely to promote Arctic growth drive: Global megatrends help to make Lapland’ s arctic environment extremely important - technology, trade, investments and resources. Lapland is the location for applying and testing technology in a unique setting: Lapland and its ecosystem is not necessarily the best-suited place for developing and researching ”from the scratch”, but the location and arctic conditions provide an unique setting for applying and testing new technology and solutions in practice. BLOCKS Co-creation Big picture Strengths Experimentation Learning Regional learning: Active staff exchange and shared active ownership are typical of the daily work of Lapland’s regional developers
  • 24. BLOCKS Co-creation Big picture Strengths Experimentation Learning 9) Experiment! Current Finnish projects are too planning-driven. There should be more experimentation. After all, one of the key purposes of public development projects is often to test radically new solutions that would be deemed to risky or unaffordable otherwise. When developing something entirely new, it is difficult to be certain where results lead to beforehand. This is why working agile and learning by experimentation - by doing, testing and failing - is needed more in projects, as opposed to more planning-driven development. In this mindset, failure is a success; it merely proves that something doesn’t work. You don’t freeze the idea until you know for sure it works in practice. In an experimentation-driven project model the key driver is to learn rapidly in order to create something unique. Steps how to proceed: 1. Identify and prioritize the idea or possibility to you wish to test. 2. Formulate a hypothesis based on the idea. 3. Make small-scale experiments and gather feedback from users / customers. Iterate. Scale up. Move gradually from assumptions to fact. Demonstrate the impact of your idea and solution. Repeat. 4. As certainty increases, iterate, pool in more resources with larger scale experiments. 5. Freeze idea only after you have gathered enough real-life evidence basis to back your idea. Experiments CERTAINTY Pilots Experiments Final product / service (material on this slide is derived from the work of Anssi Tuulenmäki, MIND / Aalto University) TIME ”Think big.Act small.” - Anssi Tuulenmäki, MIND / Aalto University
  • 25. Example of how experimentation-driven model could be used in the structure of a project 1) Project executes 6 different small- scale experimentations to find the best method. Project plan describes the number of pilots and gives a rough outline how testing and analysis is done. 2) Project analyzes the experiments. eliminates out those methods that don’t work and continues with 3 larger-scale pilots with the rest. 3) The solution is born out of the best of three larger-scale pilots. Since the solution undergone extensive real-life piloting, there should be enough inertia and evidence to help it survive on its own. Feedback, analysis, documentation Iteration & improvements, scaling up Iteration & improvements, scaling up to market BLOCKS Co-creation Big picture Strengths Experimentation Learning Feedback, analysis, documentation
  • 26. Examples for identifying ideas to experiment and designing experiments Which project-related ideas and possibilities you prioritize for testing first? SPEED COMPLEXITY OF EXPERIMENT SlowQuick Complex Simple Identify and prioritize what ideas you want to experiment first based on its value for customer / end user and yourself. VALUE FOR CUSTOMER / USER BUSINESS VALUE / POTENTIAL BigLow Low Big € Once you have chosen the idea. initiate a quick and simple experiment with customer / user. Focus on those experiments that are preferably quick and simple. How do you test the ideas in practice with quick and simple small-scale experiments? BLOCKS Co-creation Big picture Strengths Experimentation Learning (SDT – Palvelumuotoilun Työkalupakki, www.sdt.fi)
  • 27. Example video: Sitra - kokeilukulttuuri 
 http://youtu.be/1YEM2pQQNEc
  • 28. 10) Keep learning! Learning should be a the core of development projects. By focusing on learning and self- reflection, it would be easier for projects and financing authorities to talk out loud about failures and mishaps without fear of punishment. Projects should reflect what kinds of internal learning processes they apply in practice and continuously ask themselves to what extent results of the experiences are shared with rest of the project organization, and how aware stakeholders are of what is happening. With project work and its limited time, perfection should not be the goal. To make this happen, all projects should integrate a proper learning process into the project plan. Ask and give rapid feedback. Show a clear link between things, allow people to experience this experimentally. Double-loop learning should be integrated in projects’ daily work BLOCKS Co-creation Big picture Strengths Experimentation Learning Plan Do CheckAssume Adjust Think again
  • 29. Example: How does your project’s steering group support learning? Do you utilize the project’s steering group for setting the direction, or does the group exist for merely administrative responsibilities? Does the steering group work for advancing the direction towards desired change, or are the members in the group merely appointed because of their roles? We hope not. Reflect these four questions on regular basis: - what has worked? - what hasn’t worked? - what we will do differently next time? - what we will take into practice? Share and document your learnings - with steering group, financing authority and colleagues. Use steering group in similar fashion to Board of Advisors of companies. BLOCKS Co-creation Big picture Strengths Experimentation Learning Material and official reports Tacit knowledge and experiences Relationships and networks Things that are created in projects - Learning and self-reflecting makes it possible to make use of the whole palette
