System Thinking and Transformational Skills Dr. K. (Subbu) Subramanian

1. System Thinking and Transformational Skills Dr. K. (Subbu) Subramanian President, STIMS Institute Inc. Lexington, MA. USA SubbuKDG@gmail.com www.STIMSInstitute.com Workshop @ PSG College of Technology Coimbatore, India Jan. 18, 2017

2. Dr. K. (Subbu) Subramanian • B.S. (Mech. Engg.) -- Osmania University, India, • D. Sc (Mech. Engg.) – MIT, USA. (1977) • Experience: Basic research, new product development, new business development, new market development. Teaching, Training and Mentoring. • Established Technology Centers across the globe (USA, Germany, Japan, China, India and Brazil). • Grinding processes leading to Thin Film Magnetic Recording Heads and “Machining to Grinding” are among the many notable accomplishments of his teams. • Founded the STIMS Institute in June 2011. www.STIMSInstitute.com . “The goal of our company is Knowledge Integration (i.e.) to develop people and industrial outcomes (products, business models, education, etc.) that exploit human skills as a parallel and in synergy with what computers can do (which is almost everything) !” • Elected Fellow of ASME and SME and author of two books. • He continues to be engaged with research, teaching and mentoring. • Over the years, he has taught over 1000 engineers and managers in the industry from across the globe on System Thinking and Transformational Skills. He has mentored over 200 among them, who are now leaders in their own merit in industry and research.

3. References: • The system Approach • – A strategy to survive and • succeed in the Global Economy • (2000) • Thriving in the 21st century economy: Transformational • skills for Technical Professionals (2013)

4. OUTLINE Binary Economy: What is it? How it is affecting all of us: Students, Teachers, Department, University, Industry and society at large? Need for relentless stream of “New Solutions”? System Thinking: What is a “Solution”? Every Solution viewed as a “system” Levels of System Thinking = Levels of Education? Awareness, Analysis, Synthesis Task execution (doing what you are asked to do) Vs. System Thinking Transformational Skills: What are they? Discover / Develop / Deploy “New Solutions”

5. Knowledge Economy • Every “Solution” is an: • “Outputs” of every professional solution are: • PRODUCT • PROCESS • Application / USE Process “input/transformation/output” System USE Product Process Cost Product Revenue Profit, ROI USE Value Stake holder benefits,

6. Binary Economy The continuum of skills required is giving way to a well identified pair of or Binary needs. New Solutions Unique Skills / Know-how Replication Solutions HIGH Knowledge Integration From Resources Across the Globe Standardization, De-skilling, IT Automation Economy 1: Relatively large skills and their integration required from a small group of people. IT-driven Delocalization (Outsourcing, Offshoring) Professional Output / Employee Economy 2: Relatively low skills required from a large group of people. 21st Century Binary Economy LOW FEW MANY No. of people involved

7. Work – What is it ? Senior Mgt. Middle Mgt. White-Collar Jobs Blue-Collar Jobs Traditional Organization

8. Work – How is it Changing? Stratification into four impermeable layers. Non – Wage Income Investment and Finance “Global Capitalism” + Professional Work (A) Innovation; Entrepreneurship; Work Smarter and Work Harder; Keep Jumping from Job to Job; Become Global; Higher Education; Interdisciplinary, ………. + Information Work (B) Earned Income “IT” Applications (Plug and Play Activities) + Physical Labor (C) Routine Tasks (Standardization, de-skilling) • Knowledge of the products and services of the company : • Limited to a few “Professionals” - System Thinkers and Solution Providers

9. Wage earning Work –? Physical Labor and Information work have fallen off the cliff Professional Work Non-wage Income (1%) Information Work Physical labor

10. Who is a Professional? INPUT OUTPUT TRANSFORMATION Profesional’s Output: KNOWLEDGE and its USE --- A Information Work --- B Physical Work --- C Professional is a System Thinker and Knowledge Worker Professional’s Efficiency: PE Score = A / (A+B+C)

