VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD

Prof., Dr. Harri Kopola and EVP Petri Kalliokoski Knowledge Intensive Products and Services

VTT Technical Research Centre of Finland Ltd.

Email: Harri.Kopola@vtt.fi,

Tel: +358-40-5574867

ICITI-2017 Conference

August 22, 2017, Taipei, Taiwan

VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD

RTO as the Driver for Digital

Innovation Hub: VTT Model

2 2

Outline

Creating Digital Innovation HUBs

New Industry Case: Printed

Intelligence & PrintoCent

Introduction

4

3

2

ICT Leverage Case: Hilla-Model

1

Vision Driven Case: Naked Approach

Concluding Remarks

5

6

3 18/08/2017 3

VTT Technical Research Centre of Finland Ltd

• VTT is one of the leading R&D&I

organisations in Northern Europe.

• We provide expert services for our

domestic and international customers

and partners, both in private and public

sectors.

75 years’ experience in

supporting our clients’

growth with top-level

research and science-

based results.

Learn more:

www.vttresearch.com,

#vttpeople, @VTTFinland

Net turnover and other operating income

269 M€ (VTT Group 2016)

Personnel 2,414

(VTT Group 2016)

Unique research and testing infrastructure Wide national and international

cooperation network

* Loikkanen, T. et al. Roles, effectiveness, and impact of VTT. Towards broad-based impact monitoring of a research and

technology organisation. 2013. VTT, Espoo. VTT Technology 113. 106 p. + app. 5 p.

4 18/08/2017 4

Antidote to critical supplies

disturbances

Next level in cybersecurity

Secured autonomous systems

Zero hazards in sensitive and

cold environment

Citizen-centric care (3C)

Disruption of work

Smart and easy built

environment INDUSTRIAL

RENEWAL

CLIMATE

ACTION

VTT Strategy 2030 - Lighthouses and Opportunities

GROWTH WITH

SUSTAINABLE

INNOVATIONS

RESOURCE

SUFFICIENCY

GOOD

LIFE

Low carbon and virtual mobility

Internet of energy

Energy storages everywhere

Food without fields

Holistic minerals exploitation

SubZero footprint materials

Re-birth of

production

Design for need

Data as business

SAFE AND

SECURE

18/08/2017 5

Knowledge Intensive Products and Services From Technology to Emerging Solutions

● DATA

SCIENCE

● SENSING AND

MEASUREMENTS

● FUTURE

COMMUNICATIONS

● RESEARCH

INFRASTRUCTURES

Click to edit Master title style

Click to edit Master text styles

Second level

Third level

Fourth level

Fifth level

6 18/08/2017 6

Unique R&D and Pilot Infrastructures in Finland

PrintoCent Pilot Factory

IoT Pilot and Test

Infras Plugging in

And Emerging

from 5GTN

5G Test Network

Large Area

Functionalities

Micronova Nanofabrication Centre

MEMS Sensors,

Microphotonics,

Radiation Detectors,

Photonics Packaging,

Nanoelectronics,

Quantum Devices

Cyber War Room

Cyber Security and Privacy VTT team Winner in

NokiaHackathon 2017

7 7

Outline

Creating Digital Innovation HUBs

New Industry Case: Printed

Intelligence & PrintoCent

Introduction

4

3

2

ICT Leverage Case: Hilla-Model

1

Vision Driven Case: Naked Approach

Concluding Remarks

5

6

18/08/2017 8

EU’s FP9 is Going to Challenge Driven Way

Relative big part for mission oriented

challenge, like “Carbon neutral Europe”, etc.

A prerequisite for any Mission Theme would

be that there are national / regional / private

resources to be allocated to the mission

initiatives as well.

This has the consequence that

national/regional programmes need to be

aligned with FP9 mission targets.

So the EU mission can play a role also

in national level.

18/08/2017 9

DIH

EU is Creating a Network of Innovation HUBs

to Boost and Leverage the Impact of R&D&I Efforts

*) The DEI Communication defines platforms as “multi-sided market gateways creating value by enabling interactions between several groups of economic

actors”.5 Digital platforms are like operating systems that integrate different technologies and various applications and services. They open up data and

make it accessible, allow third-party innovation on top and connect different stakeholders .

