DRIVING EXCELLENCE IN INNOVATION - Ireland's leading, non-profit, business-led, innovation network - IRDG
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DRIVING
EXCELLENCE
IN INNOVATION
Ireland’s leading, non-profit,
business-led, innovation network.
1 www.irdg.ie @IRDGgroup
THE VALUE OF A
NETWORK PERSPECTIVE
Welcome to the 2019 Industry Research & Development Group (IRDG) newsletter.
Ireland and its business sectors face many challenges in 2019 including global trade tensions,
Brexit, competitiveness, taxation, disruptive technology and skills shortages. Despite these
pressures there is an underlying confidence that Ireland is well placed to exploit the many
opportunities for growth at home and abroad. Innovation, from product through process to
business innovation, has been a cornerstone of the country’s strong economic performance
since the recent recession. This is evident in multinational and indigenous firms, start-ups
and the higher education sector, and is testament to strong investment by both the business
sector and the State over the past decade.
Since its foundation in 1992, IRDG has been an effective advocate for industry research
and innovation and has consistently played a key role in representing the voice of industry
to government departments, bodies and State agencies. This aspect of IRDG’s mission is
as important as ever in 2019 and we will continue to advocate for greater investment, both public and private, in our Research,
Development & Innovation talent, expertise and infrastructure.
Over the 27 years of its existence IRDG has become recognised as Ireland’s leading business-led community of practice for collaboration
and innovation. IRDG prides itself on being an open, inclusive, collaborative community sharing insights, stories and experience. It
facilitates networking with companies outside your normal area of expertise and industry sector. IRDG acts as the glue to enable
shared learning and collaboration with a commercial focus. Listening to and engaging with the experience of other sectors can help you
avoid similar mistakes and reach optimum results without duplication of effort.
Our community is diverse and every member is different:
• Different sectors and industries – private and public • Vastly different levels of innovation experience
• Different seniority, responsibilities, location • All sharing insights and experience for mutual success.
My message to our IRDG members is to embrace the opportunities for engagement that our community offers – ask questions, attend
events, share your experience. Grow your own capacity and network through IRDG.
For those who are considering membership please contact the IRDG team and we will be delighted to explain the benefits and detail.
As a business involved in Research, Development and Innovation you need to be part of this unique business Innovation Network.
Denis Hayes - Managing Director, IRDG
IRDG is...
• UNIQUE – the only non-profit industry group of its kind • WELL-RESPECTED – Solid reputation for our approach and
totally focused on RD&I industry representation at State level
• INDEPENDENT – led by our Industry Board, funded entirely • PROMOTING STATE supports and providing fora for
through members subscriptions agencies to engage with members
• CROSS-SECTORAL – companies equally split between • ACTIVE UNDER 5 PILLARS – Representation, Funding &
indigenous and FDI firms across all sectors Support, Innovation Networking, Collaboration & Learning
• COLLABORATIVE – All HEI’s are full members facilitating • GROWING STEADILY– growth from 70 to 250 members
direct engagement with industry over recent years, and continuing to expand
• BUILDING INNOVATION CAPABILITY – Pioneering • SUSTAINABLE – 27 years old!
Design Thinking and Lean Product Development
2
SERVICES TO MEMBERS
IRDG’S 5 PILLARS
REPRESENTATION FUNDING & INNOVATION COLLABORATION LEARNING
SUPPORT NETWORKING
Ultimately, everything we do is about Research, Development & Innovation…
DENIS HAYES BERNADETTE MCGAHON
Managing Director Research & Innovation Services
E: denis.hayes@irdg.ie Manager
T: 086 2544473 E: bernadette.mcgahon@irdg.ie
T: 083 8213177
MARY BYRNE LORRAINE O’FARRELL
Membership Development Accounts & Executive Assistant
& Communications Manager E: lorraine.ofarrell@irdg.ie
E: mary.byrne@irdg.ie T: 01 2374671
T: 087 6501215
BOARD OF IRDG
The IRDG is an independent, non-profit group, governed by a Board of
Directors representing a cross-section of member companies.
IRDG CHAIRPERSON: DONAL TIERNEY, CEO, Bimeda Holdings
MUIRIS FLYNN, Technical Director, Glen Dimplex
ALDAGH MCDONOGH, CEO, Morgan McKinley
RICHARD STACK, Director, Tricel
SEAMUS LEDWITH, Senior Principal R&D Engineer, Medtronic Vascular
FRANK KENNEDY, Cadbury Ireland
SIOBHAN CAMPLISSON, Technical Director, Allergan
JOHN MCKEON, Co-Founder & CEO, Allergy Standards
THEA MURPHY, Managing Director, Silver Pail
LOUISE GRUBB, Co-Founder & CEO, TriviumVet
JOHN NEILAN, Director of New Ventures, Cook Ireland
3
THE VOICE
OF INDUSTRY INNOVATION
Representation is IRDG’s primary Pillar and, having developed a strong reputation over 27 years, IRDG is recognised as the leading
voice of industry when it comes to Research, Development and Innovation (RD&I). The organisation engages with Government
departments, agencies and State Bodies to drive forward the national innovation policy and operational agendas.
IRDG’s Representation occurs in a number of different ways:
1. As a proactive approach to Government, IRDG responds to the voice of its members (e.g. biennial industry survey) and gathers
together a collective IRDG position putting forward suggestions, ideas, challenges etc.
2. Through IRDG-facilitated forums, where Government departments, agencies and State Bodies get to speak, interact with our
industry guests and receive feedback and ideas.
3. By invitation from Government to IRDG seeking industry input to the development of specific policies or guidelines in relation
to Research, Development & Innovation.
ENTERPRISE IDA DEPT. OF
DBEI KTI REVENUE
IRELAND IRELAND FINANCE
R&D TAX CREDITS
KNOWLEDGE
DEVELOPMENT BOX
R&D INCENTIVES
BREXIT
INNOVATION STRATEGY
TECHNOLOGY FORESIGHT
RESEARCH PRIORITISATION
COLLABORATION
Key topics which are live and active on the IRDG agenda include:
• The Department of Finance review of the R&D Tax Credit Scheme during 2019
and future related policy decisions.