  • 30. The workbook comes with an additional canvas template for practice purposes. You can use the project canvas to summarize your project idea and to iterate it several times Find it at www.innofokus.fi ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! CO-CREATION 1) NEED OR OPPORTUNITY !! 3) SOLUTION 4) ACTIVE OWNERSHIP See different canvas for more information BIG PICTURE 5) POSITION THE PROJECT Is the project more about capacity building, creating new or building new innovations (research-to-market)? What are the key activities, people and projects to which it’s related? 6) INTEGRATION INTO ORGANIZATION What outputs and outcomes the project provides for rest of the organization? STRENGTHS 7) RIGHT TEAM What kind of team is needed to make the project happen? !! 8) STRENGTHS: ORGANIZATION, PARTNERS, REGION What are the key strengths upon which project builds? EXPERIMENTATION +LEARNING 9) EXPERIMENTATION How does the project use experimentation- driven development? 10) LEARNING How does the project learn? See different canvas for more information VISION 2) VISION What is the shared vision for which every activity aims? NAME%OF%THE%PROJECT CHANGE2020 PROJECT CANVAS © Business Arena Oy, Aalto University School of Business Small Business Center
  • 31. Project canvas contains two additional canvas templates for deeper understanding of active ownership and learning. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! What is the role of different participants such as project organization, partner organizations, customers, end-users and beneficiaries? Before the project After the project ACTIVE OWNERSHIP IN DIFFERENT PHASES OF THE PROJECT © Business Arena Oy, Aalto University School of Business Small Business Center During the project LEARNING CYCLE WITHIN PROJECT © Business Arena Oy, Aalto University School of Business Small Business Center ! ! How does the project learn? ! When and how do you reflect key decisions 
 and results in finding new direction? ! How do you share insight and results 
 with your organization or partners? ! When and how do you utilize steering 
 group for setting the direction? ! Put the important milestones in 
 the year cycle along with key activities. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! January July ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! CO-CREATION 1) NEED OR OPPORTUNITY !! 3) SOLUTION 4) ACTIVE OWNERSHIP See different canvas for more information BIG PICTURE 5) POSITION THE PROJECT Is the project more about capacity building, creating newor building new innovations (research-to-market)? Whatare the key activities, people and projects to which it’srelated? 6) INTEGRATION INTO ORGANIZATIONWhat outputs and outcomes the project provides for restof the organization? STRENGTHS 7) RIGHT TEAM What kind of team is needed to make the projecthappen? !! 8) STRENGTHS: ORGANIZATION, PARTNERS,REGION What are the key strengths upon which project builds? EXPERIMENTATION +LEARNING 9) EXPERIMENTATION How does the project use experimentation-driven development? 10) LEARNING How does the project learn? See differentcanvas for more information VISION 2) VISION What is the shared vision for which everyactivity aims? NAME%OF%THE%PROJECT CHANGE2020 PROJECT CANVAS© Business Arena Oy, Aalto University School of Business Small Business Center
  • 32. Authors’ concluding words In their commentary, Change2020 development program participants relished the opportunities they’d been given to try out new methods, create space for informal networking and sharing viewpoints. We’d like to thank everyone of them for the fun time we had. Innovation activity is moving out of laboratories into the open, from enclosed living labs to real-life testbed environments and bottom-up platforms. Until now, Finnish regional development projects have been planned, financed and - to some extent- executed in enclosed systems. Risk-taking has been minimized. Can we afford that anymore? Open Innovation 2.0 thematic board (see right) contains many similar themes that also Change2020 tackled. They serve to remind us on what European Union expects from policy makers and innovation actors in solving key European challenges by embracing change. Our answer could be: ”Maximize the coincidence. Prototype rapidly and experiment. Harness the bottom-up activity and nurture the first followers - don’t restrict too much. Pull up your sleeves and act as much as you can. Keep learning.” Open Innovation 2.0 thematic board. (http://ec.europa.eu/digital- agenda/en/open-innovation-20)
  • 33. This material was analyzed, written and put together by Toni Pienonen and Mikko Markkanen from Business Arena Oy in April 2014 - January 2015. We’re a Finnish company specializing in university-business- cooperation, high-impact projects and learning networks. For more information, see: www.businessarena.fi Toni Pienonen toni.pienonen@businessarena.fi 0400 737 238 Mikko Markkanen mikko.markkanen@businessarena.fi +358 40 758 8712
  • 34. Change2020 development program was part of the operations carried out by INNOFOKUS project which was funded by European Social Fund, Ministry of Education. INNOFOKUS project was managed by Aalto University School of Business Small Business Center (SBC). www.innofokus.fi