A live case group assignment for third year students in the MSc Industrial Economics program at Chalmers Univ of Tech in Gothenburg, Sweden during Winter 2019. The case is together with Lysekils Municipality.

1. 2019-01-16 1
The Lysekil Challenge
Digitalization for a Sustainable Future
IKA096 - Winter 2019
Professor Robin Teigland
Chalmers University of Technology
robin.teigland@chalmers.se
@robinteigland
Introduction
As part of the IKA096 course, you will participate in the Lysekil Challenge, a team-based
initiative that counts for 1.5 points in total of the course grade (graded Pass/Fail).
In your teams, you are to conceive of and pitch a digital innovation to help Lysekils Kommun
pursue its Vision 2030, which is ”Lysekil är en hållbar och attraktiv kommun året runt som
kännetecknas av kreativitet och framtidstro. Lysekil är en självklar mötesplats och ledande
inom maritima näringar”1
. Please note that your Challenge work is very important for Lysekils
Kommun and Digitalization Coordinator as it will be used in their planning!
Lysekils Kommun has created a jury to evaluate your innovations and will select the winners
of the Lysekil Challenge in March 2019. Lysekilsposten (Lysekil’s local newspaper) will write an
article on the Lysekil Challenge and also highlight the Challenge winners. Furthermore, your
Innovation Pitch Videos will be displayed on Lysekil’s YouTube Channel
(https://www.youtube.com/channel/UCgdKH5RdxzTCsyPr8lwedcg/videos) and your
Innovation Pitch posters will be displayed in the Lysekil Centrum Lab during March.
More information on Lysekil will be provided in both the Lecture on January 28 as well as in
documents on the portal provided by Lysekils Komun.
1
More info here: https://www.lysekil.se/kommun-och-politik/politik-och-demokrati/vision-och-framtidsideer.html

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The Lysekil Challenge Innovation
Similar to many other coastal communities around the world, Lysekil strives to create an
attractive community that not only retains its inhabitants but that also attracts others to live
there on a year-round basis. While in recent decades, coastal communities have been
challenged areas, these communities now have the opportunity to leverage digital
technologies, new business models, and changing economic conditions along with shifting
work and life values among younger generations to spur economic and job growth. Innovation
is at the core of this process.2
To help Lysekil fulfill its vision, your team will develop an innovation and accompanying
business that is defined as “a new product, service, process, or business model that could be
developed either by an entrepreneur or an intrapreneur within an existing organization” and
that could feasibly be built or provided and, in your opinion, for which there is a possible
market. Generally, it cannot be for a vaguely defined product nor can it be for a range of
general services or processes. In short, you are to invent and develop something novel and try
to convince the Lysekils Kommun jury, me, and the rest of the class that it is a great innovation
for the Kommun to invest in.
Here are some guidelines for the innovation:
• The innovation must incorporate the concepts and the technologies discussed in the
course. It may also include technologies found elsewhere. Technologies might
include one or more of the following: artificial intelligence, big data analytics, IoT, 3D
printing, autonomous vehicles/drones on land or in the water, smart robots, the
blockchain, cryptocurrencies, new materials such as graphene, and gene editing.
• The innovation must be something new or a substantial alteration of something
current. It cannot merely duplicate something already in existence, i.e., bringing an
existing product or service in another market to Lysekil. It can, however, be a
substantial improvement to an existing product (or service or process), so long as the
nature of the improvement is clear. If a service is chosen, it must truly be
substantially different from any existing service or offer a substantial improvement
over any existing service, if not altogether new. If this is a modification of something
already made, the key distinction between the two is captured by the term
differentiation. That term is common in venture capital circles and is an attribute that
is sought.
• You need not demonstrate that your team could produce or create this innovation
now. The relevant question is this, "Given reasonable assumptions, would it be
possible for Lysekil to develop and implement this?"
• It must be marketable. You need to convince us that someone out there would want
this.
• You may not develop an innovation that would fall under the umbrella of the tourism
industry.
2
More information on Peniche, Portugal - a similar coastal community, can be found here:
https://www.slideshare.net/eteigland/peniche-ocean-watch-initiative-rejuvenating-coastal-communities-
through-enabling-a-blue-circular-economy-117336177