• Brexit and the imperative for increased RD&I activity and support.
• Digital Strategy, Industry 4.0, Future Skills & Jobs, Technology Foresight and other
such strategic Department of Business, Enterprise and Innovation (DBEI) initiatives
which aim to understand future trends and ensure national readiness for Ireland.
• Design Strategy via participation in the National Design Forum.
• The continued development and rollout of the Disruptive Technologies Innovation
Fund (DTIF).
• Revenue R&D Tax Credit Discussion Group.
• Development of successor to Innovation 2020, the National Strategy for Research
& Innovation.
• Horizon Europe - the successor programme to H2020.
• Application of the Knowledge Development Box and Intellectual Property issues
in industry.
• Programmes and supports for industry RD&I available via the key agencies: IDA
Ireland, Enterprise Ireland, Údarás na Gaeltachta and Science Foundation Ireland.
Overall, IRDG is a conduit for channelling lots of ideas and conversation to / from our
members and the key national policy makers and implementors. IRDG is recognised as
a key, constructive, stakeholder and our continued membership growth adds to our
strength of voice.
With diverse and bright-minded opinions from our unique cross-sectoral membership,
we can ensure a creative collaboration and exchange of ideas in order to navigate the
future purposefully and skilfully. Members inputs are always welcome on any topics.
4
IRDG PILLAR: REPRESENTATION
HORIZON EUROPE
CONSULTATION
An IRDG delegation was recently invited to participate in a consultation
with Jean-Eric Paquet, Director General for Research and Innovation, EU Pictured in the delegation is Mark Bowkett, TE Laboratories;
Shane O’Connell, Brandon Bioscience; John Lowry, EirGrid,
Commission and officials from the Department of Business, Enterprise and Denis Hayes, IRDG and Jean-Eric Paquet, EU Commission.
Innovation.
This was an opportunity to demonstrate the commitment of Irish industry to research and innovation, share feedback on the
current Horizon 2020 programme and outline views on the future Framework Programme, Horizon Europe, which will run from
2021 – 2027.
Ireland has secured over €630 million in research and innovation funding by early 2019 from the current €75 billion EU Framework
Programme, Horizon 2020. Over €100 million of this has been secured by Irish SMEs, primarily under the SME Instrument and Fast
Track to Innovation. The national target is to secure €1.25 billion in funding by the conclusion of Horizon 2020.
IRDG will continue to liaise with and input into DBEI and directly into the Commission throughout 2019 / 2020 as Horizon Europe
develops and comes to fruition.
R&D TAX CREDITS & DESIGN, JOBS, DIGITAL
KNOWLEDGE DEVELOPMENT ENTERPRISE IDA
DBEI
BOX (KDB) IRELAND IRELAND
DIGITAL STRATEGY
The Department of Finance is set to undertake a major
review of the R&D Tax Credit scheme during 2019 and INDUSTRY 4.0
IRDG will be actively engaged in that process. Previous
reviews were undertaken in 2013 and 2016. FUTURE JOBS
R&D Tax Credits are worth an estimated €700m per DESIGN STRATEGY
annum to Irish business, and are a significant incentive
for many companies doing RD&I. Approximately 1500 DISRUPTIVE TECHNOLOGIES
companies claim the credit each year. INNOVATION FUND (DTIF)
The Revenue Commissioners, who administer the R&D IRDG has and will continue to contribute to government
Tax Credit and KDB schemes, started a Discussion Group initiatives in exploring and developing policies on Digital
in 2017 with the objective of providing a forum for Strategy, Industry 4.0, Future Skills & Jobs, Disruptive
representative organisations to raise and address issues Technologies Innovation Fund and Design Strategy.
affecting the operation of the R&D Tax Credit scheme.
Digital Transformation is a major driver of global innovation
IRDG has been part of that group since the outset, feeding and change and is a key strategic topic for IRDG members. The
in the views of members and involving member companies ongoing IRDG Smart Connected series is assisting companies
directly as appropriate. The aim is to bring greater clarity to grow their own understanding and develop strategies to
and certainty to the operation of the R&D Tax Credit and succeed in a digital world. The opportunities presented by the
KDB. DTIF will be beneficial to industry in this context and we look
forward to seeing it develop further.
2019 brings updated Revenue Tax Credit Guidelines and
we will work with members and Revenue throughout the At a national level IRDG has been very happy to contribute to
year at various events and meetings to communicate the the development of the national Digital Strategy. Separately,
changes. the impact of Industry 4.0 will be seen across many aspects
of IRDG member companies’ operations, most notably
With the help of the Discussion Group Revenue have manufacturing and supply chain, and we are engaged with the
set out to develop sector-specific guidance starting with development of the national Industry 4.0 Strategy for Ireland.
Food & Beverage. The IRDG Food Working Group, set
up in response to this Revenue initiative and involving a Design-led innovation, and embedding it as a strategic enabler
number of key member companies, has submitted worked for industry, is a subject we have been championing and
examples to Revenue. leading for many years, so we are delighted to be party to the
development of design policy via the National Design Forum.
Once Revenue completes its work in this sector, it is
understood that a similar approach will be taken for other The Government is developing a Future Jobs Programme,
sectors e.g. software. IRDG will keep members fully posted including Innovation as a key pillar. Technological innovations
and involved. are rapidly developing and are expected to radically change
many jobs, enterprises, and even entire sectors. IRDG will
continue to be a key part of this consultation.
5
IRDG RESEARCH, DEVELOPMENT
& INNOVATION INCENTIVES SURVEY
The 2018 IRDG RD&I incentives survey was conducted to benchmark company engagement with and experience of the variety
of incentives available. This collective feedback will be used to constructively feed into the development of future national policy.
