Prof. Dr. Stefan Groesser and Stefan Katz held a presentation on the Use-It-Wisely (UIW) project last Wednesday, March 4th. The objective of the UIW project is to support small and medium enterprises in innovation of capital-intensive products and services. UIW is supported by the EU as part of the 7th framework program.
Assets lose value over time as shown in the green area in Figure 1. This devaluation happens through wear and tear of components as well as changing requirements for the asset. This will be eventually corrected by upgrading or replacing the asset. Upgrading, however, is infrequently done on capital intensive assets because the upgrade is costly and often does not allow for the use of the asset for the duration of the upgrade.
If the value of the asset is compared to the value expected by stakeholders, which for example factors in the technological development, then the gap between current value and desired value is continually increasing. This is the red-white striped field in Figure 1. As part of the UIW project, the Strategy and Simulation Lab of the BFH provides SMEs with tools to shorten the upgrading cycles in capital-intensive assets and reducing the lost value to stakeholders. The UIW hypothesis can be seen in Figure 2.
More information on the project can be found here