21-PM3-04: ST11.5 - Sustainable Development and transitions. Strategies, technological development, and policies.
Sustainability has evolved into a guiding principle for business in the last few years. The core message is to integrate economic, environmental and social aspects (“triple bottom line”). Sustainability requires to assume a life cycle perspective, can trigger new ideas for innovation and support creating environmentally sound products and solutions with a positive social impact. The core goal for innovation management is to organize how attractive ideas can be found, implemented and brought as successful products or solutions into the market. This often is a time critical process which focuses on economic conditions, possibilities enabled by technologies and the reduction of risks.
The special session “Integration of Sustainability in Innovation Management” targets the broader question of how sustainability aspects can be integrated into innovation management. Challenges can be found at all management levels from business strategy over processes, methods and tools.
• Incorporation of sustainability aspects into the innovation strategy and definition of concrete goals
• Development of novel search methodologies for market and technology intelligence
• Adaptation of process models for innovation management
• Development of assessment methods beyond the conventional market & technology assessments (integration of life cycle perspective, evaluating CO2 footprint, assessing social impact in the supply chain etc.)
• Broader incorporation of eco-design principles into product development
• Development of technology marketing approaches for eco-innovations
• Fostering green entrepreneurship for eco-innovations
Since innovation management is at the forefront of creating novel solutions, it can have a broad influence, not only on the commercial success, but also the sustainability impact. In the end, the achieved results have to be measured by created value and sustainability impact of the resulting products, processes and services.
In this context, papers from research from different disciplines and a practitioner’s perspective are welcome.
Value oriented and integrated development of smart services with systems engineering - a practical methodology
Fraunhofer Institute for Industrial Engineering IAO
The integrated view of smart services is a young approach in systems engineering, through which a reduction of the overall resource consumption, better service consistency, maintenance, higher quality performances, and, in result, higher sustainability can be achieved (Apostolov, et al., 2018), (Hara, et al., 2017), (Neuhüttler, et al., 2019).
Model Based Systems Engineering is the standard paradigm of integrated development of product-service-systems such as smart services or cyber physical systems. (Eigner, et al., 2017a) Recent research dealt with the integrated development of product-service systems with the systems modeling language (SysML) (Friedenthal, et al., 2009), which included physical products or systems combined with services under a sustainability viewpoint (Apostolov, et al., 2018), (Eigner, et al., 2017b).
In this work, we extend these approaches through the standpoint of customer-oriented development, where the two aspects “value as an artefact” (Ueda, et al., 2017) and “customer quality perception” (Neuhüttler, et al., 2017) are crucial to the success of product service systems. As shown in this literature, those aspects are methodologically different from the conventional definition of system functionalities.
Literature so far does not cover the consideration of artefacts such as value or quality perception in the development of product-service-systems with SysML. In addition, it lacks a methodology to define functions and physical modules in terms of description quality indicators such as completeness, no redundancy and consistency.
The research question is: how can the interface between the functional and the logical layer of a product-service-systems be designed under the consideration of explicit values such as sustainability, perceived quality, and the interdependence with sourcing strategies? This includes the according definitions of the system’s elements.
The presented research is done in the »Business Innovation Engineering Center BIEC« funded by the German Ministry for Economic Affairs, Employment and Infrastructure in Baden-Württemberg. It supports small and medium companies in the transformation towards digitalization.
Thus, this research is deductive. Firstly, the theoretical background is illuminated such as the practices and difficulties of product-service-system-development. Next, based on the theory of perceived quality of data-based, technology- and human-centered services, a conceptual framework for defining functionalities is set up. Finally, this framework is evaluated in the analysis of an industrial application case to demonstrate the applicability and usefulness of the methodology.