220
ABOUT responses 60% indigenous 40% foreign owned
THE SURVEY from companies covering
7% 56% 37%
a wide cross-section of
industry sectors. Start-Up SME Large
RD&I INVESTMENT
PLANNED CHANGES IN INVESTMENT VIEWS ON LEVEL OF RD&I INVESTMENT
OVER THE NEXT 3 YEARS: TO ACHIEVE BUSINESS GOALS:
Decrease
R&D Not Relevant 5%
78% 3% 19%
Unchanged
Increase
Under Investment 32% 63% Optimal Investment
RD&I FOCUS
INNOVATION FOCUS AREAS:
Incremental/Continuous Innovation Breakthrough/Disruptive Innovation
69% 45% 64% 57% 54% 34% 29% 25%
Improving Process Introducing Reaching new Providing Focus on new Digital Business
existing goods improvement entirely new customer specific partnerships/ innovation model
or services / New process goods or groups customer networks/open innovation
development services solutions/ innovation
experiences
RD&I INCENTIVES
INCENTIVES AVAILED OF IN PAST 3 YEARS:
57%
71% R&D Tax Credits
€ Use a combination of R&D tax
credits and grant supports on
32% Enterprise Ireland - all in-house R&D grants
specific business projects.
19% IDA Ireland - all in-house R&D grants
18% Innovation Voucher
18% Innovation Partnership Funding supports & tax credits are
an essential factor in carrying on
RD&I, which allows us to future-
11% Science Foundation Ireland proof our business, service our
existing and future customers and
11% EU Funding through H2020 maintain employment
14% None
6
IRDG PILLAR: FUNDING & SUPPORT
R&D TAX CREDITS
HOW R&D TAX CREDITS HAVE BEEN UTILISED: REVENUE INTERVENTIONS OVER THE PAST 5 YEARS:
Tax Credit
Form of query/audit
Cash Back
Both
Letter from Revenue 41%
€670m 37%
Aspect query
50%
44%
National value of R&D 35% 21%
Field audit with technical expert 32%
tax credit claims made by
Percentage of
1500 companies in 2016 Phone Call 20%
R&D tax credit
users receiving
Revenue queries/ Desk audit 20%
audits
LEVELS OF CLAIM ADJUSTMENT POST
REVENUE INTERVENTION: Field audit 19%
71%
No
Change
ARE THE R&D TAX CREDIT GUIDELINES
SUFFICIENTLY CLEAR?
21%
10%
24%
Not Sure
5%
38%
Yes
30%
38%
No
3%
>50%
RECOMMENDATIONS TO IMPROVE R&D TAX CREDIT SCHEME:
Use same processes,
procedures/criteria to A specific R&D Tax Ability to drawdown the
determine eligibility for Credit claim, that is cash credit in one year
grants and R&D tax credits tailored to SMEs rather than 3 years
Indicative pre-clearance of projects.
Better clarity in the guidelines
Standardised forms. Reasonable
on supporting documentation level of technical information
requirements and on what required. Centralised unit dedicated
constitutes claimable activity to R&D tax credit claims and audits
Whether you are a company who wants to become clearer about eligible activity, more independent in the management of claims, better
prepared in the event of an audit or a company that has overlooked or under utililsed the tax credit, the IRDG R&D Tax Credit seminars and
clinics are must attend events.
7
RESEARCH, DEVELOPMENT & INNOVATION
FUNDING
A finding from IRDG’s 2018 R&D Funding & Tax Credit Survey is the dominance of the tax credit over grants in the support of
RD&I activity. Given the significant percentage of firms expecting to increase their RD&I activity over the next three years, it makes
business sense to reappraise the RD&I funding landscape.
State and EU grants are an attractive means for business to secure match funding and access the expertise required to extend, de-
risk and speed up RD&I programmes. There is a wide selection of opportunities available from a variety of providers.
IN-COMPANY SUPPORTS TO BUILD RD&I CAPACITY
RD&I grants can be used to support Supports are not only limited to R&D. Tax incentives include a 25% tax credit
projects seeking to resolve a technical Business innovation in the form of for qualifying R&D expenditure, a
uncertainty. They also include feasibility capital / technology acquisition can 6.25% tax rate on income from eligible
studies to analyse and evaluate a be supported. Business-wide projects intellectual property and capital
potential project to support the process covering process innovation or allowances for expenditure incurred
of decision making. organisational innovation are supported on patents, copyrights, trademarks and
by Enterprise Ireland. know-how.
COLLABORATE TO OVERCOME BARRIERS WITH RD&I
The supports in this category are available to overcome skills gaps, costs and risks with in house RD&I and cover the entire scale
from early stage research to close to market activity. The new Disruptive Technologies Innovation Fund is a scheme that can
facilitate business-academia or business-business collaboration. It is intended that these collaborative projects will support the use
of disruptive technologies to transform business.
ACCESS RESEARCH TALENT TO BUILD RD&I SKILLS IN YOUR COMPANY
An effective route for transferring new skills and new knowledge into a company is through talented researchers and technical
experts moving into companies. Depending on the business need, there are a range of supports to facilitate access to graduates, post
graduates and post-doctoral researchers that will maximise the potential for innovation and technical problem solving.
WHAT’S NEW?
The Disruptive Technologies Innovation Fund GradStart is a new Enterprise Ireland programme
is a €500m government initiative supporting the supporting companies to continue to grow and
development of innovative solutions and disruptive compete internationally. Open to eligible indigenous
technologies that have the potential to transform companies with ambitious growth plans.
markets and businesses. Supported projects will be
collaborative in nature and must include an SME. GradStart will support the recruitment of up to three
Consortia can include any combination of MNCs graduates, across all disciplines and sectors, to deliver
based in Ireland, Irish enterprise and research clearly defined projects. Graduates may work in any
performing organisations. Projects are expected area of the business excluding roles related to sales
to be of significant scale with minimum levels of and marketing activities.
funding set at €1m. Watch for an open call to be
announced.
