Temporary Innovation Space : A framework for co-creating innovative product concepts with B2B customers in an ambidextrous organisation

Abstract: This thesis project was conducted at Sandvik and builds on a previous project, also conducted at Sandvik by the same authors, during the autumn of 2019. The work is part of a newly established ambidextrous development team that is split into an innovation branch and an execution branch, with the goal to become a digital factory. A part of this thesis project is to conduct Research-to-Development (RTD) work for a future product possibility. However, the product being developed is dependent on underlying technology and infrastructure that the execution branch is simultaneously developing and establishing. Furthermore, the aim of the team is to improve Sandvik’s digital offering within the mining and construction industry which remains quite non-digitalised. The recent push for digital transformation within this industry is challenging large international companies to discover new ways of communicating advanced product ideas while working with product innovation, but also to identify and overcome organisational implementation obstacles and build lasting co-creation relationships with Business-to-Business (B2B) customers. Therefore, the purposes of this thesis were to: (1) find an optimal way of conducting RTD projects to develop product concepts that are validated with both customers and the organisation; (2) find ways of initiating and establishing a lasting co-creation relationship with B2B customers and to efficiently communicate product ideas and concepts that are dependent on underlying technology and infrastructure that have not been developed, implemented, or established yet; and (3) find a suitable way of collaborating within ambidextrous organisations when conducting RTD projects, and to clearly define the contents of a product handover. The results are based on literature, qualitative interviews with innovation experts and stakeholders, four separate user tests, and questionnaires. The findings were evaluated and improved by performing qualitative analysis and incorporating received stakeholder feedback, which led to the development of a framework for co-creation with B2B customers called the Temporary Innovation Space that can be applied to develop and validate product concepts with both customers and the internal organisation. It also addresses how to build a lasting co-creation relationship with B2B customers. Additionally, a part of the results clearly defines the contents of a product handover in an ambidextrous setup. Finally, interesting reflections and observations regarding collaboration, communication, cross-functional integration, co-creative relationships, effects of the COVID-19 pandemic, and more are discussed, and a few suggestions for further research are presented.