Engineering the Future
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2 Engineering the Future Cluster Dynamics Midjutland Denmark by Rodin Genoff Managing Director, Rodin Genoff & Associates TCI Auckland 30 November 2011 Copyright Rodin Genoff and Associates, November 2011
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6 Danish Design Centre: Case Study Exporting to 28 countries (photo source, DDC, design: Case J, Hvidtved Larsen)
7 Major Danish Exports 2006 % of Total Machinery & transport equipment 27.4 Food & live animals 16.0 Miscellaneous manufacturers 15.9 Chemicals 12.7 Leading Danish Markets 2006 % of Total Germany 16.8 Sweden 14.2 UK 9.0 US 6.7 Norway 5.7 EU 69.9 (Source, Economist Intelligence Unit, Sept 2007)
8 Best practice practice supply chain audit To generate real time industry intelligence to inform: Policy Business Development Programs Regional Development Strategic Directions And identify connector companies in supply chains that can build collaborations and create new joint ventures resulting in: New products and services Industrial and product diversification Strengthening of local cluster and supporting technology transfer and diffusion Increase profits and sales for local companies
9 VISION
10 Crunches the numbers and retells the story. And creates a And creates a new narrative in an innovative and compelling manner
11 Borsen - Denmark s version of the London Financial Times, Reporting on Engineering the Future, written by Rodin and Genoff & Associates Outlines how: Smart Connection ns old industries are creating industries of the future and in the process creating the smart centre of Denmark
12 The smart centre s Advanced Manufacturing & Engineering Cluster, a leading Scandinavian Innovation Hub 300 leading engineering & electronics companies, employing an estimated 24,000 people Image Courtesy of HCP Engineering Services Nupark in Holstebro supporting the smart centre
13 Advanced Manufacturing and Engineering Cluster: Food Processing Life Sciences Environment & Energy AME Knowledge Services ICT Defence An Industry Wide Enabler
14 Mapping the Advanced Manufacturing Cluster: Supply Chains Laser&Vision Systems Machine Tools Mechatronics Mining Extraction INDUSTRY Chemical & Petroleum INDUSTRY Poly-carbonates Casting manufacture Synthetics Glass & Ceramics Components & Processors Precision Engineering General Engineering Electrical Components Nanotechnologies Embedded Technologies NPD Services FMS, Robotics, CIM cells SLA, LOM Bureaus Tool Design Systems Configuration Modular, Sub-Assembly ADVANCED MANUFACTURING OEM DFM, DFT, DFA Supply & Vendor Mgt. EXTRACTION PROCESS ENGINEERING UPSTREAM INTELLIGENT MANUFACTURING SYSTEMS
15 Advanced manufacturing and Engineering Cluster a producer and consumer of high tech and medium high tech goods and services. It also: Engineering the Future Provides the technologies that other industries use to manufacture their own products. Has by far the largest concentrations of occupations essential to the introduction and diffusion of new technology in an advanced technology. Is pivotal to the continuous process and transfer, adaptation and diffusion of technology throughout the entire economy.