8
IRDG PILLAR: FUNDING & SUPPORT
INNOVATION SUPPORTS - IF IN DOUBT, SHOUT
WE HAVE THE EXPERTISE TO ADVISE & GUIDE YOU.
• Enterprise Ireland GradStart
• InterTradeIreland Fusion EI/IDA/Údarás na Gaeltachta
Programme • Disruptive Technologies Innovation Fund
• Irish Research Council • RD&I Grant
Employment Based Programme • Technical Feasibility Grant
• Irish Research Council EU
Enterprise Partnership Scheme • Eurostars
• Science Foundation Ireland • SME Instrument
Industry Fellowship • Fast Track Innovation
• EU H2020 Marie Skłodowska-
Curie Actions R
GR D&
S AN I
C ES ILLS TS
AC I SK
&
RD
N
RD&I
INN SINESS
TIO
• EI RD&I grant – Business
PERFORMER OVA Innovation Project
COL UPPOR
© IRDG 2019
• EI Capital Investment
BU
LAB
S
Initiative
• IDA Business Asset Grant
ORA S
• Disruptive Technologies • EI Small Business
Innovation Fund
TIO
T
TAX Innovation Research
• Innovation Vouchers INCENTIVES
N
• Innovation Partnerships
• Science Foundation
Ireland Spokes
Programme • R&D Tax Credits
• Science Foundation • Knowledge Development Box
Ireland Strategic Partnerships • Capital Allowance for
• EU H2020 Collaboration Projects Intangible Assets
• EU Eurostars
• EU Fast Track Innovation
NEED HELP?
When looking into grant funding, it’s not unusual to become confused about the most relevant option to support the R&D you
want to do. Often the language of funders doesn’t align with that used in business and anticipating the funders expectations can
be fraught with uncertainty. This is where IRDG can help.
Assistance is available in the form of experienced sector specific experts who are regularly assisting companies with grant
applications. They have built up a picture of what a good application looks like and understand the content required to meet
expectations. They also understand the technical and commercial assessments undertaken and can help navigate the process,
saving you time and energy.
If grant funding is on your agenda for 2019, please get in touch for a conversation on how we can help.
9
MEMBERS
QUESTION TIME
MEMBERS
QUESTION TIME
One key part of networking involves utilising connections to reach the REPORT
solutions we seek. Do you and your company fully utilize your networks
to help solve your challenges?
One of the huge advantages of the diverse membership base of IRDG is
the range of knowledge, experiences and connections that people have.
Tapping into all that collective insight and putting it to good use comes Company Name
regularly when we share challenges members need help with.
In recent times we issued over 20 questions, resulting in over 250
suggestions and ideas. The MQT page on our website hosts an up-to-
date list of questions. Members are welcome to request a copy of the
report generated for any question, and very much encouraged to put
forward their own challenges at any time.
1 OUR CHALLENGE: Creating a Knowledge Bank to codify experiences & skills
into one central depository
PETER BRENNAN A possible risk was emerging in our business as we significantly increased our headcount
Managing Director, over recent years. Like many companies, we have a lot of information in the heads
of our people, built up over a long period of time. We recognised that the time had
Mason Technology come to investigate a sustainable, engaging knowledge bank solution that would be
beneficial to employees, customers and the business in the long run.
We’re not experts in the area of IT so our knowledge in this space was very limited.
We opted to share the question with IRDG members in the expectation that other
companies had already cracked this nut.
We were blown away by the volume and quantity of responses in the report presented
to us. Quite honestly, never in a million years would we have found the solution
we are now trialling and hoping to implement in 2019. The doors it opened up to
companies far bigger than our family operation, and the willingness of people right
across organisations to give their time and insights was so much appreciated.
It is my view that members should absolutely leverage the MQT service, and do so more
often!
2 OUR CHALLENGE: Transitioning from on-premise software model to a digital services company
VANESSA PITT We were inspired to put forward our own Members Question Time when we saw the
CFO, Munich Re report from the Knowledge Bank question a few weeks previously. We knew by the
quality and nature of the responses that there had to be members in IRDG’s diverse
network who were experiencing similar change to ourselves, and who we could learn
from.
We had sought support from a number of quarters but IRDG’s help was the most fruitful
by far. We received a report with relevant suggestions and impressive connections
within a few days and have been delighted with the level of openness and sharing we
have experienced since following it up.
The opportunity to talk through our challenge, hear how others have dealt with it and
be reassured that our issues are not uncommon, has given us lots of food-for-thought
and been of immense benefit to our team. We would highly recommend companies to
use the MQT service, whilst also encouraging them to request copies of the reports to
other questions which might be stimulating and informative.
10IRDG PILLAR: INNOVATION NETWORKING
3 OUR CHALLENGE: Seeking recommendations of people to support the development
of a local site mission, vision and strategy
PAUL KEOGH With such a diversity of strong providers out there in this space, we knew we could find
people, but also knew that narrowing them down to a short-list would be a challenge.
Plant Director,
Takeda We know the members in IRDG, and felt that if we put our question out via Members
Question Time that we would be in direct contact with senior leaders in other
organisations, both in our, and even more interestingly, in other sectors, who would
have similar expectations to ourselves.
Our report had a number of really interesting suggestions, which also tied in nicely
with other recommendations we had received. That opportunity to sense-check and
benchmark the suggestions was great for us, and we have our first meeting to progress
our project lined-up.
What we like most about MQT is as a shared experience, members know the context.
People appreciate that they contribute where they can and do so openly and with a
willingness to share. The quality of responses is fantastic, and when you have so many
other pressing challenges, the benefit of being able to save some time by tapping into
the experience of others and save reinventing the wheel is really valuable.
Thank You to all who Contribute!
