Thomas Lager

Equipment supplier/user collaboration in the process industries: In search of enhanced operating performance

Purpose – The purpose of this paper is to provide theoretical insight and practical guidance on how both process firms and equipment manufacturers can address the challenges posed by collaboration during the operational stage of the process technology/equipment life cycle.Design/methodology/approach – Motives and driving forces for entering collaborative projects far from always converge, and while some projects require deep and long‐lasting relationships, others call for pure transactions and arms‐length relationships. The questions of why, when and how collaboration should take place and be organised and managed are addressed and discussed in the light of the literature on technology diffusion and technology transfer, and supplemented by ideas from industry professionals.Findings – A tentative list of potential pros and cons has been compiled to serve as an embryo for further creation of a more complete set of expected outcomes with a view to developing a firm benchmarking instrument for establishing ne...

PRODUCT AND PROCESS DEVELOPMENT INTENSITY IN PROCESS INDUSTRY: A CONCEPTUAL AND EMPIRICAL ANALYSIS OF THE ALLOCATION OF COMPANY RESOURCES FOR THE DEVELOPMENT OF PROCESS TECHNOLOGY

In Process Industry, process development traditionally takes a large part of the companys total development efforts, but has nevertheless not received much attention in academic studies. As a part of a larger research project concerning process development in Process Industry, the allocation of company resources to R&D, and to process development in particular, has been investigated in an exploratory survey to R&D managers in European Process Industry (Mining & Mineral Industry, Food & Beverage Industry, Pulp & Paper Industry, Chemical Industry, Basic Metal Industry, and Other Process Industry). The results show that of the total resources for R&D, 40% was allocated to process development, and over 60% of the companies expected this figure to increase in the future. This figure not only shows the future importance of process development, but also indicates that the importance of product development in this group of companies is at present still rated higher than process development. The results from the study do not fit the most widely used theoretical models, and it is concluded that there is a need for better models with more explanatory power. The new concepts of product and process development intensity are introduced. The product and process development intensities can be looked upon as aggregated measures of individual development efforts by a company, and it is thus argued that they are of overall company strategic importance.

Success factors for improvement and innovation of process technology in process industry

In a study of the development of process technology in the process industry, 25 potential success factors were developed and later ranked in a survey to R&D managers in the European process industry. The results show that success factors for process development and product development are different, but also that success factors for process improvement and process innovation are different. For R&D managers in the process industry, the success factors can be used as a “shopping list” for the development of a company‐specific list of success factors for process development. The difference between success factors for process improvement and process innovation indicates that there is a need to better distinguish between process development work of different nature and content.

Success factors for the development of process technology in process industry. Part 2: a ranking of success factors on an operational level and a dynamic model for company implementation

In a research project on the development of process technology in process industry, success factors have been developed and ranked by R&D managers in various sectors of European process industry. The results are presented in two parts, of which this is Part 2 of the study. A new classification system for success factors in R&D was developed as an introduction in Part 1, and the discussion in this paper presents a model for company implementation. The empirical research results give an emerging picture of a development area, a development process and a type of development behaviour that differ markedly from product development and the product development process. The results can also be seen as a shopping list and a starting point for in-company development of success factors and performance indicators for process development.

The Commodity Battle: a product-market perspective on innovation resource allocation in the Process Industries

Companies in the Process Industries often try to avoid being commodity producers and strive to develop more functional products with higher profit margins. When such products are introduced on the market, they are usually imitated before long. Prices then decline, and the products degenerate in a never-ending product contest conceptualised as the Commodity Battle. The companys position in the supply-chain has been used as a point of departure, and four related matrices have been designed as roadmaps for guiding strategic allocation of resources to innovation. The framework and the empirical findings give theoretical insight, and can already be deployed as one tool for innovation resource allocation.