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Some Tips for Developing Your Innovation
The Future of Society and Work. Imagine what life might be like in the next five to 10 years in
Lysekil.
• How do you think disruptive technologies and new business models will change the
way we live and work in areas such as Lysekil in Sweden? What will individuals’ needs
be?
• How can these needs be fulfilled by new technologies? Remember to put individuals’
needs in the center and then use the technologies to fulfill these needs, keeping in
mind the economic feasibility.
• You might base your innovation on one or more of the UN’s sustainable development
goals: https://www.un.org/sustainabledevelopment/sustainable-development-goals/
The Future of Technology: Be creative and stretch your minds to develop a new product or
service that can meet not only today’s but also future needs.
• Start by taking a deep dive into learning about the future potential of technologies.
Twitter/tweetdeck is a good source and on a search engine you may choose to limit
your search to results within the past year (e.g., under tools on Google).
• What do you think various technologies will be able to do in 5-6 years?
• Your innovation could also be challenging in that it contains some surprise or novelty
in the strategic direction and vision required of Lysekil to launch it.
• You may even go so far as to develop something that disrupts today’s business
models.
Team Formation
The Challenge is conducted by self-assigned teams of up to six participants (the exact size
depends on the overall number of participants that you choose). Register your team members
on the Canvas portal. These teams are the same as your seminar teams.
Team Dynamics
• Aim for diversity of backgrounds and skills in your team - and people you would enjoy
and from whom you would benefit from working.
• Be clear and explicit about each person’s roles and responsibilities in the team.
• Ensure there are clear milestones and accountability.
• Set up regular team meetings.
• Provide each other candid with input and feedback.

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Challenge Deliverables
The Challenge consists of the below deliverables and activities. *Please note that attendance
is obligatory for the Lysekil Challenge class sessions on Jan 28, Feb 18, and Mar 6.
Deadline Deliverable/Activity Submission or In-class
1 Jan 28, 11:00 to 11:45* Lecture In-class: Lecture by Lysekils Kommun to introduce the
Kommun and its vision
2 Jan 29, 17:00 Development Area
Focus
Submission: Finalize selection by your team of one of
five development areas (below)
3 Feb 18, 8:00 Initial Idea
Worksheet
Submission: Max 2-page Idea Worksheet
4 Feb 18, 9:00 to 11:45* Initial Idea Pitch In-class: 60 second Pitch and Peer Feedback
5 Feb 18, 17:00 Initial Idea Feedback Submission: Max 1-page MS Doc Peer Feedback
6 Mar 6, 8:00 Draft Pitch PPT Submission: Max 10 slides MS PPT Draft Presentation
7 Mar 6, 13:00 to 17:00* Draft Pitch In-class: 3-minute Pitch and Peer Feedback
8 Mar 7, 17:00 Draft Pitch Feedback Submission: Max 2-page MS Word Peer Feedback
9 Mar 14, 10:00 Final Pitch Poster Submission: Final Pitch Poster (A0 size) submitted to
Portal and printed in A0 paper format to Robin (location
TBA)
10 Mar 14, 10:00 Final Pitch Video Submission: Link to max 5-minute Final Pitch Video
1. Lysekils Kommun Lecture
Several members of Lysekils Kommun management will present their views on Lysekil and its
2030 Vision and focus areas along with their view on Lysekil’s strengths and weaknesses.
2. Development Area Selection
Lysekils Kommun has five primary development areas (below), and your team will choose
one of these areas for your innovation to support.
1. Barn & unga är vår framtid
2. Vi utvecklas genom lärande
3. Maritima Lysekil är en kraft att räkna med
4. Kom och upplev Lysekil och vår unika livsmiljö
5. Vi tar ansvar för miljön.
Your team must select your development focus area by the date specified above. There is a
limit of five teams per focus area. Areas are assigned on a first come, first served basis.
3. Initial Idea Worksheet
Use the “Initial Idea Worksheet Template” found on the portal to help develop and summarize
your initial idea.
Label your max 2-slide Idea Worksheet (title page plus worksheet) in MS PPT,
“Initial_YourTeam#.ppt”, and submit by the deadline specified above.

