Today’s speakers

Jacob GoodwinDigital Manufacturing and Design Innovation Institute (DMDII)jgoodwin@uilabs.org

Tearsa CoatesDecision LensSr. Product Marketing Managertcoates@decisionlens.com

Innovation is the future of manufacturing

Innovation and R&D have spurred a major upswing in manufacturing investment

The growth rate of manufacturing firms is at its fastest pace since 1993 (U.S. Census, Business Dynamics Statistics)

Manufacturing represents 60% of all U.S. R&D employees and 75% of U.S. private sector R&D (Bureau of Economic Analysis, Dept of Commerce)

Manufacturing Private Fixed Investment in R&D ($Bn)

National Science Foundation, Science and Engineering Indicators

… More specifically, digital innovation

DIGITAL DESIGN

Examples include 3D printing, rapid and low cost prototyping, innovation networks, and crowdsourcing

DIGITAL MANUFACTURING

“New technologies are lowering the cost and reducing the time required…to design, test, and produce new products, creating a new source of advantage for U.S. manufacturing”

BIG DATA

The iterative innovation cycle between engineering and production on the shop floor is responsible for…firms increasingly reconnecting production with development and design.

Executive Office of the President, June 2014

MIT Production in the Innovation Economy Commission, 2013

Executive Office of the President, June 2014

But the stakes are very high

Over 250,000 new products launched annually (Forbes)

66% of new products fail within the first 2 years (Booz & Co)

96% of all innovations fail to return their cost of capital (Deloitte – Doblin Group)

Cost of new drug development $350M-$1B; of new medical device $25M - $100M (Forbes)

~75% of all new CPG and retail products fail to earn $7.5M in first year (HBR)

One cause? Lack of prioritization.

(Source: Booz & Co Global Innovation Study 2013)

(Source: Booz & Co Global Innovation Study 2013)

One cause? Lack of prioritization.

1. How can you intelligently and strategically evaluate your innovation portfolio and elevate the ideas that will truly resonate in the marketplace?

2. How do you set organizational priorities against which to compare your unique R&D investment portfolios?

3. How can you combine your disparate data sources with expert judgments for a clear view of your highest ROI investments?

Prioritization

Decision Lens is a strategic prioritization and enterprise resource optimization

solution for critical decision-making in R&D.

Commercial State and Local Federal

Dozens of Leading, Global Organizations Use Decision Lens for Portfolio Prioritization

Transforming U.S. Manufacturing Through Digital Innovation

The Digital Lab for Manufacturing is a Chicago-based manufacturing hub designed to explore innovations that significantly reduce the time and cost to design, source, and manufacture.

DMDII leverages industry-academia-government partnerships to ensure the secure integration of digital manufacturing and supply chain data, creating billions of dollars in value for the industrial marketplace and spurring long-term U.S. economic growth and job creation.

Jacob GoodwinDirector of Membership Engagement and CommunicationsDMDII

Innovators Spotlight: DMDII

"I’m here to announce that we’re building Iron Man… Not really. Maybe. It’s classified.”

- President Obama

DIGITAL LAB FOR MANUFACTURING

• Materials: Rising costs and supply constraints

• Production Overcapacity: reduced profitability

• Labor: Increasing costs globally, skills gap

• Outsourcing: separation of designers and makers has stunted innovation

• Barriers for Sharing Data and Information: technology, skills, incentives, security, trust, IP, standards

TODAY’S MANUFACTURING

• Digital link between design and fabrication

• Connected machines, factories, and supply chains

• Transparency into supplier factories

• Data aggregation, analysis, and action across the product lifecycle

• Leverage the power of data and networks for rapid innovation

FUTURE MANUFACTURING

WHAT IS DIGITAL MANUFACTURING?