DEVELOPING A PROCESS INNOVATION WORK PROCESS: THE LKAB EXPERIENCE

It goes without saying that most companies today need a product innovation work process. The importance of process innovation in many sectors of the process industries should, however, make the development of a process innovation work process a growing concern in many process-based companies. This case study describes the development of such a work process at LKAB, a producer of high-quality iron ore pellets mainly for the European steel industry. Starting with a previously published conceptual model of the work process from a research project in other process industries, the development work is initially introduced in detail. The complete work process is then presented together with a cross-functional process map, checklists and a supplementary process description. The development of the work processes was a combination of a recording of LKABs best practices coupled with the use of externally published research results and information on work process development. Finally, experience from the development and organisational implementation is discussed. It is the opinion of the project group that if properly applied, this work process will give structure, methodological guidance and efficiency in process innovation. But reaping those rewards will require persistence and discipline at all levels of the company. The purpose of this article is to provide theoretical insight and practical guidance on how to develop an innovation work process in the process industries, specifically, a process innovation work process. The successful development of this work process was considered of such importance to LKAB technology and business development that it resulted in an overall top management initiative to develop and improve all company innovation work processes, with a view to improving innovation output, project management efficiency and organisational learning.

Application Development in Process Firms: Adding Value to Customer Products and Production Systems

The process industries span several industrial sectors such as minerals and metals, pulp and paper, food and beverages, chemicals and petrochemicals, utilities and generic pharmaceuticals, and thus constitute a considerable part of all manufacturing industry. Application development, as an institutionalised function in process industry firms, focuses on bridging the gap between a product suppliers knowledge of the products performance scope and the customers knowledge of its own production process requirements. In an exploratory survey of major process firms in the Swedish process industries, the importance of application development to firms was judged to be very high, but there also seemed to be a window of opportunity for improvements. The most important driver was ‘an opportunity to establish long‐term sustainable customer relationships and to secure future product sales’. Expected customer outcomes differed substantially between firms. As extremes, one firm expected 80% of application development to give the customers improved products, while the other extreme expected only improved customer process technology. Because most of the firms in the study population had customers on a global market, it is argued that the research findings may be relevant and of value also to the larger worldwide population of interest.

INNOVATION OF PROCESS TECHNOLOGY: EXPLORING DETERMINANTS FOR ORGANIZATIONAL DESIGN

At present, R&D managers have little guidance on how to design organizations with respect to organizational affiliation of process innovation. While process innovation in the process industries traditionally accounts for a large share of the companys total development resources it has nevertheless not received much attention in academic studies. In this paper four variables: (1) Industry category, (2) Size of R&D organization, (3) Process innovation intensity and (4) Newness of process innovation are statistically tested against the organizational affiliation of process innovation, based within either R&D or production. The study provides new empirical support for the positive association between the degree of newness and the organization of process innovations. By extensively analysing and discussing the findings in terms of both pros and cons for different organizational structural choices for process innovation, the paper also offers managers practical guidance in making organizational design decisions.

Application development in supplier-customer collaborations: success factors for firms in the process industries

In the process industries, development with the external customer is not confined to the company’s own product development and external customer technical services and support. A substantial part of the innovation activities of a firm lies in the area of helping its customers to use supplied products more effectively. This area is generally designated application development. Since a literature survey turned up few publications, a theoretical framework was developed and an exploratory survey was carried out of Swedish process industries. The importance to the firm of product and process development is never questioned. It is concluded that the area of application development should not be overlooked either, if recognised as relevant to a firm. The study population includes only firms which are based in Sweden, but since they have many customers on a global market it is argued that the research findings to some extent can be generalised to the larger world-wide population of interest.

Success factors for the development of process technology in process industry. Part 1: a classification system for success factors and a rating of success factors on a tactical level

In a research project on the development of process technology in process industry, success factors have been developed and ranked by R&D managers in various sectors of the European process industry. The results are presented in two parts, of which this is Part 1. As an introduction to this part, a new classification system for success factors in R&D is developed and the final discussion in Part 2 presents a model for company implementation. The empirical results stress the importance of good technology transfer in the process development process. The results can also be seen as a shopping list and a starting point for in-company development of success factors and performance indicators for process development.