European platforms*

DIH DIH

CC

CC CC

CC

CC CC

CC

CC CC

• DIHs key is to actively provide services for industry

at ‘working distance’

• Build sustainable innovation ecosystems, not just

gateways to services.

• Help to get finance

• DIH to coordinate competence centers, were the

actual work is done.

• EU funding focuses more on platforms

• DIHs to enable national efforts contribution

VTT Works with Ministery of Economy and Employment, and TEKES to Create Such a

Network to Finland – The Network Can Serve Also National R&D&I Initiatives

DIH = digital innovation HUB

CC = competence center

Digital innovation HUB (DIH) is a ”playmaker” for boosting national, regional and European industry

digitalization and platform creation.

18/08/2017 10

Finnish DIH Network is Based on Existing HUBs

and Innovation Centers, in the Strategic Sectors Mobility and Transportation

One Sea – Autonomous Maritime Ecosystem

TransDigi - Smart Mobility Ecosystem

Manufacturing

”Smart Manufacturing HUB” (TUT, VTT, DIMECC)

PrintoCent – Innovation Center for Printed Electronics

Process Industry

Smart Bio-based Solutions* (Bioruukki)

Raw Materials Knowledge and Innovation Center

Healthcare

Good Life for Finland (CoE) Oulu,

Turku Health HUB

Regional:Health Capital Finland, Health HUB, Oulu Health Labs

Energy

”Smart Energy Pilot and Innovation Ecosystem”

Digital Platforms

5G Technologies and Solutions

ICT and Digital Transformation

Cyber Security

Test Networks and Shared R&D Environments

IoT Solutions and Applications on 5G

Overview

Projects

Other info

Ecosystems

Infra & tools

ATTRACTION Cutting-edge R&D&I

assets

Platforms for next

generation data economy

Tailored support for each

joint business case

ACCESS Low-barrier, freemium

Quick familiarization

Business case feasibility

mapping

EXECUTION Rapid know-how transfer

Market/customer

assessment

Piloting together:

R, co’s, customers

Booster

for

innovatio

n

ecosyste

m

Disseminati

on of

scientific

results

Services

for

companie

s

Digital

Twins Robotics

Advanced

3D-printing

Critical mass

TUT&VTT

Partners

Agile operation

models

Scientific high-

level competence

and connection to

education

Co-creation and

cooperation

Smart Machines and Manufacturing Competence Centre – Strategy

Scientific

Spearhead

s

Basis

Researc

h t

hem

e a

reas

Impact

Advanced digital

manufacturing

Digital design

and

modelling

Digital

services

Digital quality

management

Maintenance and

life-cycle

management

Additive

manufacturing

(3D-printing)

Robotics and

automation

13 13

Outline

Creating Digital Innovation HUBs

New Industry Case:

Printed Intelligence & PrintoCent

Introduction

4

3

2

ICT Leverage Case: Hilla-Model

1

Vision Driven Case: Naked Approach

Concluding Remarks

5

6

14 18/08/2017 14

Printed Intelligence Today

Printed Intelligence - Milestones

2015 2005-06 2007-08 2009-10 2013-14 2011-12 1990’s 2001-02 2003-04

VTT-PICO -

1st R2R

printing

machine

VTT

2006-09

Strategic

spearhead

program

launched.

VTT

2010-13

Commercia-

lisation

program

launched.

PrintoCent

Pilot Factory

Inauguration

PrintoCent

2009-12

program

launched:

Pilot Factory

Demonstrations

VTT-ROKO

2nd R2R

printing

machine

PRINTO

project

2002-2004

launched

First

EU-project

ROLLED

launched

First R&D

projects

funded by

Tekes in

late 1990’s

Avantone

Metso-

Nokia joint

company

2004-2006

Metso

New business

2002-04

Orion

Diagnostica,

UPM,

Nicanti

BASF

PrintoCent 2013-

2015 program :

Cluster creation,

Scale-Up to 100k

Industrialization

PÄLLI 1- 7 Entrepreneurship

trainings,

PRINSE`10,`12,`14

First VC investments

INNOFEST 2014

Ecosystem:

Cluster of 40

companies,

20 Start-Ups,

Painettavan

Paalutus 1 & 2

PrintoCent 2016-2018

program :

Marketing&Scouting,

Innovation&New Product

Services&Industrialization

2016

PrintoCent Innovation Centre

commercializes the research results of the Printed Intelligence and Optical Measurement and takes the technologies

from lab-to-fab-to-markets.