Resulting from this work, we show a proven method that properly defines the interface between the dimension of perceived values or qualities and the logical implementation layer of a product-service-system. This interface is a subject influenced by two major questions with various interdependencies: how to generate the value and how to develop or implement it. More precisely, the method supports setting the functional layer by giving guidance on the description quality, such as completeness, no redundancy and consistency, and on the fidelity level with concern on implementation and matching logic with the perceived values and qualities. Especially small and medium enterprises (SME) lack in competency to define functionalities this way. From a practical viewpoint, defining the interface properly is a crucial success factor for developing product-service-systems and therefore smart services.
To visualize the results we present the development of a predictive maintenance business model in different variations and discuss the influences of the implementation modality and the sourcing strategy on the achieved and perceived values and qualities.
Contribution to Scholarship
Currently, little theory is known about the definition and interdependencies between the dimension of perceived values or qualities and the logical implementation layer. Here, not only an overview on the challenges that SME face is given, but also on the success factors to solve them. This gives guidance to further research activities such as the modelling of sourcing strategies and their visualization in SysML.
Contribution to Practice
This work highly supports the structural and methodological design of the functional and logical description of smart services. It guides through the definition of the elements and the analysis of the interdependencies between the dimensions. This research aims to support SME in developing smart services but is not limited to them. The presented methodology fosters the effectiveness of modelling business models and increases their success.
As stated above, the purpose of this research is to support SME in the transition towards digitalization. One benefit of the integrated development of product-service-systems as shown in this work is sustainability. We investigate sustainable value creation from a practical viewpoint and suggest adapting sustainable goals in companies’ development processes.
Apostolov, H., Fischer, M., Olivotti, D., Dreyer, S., Breitner, M. H., and Eigner, M., 2018. Modeling Framework for Integrated, Model-based Development of Product-Service Systems. Procedia CIRP, 73, 9-14.
Eigner, M., Dickopf, T., Apostolov, H., 2017a. System Lifecycle Management – An Approach for Developing Cybertronic Systems in Consideration of Systainability Aspects. Procedia CIRP, 61, 128-133
Eigner, M., Koch, W., Muggeo, C., 2017b. Modellbasierter Entwicklungsprozess cybertronischer Systeme. Berlin: Springer Vieweg.
Friedenthal, S., Moore, A., Steiner, R. A Practial Guide to SysML – The Systems Modeling Language. London: Morgan Kaufmann Pub; 2009.
Hara, T., Arai, T., Gupta, A., 2017. An Interactive Model for the Synthesis of Service Functions Through Use Processes. In: Sawatani, Y., Spohrer, J., Kwan, S., Takenaka, T., 2017. Serviceology for Smart Service System. Tokyo: Springer, pp 329-339.
Neuhüttler, J., Ganz, W., Liu, J., 2017. An Integrated Approach for Measuring and Managing Quality of Smart Senior Care Services. In: Ahram, T. Z., Karwowski, W., 2017. Advances in The Human Side of Service Engineering. Proceedings of the AHFE 2016 International Conference, 494, 309-318.
Neuhüttler, J., Woyke, I., Ganz, W., and Spath, D., 2019. An Approach for a Quality-Based Test of Industrial Smart Service Concepts. AHFE 2018, AISC 787, 171–182.
Ueda, K., Takenaka, T., and Nishino, N., 2017. Service as Artifact: Reconsideration of Value Cocreation. In: Sawatani, Y., Spohrer, J., Kwan, S., Takenaka, T., 2017. Serviceology for Smart Service System. Tokyo: Springer, pp 329-339.
Decentralized energy management of Micro Grids: When optimization meets Machine Learning
Centre de Gestion Scientifique (CGS), UMR CNRS i3 9217, Mines ParisTech, PSL Research University
Decarbonization calls for a deep transformation of energy systems. This mutation is supported by increasing renewables in the energy mix. Though, as they are intermittent and non-dispatchable, RES pose various challenges. Therefore, the future grid is expected to be an interconnected network of micro grids and large-scale developments. ‌
Micro grid is defined as small-scale localized power grid which can either work singly or compete with nearby main electrical grid. The emerge of this new subsystem with local information and means of action leads to numerous energy management challenges. In this new energy ecosystem with distributed renewable energy, ubiquitous data and computation power, optimization alone is no longer sufficient. This calls to supplementary techniques. For instance, machine learning offers the possibility to automate the data gathering, modelling and optimization stages.
