Making Value for America Embracing the Future of Manufacturing, Technology, and Work (2015) / Chapter Skim
Currently Skimming:
3 An Ecosystem for Creating Value
3 An Ecosystem for Creating Value
Pages 65-101
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 65... ...
infrastructure that enables value creation. It concludes with a discussion of federal programs that monitor the condition of various activities in US-based manufacturing and high-tech service value chains.
|
From page 66... ...
1990) , the extent to which 1 Comments by Larry Burns at meeting of the Foundational Committee on Best Practices for the Making Value for America Study, September 23, 2013, the National Academies, Washington, DC.
|
From page 67... ...
Several companies in India and Brazil perform just as well as the top performers in the United States, and the bottom 15 percent of companies in the United States rank below the average for firms in China or India, two countries that have the most poorly managed firms, on average, among the nations surveyed. For US companies to maintain -- or increase -- their competitive advantage, best practices will have to be widely adopted, especially at the most poorly managed companies.
|
From page 68... ...
These two capabilities are becoming increasingly important as competition intensifies and the pace of technological change increases. Larry Burns spoke with the committee about the necessity of these capabilities: "To succeed in today's hyper-competitive world, companies must explicitly design for positive experiences with their products and services, and constantly innovate around every facet of these customer experiences." An iterative process of understanding customer experiences, building and trying out 2 Remarks of James Bonini at "Making Value for America: A National Conference on Value Creation and Opportunity in the United States," February 27, 2014, Beckman Center of the National Academies, Irvine, Calif.
|
From page 69... ...
For example, the innovation strategy firm Doblin has identified "Ten Types of Innovation" that businesses have used to gain competitive advantage. The accompanying case studies suggest that companies improve their advantage by combining different modes of innovation along the value chain -- in product performance, services, method of delivering offerings to customers, and other areas (Keeley et al.
|
From page 70... ...
These partnerships have successfully spread lean production best practices and are generally considered worthy of investment (NRC 2013c) ; according to the partnership's website, "since 1988, MEP has worked with nearly 80,000 manufacturers, leading to $88 billion in sales and $14 billion in cost savings, and it has helped create more than 729,000 jobs." 4 4 More information at http://nist.gov/mep/about/index.cfm (accessed February 5, 2015)
|
From page 71... ...
There is a need to give more students access to hands-on experiences designing and making, and to nurture the urge to innovate. Education and Training Critical Skills and Experience Innovation requires scientists, engineers, technicians, operators, managers, analysts, and many others with the skills to conceive of an innovation and then develop it from idea to reality.
|
From page 72... ...
However, a number of concerns persist about US STEM education, particularly K–12 science and math education and the quantity of science and engineering college graduates, and these concerns negatively affect the perception of the country as an attractive place to locate activities along the value chain. (The Appendix discusses these concerns in detail.)
|
From page 73... ...
Organizations are also reducing the costs of higher education and improving access by creating more flexible pathways to enter and exit degree programs, particularly with community colleges, which offer low-cost pathways to transfer to bachelor's degree programs. Almost one half of Americans with bachelor's degrees in science or engineering attended a community college at some point 5 Information is available at http://engineering.ucdavis.edu/undergraduate/engineering-student startup-center/ (accessed February 5, 2015)
|
From page 74... ...
. Preparing the workforce with the education and skills needed to succeed in the face of changing technologies and business models requires shared responsibility among educators and employers -- and both parties can share the benefits.
|
From page 75... ...
Nationwide, there are over 660 schools like this in 36 states, Washington, DC, and the US Virgin Islands7 and they are showing very promising results. 7 Information about these programs is available from the National Academy Foundation (http:// naf.org/statistics-and-research; accessed February 5, 2015)
|
From page 76... ...
, and 13 of those states cut student spending by more than 10 percent during that period. If the United States is to retain international strength and leadership in value creation, committed support for the education of all its current and future workers must be a priority.
|
From page 77... ...
Innovation requires talented people all along the value chain: engineers, scientists, and business leaders who develop inventions and create jobs; tooling engineers and others who create processes to produce goods faster and more efficiently; marketing and business analysts who gain insights on customer needs and market opportunities; and technical support and retail personnel who deliver positive customer experiences. Individuals and individualism do play an important role in innovation, particularly in the discovery or inventive stage (Černe et al.
|
From page 78... ...
. 8 Remarks of Thomas Malone at "Making Value for America: A National Conference on Value Creation and Opportunity in the United States," February 27, 2014, Beckman Center of the National Academies, Irvine, Calif.
|
From page 79... ...
There is widespread belief among business executives that diversity among employees and managers is a competitive advantage for their company and that diversity is actually a key factor in successful innovation. A survey of more than 300 senior executives worldwide found that 85 percent of them believed that a diverse workforce, offering different perspectives, leads to greater innovativeness (Forbes 2011)
|
From page 80... ...