2009 – 2012 R2R Printing Pilot Factory

2013-2015 Industry Cluster, Hybrid Integration on Flex

2016 – 2018 Emerging Business Cases

VISION PrintoCent is world–class printed intelligence and optical measurements innovation centre, whose

customers are globally leading companies

http://www.printocent.net

17 18/08/2017 17

Flexible Hybrid Electronics Pilot Factory R2R Printing, Hybrid Integration, Injection Molding

Start-Ups Founded Since 2010, >200 jobs 1. MK Fluidics (1), Machinery, Tools, Diagnostics, Oulu 2. FocalSpec (15), Optical instrumentation, Oulu 3. (Lumedy -OLED lighting solutions, Oulu – on hold) 4. (Nanordic (0) Nanomaterials, Oulu – on hold) 5. Iscent (1), Hot embossed decorative products, Tampere-Helsinki 6. TactoTek (60) Structural elecronics , Oulu 7. Ginolis (80) Rapid diagnostics, Oulu, Uppsala 8. KeepLoop (2), Mobile phone microscope, Tampere & Oulu 9. Spektikor(3),Disposable heartbeat monitor, Oulu 10. Detemex (0), Disposable diagnostics,, Oulu 2013 11. Neficon(2). Development services, Oulu 12. Goodwiller(4), Disposable Diagnostics, Oulu 13. (Premisense(0), home monitoring, Oulu) 14. MePromation (1), R2R testing services, Oulu 15. Qlu (7), Hearing Aid Services and Systems. Oulu 16. The active paper company (1), Functional paper, Helsinki 17. InstaFe (0), pet monitoring, Oulu 18. Flexbright (8), lighting, Oulu 2014 19. Posterfy (4) - Advertisement, Helsinki 20. MoniDrops (0) - Disposable Diagnostics, Oulu 21. Kala Products (1), diagnostics, Oulu 22. Movesole (7), smart insole, Oulu 23. LEDFoil Finland Oy (1), lighting, Oulu 2015 24. Dispelix (15), smart glasses, Espoo 25. BioMensio (3), diagnostics, Oulu 2016 26. New Cable Company (1), innovative cabling, Oulu

PrintoCent Industry Cluster Members

2016 - 2018

Incubating product concepts to joint business cases.

Market driven product development.

Application Areas for PrintoCent 2016 -2018

Observations 2017 – IoT Needs New Hardware

Customers are asking for flex-enabled products Need for fast prototyping and scale-up to production!

Different markets and products demand customized manufacturing solutions

Transformation in … Design, Prototyping, Scale-up, Testing, System Integration,…. Ref. SMT intake at 1990’s

Finnish companies are already selling!

Flex LED Foil IMSE

Injection Molded Structural Electronics

Electronics film structure

Advanced IMSE Integration TactoTek ControlSurface™ Demonstrator

1

1

1) Recessed capacitive buttons

4

4

4) Proximity sensing cover

7

7) Printed graphics & effects

8

8) 3 mm injection-molded plastic

9

9) In-mold system electronics

6 6

6) Recessed capacitive slider

5

5

5) Hidden-until-lit icons

3

3

3) TactoTek LightStripe™

2 2

2) NFC

© TactoTek 2017 | Confidential |

22

LED Lighting/Display Foils Integrated or

Embedded in Structural Solutions

24 24

PrintoCent Way Forward

R2R Flexible, Printed and Hybrid Electronics

Pilot Factory - up and running in Oulu

PrintoCent Ecosystem Driving Industrialisation

and Emerging Business Cases

Structural Electronics renews Products for IoT World –

Automotive Interior, Windscreens, Home Appliances, Shoe

Insoles, Wearables, Clothing,…

Towards Disposable and Wearable Health, Wellness and

Environmental High-Volume Sensing Solutions

PRINSE’2018 - Printed Intelligence

Industrial Seminar January 31 – February 2, 2018, Oulu, Finland

‘Manufacturing Solutions for Customer Needs’

http://www.printocent.net

25 25

Outline

Creating Digital Innovation HUBs

New Industry Case: Printed

Intelligence & PrintoCent

Introduction

4

3

2

ICT Leverage Case: Hilla-Model

1

Vision Driven Case: Naked Approach

Concluding Remarks

5

6

Why HILLA ? & Learnings in 30 Months

Shock of Nokia / Broadcom / MS

Summer 2014 > Oulu zeroed > GHA & Tre heavy hit

Several 1000s ICT experts laid off

100s of startups formed; most without customer reach

R&D in overweight – Success formula missing

New situation – Old models don’t work:

