Disruption of Manufacturing Models: Creating Value through better product insight - Daniel Keely, Cisco
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The document discusses how re-distributed manufacturing and big data can provide greater product insight and create new business value. It suggests connecting every product to the internet to gather data on how products are feeling, being used, and whether users are happy. This data could be used to optimize value chains, introduce new services, make better products, and drive market growth. However, successfully implementing these strategies presents challenges regarding information governance, security and privacy, technology gaps, and overcoming research challenges to achieve commercial success.
Disruption of Manufacturing Models: Creating Value through better product insight - Daniel Keely, Cisco
- 1. © 2015 Cisco and/or its affiliates. All rights reserved. 1 Disruption of manufacturing models Creating value through better product insight Daniel Keely Re-distributed manufacturing, big data & consumer goods network launch 3rd June 2015, IDEA London
- 2. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 end of an era - cheap energy & materials mass production to mass customisation ownership to performance market proximity trumps labour cost Source: Ellen MacArthur Foundation
- 3. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3 Re-distributed Manufacturing has a broad working definition of Technology, systems and strategies that change the economics and organisation of manufacturing, particularly with regard to location and scale. EPSRC 2014
- 4. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
- 5. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5 total delivered cost -> service/experience delivery + new business opportunity
- 6. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6 … using technology to drive new business models innovation opportunity … greater product insight will create new business value
- 7. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7 what if every product was connected to the internet how am I feeling? how am I being used? Is my user happy with me? Useful for RDM? Can we use information to… • Optimise our value chain? • Introduce new services? • Get closer to customers and make better products? • Convert to market growth/success
- 8. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8 “AT&T, Cisco, GE, IBM and Intel Form Industrial Internet Consortium to Improve Integration of the Physical and Digital Worlds. Technology leaders drive industry ecosystem to accelerate more reliable access to big data to unlock business value“ source: iiconsortium.org Source: University of Michigan connecting the unconnected unique digital identities for physical objects new data volumes :: extracting value
- 9. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9 re-distributed = de-centralised = more complexity? instrumenting materials components products packaging machinery transportation storage reconfiguring value chains, managing risk supply product experience smarter connected value chains
- 10. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10 New distribution & revenue streams Expanding re- manufacturing Decentralising repair centre capability EoL insight
- 11. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11 improved product insight is likely to be at the heart of smarter supply chains required for re-manufacturing (technology driven) Deciding to de-centralise manufacturing: what are the factors to consider, and the indicators used for building the business case? Where is the value created? Information governance: how can we best manage potential ownership, access or IP conflicts as perceived value is created through data collection and analysis? Security & Privacy: how can we best create win-win propositions to avoid consumer push-back or legal barriers? Technology: how can we close the IT capability gap to take advantage of the promises of greater product insight? interesting business potential, but what are the research challenges that stand between us and commercial success?