In the framework of micro grid operation, optimization can be coupled to machine learning. These two techniques are complementary as they answer to different objectives:
* Optimization targets one problem class, or even an instance of a problem, and a theory geared towards optimality and efficiency;
* Machine learning is focused on statistical significance, replicability to other problems with few adaptation, and interpretability of results. ‌
In this paper we investigate more deeply the challenges of micro grids management. Existing literature uses numerous approaches, focusing on smart grid and micro grid specific management issues. Though, to our best of knowledge, no overview aligning optimisation and machine learning exists.
This paper contributes to the understanding of the joint role of optimization and machine learning techniques in tackling decentralized energy management of micro grids. ‌
Contribution to Scholarship
Contribution to Practice
Cheng, L., & Yu, T. (2019). A new generation of AI: A review and perspective on machine learning technologies applied to smart energy and electric power systems. International Journal of Energy Research.
Liang, H., & Zhuang, W. (2014). Stochastic Modeling and Optimization in a Microgrid: A Survey. Energies, 7(4), 2027‑2050.
De Lara, M., Carpentier, P., Chancelier, J. P., & Leclere, V. (2014). Optimization methods for the smart grid. Report commissioned by the Conseil Français de l’Energie, Ecole des Ponts ParisTech.
Fallah, S., Deo, R., Shojafar, M., Conti, M., & Shamshirband, S. (2018). Computational intelligence approaches for energy load forecasting in smart energy management grids: state of the art, future challenges, and research directions. Energies, 11(3), 596.
Global health social Innovation as a driver of sustainable development
1World Health Organization, Switzerland; 2EM Lyon, France
This paper addresses the the need for an intensified focus on the management of medical technologies - both the innovation processes that lead to new technologies and the ways in which these technologies are disseminated in health systems - in order to achieve the health-related sustainable development goals (SDGs).
For the empirical work, the paper bridges the literatures of global health governance (for example Hoffman et al. 2015, Hale & Held, 2017, 2018) and social innovation (for example Chataway et al., 2010, van der Have & Rubalcaba, 2016). For the methodology, relevant literatures include those of relational sociology / practice theory and communities / networks (for example, Emirbayer, M., & Johnson, V., 2008, Marquis, et al, 2011, Assimakopoulos, D. , 2007).
There is currently a need for the management sciences to provide empirical and methodological support to the fields of sustainable development and global health governance. While social innovation provides a credible option to facilitate this its literature is nascent and fragmented.
What are the key facets of social innovation in global health?
How does social innovation, as a micro-foundational practice, influence global health governance and institutional coherence?
What are the hybrid institutional spaces and organizational forms where social innovation proliferates?
We use an abductive network ethnography approach to analyse the World Health Organization during its largest period of transformation in its history as well as a number of 'social technology' satellite organisations focused on stimulating research, development and access to medical technologies. By identifying key actors that occupy hybrid spaces between disease areas and cross-cutting fields, we use semi-structured interviews to gain a deeper understanding of their institutional logics and how they and others can catalyse the global health and sustainable development agendas through social innovation.
Some data already collected using network analysis and ethnography. As paper is work in progress more data to be collected. As an embedded practitioner in the empirical space, substantial participant observation data will be used.
We aim to identify a robust set practices that will eventually form a taxonomy of the microfoundations of social innovation in global health
Contribution to Scholarship
We acknowledge, and aim to add a new strand to, the blossoming literature on global health governance, through an analysis of social innovation at the level of communities of practitioners. In addition - and complementary to - theoretical perspectives that focus predominantly on the economics of innovation, sociological approaches - particularly social innovation with a community focus - recapture innovation as fundamental to human progress where collective endeavors include creating and reassembling organizational and collaborative forms for knowledge production that are structured for the monumental tasks at hand.