5. 2019-01-16 5
4. Initial Idea Pitch
Deliver a pitch presentation in class, which provides a concise and engaging summary of the
innovation you would like to develop for Lysekil. The pitch must be between 40 and 80 seconds,
but try to aim for 60 seconds, which is generally the maximum. Deliver only a verbal pitch, with
no accompanying visual, audio, or other props or aids. No notes, devices, watches, or devices
of any kind!
Your task is to convince the audience that this is an innovation that will enable Lysekil to
pursue its vision. You should primarily describe the product or service, and you should give it
a name. Avoid long technical descriptions and instead you should emphasize what the product
or service does, or what problem it solves, or why anyone would be interested in buying it or
using it. You should cover all of the following components in the pitch:
1. What is the venture / product / service? Clear explanation of the product/service.
2. What is the customer problem / pain you will solve (or delight) today and in the future?
3. How is your venture / product / service unique and differentiated from other
alternatives?
4. How big is the market and how will you be able to penetrate the market?
5. What is the business model - how will Lysekil finance this or make money on this?
6. How much money is needed and what will it be used for? How can this money be
raised?
7. What competences and resources does Lysekil need to launch this innovation? What
is the ecosystem and network of relationships needed in order to develop and sell
this product or service?
Design your pitch to capture the interest of the audience so they want to hear more. Assume
your audience is full of potential partners and resource providers and speak to the whole class
when you pitch.
Some helpful examples and tips can be found on crowdfunding sites such as Kickstarter,
Indiegogo, FundedByMe, and CrowdCube.
Also here from the Y-Combinator startup course, starting at about min 33:45:
https://www.youtube.com/watch?v=SHAh6WKBgiE&index=17&list=PLExRI9g7nuj-
SDabd6Ndx2sj0BKkth1mD
Avoid Common Elevator Pitch Mistakes1
• No energy or passion in the presentation
• Too much technical language; focusing on the technology rather than the customer
need
• Failure to explain what customer problem you are trying to solve
• Too much discussion about the idea and product and not enough explanation about
the market, business opportunity, and revenue models
• Listing too many names of potential or actual clients or partners. Be more specific.
• Speaking too quickly.

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Please note that this is just your “raw”, original idea. We expect that this idea will evolve into
something different. It might be that your team will pivot to other problem areas and/or
solutions. It might happen that your team will decide to combine different ideas, even
potentially with another team. In other words, being fully aware of the uncertainty and
volatility inherent in innovative endeavors, this assignment’s main goal is to get us started,
fight procrastination, and kick-off idea incubation.
5. Initial Idea Pitch Feedback
During the Initial Idea Pitch class, your team will be assigned to give written Feedback on one
other team’s Pitch. The Feedback should primarily add value to the content of the other
team’s Idea and secondarily to the communication of the team’s message. Your Feedback is
to be in MS Word Doc (1 page) format and have points on both strengths and weaknesses
regarding content and communication style.
Label your document, “Initial Feedback_YourTeam#.doc” and submit to the portal by the
deadline specified above. Additionally, send your Feedback directly to your assigned team.
Try using google docs or something similar during class to enable your team members to work
simultaneously on one document during the presentation.
6. Draft Pitch PPT
You are to submit a max 10-slide PPT presentation (max 9 pages + cover page) + max 5 page
appendices that you will use during your max 3-min Draft Pitch in class. Choose a font large
enough to be read by people in the audience and do not forget to reference your sources.
Label your presentation with “Draft_YourTeam#.ppt” and upload it to the portal by the
deadline above.
At the end of this document, you will find a list of questions you may consider. You are to
determine which are the most important factors and address these with the greatest depth.
Use your judgment in order to determine the necessary amount and kind of research.
7. Draft Pitch
Your team is to make a max 3-minute Draft Pitch in class. The format is that of a Dragon’s Den
in which you will pitch your innovation to a small team of “potential investors” of
representatives from Lysekils Kommun.
Similar to real-life pitches, the class will vote thumbs up or thumbs down on your team’s
innovation. The presentation will be followed by Q&A involving the Lysekil representatives,
the Feedback team, and the class.
The purpose of this presentation is not only to pitch your Innovation but also to gather input
for further developing your Innovation for your Final Pitch Poster and Video.

