With its distinctive and unusual hull design, the Ulstein X-Bow® makes a lasting impression. When you factor in the added stability and crew comfort it affords, along with up to 15% savings in fuel consumption under certainworking conditions, it’s downright innovative.
We asked deputy CEO of the Ulstein Group, Tore Ulstein to tell us the story of how the X-Bow® came about. He said, "It’s a story about innovation and about how the maritime cluster in Norway functions."
In 2003 the market was down so the Ulstein Group decided to work on some projects to create something totally new. They gathered a group of industrial designers who knew about industrial design, but didn’t know anything about OSVs and put them together with a group of hardcore naval architects and ship designers who had extensive shipbuilding knowledge.
It created a situation in which the industrial designers were able to ask all of the so-called "stupid questions," which turned out not to be such stupid questions after all. Their questions provoked new thinking and broadened the Ulstein Group mindset. They decided to develop a full concept and feature it in a company magazine at Nor-Shipping that year.
There was some internal debate as to whether to feature it in the magazine or to keep it confidential, but in the end it was decided that it was important to show customers that the Ulstein Group was willing to challenge paradigms in the industry. So, they put the concept of the X-Bow® out there. It generated hype, and a lot of interesting conversations at Nor-Shipping, but nothing really happened for a few months. However, Ulstein Group wasn’t worried, they knew such an innovative concept would take time to germinate in the conservative shipping community.
Then, a few months later, Statoil challenged the market to make a safer anchor handling vessel. Bourbon had seen the "crazy bow" in the magazine and saw it as a potential differentiator for them, so they approached Ulstein Group and said, "let’s take a closer look at your concept." And in 2006, the Bourbon Orca, the first X-Bow® AHTS was delivered.
Tore Ulstein said it took a combination of factors for the X-Bow® to make it from a fantasy vessel in a magazine to the Orca, "First, you must believe innovation is important." Additionally, you must have an owner and a charterer who are visionary and willing to take a risk on a new, untested concept. It was initially difficult to get the financing in place, but that path was eased after a long-term charter was signed with BP. Ulstein Group so strongly believed in the concept that they were willing to be part-owner of the vessel themselves. For them, it represented long-term commitment and a belief in what they were doing.
"In a high market, it’s difficult to have time to innovate because you’re so busy executing. We believe innovation moves faster in a downturn," says Tore Ulstein. In today’s downturn, Ulstein Group isn’t necessarily working on finding the next new X-Bow®-type concept, but looking for innovation in their existing products and processes. "Right now, our innovation focuses on continuing expansion of our portfolio."
Back in 1999 Ulstein had production capacity but realized they needed to develop their own designs, so they began Ulstein Design and acquired a couple of ship design companies--one in Istanbul, with expertise in short-sea and one in Rotterdam which specialized in heavy offshore vessels--heavy cranes and drill ships. These were key investments leading to the future development of the innovative X-Bow in other segments than the offshore segments.
The Ulstein Group has analyzed the business and is looking at which activities can defend the high cost that Norway represents. They have developed new business models around that thinking. One conclusion is that yard capacity is important for future development, so they are developing and delivering whole packages--with design, equipment packages and yard support based on Ulstein Group’s experience--to yards in China, Spain, Dubai, Brazil and other places which have the capacity. As they see it, they have the knowledge base in the Møre area, but are looking to establish shipbuilding capacity worldwide.
Ulstein Group believes that the next six-twelve months will see significant surplus capacity at yards around the world. So they are looking at expanding into other areas--operational, ship management and systems supporting ship management, as well as continuing to be co-investors on certain ships. They believe this underscores their commitment to their own products.
"The key to turning visions into reality is finding risk-willing partners in a conservative industry," says Tore Ulstein. "The Chinese symbol for crisis equals danger plus opportunity. We must be aware of the dangers, but on the lookout for opportunities." They are investigating new possibilities, new business models--with innovation as a tool of differentiation. With an eye firmly on the future, Tore Ulstein predicts that the biggest potential for innovation today is in the interface between organisations.
The X-bow® is a visible, physical symbol of innovation and of a willingness to think in new ways and take risks. As long as the North Sea provides challenging conditions and the spirit of the area is one of competitive innovation, it seems there will be Norwegian companies on all sides of the table willing to take risks.