Contribution to Practice
The World Health Organization and partners have an increasing focus on the contribution of the management and political sciences to practice. The broader research project related to this paper will be submitted to the WHO for ethical approval and with the intention of obtaining internal support to provide recommendations on the implementation of the WHO Thirteenth Programme of Work - GPW13 (2019-23)
Health is a central facet of sustainable development and key area where R&D and innovation are of a premium.
Steven J. Hoffman, Clarke B. Cole, Mark Pearcey Mapping Global Health
Architecture to Inform the Future, Centre on Global Health Security, January 2015
Hale, T., & Held, D. (2017). Beyond Gridlock. Polity.
Hale, T., & Held, D. (2018). Breaking the Cycle of Gridlock. Global Policy, 9(1), 129–137.
Chataway, J., Hanlin, R., Mugwagwa, J., & Muraguri, L. (2010). Global health social technologies: Reflections on evolving theories and landscapes. Research Policy, 39(10), 1277–1288.
van der Have, R. P., & Rubalcaba, L. (2016). Social innovation research: An emerging area of innovation studies? Research Policy, 45(9), 1923–1935.
Emirbayer, M., & Johnson, V. (2008). Bourdieu and organizational analysis. Theory and Society, 37(January), 1–44.
Marquis, C., Lounsbury, M., & Greenwood, R. (2011). Communities and Organizations. Emerald.
Assimakopoulos, D. (2007). Technological Communities and Networks. (D. G. Assimakopoulos, Ed.). Routledge.
Identifying innovation niches using agreed visions of sustainable development
Sustainable development is an ethical and optimistic view of the future of mankind. It shows both where a good global society could be headed, and which obstacles we need to overcome to get there. As such, it can be regarded a pretty grounded product specification for the entrepreneurially minded.
There are many texts describing the vision and goals of sustainable development as a vision, but much core industry technology and innovation is still driven by technology rather than by sustainability challenges and vision.
Can we practically achieve industrially commercial innovations based purely on sustainable development goals? If so, what may be required? Are there general learnings to draw out from such?
From the viewpoint of the foundry industry, a core sustainability challenge for the foundry industry was chosen; resource depletion when using energy to melt metal and the long term resource contamination feeding alloys to achieve different metal properties. Based on the visions of Circular economy a potentially commercial technology for tracing individual components was developed, together with a concept for elevating the value of cast metal components to establish a higher value in the cast metal components. These two technological innovations was presented for further innovations to the industry, and their innovation ecosystems are now being established.
Our empirical material is so far the different prototypes developed by the companies, which demonstrates the technical applications in future products.
The empirical material so far is an industrially appreciated set of technologies that are used as drivers for commercial innovations, with natural enablers for innovating circular economy innovations and resource efficient technologies to customers.
Contribution to Scholarship
We expect that by having grounded this entirely new technology into the metal and electronics sectors, there will be many general sustainable innovation questions to continue with;
- How can this be introduced in more industry sectors?
- How can we establish more resource and climate decoupled innovation ecosystems by smart innovations with traditional mateiral based industries as platforms?
- How to establish sustainability of sustinability driven innovations?
Contribution to Practice
Our example already spurr further spin-off in other sectors, as well as demonstrates that sustainable development indeed is a driver of new decoupled commercial technology.
The described technology was developed with purpose to support sustainable development, in terms of UNSDG .
Carlsson, R., Elmquist, L., Johansson, C., Cast metal with intelligence – from passive to intelligent cast components, Conference: VIII ECCOMAS Thematic Conference on Smart Structures and Materials SMART 2017, Madrid, Spain, June 2017,
Elmquist, L., Carlsson, R., Johansson, C., Cast Iron Components with Intelligence, Presented at the 11th International Symposium on the Science and Processing of Cast Iron (SPCI-XI), Accepted for publication in the Conference Proceedings.