Patrick D. Schmid, Ph.D. Candidate, Computer Science & Engineering

1. Center for Engineering Logistics and Distribution (CELDi) Focus of project Agile agent A B Economic activity network • Professor and Director ESC Emory Zimmers Jr. • Co-Principal Investigator • Director, CELDI • Agile Logistics • Agile Manufacturing • Collaboration SIMPLIFIED F Information network G Social community Social • Harvey Wagner Professor Roger Nagel • Co-Principal Investigator • Senior Fellow, ESC • Agility • Information & network enabled strategies, e.g., ABN Information Committed funding Potential extension Value Capital • Patrick Schmid • Graduate student • Ph.D. candidate in computer science • M.S. in computer science • Consulting experience with McKinsey & Company (internship) Products & services Legal/formal issues (contracts, workflow) Network of legal entities (companies, people) • Agile agent • Influenced by agile business network • Influenced by other agents • Makes decisions based on perceived information, own beliefs, etc. Agile Business Networks, Development and Pilot Project Project overview Research application to agile manufacturing • Agile business networks (ABNs) • Information-fueled • Highly adaptable and dynamic • Highly innovative • Multi-company • Agile organizational structure Business situation addressed • Agile core beliefs • Enriching the customer • Cooperating to compete (virtual relationships) • Mastering change and uncertainty • Valuing people and information • Traditional approach utilizing strategic consulting to • Analyze current situation • Set goals • Develop strategy to achieve goals • Effective partners need to be found, selected and relationships built with • Avoid sub-optimal partnership decisions • Multiple partners to choose from • Partnership with longer duration • Model development of alternative partnerships over time and evaluate their effectiveness • Apply ABNs directly, e.g., • Identify key success factors • Support establishment of ABNs “agile”, smart Partnership decision 1 “business networks” • Process formally defined • Process dependent upon informal communication network, e.g., “good old boy network” • Process as practiced measurably inefficient • Model different reengineered versions in order to find best alignment between formal and informal approaches Continuous feedback from strategic consulting work stream Process reengineering 2 Existing ABN examples: • Evolving agility trends • Ubiquitous information • Globalization • Highly dynamic, fast-paced economy • Fast innovation • Apply ABNs innovatively • Gain in-depth knowledge of ABN mechanisms • Transform knowledge to other domains • Apply to improve processes, reduce cost and generate new revenue • Innovative research approach • Model ABN mechanisms • Simulate ABNs • Transfer and apply in other domains • Misalignment between skill sets taught for trades and skill sets needed • Agile labor force desirable • Almost no ongoing interaction between companies and job seekers • Model worker profiles needed by company clusters using ABN based analysis • Communicate to job seekers • Match profiles with them High-value workforce development for new jobs created ABNs including customers, suppliers, partners 3 Model overview – Factors constituting ABN addressed explicitly in our multi-dimensional model, more comprehensive than traditional models/consulting Project participants and advisors Example Legend • Agile Business Network • Influences agile agents • Influenced by agile agents Predicts potential 20-25% savings in project closing costs of $1 million* CEO, CFO, worker E.g., advice, trust, culture, company culture Business relationship Flow along economic network C D E Exchange of value Current models / consulting Involved companies Exchange of information Trust among members Covered implicitly, e.g., “gut feeling” G • Partnership decisions (suppliers) • Partnership decisions (clients) • Partnership decisions (clients) Potentially covered explicitly F E Covered explicitly in innovative model Timeline D December 2005 May 2006 Covered explicitly C • Development of pilot model • Comprehensive report • Development of pilot simulation • Testing • Continuation of project as part of Ph.D. dissertation B A Monthly status reports with industry reviews * Full realization expected in 2nd year of usage, 1 of 5 concurrent projects with similar cost This project is sponsored (in part) by a grant from the Commonwealth of Pennsylvania, Department of Community and Economic Development and the National Science Foundation Center for Engineering Logistics and Distribution Patrick D. Schmid, Ph.D. Candidate, Computer Science & Engineering