Using scenarios to balance future requirements and capability development
(2018) MIOM05 20181Production Management
- Abstract
- Title: Using scenarios to balance future requirements and capability development
Author: Erik Jacobsson
Division: Production Management
Supervisors: Bertil Nilsson at the Technical Faculty of Lund University, Innovation Advisor at the case company
Keywords: Scenarios, Corporate development, Energy Sector, Capabilities, Technology
Background: The speed of change in the world is ever increasing. In the business world, one of the sectors that are changing the fastest is the energy sector. One way to cope with change is to use scenarios and scenario analysis. There are many scenarios published every year. Which scenarios should one use, how should they be interpreted and what should be done about their implications? A case... (More) - Title: Using scenarios to balance future requirements and capability development
Author: Erik Jacobsson
Division: Production Management
Supervisors: Bertil Nilsson at the Technical Faculty of Lund University, Innovation Advisor at the case company
Keywords: Scenarios, Corporate development, Energy Sector, Capabilities, Technology
Background: The speed of change in the world is ever increasing. In the business world, one of the sectors that are changing the fastest is the energy sector. One way to cope with change is to use scenarios and scenario analysis. There are many scenarios published every year. Which scenarios should one use, how should they be interpreted and what should be done about their implications? A case company which is a supplier to the energy sector, needs to understand the best way to handle the current development.
Purpose: The purpose of the project and this report is to determine/collect the potential new requirements and developments in the energy sector and create a framework to balance these requirements against technology/capabilities for a supplier.
Method: This research has a pragmatic worldview and uses an overall qualitative approach to understand the scenarios, their implications and what should be done about them. The research objectives are achieved through a literature study, a case study and a gap analysis.
Conclusion: Through constructing a framework for finding the highest quality scenarios, the WEC Energy Scenarios from 2016 deemed the best candidate to understand and evaluate future requirements. Six different capability areas were found, Real-time data measurement, Real-time control with data, Optimising products, processes and services with data, Continuous connectivity, Systems integration and Internet of things. These six areas represent capabilities/expertise that will be needed in the future for a qualified supplier to the energy sector. They are all connected to each other to some degree, and in some cases are actually different levels of the same underlying theory. The six areas are all heavy in understanding- and use of data, witnessing that success for a qualified supplier in the future will to a large extent be how well one handles data. Through mapping the status of the six areas at the case company, it could be seen that the company has at least started development and discussions, but has a lot to do before being set for the future, especially in the last three of the six areas. It was found that the main reasons the case company lacks in some of the areas are historic tech, market preferences and organisation. It was further found that handling the gaps and becoming capable in these six areas would require several things. First, set a Common Agenda that the entire company can get behind, that sets the official direction and commitment to becoming capable in these data-related areas. Second, create a new entity/department which can bear the costs of the data equipment on the products and solutions, turn data into valuable information, as well as enjoy the revenues of the value created through the data and information. Lastly, acquire a mid- to large-sized company/department that is already capable in these six areas.
From this project, it can be concluded that the work process of constructing a scenario framework and a capability framework is well functioning and a solid method to develop strategic input. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8993222
- author
- Jacobsson, Erik LU
- supervisor
- organization
- course
- MIOM05 20181
- year
- 2018
- type
- M1 - University Diploma
- subject
- keywords
- Scenarios, Corporate development, Energy Sector, Capabilities, Technology
- language
- English
- id
- 8993222
- date added to LUP
- 2019-10-15 14:34:43
- date last changed
- 2019-12-11 09:34:55
@misc{8993222,
abstract = {{Title: Using scenarios to balance future requirements and capability development
Author: Erik Jacobsson
Division: Production Management
Supervisors: Bertil Nilsson at the Technical Faculty of Lund University, Innovation Advisor at the case company
Keywords: Scenarios, Corporate development, Energy Sector, Capabilities, Technology
Background: The speed of change in the world is ever increasing. In the business world, one of the sectors that are changing the fastest is the energy sector. One way to cope with change is to use scenarios and scenario analysis. There are many scenarios published every year. Which scenarios should one use, how should they be interpreted and what should be done about their implications? A case company which is a supplier to the energy sector, needs to understand the best way to handle the current development.
Purpose: The purpose of the project and this report is to determine/collect the potential new requirements and developments in the energy sector and create a framework to balance these requirements against technology/capabilities for a supplier.
Method: This research has a pragmatic worldview and uses an overall qualitative approach to understand the scenarios, their implications and what should be done about them. The research objectives are achieved through a literature study, a case study and a gap analysis.
Conclusion: Through constructing a framework for finding the highest quality scenarios, the WEC Energy Scenarios from 2016 deemed the best candidate to understand and evaluate future requirements. Six different capability areas were found, Real-time data measurement, Real-time control with data, Optimising products, processes and services with data, Continuous connectivity, Systems integration and Internet of things. These six areas represent capabilities/expertise that will be needed in the future for a qualified supplier to the energy sector. They are all connected to each other to some degree, and in some cases are actually different levels of the same underlying theory. The six areas are all heavy in understanding- and use of data, witnessing that success for a qualified supplier in the future will to a large extent be how well one handles data. Through mapping the status of the six areas at the case company, it could be seen that the company has at least started development and discussions, but has a lot to do before being set for the future, especially in the last three of the six areas. It was found that the main reasons the case company lacks in some of the areas are historic tech, market preferences and organisation. It was further found that handling the gaps and becoming capable in these six areas would require several things. First, set a Common Agenda that the entire company can get behind, that sets the official direction and commitment to becoming capable in these data-related areas. Second, create a new entity/department which can bear the costs of the data equipment on the products and solutions, turn data into valuable information, as well as enjoy the revenues of the value created through the data and information. Lastly, acquire a mid- to large-sized company/department that is already capable in these six areas.
From this project, it can be concluded that the work process of constructing a scenario framework and a capability framework is well functioning and a solid method to develop strategic input.}},
author = {{Jacobsson, Erik}},
language = {{eng}},
note = {{Student Paper}},
title = {{Using scenarios to balance future requirements and capability development}},
year = {{2018}},
}