In the markets, in research, in transforming companies

Widely agreed view

The challenge was agreed by all parties

1. “Develop-learn-develop new operating model to Finland”

2. “Test & improve it with real R2B-GTM investments continuously”

3. “Use ICT research as leverage in transforming high-tech markets”

Hilla was established 02/15 as a national

change program

5 year national pilot (18mo-18mo-24mo)

New productized agile model to be developed

Funding 50M€ research – 50M€ companies

+ added 50M€ to shared infra and tools

Target to change the way we play the “ICT game”

Initially 4 business sectors, after ramp-up no limits

Creating export savvy ecosystems from R2B

Revenue & ROI 7:1 became the main issue

Strictly R2B – minimal interruptions – max impact

Target full ICT employment & revenue yield, again

www.hilla.center

Hilla model

1. ACTIVATION Lots of needs/proposals

90% require “AI/DA”

30% prep for 5G

70% classic IoT

30% have unique KETs

2. PLANNING 90% motivated on joint

B-case R2B creation

80% lack BD skills

60% lack partners

80% channel to

customer underplanned

3. EXECUTION Companies endorsing

CXO-level sparring

90% plan next projects

30% joint marketing

50% using SREs

20+ funding decisions

(including shared infra)

1. ACTIVATION Instant partnering

B-case sparring

Growth Mill inclusion

Access to latest R

2. PLANNING H137 B-case sparring

Design Studio “sprints”

Assigned R-experts

360 funding as a service

3. EXECUTION CXO-level networks

Continuous sparring

Inclusion to ecosystems

Say in joint investment

roadmaps (partnerships,

infra, research, edu)

KSPs Learnings

Spearhead project investment

examples

Overview

Projects

Other info

Ecosystems

Infra & tools

1. Pre-requisites Genuine innovation

or market need

3 or more companies

Solution dependent

on research effort

Joint business case

2. Added value Each company can

specialize

Research questions

and value is clear

Potential solution is

scalable with >7:1 ROI

3. R2B success 12-18m project time

Research questions

solved & verified

Clear R&R between

companies

Customers involved

as early as possible

Base Station

Base Station

Base Station

Master Base

Station

UWB Radio

Transmission

External

services

Position

server

COMOXX

Reliable communication

for challenging conditions

Virtual currency,

mobile game

ecosystem with a

new gym concept

FitnessVillage

Lighting, display and

sensor technologies

inside glass

Flex in Glass

Printed, stretchable

sensors for personal

diagnostics and

biosignal

measurement

Diamond

Accurate location for

asset, machine and

person tracking.

Soccer

Wireless performance

testing for IOT and

wearable devices

WePe

Towards export savvy ecosystems

Overview

Projects

Other info

Ecosystems

Infra & tools

30+ companies, 300 researchers. Launch LE 5/17

Target to be the largest Nordic AI and analytics hub.

www.analytics.plus

100+ companies, marketing and building

customers funnels. Continuous project planning.

www.superiot.fi

Focusing on utililisation and product readiness in 5G.

10s of companies in dev. mode, esp.non-ICT

companies

www.nordictestcluster.com, utility to www.5gtn.com

Several company clusters & printed sensors

Printed sensors with wireless/IoT/new

materials.

www.printocent.net

Ca. 10 companies. Game AR center build-up with

international brand names as partners.

Investments to spearhead projects and SIG done.

Hilla participated in creating Reboot strategy.

First RB project (IoT Factory) in planning phase.

Nokia Rusko factory as a customer reference site.