A SELECTION OF MEMBERS’ CHALLENGES
SHARED IN RECENT TIMES
Successful use of SPC in the Solutions available and Launching an FDA
implementation of high-volume implementation lessons from compliant Medical Device
new products and technologies those with an innovation network product on the US market
to manufacturing type platform to crowdsource
ideas from employees
Finding precision machine design Implementing an R&D data Finding a surgeon to support
and builders to make a test rig management system to support clinical trials, data review/
CMC and materials science literature review/general
activities performance review
Finding a cGLP certified lab An integrated software solution Software development for
used for data security drones
Building capability in the Evaluating whether to develop The experience of others in
area of unit testing within in-house capability in the area of recruiting from abroad arising
a software development project management or whether from the challenges of finding
company to outsource suitable talent in Ireland
11HIGHLIGHTS
FROM THE 2018 IRDG BUSINESS CALENDAR
Nationwide, diverse themes, facilitating people to connect and share, and designed to suit those in all functions and sectors who
are involved in business Research, Development & Innovation.
Visit www.irdg.ie to browse through our photo gallery.
Ron Mascitelli on Lean in Product An enthralling Service Design Workshop Superb visual prototype by our Design
Development & Innovation with Potsdam D-School Thinking Programme participants
Design Thinking Ireland 2018 IRDG & Siemens co-host Smart Connected
at the Helix Dublin Conference at Croke Park
Full house at Intellectual Property Seminar, Members enjoying a unique visit to Kerry’s
Dublin Global Technology & Innovation Centre
12IRDG PILLAR: INNOVATION NETWORKING
Funding & Collaboration for Helsinn Birex welcomes IRDG members to IRDG R&D Tax Credit Clinics –
Business Innovation, Galway discuss Innovation Strategy & Business Growth understanding the guidelines
Innovation Networking at our Funding & Gareth Jones facilitating a workshop on “Great
Collaboration seminar in Cork Leaders Build Great Organisations”, Kilkenny
Experiential learning at Microsoft’s IRDG Leading Innovation 2018, National
new campus in Dublin Conference, Lyrath Estate, Kilkenny
2-day Residential Element of our IRDG Lean Product Development Sharing Experiences of Design Thinking
Design Thinking Programme Programme - Final Project Presentations at Airbnb
13INNOVATION PRACTICE GROUPS
BE WHERE INNOVATION HAPPENS
We’ve had superb innovation Innovation Practice Group Visits 2018
visits in the past to companies
including Microsoft, Medtronic,
Trinity College Dublin, SAP,
Keenan Systems, Irish Distillers,
Glen Dimplex, Wisetek, ding*,
EirGen Pharma, Bord na Móna,
An Post, Alltech, Intel Labs, Silver
Hill Foods, Dairymaster, Henkel,
Kerry and Helsinn Birex.
Focused on learning, generating
knowledge and building
capability, IRDG’s Innovation
Practice Groups cover key
Innovation themes: ideation,
implementation, collaboration,
networking, leadership and
value creation. Everyone loves
to learn from experience, and
these members generously share
Source: Moodi Mahmoudi
at Design Thinking Ireland 2018 where they have gained and
lost so that others don’t have to
reinvent the wheel.
Being exposed to life in different sectors and companies is an enlightening
experience, which members really value. In addition, the more intimate
group setting facilitates really valuable engagement, discussion and
networking.
Networking is not about just connecting people. It’s about connecting
people with people, people with ideas, and people with opportunities.
And going by the statistic above, with so many companies seeking to
improve how they ‘do’ their innovation, it’s no surprise our Innovation
Practice Group visits are so popular.
Some 2019 Visits Planned:
If your business would like to host an Innovation Practice Group at some
time in the future please do come talk to us.
14IRDG PILLAR: LEARNING
CONNECTING LEADERSHIP,
INNOVATION & NEW TECHNOLOGIES
Don’t work with a
digital strategy. Work
with strategies for a
digital world.
Stefan Lindegaard
IRDG Leading Innovation 2017
Digitalisation offers businesses opportunities to become more efficient, improve quality, scale faster, gain competitive advantage,
and win new customers. Yet, according to our recent survey only 35% of companies are taking action on digital technologies, with
16% in action/planning stage.
Readiness levels to deal with disruptive technologies:
5% 15%
7% 22% 16% 35%
Concerned, but Aware, but not yet
Not on our radar We’re considering In action- Active, taking
inactive at the considered impact
what to do planning stage action to respond
moment on business
At a joint IRDG/Siemens Ireland event CEO, Gary O’Callaghan 1. understanding the technologies that are available,
described our world as a VUCA world - Volatile, Unpredictable, 2. addressing concerns about digital skills gap within an
Complex and Ambiguous. He described 3 recurring barriers on organisation, and
the route to digitalisation: 3. considering how to build and evaluate the investment case
around new business models.
We know that 80% of current business processes and practices However, it’s important to remember that digital transformation
will either be changed or eliminated by 2025. Technologies like is not just about technology or business models; it also changes
data analytics, artificial intelligence, blockchain, augmented values in companies and society. That involves cultural change and
reality, and virtual reality are delivering new capabilities to brings the workforce and new talent into focus to acquire the skills
analyse, personalise, predict, correct in real time, automate, and necessary to complement the new technologies.
reduce risk that can transform business. In the Irish context, our
survey highlights the biggest emphasis is on analytics, indicating IRDG’s focus through our Smart Connected Series is aimed at
the transformation to data-driven businesses. helping companies unlock the value and exploit the opportunities
presented by digitalisation. With digital technologies being a key
Top 6 Technologies impacting business: enabler of innovation across all society, digital transformation is
highly relevant for our members.
Analytics Big Data Automation Keep an eye out for:
53% 43% 42%
• Blockchain Seminar, 5th March, Dublin
together with Deloitte’s EMEA Blockchain
Lab. What it is, how it works, industry cases &
insights, next steps.
• “Lead with the Silicon Valley Mindset”, 14th
AI Machine Learning IoT May Dublin. A thought provoking session for
40% 37% 37% business leaders led by Stefan Lindegaard.
Source: IRDG survey, 2018
15WHAT IS DESIGN THINKING?
IS IT FOR YOU?