11. Today there are two alternatives for high value addition/worker New Solutions HIGH Standardization, Automation, Distribution and Logistics High Customer Perceived Value addition/ unit Value Addition / Total Cost PE Score = A ( A + B + C ) Replication Solutions Crisis of the “middle” Economy 1 Economy 2 LOW FEW MANY No. of workers involved (or) No. of units produced. PE Score = A (A + B + C)

12. Binary Innovation: Parallel streams of: New and Replication Solutions New Solutions : New Product, Process, and/or Use driven by core capability from all sources of knowledge Replication Solutions: Copy Exact, Toll manufacturing, Plug and Play, driven by IT applications. New Solutions Technical / Professional Skills Required Replication Solutions Volume

13. Source of Knowledge Transformational Skills Academic Knowledge Experience People Skills Industry/ Specific

14. Transformational Skills • Emotional Intelligence for New Solutions Deploy • End-to-End Innovation X • Build Ecosystem for Core Technology Platforms Develop • Emphasis on Science and Mobile Diagnostics • System Thinking and Knowledge Integration X • 3-D View of Core Capabilities Discover / Define • Develop a Common Language Each Transformational Skill is an opportunity to foster “System Thinking” and New Solutions

15. Sources of knowledge and their ordering Academic Education Skills for Transformation Industry Knowledge / Experience Industry Knowledge / Experience Academic Education (Primary Source of Knowledge) Skills for Transformation 20st Century End of 20st Century

16. Mr. G. D. Naidu The Original System Thinker and Solution Provider? Early example for Transformational Skills? • G. D. Naidu (GopalaswamyDoraiswamy Naidu) (23 March 1893 – 4 January 1974) was an Indian inventor and engineer who is also referred to as the Edison of India. He is credited with the manufacture of the first electric motor in India. His contributions were primarily industrial but also span the fields of electrical, mechanical, agricultural (Hybrid cultivation) and automobile engineering. Naidu also developed independently internal combustion four stroke engine. • He had only primary education but excelled as a versatile genius. • He is also referred to as wealth creator of Coimbatore. https://en.wikipedia.org/wiki/Gopalswamy_Doraiswamy_Naidu

17. Sources of “Knowledge” – for success in the 21st Century Economy 20th Century End of 20th Century 21st Century Legend: Academic Education: Four Year college degree or such higher education is not a pre-requisite for success in the 21st Century Economy. Instead what is needed is an aptitude for problem solving and a relentless will to become useful to meet a need (TRANSFORMATIONAL SKILLS). Industry / Sector / Application specific Skills: Transformational Skills:

18. Sources of knowledge and their ordering Transformational Skills Industry Knowledge Academic Education 21st Century: Knowledge Integration (Orderly assemblage from the three sources)

19. INDUSTRIAL / SECTOR SPECIFIC EDUCATION ACADEMIC - EDUCATION New Solutions TRANSFORMATIONAL SKILLS - EDUCATION

20. Transformational Skills • Emotional Intelligence for New Solutions Deploy • End-to-End Innovation X • Build Ecosystem for Core Technology Platforms Develop • Emphasis on Science and Mobile Diagnostics • System Thinking and Knowledge Integration X • 3-D View of Core Capabilities Discover / Define • Develop a Common Language Transformational Skills are a set of skills to Discover, Develop and Deploy / Exploit a stream of New Solutions. Each Transformational Skill is an opportunity to foster “System Thinking” and New Solutions.

