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Ontario Global Cluster Accelerator

Ontario Global Cluster Accelerator. Innovations in SME Supplier Advancement. Aéro Montréal Innovation Forum 6 Dec 11. Topics. Focus on SMEs Why change? What to change? What is “Innovation”? What is OAC doing to help?. Why change?. Global market growth Capacity? Supply chain

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Ontario Global Cluster Accelerator

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  1. Ontario Global Cluster Accelerator Innovations in SME Supplier Advancement Aéro Montréal Innovation Forum 6 Dec 11

  2. Topics • Focus on SMEs • Why change? • What to change? • What is “Innovation”? • What is OAC doing to help?

  3. Why change? • Global market growth • Capacity? • Supply chain • New and different roles and responsibilities • = Business transformation by suppliers

  4. Capacity = a challenge Boeing rate per month Airbus rate per month

  5. OEM OEM TIER 1 TIER 1 TIER 1 (Systems (Systems (Systems Integrator) Integrator) Integrator) TIER 2 TIER 2 TIER 2 TIER 2 TIER 2 (Product) (Product) (Product) (Product) (Product) Tier 3 BTP Tier 4 Processing/Materials Global Aerospace Supply Chains One to Many One to Few

  6. Past Emerging Future System Integrators Platform assembly System Integrators Large-scale integration OEM’s Small-scale integration Value-added parts and assemblies Make-to-print parts and assemblers Raw materials • Primarily direct supply • Many direct suppliers • No real role for “integrators” • Many “supply paths” • Fewer, but still many direct suppliers • Limited role for “integrators” • Larger role for value-adding suppliers • Fewer “ supply paths” • Far fewer direct suppliers • Extensive role for “integrators” • Still larger role for value-adding parts suppliers Global Aerospace Supply Chains Source: A.T. Kearney 2002

  7. Realities for Supplier Firms • Suppliers must ‘move up the value chain’ • Business transformation • Design Engineering • Global Marketing • Supply Network Management • Human Resources Management (selection, development) • Markets are global, not domestic • Customers are many, varied, dispersed • Technology strength is vital • Acquire (Partnership, Licence, Joint Venture) • Develop (R&TD) • Strong ‘clusters’ are key

  8. Innovation • Innovation is customer-driven, providing a new product or process that adds value to somebody’s life. • Innovations can improve economic, health, or social well being. • Invention can be defined as the creation or discovery of something new to the world. • Inventions are often producer-driven, following an inventor’s curiosity or area of expertise.

  9. Higher attrition rates = higher risk Modest investments Institution-centred Lower attrition rates = lower risk Higher investments Company-centred Business Maturity Product / Service &/or Manufacturing Process &/or Business Process Technology Acquisition Technology Development / Demonstration Product + Manufacturing Method Development Production Technology Infusion Markets Basic Research Applied Research Technology Push Market Pull Invention / Innovation - Market Reality

  10. Ontario Aerospace Clusters

  11. Ontario Global Cluster Accelerator Applied Technology Development Future Major Platforms Materials Machining Processing Supply Network Performance T2 Design Engineering T1 Systems Integrator Geometry Manufacturability Maintainability T2 Equipment/Assembly Providers Proximity Qualifications Schedule Synchronicity Machine Visibility T3 BTP Component & S/A Suppliers Manufacturing Strategies & Systems T4 Processing/Materials Supplier MAP SME Advancement Strategy for Growth CVP / SCA Organizational Dev’t Assembly Infrastructure Robotics 24/7 Operations Transformational Manufacturing Environmental Sustainability Energy Reduction Hazardous Waste Green House Gases Other Sectors

  12. MAP Overview

  13. MAP Overview • What is MAP? • Why do companies want / need MAP? • What do MAP partner companies gain through MAP? • What do SMEs do, as they work through the MAP Business Advancement process?

  14. MAP – your business transformation methodDecisions with confidence: Strategies – Capabilities – People • What is MAP? • Structured, adaptable ‘strategy development’ method • Specifically for SME suppliers • Enables SME management to decide how to transform their business • What do SMEs get through MAP? • A short focused process (5 days over 10 weeks) • SME managers set a few strategic priorities and several specific actions • Often, ‘people’ decisions are among the first • “Vision, Value, and Advantage” • Decisions with confidence: improvement investments; new positions; new customers; etc. • Align: Strategic Directions – Company Capabilities – People

  15. MAP – your business transformation methodDecisions with confidence: Strategies – Capabilities – People • SMEs value MAP • Industry-led • Proven in practice (peer recommendations) • Ownership of decision breeds commitment to action • Sustainable • MAP is different • Focused on SMEs • Proven, reliable, consistent, repeatable methodology • All business aspects (strategies – capabilities – people) • Only ‘transformation planning’ – not implementation • High quality and integrity

  16. MAP your business transformation methodDecisions with confidence: Strategies – Capabilities – People • How does MAP work? • Teams of trained experienced, professional experts • Business, Operations, Human Resources • “Coaches and mentors” (not ‘advisors’) • Company managers define their own future • Future-state Vision • Customer Value Proposition / Sustainable Competitive Advantage • Critical Business Functions (MAP Capabilities Framework) • Key Positions to drive critical Capabilities • A few Priority Actions to bridge ‘gaps’ between where they are and where they want to be • Marketing, Engineering, Operations, Financing, etc., & People

  17. MAP Supplier Advancement Program Hoshin Strategy Deployment

  18. Strategy & Execution

  19. MAP HR FrameworkSelecting and developing key people

  20. MAP Advancement Framework • Assessment • where are you today? • Direction-setting • where do you want to go? • Action Planning • how can you best get there?

  21. MAP Features for SMEs • Accessible • Adaptable • Builds confidence • Focused • People-oriented • Secure • Sustainable Action-oriented Builds commitment Comprehensive Objective Assured Quality Simple / Strategic Team-building

  22. MAP Values for Partner Companies • Focus on the ‘critical few’ • not the ‘trivial many’ • It’s all about your insights, your decisions, your commitment • It is not about our analysis or our answers or our recommendations • It is about the MAP Team in the role of catalyst and facilitator

  23. MAP – your business transformation methodDecisions with confidence: Strategies – Capabilities – People Questions & Discussion

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