Design Thinking is an approach to problem solving that uses empathy, ideation, prototyping and experimentation. But it’s more
than a methodology. It’s a mind set and a culture that can be embraced to solve complex problems, and find desirable solutions for
customers.
The five phases of Design
Thinking (d.school):
EMPATHIZE IDEATE TEST
DEFINE PROTOTYPE
CURRENT STATE OF DESIGN THINKING UNDERSTANDING DESIGN THINKING
Design Thinking and its applications are at the forefront of
many business leaders’ minds. To explore this topic IRDG
QUIZ:
& NUIM conducted a survey of 128 companies to better
understand how many are using it, and how it’s going. Here’s
just a few quick highlights. IS DESIGN THINKING FOR YOU?
Innovation Approaches Used:
Do you and your team have a problem to solve,
1 but aren’t confident that current methods will
deliver a novel and worthwhile solution?
Traditional R&D
Do you feel constrained by the approaches
2
Stage Gate
currently used for developing new products/
services in your firm?
81%
Design Thinking 33%
Could your team have a finger on the pulse of
3
Agile something, a promising idea but want to try
Agree DT improves the
to test it out (prototyping) before investing
overall innovation process
Lean 6 Sigma significant resources?
4
Do you want to improve or develop your team’s
capacity for creative problem solving?
Top 5 Tangible benefits:
Mostly ‘Yes’ answers? Then it’s time to explore the
possibilities of Design Thinking.
Build culture of innovation
Develop stronger concepts
LEARN MORE
ABOUT DESIGN THINKING WITH IRDG:
Promote team work
Design Thinking 4-day Introductory Programme
(Autumn 2019)
Help focus on promising opportunities
Design Thinking Ireland 2019 Conference & Workshops
– Croke Park, June 25th & 26th 2019
Solve complex problems Design Thinking Shared Interest Groups
(various dates)
16IRDG PILLAR: LEARNING
A FITNESS METAPHOR
FOR DESIGN THINKING
by Holly O’Driscoll, Former Global Design Thinking
Leader at Procter & Gamble, Founder & CEO at
Ampersand Innovation, LLC
Holly O’Driscoll on stage during IRDG’s Leading Innovation 2018
Conference, Kilkenny
We’ve all been there. We head to the gym with the very behaviour changes are easy, yet the ones that really challenge
best intentions, fill out the registration form and leave with a our patterns and organisational norms are the ones that matter
membership card. Sadly, just having a membership card doesn’t most. These behaviour changes make us stronger as individuals
make you fit. And any personal trainer will tell you that hitting and as organisational leaders… and they’re the ones that are
the gym once a week won’t make you fit either. more difficult to sustain.
The same is true of Design Thinking. Taking an online or in person Over time, being more human centred in all we do becomes the
training won’t make you a design thinker. It more or less gives norm and our teams and organisations begin to take notice. This
you the metaphorical membership card. What’s needed is a daily is how change happens…one conversation, one interaction, one
commitment to changing one’s behaviour to be more human experience at a time. Role modelling the behaviours we want to
centred. This means shifting one experience, one interaction, see is one of the most powerful signals we can send to those
one conversation, or one behaviour every day to adopt a design around us. It doesn’t matter if we have power of position or
thinking mindset. power of influence, a personal commitment to change is what
we make it, just like a fitness routine. What’s one behavioural
When we’re pursuing personal fitness goals, it’s not the first change you’ll make today to adopt a Design Thinking mindset?
few reps that cause the muscles to burn and eventually show Like any other commitment to change, getting started is the
micro-tears. This happens at rep 14,15,16, when we’re getting first step. Go ahead, you can do it. Perhaps a little empathy for
stronger. And the same is true for Design Thinking. The first few yourself and those around you is a good first step.
DON’T FORGET
ABOUT SERVICE DESIGN
In recent years many industries are experiencing a dramatic change – from
a product-focused to a services-oriented industry. A new ‘service economy’
has been born.
Service design is a multidisciplinary approach to developing services that
deliver more value for both customers and service providers. It is based on the
principles of design thinking, which are strategic, holistic and collaborative.
Opposed to products, services are intangible. The “designing” of services
relates to shaping an ecosystem of touchpoints, rather than stand-alone
artefacts. Therefore, service design does not only focuses on design in
a traditional way (shape, aesthetics, usability etc.) but also incorporates
strategic planning for service ecosystems and business models.
Throughout 2019, we’ll be hosting
Service Design workshops to help
companies learn how to create
services that are desirable and usable
from an end-user’s perspective, and to
build & create an economically viable
service ecosystem.
Source: Olga Scupin at Design
Thinking Ireland 2018
17RIGHT PROJECTS, INNOVATION EFFICIENCY
& SPEED TO MARKET
LEAN PRODUCT DEVELOPMENT
Transformation forces are dramatically changing how we do business and how we
deliver value to our customers. Competitive advantage can be sought across all
functions, and clearly the Development/Innovation function is one of those.
It’s not just about the ideas, or the new solutions, however. It is about the execution
of the innovation process. IRDG has been promoting Lean Product Development
(LPD) for a number of years. This application of lean thinking to Product, Process and
Service Development is facilitating better, faster and cheaper execution of product
development projects.
Our LPD approach is unique. Designed for an Irish audience by our expert team, in
collaboration with Ron Mascitelli (global LPD thought-leader), it takes all the benefits
of lean, and applies them in a very thoughtful and relevant way to the changeable,
dynamic nature of the innovation world.
People - Culture & Behaviour - Strategy for Mindset Change
Front End Market
Requirements
The following are some topics covered in IRDG’s LPD approach:
• Front End: Translating the Voice of the Customer into picking the right problems
PICKING THE
to solve PROJECT
• Culture and Behaviours: One half of LPD is the practical tools and techniques.