7. 2019-01-16 7
8. Draft Pitch Feedback
During the Draft Pitch class, your team will be assigned to give written Feedback on one other
team’s Pitch Presentation and Q&A. The Feedback should primarily add value to the content
of the other team’s Innovation idea and secondarily to the communication of the team’s
message. Your Feedback is to be in MS Word Doc (max 2 pages) format and have points on
both strengths and weaknesses regarding content and communication style.
Label your document, “Draft Feedback_YourTeam#.doc” and submit to the portal by the
deadline specified above. Additionally, send your Feedback directly to your assigned team.
9. Final Pitch Poster
You are to prepare a one-page A0-sized poster pitching your innovation. The posters will be
displayed in the Lysekil Centrum Lab from March 15-30, 2019. More information will be
provided in class.
In addition to information on your innovation, you must include the following on your poster:
• A photo of your team or team members
• The names and contact information of one or more of your team members
• The link to your Final Pitch Video
• The Chalmers University of Technology and Gothenburg University logos
Label your document, “Poster_YourTeam#.pdf” and submit to the portal by the deadline
specified above. Additionally, send your Feedback directly to your assigned team.
10. Final Pitch Video
You are to prepare a max 5-minute video that pitches your Innovation and upload it to
YouTube. More information on uploading will be provided later. Submit your link to the portal
by the assigned deadline.
In addition to the innovation pitch in the video, you must include the following at the end of
your video:
• The names and contact information of one or more of your team members
• The Chalmers University of Technology and Gothenburg University logos
• Any sources you have used
The videos will be judged by a jury from Lysekils Kommun who will then select the winner(s)
of the Lysekil Challenge. The videos will be posted on Lysekils Komun’s YouTube channel.
More information on how to make a pitch video is here:
https://technovationchallenge.org/curriculum/pitch-1/

8. 2019-01-16 8
Data Collection and Innovation Development
We suggest that you take advantage of the electronic databases available at Chalmers or GU,
such as those providing information on industries and markets. Feel free to contact the library
for help in this area. That is what they are there for! You might also want to consider
conducting a questionnaire using the free tools such as SurveyMonkey.
You are encouraged to practice design thinking (see below) and gather external data and test
your ideas with external individuals (e.g., rapid prototyping). You may contact people and
organizations in Lysekil for this.
A good idea is to have one person per team be a contact person as well as for your team to
coordinate with the other teams in terms of which external people and organizations are
contacted. We do not want to overload Lysekil Kommun with too many requests.
All data sources, including interviews, websites, company papers, magazine articles, and
others, must be referenced in the poster (at the bottom) and video (at the end). Any material
taken directly from another source must be placed in “quotes” or properly reworded and
sourced. See www.plagiarism.org for some guidelines. The failure to give full credit can be
grounds for plagiarism.
In addition, you are expected to share resources and links found outside of class with each
other.
Additional Resources
1. Developing an Idea/Innovation
• Design Thinking:
o https://dschool.stanford.edu/resources-collections/a-virtual-crash-course-in-
design-thinking
• How to start a startup (Ycombinator): https://www.startupschool.org/
2. Regional Statistics, Development, and Resources
• Statistikmyndigheten SCB: https://www.scb.se/hitta-statistik/sverige-i-siffror/
• Lysekils kommun SCB:s medborgarundersökning – hösten 2017:
https://www.scb.se/contentassets/1f13b63dcece415b9c1c5b6a86781b34/lysekil-
2017.pdf
• Svenskarna och Internet: https://www.iis.se/fakta/svenskarna-och-internet-2017/
• McKinsey: Möjligheter för Sverige i digitaliseringens spår.
o https://www.mckinsey.com/~/media/mckinsey/featured%20insights/europe/
mojligheter%20for%20sverige%20i%20digitaliseringens%20spar/digitizing-
sweden-mojligheter-for-sverige-i-digitaliseringens-spar.ashx

