industrial structures and the role of manufacturing implications for measurement ons - october 2014...
TRANSCRIPT
Industrial Structuresand the
Role of ManufacturingImplications for measurement
ONS - October 2014
Prof. Mike Gregory
Outline
• Changing industry structures
• Knowledge and value chains
• Emerging industries
• Implication for measurement
The full cycle from understanding
markets and technologies
through product and process
design to operations, distribution,
services and sustainability
Industrial System
Changing Industry Structures
• Companies increasingly focus on particular stages of value chain
• Stages in the value chain may have different ‘owners’.
• Interfaces and interdependencies poorly understood.
• Implications for industrial competitiveness
R&D Design Supply ProductionRoutes to
MarketAfter Sales Services
R&D - Plastic Logic
• ‘Power of electronics with pervasiveness of printing’
• Enables new product concepts including displays & sensors.
• Potential to create new industry via radical change in economics of production
Design - Apple
• Team of engineers designed & built first iPod in less than year
• Relatively established technologies packaged for aesthetics & functionality
• Production completely outsourced
Production - GKN
• 40% of world market for constant velocity joints
• Leadership enabled by production capability linked to advanced design
• Close integration with customers
• Local production facilities worldwide
Distribution - Tesco
• Commissions designs
• Orchestrates production
• Distributes & sells
• Manages complex procurement & supply networks
• Activities co-ordinated globally
Service - Xerox
• Pioneered service based business models
• Service offering now includes business improvement
• Re-manufacturing a growing strength
• Example of product-service systems
So what about knowledge?
• Ensure take up of new knowledge
• Marshal research across value chain
• Support & capture “emerging industries”
• How can we help keep industrial systems healthy, efficient, competitive and evolving?
R&D Design Suppy ProductionRoutes to
MarketAfter Sales
Servics
Identify Societal / Market Needs & define system requirements & barriers
Develop Useful Insights from Fundamental Knowledge
Integrate Fundamental Knowledge into Enabling Technology
Research SystemsInteracting research activities
(E O’Sullivan: Adapted from NSF ERC Strategy Framework)
Research & Industrial Systems
(Eoin O’Sullivan & Mike Gregory)
Linking research to industrial needs
Le
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Basic Research Development / Scale-up Commercial Operation Mature Industry
Navigation of industrial emergence (barriers, enablers, inhibitors) depends on understanding of industry-level factors, e.g.:
• Industrial design• Manufacturing strategy• Production scale-up• Supply networks• Investment• Regulation & standards
Time
Valley of Death
Funding from public sector
Private sector sales
Emerging IndustriesNew science ideas & technology opportunities into new industries, new jobs
(Eoin O’Sullivan)
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Time
Emerging IndustriesDifferent value chain configuration for different emergence phase
(Eoin O’Sullivan)
Le
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Time
Emerging IndustriesDifferent research for different innovation needs Different research for different phases of emergence
(Eoin O’Sullivan)
Le
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un
din
gEmerging Industries
(E O’Sullivan & L. Dodin)
Science lab-grown human tissue
Time
Regenerative Medicine
Le
vel o
f F
un
din
gEmerging Industries
(E O’Sullivan & L. Dodin)
Seeding of stem cells on
engineered structures
Science lab-grown human tissue
Time
Regenerative Medicine
Le
vel o
f F
un
din
gEmerging Industries
(E O’Sullivan & L. Dodin)
Seeding of stem cells on
engineered structures
GMP manufacturing & automation processes
Science lab-grown human tissue
Time
Regenerative Medicine
Le
vel o
f F
un
din
gEmerging Industries
(E O’Sullivan & L. Dodin)
Seeding of stem cells on
engineered structures
GMP manufacturing & automation processes
Advances in logistics & distribution technologies
Science lab-grown human tissue
Time
Regenerative Medicine
Emergence map – CT Scanners
(Eoin O’Sullivan)
What is an “Emerging Industry” anyway?Focus on emergence transitions…
Mature ”emerged”
market
Specialist market Early
adopter market
Growth mass
market
External technologies
Go
od
sci
ence
idea
s
(E. O’Sullivan – after H. Chesbrough)
Misalignment & leakageSCIENCE
DominatedEmergence
TECHNOLOGYDominatedEmergence
APPLICATIONDominated Emergence
MARKETDominatedEmergence
Mature ”emerged”
market
Precursor Embryonic Nurture Growth
(E. O’Sullivan)
Implications for measurement
• Broad approach to industrial systems can capture the breadth and context of manufacturing
• Mapping of knowledge type to value chain can clarify sources of value and opportunity
• Managing industrial emergence a neglected area for manufacturing but vital for future value capture
• International evolution of industrial innovation and production ‘ecosystems’ a major challenge
• New breed of industrial systems ‘architects’ and ‘monitors’ needed!