industry structures and the role of manufacturing - prof. sir michael gregory
DESCRIPTION
Presentation from https://storify.com/ONS/changing-shape-of-manufacturing-in-the-ukTRANSCRIPT
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
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 Production
Routes
to
Market
After
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 Production
Routes
to
Market
After
Sales
Servics
Identify Societal / Market Needs & define system
requirements & barriers
Develop Useful Insights from Fundamental Knowledge
Integrate Fundamental Knowledge into Enabling Technology
Research Systems Interacting 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
ve
l o
f F
un
din
g
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 Industries New science ideas & technology opportunities into new industries, new jobs
(Eoin O’Sullivan)
Le
ve
l o
f F
un
din
g
Time
Emerging Industries Different value chain configuration for different emergence phase
(Eoin O’Sullivan)
Le
ve
l o
f F
un
din
g
Time
Emerging Industries Different research for different innovation needs
Different research for different phases of emergence
(Eoin O’Sullivan)
Level o
f F
un
din
g
Emerging Industries
(E O’Sullivan & L. Dodin)
Science lab-
grown human tissue
Time
Regenerative
Medicine
Level o
f F
un
din
g
Emerging Industries
(E O’Sullivan & L. Dodin)
Seeding of stem cells on
engineered
structures Science lab-
grown human tissue
Time
Regenerative
Medicine
Level o
f F
un
din
g
Emerging 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
Level o
f F
un
din
g
Emerging 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
scie
nce i
deas
(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!