9. 2019-01-16 9
• Coastal Community Development: https://www.gov.uk/government/collections/coastal-
communities
• Ocean Tech: http://mentalfloss.com/article/534827/technologies-that-are-
revolutionizing-ocean-exploration
3. Uncertainty, Scenarios, and Preparing for the Future
• The Black Swan: The Impact of the Highly Improbable, Taleb, N. Random House
Publishing Group
• Scenario Thinking: https://www.wired.com/1995/11/how-to-build-scenarios/
• Global scenarios for 2025
o Shell International Limited
o U.S. National Intelligence Council
o The World Economic Forum
• Futures studies organizations
o Singularity University
o Decision Strategies International
o Institute for the Future
o Kairos Future
o McKinsey Global Institute
• Other tips
o Search words: scenario, foresight, trend, trendspotting, trendwatching, future
studies, institute for future, on blogs
o Sites: Slideshare, Twitter/Tweetdeck
4. Technologies (all found online)
• Galen, D., Brand, N., Boucherle, L., Davis, R., Do, N., El-Baz, B., & Lee, J. (2018).
Blockchain for Social Impact: Moving Beyond the Hype. Center for Social Innovation,
Stanford Graduate School of Business.
• Ransbotham, S., Gerbert, P., Reeves, M., Kiron, D., & Spira, M. (2018). Artificial
Intelligence in Business Gets Real. MIT Sloan Management Review and The Boston
Consulting Group, September.
• Teigland, R., van der Zande, J., Teigland, K., & Siri, S. (2018). The Substitution of Labor:
From Technological Feasibility to Other Factors Influencing Job Automation.
• Finland’s free online course on AI: https://www.elementsofai.com/
• Blockchain basics course: https://www.coursera.org/learn/blockchain-basics

10. 2019-01-16 10
SOME QUESTIONS FOR THE PITCH
1. Concept
• Describe your innovation. What is the main product(s) and/or service(s), process(es),
business model?
• What are the problems or needs that you are addressing/solving with your idea? How did
you identify them?
• What are the compelling benefits of your solution? How does it help fulfill Lysekil’s vision?
• How is this innovative? What differentiates your solution from what current players offer
in the market?
• How does your innovation build on the strengths and resources of Lysekil Kommun?
• What is the value proposition and how will you ensure that it can be fulfilled?
• How does your innovation perform in terms of environmental and social sustainability?
2. Strategy and Market
• Define your target users and relevant market segments. Be clear, focused, and specific.
• What is the market size, growth rate and projected growth rate for the first three years?
• What is your targeted market share?
• What evidence can you provide of market demand, including customer ability and
willingness to pay a price that works for your innovation? How did you find this evidence?
• Where and how will you launch and then sell your innovation? Who will be your first
customers (innovators and early adopters)?
• How will you get customers to know about your innovation?
• How will you ensure a relationship with your customers and how will you retain them?
• What is your overall market assessment?
3. Industry and Competition
• In which industry will you operate?
• What is the industry size, growth rate, and projected growth rate?
• How attractive is this industry?
• Who are the leading competitors and substitutes and what are their respective
strengths/weaknesses?
• What barriers to entry are there?
• Why should the customer buy your innovation over that of the competition?
• How will you achieve sustainable competitive advantage over your top rivals? Will you
compete on technology, design, service, availability, and/or price?
• How might market incumbents react to your entering the market?
• What kind of legal protection, if any, do you need? And how will you ensure this?
• What is your overall industry and competitive assessment?
4. Financials
• What is your business model?
• How will you price your innovation and how did you develop this?

11. 2019-01-16 11
• What is the revenue model? What do you predict your revenues to be from your
innovation in the first three years?
• What is your brief assessment of the financial performance of similar enterprises?
• What is the estimated total time and start-up cash needed to make the first sale (including
capital investments and operating expenses)?
• What resources are needed, e.g., personnel, website, machinery, buildings, vehicles,
patents/trademarks?
• What are the costs for the first three years?
• How can the necessary cash be raised to make the first sale and stay in business for three
years?
• What assumptions have you made in your calculations?
• Are there any potential exits?
• What is your overall financial assessment?
5. Resources and Ecosystem
• What are the important resources that Lysekil has to support this?
• What important areas of expertise are missing that are required for this innovation, and
how would you fill the gaps if you were to further develop and launch the innovation?
• What competences should there be on an advisory board?
• What resources are needed from collaborations/partners?
• What types of collaboration and/or partnerships are important for your innovation’s
success?
• Do potential collaborations/partners fulfill your demands from an ethically, socially,
environmentally, and economically sustainable perspective?
• What is your overall resource and ecosystem assessment?
Risk Factors
• What are the biggest challenges, sources of uncertainty, and risk factors for this
innovation, including their probability and potential impact, e.g., technical, economical,
market, personnel, environmental barriers, ethical?
• How should the risks be managed and mitigated?
• What is your overall risk assessment?
Next Steps
• What are the most important next steps in preparing for launch? Be specific.
• What is still missing from the analysis that is needed to draw better conclusions?
• What would you do next, specifically, to find out?