Udbuds- og kontraktformer som et virkemiddel til at skabe værdi gennem innovation Sebastiano Lombardo, Head of Innovation Norconsult

Sebastiano Lombardo Head of Innovation at Norconsult AS NTNU –Sivilingeniør (1997) BI Norwegian Business School –Master of Management (2006) –PhD candidate (2013) Certified E.deBono instructor Past experience: –Statoil, SINTEF, Gjensidige, Norsk Hydro –Master trainer Co-Creation Program Norsk Hydro ASA

PhD project - The Value of Co-Creation a study to understand successful client - consultant interaction based od empirical data from 30 projects cases of which –highway (6) –railway (4) –metro (1) –airport (1) topics in the 4 articles –creativity under constraints –value definition –strategic implications of co-creation –creativity best practice today I propose insights from this research

Tendering and Contract forms as an instrument to create value through innovation Sebastiano Lombardo, Head of Innovation Norconsult

INNOVATION VALUE CREATION TENDERING CONTRACTING

I WILL KEEP THIS SIMPLE ;-) yet not trivial…

I WILL PROVIDE YOU WITH TOOLS TO REFLECT AND ACT

INNOVATION and CONTRACTING interesting because of the definitional issue

INNOVATION & CREATIVITY ANY DEFINITIONS ?

1 2 CREATIVITY defined

Creativity awareness Think of a highway project that is about to start. How does the contract contribute to shape "the box"?

Focus Idea Generation Idea evaluation Final choice INNOVATION PROCESS defined

Evaluation of Offering Evaluation of Offering Tender design Contract I will highlight a few key aspects with respect to innovation

Tender design Pricing model Key Competence Planning phase Incentives Contract Evaluation of Offering Fixed vs pr/hour regional planning vs building the road

Tender design Require innovation management competences Require an Innovation Process design as a part of the offering –independently from the level of planning –propose a focus for the innovation process Include incentives

Evaluation of Offering Evaluation of Offering Tender design Contract Price Project Organization Project Organization Key Competence Key Competence Solution design Solution design evaluation criteria! % weight? evaluation criteria! % weight? innovation team included?

Evaluation of offering Check Innovation management as key competence –in addition to geology, construction, landscape, etc. Check for any description of how the innovation process is designed –focus areas (at least) –phase descriptions –duration –budget –participants –etc.

Contract Schedule / Deadlines Schedule / Deadlines Scope Work packages Daily fines Daily fines Evaluation of Offering Tender design

Contract Contract can be the show stopper. the most normal and trivial excuses for not having innovation Scope: "this is just a technical issue" Budget: "we have no resources for that", Schedule: "we have no time left" the most real cause for not having innovation Lack of relevant knowledge and compentence –on both sides

through innovation processes in highway projects

THE VALUE CONCEPT economic, cultural, social, symbolic currencies Value defined in terms of capital variation.

VALUE CO-CREATION practices ACCESS TO CAPITAL EXPLOIT THE CAPITAL

Co-created Value calculations 24

THE BUYER'S PERSPECTIVE CO-CREATION –acknowledge the buyer's role in the value creation Buyer's COMPETENCE –how does a cost-effective innovation process look like? –how to asses an innovation process design? –how to define value? –how to take into account all the forms of value?

Conclusions and recommendations Change the rules to foster innovation? –not necessary –not sufficient Ask always and explicitly for innovation in the tender (not as an option) Enhance buyers knowledge and competence –Training program for Professional Innovation Service Purchase.

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