Future in a Global
Dr John Blakemore
National President ManSA
Chairman BC International
+61 2 9238 7670
Mob 0414 970758
• Which Industries? Only those where
we have a Strategic Advantage (SAW)?
• How much protection? None? Have we
moved too fast?
• CAD and Foreign Liabilities too High?
• 40% world’s Uranium but not Nuclear?
• Why is Business R&D lowest in OECD?
The New Rules 1
• Battle Present Vision and Global Drivers
• Blending of Civilisations & Cultures?
• New world order based on Culture.
• Companies larger than countries
• Massive Debts of poorer countries
• Western world trading deficits huge
• Continuous global conflicts
• Global Warming and Peak Oil.
• Wealth Spread very uneven, ageing.
• Decline of USA, growth of China & India
New Rules 2
• Move from Mass Production
To Agile Made to Order
• Don’t size demand to fit Capacity
Fit Capacity to fit Demand
• Low cost and high quality
New Rules 3
•Low Working Capital and Low
Inventory and rapid response
• Satisfy all members of the value chain
•Superiority of Knowledge Capital
•Digital data available instantaneously
•Compression of Lead time and
elimination of Non Value Added steps
Leading Edge Trends
• Why does it cost the consumer $150
for gym boots that cost $2 to make?
• Why does a digital download music
Album cost the consumer $16 when
the cost including royalties is $2?
• The supply chains will compress and
prices fall, the answer is speed and
elimination of steps in the physical
supply chain as variety increases.
Inventory in Supply Chain Autos
Sales Sourcing Autos
• Use Digital data to maximum advantage
• Choose those industries where we have a
natural Comparative Advantage eg Uranium,
Energy, Aluminium, Food etc
• Build integrated digital supply chains
• Plus high value goods like scientific
instruments, sensors, medical devices,
• Focus R&D efforts where we have a SAW
• Modular fusion of new technology.
•Recognise the value chain
• Rapid use of digital data
from the source to any position
in the value chain
•Mass to build to order
•Establish knowledge networks
To supplement in house
•Increased emphasis on speed
and R&D and innovation of
process and product
• Control core competencies
• Collaborate and Synergise
• Reward Innovative knowledge
• Continuous learning
• Imagination +Knowledge= Discovery
NGM IP Model Oz1
NGM R&D Model Oz2
NGM Green Model Oz3
NGM All Co Model Oz4
NG Pull IT Model Oz5
NG Retail Models Oz6
Where do we Start ?
• Convince and Lobby Politicians and Business
Leaders so that they understand the need to
take a long term view.
• Convince Business Leaders that it is their
best interests to have R&D representation on
• Educate the Industry Bodies.
• Focus our Research efforts not spread them
thinly like the CSIRO
• Make Universities Commercially accountable
through Cooperative R&D using Japanese
Where Do You Start?
• Integrate processes and systems, pull
by customer, then spread out both ways.
2. Substitute pull for MRP
3. Use internal digital data on shorter periods
4. Hook up digitally with customers & suppliers
5. Eliminate forecasting as much as possible
6. Educate Industry Bodies.
We must embrace change, globalise, and
Innovate continuously. If this means supply
from low wage countries then accept this but
control the IP from here and manufacture
for the world in a modular design for higher volume
or customise where we have a comparative
advantage, but the overriding rule is that we must be
agile and flexible like Australia 2 in 1983 and
replace labour with capital and use blue sky
strategies, and use digital data more cleverly.
•There is no such thing as a pure
• All companies are Service Driven
•What is your Position in the Supply
Innovation, R&D and
We need to be Creative,
Innovative, Fast & Flexible
(Like Australia 2 1983)
R&D $ & Productivity
Source: OECD Main Science and Technology Indicators, 2005-1 Source: OECD Productivity Database, 17 December 2004
GERD is defined as total expenditure by all sectors — business enterprise, government, private non-profit,
higher education — on R&D that is performed within the boundaries of the country
My R&D Observations
• 800 E&M Applications (5yrs)
• Approx 5% successful
• IP mostly exploited Overseas
• Small no. people rich
• Little benefit National Benefit
Reasons for Failure of
Poor Understanding of:
• The Scientific Method
• The use of the correct resources
• The needs of the market
• Difference between Process & Product Innovation
• The need to articulate the concept and plan
• The way to raise funds to support the application
• Financial accounts
• Poor measurement of risk
Agile Rule 3
• Drive Process Innovation with
(25 creative Flow Rules)
Australia Exports & Employment
Agile Results P&L
What Has Been Done (Carpet)
Smart Production ..Output &
Defectives (Loss to Profit)
CSIRO Exp vs Comparative Adv
Agile Rule 1
Demand = Production
• Make to Order
•Pull by Customer
•Apply Continuous flow rules
Agile Rule 2
Capability with Demand
• Product Range complexity often creates
poor servicing and excess waste and working
•Tirelessly improve agility by reducing the EPR
by removing non value added activities
Agile Rule 4
• Recognise that Digital
Data can be obtained at the POS and
sent to any point in the supply chain
Agile Rule 5
• Reduce Complexity