Technovation and Mechatronics
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1 Technovation and Mechatronics Patri K. Venuvinod Executive Director International Organization for Developing Universities (IODevUni) Chicago, U.S.A.
2 Hong Kong Laissez faire (non-interventionist). Industrial directions totally left to people. Government s role: only law and order and basic infrastructure. Excellent communication infrastructure. Autonomous and horizontally integrated small and medium-sized enterprises. Global links. Patri K. Venuvinod, IODevUni 2
3 Per Capita GDP Ranking, Luxembourg 2. USA 3. Switzerland 4. Kuwait 5. Hong Kong (US$26,400) Patri K. Venuvinod, IODevUni 3
4 China in 1978 Economy in shambles owing to cultural revolution. Closed doors. Ideology more important than progress. On par with India.. Patri K. Venuvinod, IODevUni 4
5 Deng Xiaoping takes up Open door policy. Four modernizations. reforms. Focus on economics while leaving political setup relatively unchanged. Market-oriented policies. 70% FDI boost from HK entrepreneurs. Shoots far ahead of India. Now, OEM leader in the world. Patri K. Venuvinod, IODevUni 5
6 Factors of Production and Economic Capital Raw materials Land Labor Growth Technology and Technovation Technology and its development need to be managed effectively for the generation of wealth and resources. Patri K. Venuvinod, IODevUni 6
7 Technology can be defined as the assembly of hardware and software means and tools used by human beings to achieve socioeconomic goals. Patri K. Venuvinod, IODevUni 7
8 Science is the discovery and understanding of nature. Many modern technologies depend upon science and the applications of scientific knowledge and principles. Each advance in pure science creates new opportunities for the development of new designs and ways of making things to be used in daily life. Technology provides science with new and more accurate instruments for investigations and research. Patri K. Venuvinod, IODevUni 8
9 Maslow s Theory of Human Needs Self- Actualization Needs Esteem Needs Belonging and Love Needs Safety Needs Physiological Needs Patri K. Venuvinod, IODevUni 9
10 Innovation Innovation is introducing a new or improved product, process, or service into the marketplace. Innovation is about new ways of delivering customer value. Patri K. Venuvinod, IODevUni 10
11 Innovation need not relate only to the product or service itself it can apply to any part of the business system or value chain associated with delivering the product or service to the customer. Innovation, therefore, can consist of changes to a particular link in the value chain, or to the creation of a fundamentally new value chain, bypassing the traditional approach. Patri K. Venuvinod, IODevUni 11
12 A company need not be big to innovate (Most HK companies are small) Apple Computers began in Steve Job s garage. People Express started out in 1981 with three used Boeing 737s. Tie Rack was founded with two shops in 1979 by entrepreneur Roy Bishko. Sea Containers was a start-up run by three partners when it entered the container leasing business. Kwik-Fit started with one outlet in Patri K. Venuvinod, IODevUni 12
13 Industrial innovation includes the technical design, manufacturing, management and commercial activities involved in the marketing of a new (or improved) product or the first commercial use of a new (or improved) process or equipment. Innovation can be incremental. Drucker says that innovation is capable of being presented as a discipline, being learned, and being practiced. Patri K. Venuvinod, IODevUni 13
14 Large organizations (e.g., governmental units) find it very difficult to innovate because of bureaucratic legacies and/or close public scrutiny that severely constrains their options. Quite often small can be beautiful by providing agility. Bureaucratic organizations impede innovation by giving precedence to procedures over goals. Patri K. Venuvinod, IODevUni 14
15 Who drives innovation? Webster dictionary defines an entrepreneur as someone who undertakes to organize, manage and assume risk of business. The entrepreneur typically assumes responsibility for creating and developing new living businesses rather than burying old dead ones. This quality converts inventions into innovations. Patri K. Venuvinod, IODevUni 15