16 Business Manufacturing R&D expenditure in the Central Denmark Region 2004 Knowledge Service 14% Other Sectors Finance 2% 2% Manufacturing 80% Commerce 1% Research and Deve elopment Performance
17 Percentage of firms with production innovation by sector Copenhagen Central Denmark Region Manufacturing Commerce Knowledge Service Finance Other Sectors Research and Deve elopment Performance Percentage
18 Denmark s Wind Valley The world s leading wind energy cluster. Global market share of 40 per cent and a combined of turnover of approximately 3 billion euro. Employing 20,000 people the cluster is mainly concentrated in the Central Denmark Region. (Source & photo, The Danish Wind Industry Association )
19 Local National Global INNOVATION A region s technology trajectory comes from the industries it already has Therfore the AME project is: about working with you have (see, City of Playford s Economic Prosperity Plan, September, 2006; and Rodin Genoff and Roy Green, Manufacturing Prosperity, Federation Press, 1998)
20 Best Practice Supply Chain Audit generating strategic industry intelligence about: the performance of the performance of companies in the cluster; and to indentify connector companies
21 Integrated Supply Network Performance Model
22 Best Practice Ladder Scorecard - in the Central Denmark Region s Advanced Manufacturing & Engineering Cluster Leaders Practices in place & being converted into Outcomes. Best 20% defined as Leaders (shaded) Organisational Perform mance % Laggers Neither Practices nor Outcomes in place. Bottom 20% defined as Laggers (shaded) (Source, Rodin Genoff & Associates) Technology & Management Practices Index %
23 Zones of Competitive Capability: (Price; Flexibility; Quality; Delivery; Service; Speed; Innovation) Weak Performance Against Competitors Strong Better Than Worse Than Same As Excess? Lower Bound of Acceptability Improvement needed Appropriate Response Zone B Zone A Urgent Action Required Less Important Qualifying Order Winner Low (Source, Rodin Genoff & Associates) Importance to Customers High
24 Best Practice Ladder Agendas for Change A. LEADER Organisational Perform mance % D. Companies getting somet hing for nothing D. CHALLENGED B. TRANSITION B. En-route companies A. Companies staying in front E. Where to start companies C. Inhibited companies E. LAGGER C. TRANSFORMER Technology & Management Practices Index % (Source, Rodin Genoff & Associates)
25 Best Practice Leader Programs for Change LEADER TRANSITION TRANSFORMER A Staying in front > Global capacity > Rapid time to market > Use and know-how of partners > Step change in costs > Mass customisation > Environmental differentiation Focus on: New ways to delight customers CHALLENGED D Something for Nothing > Quality vision > Customer & suppliers > Partnerships > Cost elimination > Business process ownership > Sustainability Focus on: Effectiveness and efficiency B En-Route > Delighted customers > Market driven quality > AQA wards > Employee development > Environmental and social responsibilities > Customer resource management Focus on: Service excellence LAGGER E Where to start > Recognition of status > Executive Vision > Customer satisfaction focus > Employee involvement > Process improvement Focus on: Control and predictability C Inhibited > Promising - Gain executive commitment > Flatten the organisation > Organisation change > Employee empowerment > Skills and training > Teamwork > Benchmarking > Measurement and incentives > Return on Investments Focus on: Change for performance
26 Customer/Buyer Network A B1 C5 6 B C1 15 C C4 C C (Source, Rodin Genoff & Associates)
27 Suppliers Network based on Leader Status XX YY (Source, Rodin Genoff & Associates) = Sophisticated Demand, for technologically sophisticated companies = SUPER economic multipliers & technology spinoffs regionally and nationally = BIG boost to productivity & smart jobs
28 How we used our strategic industry intelligence to unlock the potential of connector companies to create new collaborations and joint ventures and new business opportunities
29 Next Stage: Activating 35 business networks bringing together between 150 & 200 companies in the advanced manufacturing cluster Mid Jutland: Delive ering Business Opportun nities
30 6 Phases to Creating New Business Alliances Phase 1: Identifying Business Opportunities A collaborative futu ure Phase 6: Media Launch & Marketing Phase 5: Planning & Implementation Creating New Networks Phase 4: Developing Joint Ventures Phase 2: Assessing Readiness Phase 3: Selecting Companies
31 This double page feature article on klynger or clusters in Borsen features a story on Stalindustri a local metal engineering company with around 90 employees. The CEO is quoted as saying that through the creation of new business networks this project is helping my company to double its turn over Mr Genoff in his report describes how clusters support innovation and local growth and how this project is making connections for some 300 companies
32 Creating New Investment Opportunities: Joint Venture created to build a new production and design hub - incorporating engineering, prototyping and design partnerships with leading Danish industrial design houses in Copenhagen announcement forthcoming Mid Jutland: Deliveri ing Business Opportunit ties
33 Next Phase: Building on Success Rolling out the New 50 million DKK (AUS$12 million) Central Denmark Business Networking Program Using results of a successful pilot study to create new policy and program initiatives
34 Denmark s smart centre - making smart global connections
35 The world is moving so fast these days that the man or woman who says it can t be done is generally interrupted by somebody doing it. Elbert Hubbard
36 Thank you so much for your interest Engineering the Future Cluster Dynamics at Work by Rodin Genoff Managing Director, Rodin Genoff & Associates Copyright Rodin Genoff and Associates, November 2011
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