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Real-world products and physics-based simulations are becoming interconnected. In particular, real-time capable dynamic simulation has made it possible for simulation models to run in parallel and simultaneously with operating machinery. This capability combined with state observer techniques such as Kalman filtering have enabled the synchronization between simulation and the real world. State estimator techniques can be applied to estimate unmeasured quantities, also referred as virtual sensing, or to enhance the quality of measured signals. Although synchronized models could be used in a number of ways, value creation and business model development are currently defining the most practical and beneficial use cases from a business perspective. The research reported here reveals the communication and collaboration methods that lead to economically relevant technology solutions. Two case examples are given that demonstrate the proposed methodology. The work benefited from the broad perspective of researchers from different backgrounds and the joint effort to drive the technology development towards business relevant cases.

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Through a design science approach, the paper explores how actors in a network create and sustain competitive advantage independently and through participation in a system of actors (i.e., a collaborative network) who are not hierarchically managed but, rather, act toward their own goals within the innovation ecosystem. In accordance with design studies, the relevance of research and its quality are evaluated against practice. The two cases discussed in the paper highlight that, in practice, innovation ecosystem actors must manage activities and relationships at the level of both individual and organisation. This finding has interesting research implications, as innovation ecosystems have been studied mostly at either macro or interpersonal (micro) level while the organisation (meso) level is seldom discussed. Furthermore, the findings should help managers to strive for and utilise innovation ecosystems better and to evaluate their ability and potential to survive via internal and external collaboration aimed at innovation.

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