16 The French verb enterprendre (literally between-taker) means to undertake or to assume a responsibility or task. Unfortunately, many English speaking people outside USA equate an entrepreneur with a get-rich-quick fast-buck artist. Patri K. Venuvinod, IODevUni 16
17 Perceived level of capacity for starting a company Free-choice period Perceive Personal Capacity Increasing Competence, Experience, and Selfconfidence Free Choice period Increasing financial/ Domestic Obligation Shift to Non-career values A Patri K. Venuvinod, IODevUni 17
18 Entrepreneural teams are common. Many entrepreneurs do not succeed and get back to professional work. But there would be better professionals. Spirit of entrepreneurships grows in the society. Many people disguise themselves as entrepreneurs ( scams ). Govt. needs to develop checks. Venture capital, not loan from a bank, is needed. Patri K. Venuvinod, IODevUni 18
19 Technological developments Mechanical to electronics to computers. Digital communications. Intelligent machines. Flexible manufacturing systems and their failure due to reliance on hierarchical organization. Migration of HK industry to China. Patri K. Venuvinod, IODevUni 19
20 % Share of Mfg in HK Employment Patri K. Venuvinod, IODevUni 20
21 Mechatronics A synergistic combination of precision mechanical engineering, electronic control and systems thinking in the design of products and manufacturing processes. + product DESIGN, aesthetics, marketing Patri K. Venuvinod, IODevUni 21
22 Electronic Engineers Mechanical & Manufacturing Engineers Mechatronic Engineer Computer HW/SW Engineers Product Design Design Management Marketing Topics M E C Patri K. Venuvinod, IODevUni 22
23 Extended Enterprise level Enterprise level Factory level Shopfloor level Workcenter level Machine level EE E F Sf W M Mgmt Syst. Mechatronics Patri K. Venuvinod, IODevUni 23
24 Added value Std E- & C hardware SO FAR Mechanical elements Fuzzy logic Software Customized hardware FUTURE TRENDS Sensor fusion AI integration Modularization Autonomization Greater precision Newer materials Miniaturization Link to Internet Societies of devices Time Patri K. Venuvinod, IODevUni 24
25 Mechatronics Process Mechatronics Product Mechatronics Consumer products Engineering products Greater 'newness' Larger volume Shorter design cycle Pressure on cost Simplicity Quality Reliability Aesthetics Patri K. Venuvinod, IODevUni 25
26 Technology Strategies 1. Offensive: Leadership - First to market 2. Defensive: Follow the leader 3. Imitative: Me too 4. Applications Eng.: Interstitial 5. Dependent: Branch plant, Business Process Outsourcing (BPO) 6. Absorbent: Licensing 7. Traditional: Keep doing what has worked so far Patri K. Venuvinod, IODevUni 26
27 Some time in the future China is yet to take up. We could capture by exploiting our trained human resources through horizontal integration. Original Brand Manufacturing (OBM) Original Brand Manufacturing (OBM) We have lost to China. Original Brand Manufacturing (OBM) Patri K. Venuvinod, IODevUni 27
28 Andhra Pradesh 217 engineering colleges >60,000 intake. Only 30% get domestic employment. What do the rest do? One answer: Go abroad. Complementary answer: Work for yourself by becoming an entrepreneur and be a job creator. Patri K. Venuvinod, IODevUni 28
29 Educators should recognize that entrepreneurship is a youthoriented activity by Providing challenging tasks. Reducing power distance Promoting individuality Encouraging moderate risk taking and tolerating failure. Promoting all-round growth. Patri K. Venuvinod, IODevUni 29
30 Entrepreneurship thrives in an orderly but free society. Corruption, whether public or private, strongly impedes entrepreneurship. Where there is more government, there is less entrepreneurship. I urge the Government to keep this in mind. Patri K. Venuvinod, IODevUni 30
31 Thank you.
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Patri K. Venuvinod, 2003, "Technovation and Mechatronics," Keynote Address, Mechatroics Coference, Mahatma Gandi Institute of Technology, Hyderabad. TECHNOVATION AND MECHATRONICS Patri K. Venuvinod Executive
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