The other is the mindset and culture, including governance & guidelines
• Project Management and Resource Management: Critical path planning, visual Accelerating Product
flow management and modifying workflow while maintaining the milestones set Development
• Risk Management: Risk mitigation and risk management are vital and are
proactively managed using our risk burn down technique. PLANNING THE
INTEGRATION
• Accelerated New Product Development: Set Based Design, Knowledge Sharing, PROJECT
Rapid Learning Cycles, 3Ps and reviewing current process to address gaps.
The result is an approach which fits right in with existing product development
Lean PD &
processes, and can be applied in any sector, adding real value to current activities. The
Organisation
key objective is to identify ways for companies to reduce the numerous constraints
and bottlenecks that evolve in any growing business.
EXECUTING
Approved for funding support by Enterprise Ireland, Údarás na Gaeltachta and IDA THE PROJECT
Ireland, this practical & proven style is already adding real value for companies.
Companies can participate in a programme with us,
or engage us to do in-house work in this area. Get
in touch if you would like to hear more.
18IRDG PILLAR: LEARNING
CBE
ACHIEVING EFFICIENCIES IN SOFTWARE DEVELOPMENT
TJ MCHUGH LEADING POINT OF SALE SUPPLIER Employees have really bought into the process
R&D Director IN IRELAND & UK, WITH SIGNIFICANT and the business is benefitting. We’ve increased
GROWTH IN EUROPE. 150 EMPLOYEES. communications and knowledge sharing within
CBE our teams through our show-and-tells, and have
CBE’s journey with Lean Product Development seen a dramatic improvement in the quantity
(LPD) started with an IRDG workshop delivered and efficiency of our rollouts and installations
by Ron Mascitelli. We were taken with the in the last 18 months.
straight-forward nature of the tools and
techniques and felt LPD would add real value A key thing we’ve learned is that while you can
to our software development processes. We get by on your own processes, you can’t really
deliver a huge range of projects and delivering upscale without implementing lean to bring
them in an efficient way was a real priority for business efficiencies.
us.
We would strongly encourage others to explore
We commenced an in-house LPD programme the LPD approach. Training up Lean Champions is
through IRDG, supported by Enterprise Ireland’s a powerful way to provide continued leadership
LeanStart initiative. Specifically focused and guidance in-house. If we were starting
on our Product Development function, the again, the only thing I would do differently is
programme focused on areas such as selecting take the opportunity to visit other companies
the right projects, failing fast, mitigating risks, already established with LPD. It would have
visual workflows, value stream mapping and been useful to see it in operation so as to more
productivity. quickly identify the tools and techniques that
would work best in our business environment.
EXCELSYS TECHNOLOGIES
FRONT END DISCOVERY FOR BETTER PROJECTS
DIARMUID HOGAN PROVIDING POWER SOLUTIONS FOR We have also implemented some additional
Manager - Engineering MISSION CRITICAL SYSTEMS GLOBALLY. disciplines including keeping core hours free of
28 EMPLOYEES. meetings, visual mapping of our projects, and
Excelsys Technologies engaging a wider group across the business –
(An Advanced Energy Company)
We undertook the 4-day programme with IRDG all of which are yielding benefits and helping
as a way of evaluating the potential of LPD and to engender a common approach and culture
learning more about it before diving fully in. We around product development.
had challenges in our project pipe-line and felt
there was considerable room for improvement. For us, we particularly enjoyed the hands-on
nature of the programme, working with the
It only takes one or two things to change what tools, trying them out, and in doing so, being
you are doing, and improve efficiency, and equipped to directly implement them into our
we’ve certainly achieved that. The front-end business. We’ve just undertaken a considerable
discovery piece has been hugely beneficial for integration effort into our new parent company
us in determining the right projects to progress and have plans to significantly grow our
through our funnel. We had often spent months engineering team in Cork. Now is the time for
dealing with the dilemma of which ones to this group to participate in the LPD programme
go forward with. Now we have a structured for themselves. Learning from the experience of
process which helps us make quick decisions the facilitators and other participants will help
in-house and get products to market faster. us to continue to build on the benefits we’ve
gained so far.
19COLLABORATE
TO INNOVATE
In the 2018 Global Innovation Index, Ireland ranks 1st for knowledge diffusion, 4th for knowledge and technology outputs and 5th
for knowledge impact. The strong knowledge transfer system facilitates the research base to apply their expertise to the needs of
industry. For industry, the benefits of academic engagements are wide ranging and include access to skills, resources and expertise
that don’t exist within the business. There are many approaches to facilitating collaboration including:
CONTRACT RESEARCH RESEARCH SERVICES
• Industry led and driven • Delivery of specialised services using existing know-how
• Funded by industry partner • Use of specialised equipment
• Available rights to intellectual property
CONSULTANCY
COLLABORATIVE RESEARCH • Service to access researcher expertise
• Jointly led by academic institution and industry
• Can be part supported with grants MASTERS AND PHD STUDENT SUPPORTS
• Negotiable rights to intellectual property INFORMAL RELATIONSHIPS
TIPS FOR MAKING COLLABORATION WORK
SET-UP: BUILDING SUCCESSFUL PARTNERSHIPS:
• Confirm the need for collaboration and • Invest in relationships
identify the appropriate engagement model • Ensure support of an internal champion
• Understand collaboration is risky, review cost • Work hard to keep the collaboration going:
vs benefit know your partners, know how they work,
• Find the right partners and assess for know their strengths & weaknesses
strategic fit, complementary expertise, • Measure, monitor and communicate success
matched expectations & goals
• Leverage existing relationships
• Agree ground rules
IRDG MEMBERS
IN THE RESEARCH COMMUNITY
IRDG is delighted to have many of Ireland’s leading higher education institutes and dedicated research centres as part of our
network of members, thereby opening up the channels of communication, collaboration and opportunity for all. There are many
occasions to meet face to face throughout the year and get a sense of available capabilities and technologies. We too are happy
to advise and connect companies depending on specific needs.
an Enterprise Ireland
Technology Gateway cluster
20IRDG PILLAR: COLLABORATION
SULZER PUMPS
REDESIGN - SUBMERSIBLE PUMPS
Sulzer Pumps Ireland, based in Wexford since 1973, employs 270 people. Sulzer has a wide range
of pump manufacturing capabilities, including machining, assembly, testing, packaging and shipping
of submersible pumps and mixers for the submersible wastewater segment. A product R&D team is
located on site and the plant in Wexford is home to a state-of-the-art product testing facility.
