Making Value Integrating Manufacturing, Design, and Innovation to Thrive in the Changing Global Economy: Summary of a Workshop (2012) / Chapter Skim
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1 Making Value Through Integrated Innovation, Design, Manufacturing, and Service
1 Making Value Through Integrated Innovation, Design, Manufacturing, and Service
Pages 1-17
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Rapidly advancing technologies such as synthetic biology, advanced robotics, regenerative medicine, advanced sensors, additive manufacturing, and direct digital manufacturing are transforming not just manufacturing but entire approaches to value creation (Box 1-1)
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It offers the hope of developing nanoscale science and engineering to produce biomolecular and chemical building blocks and assembling them in a Seven years ago, MySpace was the hot technology company, not Facebook. Long-standing companies such as Motorola and Hewlett-Packard are in turmoil.
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Close links between R&D and manufacturing will be criti cal to make pharmaceuticals efficiently and safely. No business plan currently exists for personalized medicine, Dordick observed, despite rapid advances in science and manufacturing techniques.
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Technologies are now changing so rapidly that the skills of American workers and the structures of US organizations are not keeping up. Gary Cowger, chairman and chief executive officer of GLC Ventures, LLC, and former group vice president of manufacturing and labor at General Motors, illustrated the influence of advancing technologies by describing how work changed over his four-decade career in the automotive industry (Box 1-2)
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2011. Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy.
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Using tools such as computer-aided manufacturing and com puter-aided design, managers began to break down the barriers between design, manufacturing engineering, and the factory floor. Design for manufacturability became an important discipline, espe cially after it became clear that an upfront investment of 5 percent of the overall cost of a product in its design, engineering, and develop ment determines 70 to 75 percent of its total life cycle.
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"The lessons that were so hard for us to learn in the developed countries were eagerly adopted by these developing countries." Because they could not afford all the high technology equipment common in the developed world, they found innovative and cost-effective ways to implement the ideas embodied in those technologies. And this led to developed countries adopting these new low-cost, leaner approaches in their manufacturing sys tems as well.
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Brynjolfsson acknowledged that now is a terrible time, perhaps the worst time in history, to be competing with technology, but he added that "there is no better time to be a talented entrepreneur who can take innovations and scale them rapidly, digitally, and globally." He predicted that manufacturing will surge in the United States because lower wages will not remain a competitive advantage in a world of steadily increasing computer power. At the same time, the most valuable jobs will be those in the design, development, and marketing parts of the product development cycle.
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It can include the design of a beautiful chair, the invention of the computer mouse, or the development of microcredit, a financing service designed to support entrepreneurship and alleviate poverty by extending very small loans to impoverished borrowers. As examples of two people who understood deeply how to make value, Carlson cited Akio Morita, the cofounder of Sony Corporation, and Steve Jobs, the cofounder of Apple, Inc.
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In the dimension of convenience, Morita recognized the immense value in portable radios and created a multibillion-dollar company based on that insight. He then invented the Walkman, presaging a world of rich, multimedia personal electronic devices.
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value. According to one group, making value requires understanding the value that people receive from products, explained Panos Papalambros, executive director of interdisciplinary and professional engineering, Donald C
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12 MAKING VALUE 3-D 3-D TV Hi-Definition TV Color TV Discman Black & White TV Walkman FM Radio iPod Portable Radio AM Radio FIGURE 1-3 Curt Carlson mapped the timeline of product developments in the audiovisual communications industry along two dimensions of customer value: quality and convenience. "Every white space [on this chart]
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Close monitoring of the engines enables Rolls-Royce to predict when they will need maintenance, allowing them to efficiently schedule repairs, as well as informing future engine designs. Both incremental and radical innovation is important for value creation, said Taylor.
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"If you put your innovation hat on, you don't think of them as separate things. You think of them as essential, necessary pieces of the puzzle that all have to fit together." Integration of the entire process of making value is happening more and more, said Theresa Kotanchek, Dow's Global Technology Director
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Don Norman, cofounder of the Nielsen Norman Group and IDEO Fellow,5 raised the additional point that the integrated process of making value means that customers are increasingly engaged. The model of 5 The IDEO.org Fellowship Program supports design leaders of the future for 12 months to work on social innovation projects (https://www.ideo.org/fellows)
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The importance of geographic colocation depends on the product, the production process, and the industry, said Chad Syverson, professor of economics at the University of Chicago Booth School of Business, who reported back from one of the groups. In general, colocation is more important when the production process is innovative, because process innovation requires learning by doing and trying to figure things out.
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Willy Shih, professor of management practice at Harvard Business School, observed that many companies have replaced geographic colocation with frequent air travel. In the 1980s, colocation was much more common.
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