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PRODUCT LIFECYCLE

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FABRICATE

FABRICATE

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10001001010101111010101001001000111101101000100100011010101011011010101000101010110110101101001111011111010111110111110101111101111101011111011

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ASSEMBLE

AFTER-SALES

SERVICE

QUALIFY

SELL &DELIVER

END OF LIFE

REUSERECYCLE

FABRICATE

DESIGN

FABRICATE

DATA IS GATHERED AT EVERY POINT ALONG THE CYCLE AND AGGREGATED IN THE DIGITAL MANUFACTURING COMMONS

DATA

INFORMATION

DECISIONS

VALUE

ACCELERATE TECH TO MARKET

DIGITAL LAB AS ACCELERATOR

BIG MARKET

NEED

UNIVERSITIES & RESEARCH INSTITUTES THAT MAKE A LOT OF TECHNOLOGY THAT DOES NOT GET USED

INDUSTRY COMMERCIALIZATION

THAT ADOPTS ONLY THE MOST MATURE

TECHNOLOGIES

FEDERAL FUNDS

PRECOMPETETIVECOLLABORATION

POOLEDINDUSTRY

RESOURCES

INDUSTRY EXPERTS

$320 MILLION$70 million cooperative agreement with the U.S. DOD and matching $250 million from industry, academia, government and community partners. 

30+Academia, government, and community partners.

6 OF THE TOP 20 Engineering schools in the country, with more than 12% of all engineering & computer science students graduating annually in the U.S.

220,000Partners, and more, ready to connect with the more than 185 small and medium sized businesses that have joined already.

MORE THAN 315 Local, regional, and national organizations, community colleges, and MEP networks have committed their support.

500+Supporting companies – including world class leaders in defense and commercial manufacturing industries.

40 Industry partners

THE PARTNERSHIP

Create an Innovative Ecosystem

Increase the innovative capacity of OEMs and their suppliers through digital integration and strategic collaboration.

A partnership of world-class companies including:

Top engineering schools and the world’s most powerful computer including:

Proven talent from a consortium of state, educational, and vocational institutions:

Source: McKinsey Global Institute and team analysis

Commercialize Research

Move ideas from TRL 4-7 through a network of physical and virtual demonstration sites.

Strengthen the U.S. Economy

•$100B in value to OEMs per year •$30B in value potential to DoD / year•75,000 jobs created in the first 5 years

OVERVIEW

Utilization of high performance computing to model materials, products and processes to enable “design with manufacturing in mind”.

INTELLIGENT MACHINING (IM)

ADVANCED ANALYSIS (AA)

Integration of smart sensors and controls to enable equipment to automatically sense and understand current production environment in order to conduct “self-aware manufacturing”.

ADVANCED MANUFACTURING ENTERPRISE (AME)

Agile and robust manufacturing strategies and integrated capabilities that dramatically reduce the cost and time of producing complex systems and parts.

THREE FOCUS AREAS

OPEN SOURCE PLATFORM

An open source technology system across the entire manufacturing value chain.

DIGITALCOMMONS A 'hub and spoke' model, where the 'hub' will be the

Digital Lab for Manufacturing based in Chicago and the 'spokes' will be all the applied research on the manufacturing floors of our partners across the US.

NATIONAL NETWORK

HUB & SPOKE MODEL

TECHNOLOGY THRUST

Digitized Factory optimization

Mobile predictive maintenance

DIGITALDESIGN

DIGITALFACTORY

DIGITALECOSYSTEM

Intelligent Machine plug &

play solution

Advanced analytics

and real-time shop floor feedback

CAD-CAM interoperability

Next-gen product design analytics and

platform

Crowd source design

Small, Medium Enterprise

(SME) portal

Legacy parts remanufacturing

Supply chain optimization

DIGITAL LAB’S INITIAL THREE PROJECTS

PROPOSED* FIRST YEAR PROJECTS

* Subject to partnership approval

http:\\digitallab.uilabs.org

QUESTIONS?

DIGITAL LAB FOR MANUFACTURING

Want to learn more?

October 16th at 12pm Eastern

Evaluating Risk and Reward in Innovation Projects

http://bitly/register-riskandreward

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Capital Planning: capitalassets.decisionlens.com

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