Hilla investment

National spearhead PM

Lead customer: Nokia

Partners: 10+

Status: starting

Several spearheads

5G performance

5G applications

Status: ongoing

Spearhead & ETRs

E.g. skin/sweat sensors

Sports diagnostics

Status: expanding

National PM

Analytics as a service

90% of Hilla cases

Status: launch 05/17

National PM

4 R&D sectors

Int’ industry alliance

Status: ramp-up done

Spearhead

AR capability in planning

New collab/earnings logic

Status: ramping up

30 30

Outline

Creating Digital Innovation HUBs

New Industry Case: Printed

Intelligence & PrintoCent

Introduction

4

3

2

ICT Leverage Case: Hilla-Model

1

Vision Driven Case: Naked

Approach

Concluding Remarks

5

6

31 18/08/2017 31

The Future

...is not what it used to be.

“Our intuition about the future is

linear. But the reality of information

technology is exponential, and that

makes a profound difference. If I take 30

steps linearly, I get to 30. If I take 30

steps exponentially, I get to a billion.”

(Ray Kurzweil)

“You can't connect the dots looking

forward; you can only connect them

looking backwards. So you have to trust

that the dots will somehow connect in

your future. You have to trust in

something - your gut, destiny, life, karma,

whatever. This approach has never let

me down, and it has made all the

difference in my life.” (Steve Jobs)

Albert Robidam”Un quartier embrouille”, illustration for La Vie électrique.

Paris: Gdecaux, 1890. (Vision of Paris in ~1950’s )

From book: History of the Future C.Canto, Rizzoli , O.Faliu. Flammarion 2001

Nordic perspective to gadget free hyper connected environments

Digital Interaction Paradigms

Gadget centric vision

Digital Services

My Gadgets Smartphone interactions

Extended Me Wearable interactions

Me Active Biological Societal Individual

Disruptive View – Surroundings as a Service

Gadget centric vision

Digital Services

My Gadgets Smartphone interactions

Extended Me Wearable interactions

My Surroundings Gadget free interactions

Me Active Biological Societal Individual

18/08/2017 34

35 35

Surroundings as a Service

Information

Energy

Sensing

Connectivity

Embedded

functions

Dynamic ambience

18/08/2017

• Stand alone sensors will be replaced by sensor-

based connected nodes.

• Sensor arrays will eliminate the need for accurate

data in favor of accurate information, algorithmically

derived from arrays of inaccurate sensors.

• Printed sensors will enable arrays with no cost

penalty.

• Sensor-based nodes become demonetized data

generators:

• Sensor generated data volume is migrating

towards 1 BB (Brontobyte, 1027) perhaps as

early as in 2025.

• Profit generation will shifts from hardware to

data analytics.

• AI based data analytics is forecasted to grab

between 60% and 90% of all global profits.

• Swarms of sensor-based nodes will enable a new

business models.

TSensors Vision/Janusz Bryzek 36

VTT's vision of printed electronics and

sensors enabling new business model:

surrounding as a service.

37 18/08/2017 37

Towards Digital Paradise Tekes Company Group Project, 2016 – 2018, 5.1 M€

Based on The Naked Approach Vision

Research themes

• P1: Nearables – Solutions for Ambient communications

• P2: Service hubs for local communities

• Ecosystems, Business Models and Opportunities

Finnish Forefront Companies & Research

The Naked Approach – Towards Digital Paradise – CONTACT: janne.aikio@vtt.fi

SKANDAL

TECHNOLOGIES

38 38

Outline

Creating Digital Innovation HUBs

New Industry Case: Printed

Intelligence & PrintoCent

Introduction

4

3

2

ICT Leverage Case: Hilla-Model

1

Vision Driven Case: Naked Approach

Concluding Remarks

5

6

39 18/08/2017 39

Conclusions

Grand Challenges Orienting Economical Developments

Huge Transformations Ongoing in Different ‘Industries’

and Society (digitalisation) – Huge Economic Opportunity

Exponentially Scalable Solutions – The Winner Takes All! ‘New Hardware’ is in Key Enabler Position for IoT World Solutions

Sensornodes Integrated & ‘Thrown’ Everywhere

=> Energy Autonomy & Connectivity & (low cost)

Data is Profit Machine => From Products Towards Service Business?

Digital Innovation HUBs & Ecosystems – Business and Co-operation in

Networks

Future Digital Finland Video

https://youtu.be/hy8ViFpwyCM

TECHNOLOGY FOR BUSINESS