The people most intimately connected with the creation of value are also those who tend to have the highestpaying jobs and thus the greatest ability to enjoy the benefits of innovation and a growing economy. Moreover, they enjoy not only the financial benefits of value creation but also the psychological benefits of knowing they are contributing value to their fellow human beings.
|
From page 81... ...
. LOCAL INNOVATION NETWORKS Innovation does not happen in a vacuum.
|
From page 82... ...
Outside of Silicon Valley, a number of other local innovation networks
|
From page 83... ...
. In 2005 the Illinois state legislature merged the regional planning and transportation planning agencies 10Remarks of Heather Briccetti at "Making Value for America: A National Conference on Value Creation and Opportunity in the United States," February 27, 2014, Beckman Center of the National Academies, Irvine, Calif.
|
From page 84... ...
. In her presentation to the committee, Heather Briccetti offered some lessons about how best to develop innovation networks based on her experience with the development in New York State, citing three necessary components: (1)
|
From page 85... ...
. 13 As of January 2015, six institutes have been launched in different regions of the country focusing on additive manufacturing, digital manufacturing and design, 12 Remarks of Heather Briccetti at "Making Value for America: A National Conference on Value Creation and Opportunity in the United States," February 27, 2014, Beckman Center of the National Academies, Irvine, Calif.
|
From page 86... ...
Yet the evidence indicates that, although many promising opportunities for value creation are opening up, several factors are preventing corporate and venture capital investments in these ideas. Corporate Investments The rate of corporate investments has slowed in recent years.
|
From page 87... ...
Although businesses are still investing in long-term applied research and development, the commitments may not be robust enough to support the explosion of innovation needed to lead US value creation in the coming decades. Moreover, there are concerns that the shift in industrial R&D investments away from fundamental research, such as the work carried out in Bell Labs that led to unexpected transformative discoveries, in favor of applied research with foreseeable results threatens the United States' technological strength (Narayanamurti 2013; NAE 2005)
|
From page 88... ...
Considering the important role of new businesses in creating jobs, the decline of business creation in the United States raises concerns about the pace of job creation. The number of jobs created by businesses less than one year old decreased from 4.1 million in 1994 to 2.5 million in 2010.16 It is important to note that the causes of this slowdown are not known.
|
From page 89... ...
, using Census Bureau statistics to analyze the role of startups in US job creation, attribute the slowdown of business dynamism to the combination of a long-run secular decline and a short-term accelerated decline caused by the recent recession. The authors explain the important role of new businesses in job creation and the consequences of allowing the current decline to continue (Haltiwanger et al.
|
From page 90... ...
. However, while this financing was previously directed primarily at startups, it has shifted to fund 17 Remarks of Chris Silva at "Making Value for America: A National Conference on Value Creation and Opportunity in the United States," February 27, 2014, Beckman Center of the National Academies, Irvine, Calif.
|
From page 91... ...
Increasingly, many businesses also need access to compu tational and digital resources such as high-performance computing grids and information storage. INFRASTRUCTURE THAT ENABLES VALUE CREATION In addition to an innovative workforce, capital, and best practices, creating value requires a suitable infrastructure.
|
From page 92... ...
. The 19Comments by Chad Syverson at meeting of the Foundational Committee on Best Practices for the Making Value for America Study, September 23, 2013, the National Academies, Washington, DC.
|
From page 93... ...
Improvements in Information, Communications, and Computing Infrastructure Generally speaking, any infrastructure improvements that increase the ability of people to communicate and interact are likely to improve the nation's ability to create value. The committee concluded that one of the most important infrastructure improvements that would enable future value creation in the United States is access to high-speed Internet -- particularly wireless -- and high-performance computing.
|
From page 94... ...
FEDERAL PROGRAMS THAT MONITOR THE VALUE CHAIN A variety of federal agencies and programs track the performance of various activities in US-based manufacturing and high-tech service value chains. Two of the most prominent statistical agencies are the Department of Labor (DOL)
|
From page 95... ...
. Arranging economic statistics instead by the systems of activities along value chains would allow a representation of the economy that reflects the ways companies organize themselves into clusters and sectors (Dalziel 2007)
|
From page 96... ...
Harvard Business Review (June)
|
From page 97... ...
Nature Biotechnology 32:15–23. Avail able at www.nature.com/nbt/journal/v32/n1/full/nbt.2780.html (accessed February 2, 2015)
|
From page 98... ...
pdf (accessed February 2, 2015)
|
From page 99... ...
org/chapters/c9959 (accessed February 4, 2015)
|
From page 100... ...
Washington: Jobs for the Future. Available at www.jff.org/publications/ early-college-expansion-propelling-students-postsecondary-success-school-near-you (accessed February 4, 2015)
|
From page 101... ...
Available at http://hbr.org/2011/06/defend-your-research-what-makes-a-team smarter-more-women/ar/1 (accessed February 3, 2014)
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.