21. 3 – D Core capabilities: T shaped thinkers. People Skills Engineering Management Breadth or Scope Experience Finance/Mkt. Drivers Digital Technology Knowledge Science Physical Technology Depth or Uniqueness Professional \ Department/ Company/ Institute Project /Function Enterprise

22. System Thinking Process: Integrated deployment of core capabilities as a system Investment / Machine Need / Component Transformation System Output Technical Output Value or Benefit Expenses / Tooling Constraints / Operational factors Effect Change Cause Engineering Science Operations Management Strategy: Y = F(X) Professional Solution = Knowledge X Exp. X People Skills Technology = Science X Engineering. X Management

23. Progressive Impact of “Science” and “Strategy” – Why? - Backed Up by Diagnostic Tools Five Steps in the Scientific Approach and System Thinking to Problem Solving:—Diagnostics —Problem Solving —Process Improvement -—Process Maintenance —New Solution or Step Change System Output (Y) Technical Output (X) Y = F(X) Process Output In-Process Measurement Monitoring Equipment / Investment Component / Need >160% Process Improvement New Solution Tooling / Expenses Diagnostic Tools Parameters / Constraints PROCESS Transformation 120% Economic / Business Solutions Base Line Technical / Engineering Solutions In-Process Measurement 100% Problem resolution 80% Why ??? Diagnostics Diagnostic Tools

24. Every “Project” is a “System” KNOWLEDGE Management Engineering Equipment Supplies; Software; Tools Technical Output What is the Outcome? System Output What are the benefits ? Application Process Parameters/ Constraints Measurement Project Management: • Awareness • Analysis • Synthesis Science Diagnostic Tools & Methods

25. Sub-systems Tier 3 suppliers Knowledge Integration: Eco System Development Government Target Industry Technology policies University Research End user : Geography Application Core Technology Platform Administration Teachers/ Faculty Student Pool Equipment & Facilities Resources High School

26. Eco System Development 6 Companies; 11 Projects; AGI – IoT for Manufacturing 4.0.

27. Successful course offered by STIMS Institute at IIT – Madras, India

28. Progressive Evolution of a professional through Transformational Skills. Sustainability Profession Career Job Assignment Impact Core Technology Platforms; EINS Goal Activity End-to-End Innovation New Solutions = System Thinking = Kn. Integration Tasks Transformational Skills Academic Edn. Ind. / Sector Edn.

29. Few questions to think about Before you leave WPI ? • Can you describe your Education, project or thesis as a "Input/Transformation/Output" system? • What do you understand as the difference between "New Solution" and "Replication solution"? • Do you agree: • Technology = Science X Engineering X Management? • Do we need formal education on "Transformational Skills" ? If yes, how? • What do understand when we say: "Emotional Intelligence is a critical Transformational Skill for Innovation?"

30. SUMMARY • Binary Economy – Solution Creation Vs. Replication • It has been evolving since the 1980s • Binary Economy spans all across the globe and impacts every sphere of activity • Jobs and Careers • Higher education • Projects, programs, work force development, …. • Companies and their performance, ….. • Success in the Binary Economy requires a relentless stream of New Solutions at every level and by every person. • New Solution = Input/Transformation/Output SYSTEM. • Three levels of System Thinking : • Awareness, Analysis and Synthesis • Discover, Develop and Deploy New Solutions • Success in System Thinking and Transformational Skills for new solutions can be achieved by formal education and pro-active Industry – University Collaboration

31. Emerging models for eco-system development • In India: • Internship and training with mentoring at established • and progressive companies --- MGTL / STIMS model • Seeding targeted courses and education at a University followed by • recruitment and training and mentoring at an established company • Course Title: System Approach for Engineers • --- TVS/ TCE / IIT – M/ STIMS model • University / Industry collaborative research model • NGPG Machine tool development --- IIT – M/ MGTL/ IMTMA/ IMTTF/ STIMS • University / Industry/ Gov collaboration for Center of Excellence in • Machine Tool and Production Technology • ---- IIT – M/ Several companies/ IMTMA/ STIMS

32. Source of Knowledge KNOWLEDGE SCIENCE EXPERIENCE ENGINEERING Academic Programs Research Programs INTER – PERSONAL Skills MANAGEMENT PSG Industry, Community, Society SOCIETY INDUSTRY COMMUNITY

33. What? What are your needs? Why? Why do you need them?

34. Thank You