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Industrial Structures and the Role of Manufacturing Implications for measurement ONS - October 2014 Prof. Mike Gregory. Outline. Changing industry structures Knowledge and value chains Emerging industries Implication for measurement. Industrial System.
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Industrial Structuresand theRole of ManufacturingImplications for measurement ONS - October 2014Prof. Mike Gregory
Outline • Changing industry structures • Knowledge and value chains • Emerging industries • Implication for measurement
Industrial System The full cycle from understanding markets and technologies through product and process design to operations, distribution, services and sustainability
Design Supply Production Routes to Market R&D After Sales Services 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 - 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
Design Suppy Production Routes to Market R&D After Sales Servics So what about knowledge? • How can we help keep industrial systems healthy, efficient, competitive and evolving? • Ensure take up of new knowledge • Marshal research across value chain • Support & capture “emerging industries”
Research Systems Interacting research activities Identify Societal / Market Needs & define system requirements & barriers Integrate Fundamental Knowledge into Enabling Technology Develop Useful Insights from Fundamental Knowledge (E O’Sullivan: Adapted from NSF ERC Strategy Framework)
Research & Industrial Systems (Eoin O’Sullivan & Mike Gregory)
Emerging Industries New science ideas & technology opportunities into new industries, new jobs • 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 Private sector sales Level of Funding Funding from public sector Valley of Death Time Basic Research Development / Scale-up Commercial Operation Mature Industry (Eoin O’Sullivan)
Emerging Industries Different value chain configuration for different emergencephase Level of Funding Time (Eoin O’Sullivan)
Emerging Industries Different research for different innovation needs Different research for different phases of emergence Level of Funding Time (Eoin O’Sullivan)
Regenerative Medicine Emerging Industries Level of Funding Sciencelab-grown human tissue Time (E O’Sullivan & L. Dodin)
Regenerative Medicine Emerging Industries Level of Funding Seeding of stem cells on engineered structures Sciencelab-grown human tissue Time (E O’Sullivan & L. Dodin)
Regenerative Medicine Emerging Industries Level of Funding Seeding of stem cells on engineered structures GMP manufacturing & automation processes Sciencelab-grown human tissue Time (E O’Sullivan & L. Dodin)
Regenerative Medicine Emerging Industries Level of Funding Seeding of stem cells on engineered structures GMP manufacturing & automation processes Advances in logistics & distribution technologies Sciencelab-grown human tissue Time (E O’Sullivan & L. Dodin)
Emergence map – CT Scanners (Eoin O’Sullivan)
What is an “Emerging Industry” anyway?Focus on emergence transitions… Specialist market Early adopter market Growth mass market Mature ”emerged” market Good science ideas External technologies (E. O’Sullivan – after H. Chesbrough)
Misalignment & leakage SCIENCE Dominated Emergence TECHNOLOGY Dominated Emergence APPLICATION Dominated Emergence MARKET Dominated Emergence 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!