The Sulzer Pumps & SEAM partnership
Sulzer Pumps Ireland have collaborated with the SEAM Gateway in WIT on a number of notable projects, such as the redesign of
the impeller and shaft section for their range of submersible pumping systems. SEAM undertook FEA analysis on the current design
before proceeding to investigate a number of design options and then selecting the most suitable solution to provide improved
lifetime of the shaft component.
“Sulzer’s contact with SEAM began in September 2015, with the redesign of a rotorshaft on a submersible, solids-handling sewage
pump. This is the second largest pump built at the Sulzer plant with a maximum power of 30kW. Each report from SEAM contained
analysis, inferences and recommendations, which is a great benefit to ourselves and truly collaborative. Throughout the process,
there have been helpful discussions and exchanges of information as required, avoiding delay.” Ben Breen – Technology Centre
Manager, Sulzer
Validation of the final design has been concluded at Sulzer. The partnership provided Sulzer with access and expertise to expensive
computer simulation software, which is greatly more cost effective than having such facilities in-house. The collaboration with SEAM
has provided Sulzer the opportunity to refine and fully explore design concepts without the cost of building full-scale prototypes.
PROPHOTONIX
DEVELOPING HIGH INTENSITY LASER DIODES
ProPhotonix designs and manufactures LED illumination solutions and laser modules, and also
distributes laser diodes from key industry leaders. ProPhotonix has established a strong position in
the machine vision sector and building on this reputation has significantly expanded its presence into
the solar, semi-conductor, security and medical markets.
Prophotonix & CAPPA Partnership
The company wanted to develop a high intensity UV curing laser diode, which was required to perform with a very specific set
of parameters. The device also had to have a minimum number of optical components from a size and cost point of view and in
particular from a manufacturing point of view to reduce complexity during assembly. Initial work on the project involved developing
a series of optical models to understand the challenges of meeting the parameters required. From there, they partnered with a local
machine and tooling company and then CAPPA began the assembly of the test devices. Final power and lifetime testing were also
carried out onsite in the CAPPA centre.
“Prophotonix gained access to key research and development expertise that would otherwise not have allowed us to develop our
product. The company now has a market disruptive product available to us with key customers targeted”. - Ken Reynolds - Business
and Technology Manager, ProPhotonix
The company has since signed a licensing agreement to take the product to market. It was marketed and launched at the Photonics
West conference in the USA, a high profile, product driven industry linked conference. Given the success of the interaction the
company now uses the CAPPA centre regularly to carry out investigative R&D.
21IRDG MEMBERS
A FLAVOUR OF OUR COMMUNITY
AUTOWRAP
22IRDG PILLAR: INNOVATION NETWORKING
PA N T O N E
294 PC BLACK WHITE
Join IRDG and be
part of this Unique
Business Network
23BE ENGAGED AND ACTIVE WITH IRDG’S
ACTIVITIES & EVENTS IN 2019
DESIGN THINKING IRELAND LEADING INNOVATION 2019
NATIONAL CONFERENCE & WORKSHOP NATIONAL CONFERENCE & EXHIBITION
25th & 26th June 2019 at Croke Park, Dublin 22nd October 2019 at Lyrath Estate, Kilkenny
MANY OF IRDG’S EVENTS ARE ALSO ELIGIBLE FOR CPD HOURS. FOR MORE DETAILS ON OUR CALENDAR & BOOKING VISIT WWW.IRDG.IE
WHAT’S ON
THE AGENDA
IN 2019
JAN JUN
Lean Product Development programme day 1, Killashee Hotel, Naas R&D Tax Credit Clinic, Waterford
Intellectual Property Workshop, Red Cow, Dublin Innovation Practice Group Visit
R&D Tax Credit Clinic, Galway Design Thinking Ireland 2019, Conference & Workshop, Croke Park
Design Thinking Shared Interest Group at Microsoft, Dublin
AUG
FEB Innovation Practice Group Visit - Analog Devices, Limerick
R&D Tax Incentives - Policy & Operations Seminar, Dublin Lean Product Development Seminar, Galway
LPD programme day 2, Killashee Hotel, Naas
Service Design Workshop, the Helix, Dublin SEP
Innovation Practice Group Visit - APC Ltd., Dublin Design Thinking Programme day 1
Funding & Collaboration for Business Innovation Seminar, Cork
MAR Design Thinking Programme days 2 & 3
Smart Connected Series - Blockchain with Deloitte’s Blockchain Lab, Dublin Smart Connected Series event
LPD Programme day 3, Killashee Hotel, Naas
R&D Tax Credit Clinic, Dublin OCT
Funding & Collaboration for Business Innovation Seminar, Limerick Service Design - Deep dive Workshop
R&D Tax Credit Clinic, Cork
APR Design Thinking Module / Shared Interest Group
Design Thinking Programme day 4
Service Design - Deep dive Workshop
Leading Innovation 2019 - National Conference & Exhibition,
Innovation Practice Group Visit - ESB, Dublin
Lyrath Estate, Kilkenny
LPD Programme day 4, Killashee Hotel, Naas
Design Thinking Module / Shared Interest Group
Scientific & Industry Trends Analysis Shared Interest Group at Intel NOV
Innovation Practice Group Visit
MAY Thought Leadership session
Intellectual Property Seminar, Dublin
R&D Tax Credit Clinic, Donegal
Thought Leadership session DEC
Funding & Collaboration for Business Innovation Seminar, Dublin R&D Tax Credit Clinic, Dublin
Smart Connected Series - “Lead with the Silicon Valley Mindset” -
Business leaders session with Stefan Lindegaard
IRDG Innovation
@irdggroup
24
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