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The Industrial College of the Armed Forces

The Industrial College of the Armed Forces. Creating Strategic Opportunities for Transformational Innovation in a Globalized World Dr. Mark L. Montroll Professor, Industrial College of the Armed Forces National Defense University Washington, DC Presented to:

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The Industrial College of the Armed Forces

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  1. The Industrial College of the Armed Forces Creating Strategic Opportunities for Transformational Innovation in a Globalized World Dr. Mark L. Montroll Professor, Industrial College of the Armed Forces National Defense University Washington, DC Presented to: NATO Science For Peace Project 982063 Research and Development Strategies: Support of Dual Industrial Transformation International Conference National Defence College Bucharest, Romania 1 November 2007

  2. Agenda • Overview • Theories of Innovation and Disruptive Technology • Impact of Globalization on the Development of Innovation and Commercialization • Concept Integration • Case Study Examples • Challenges • Final Observations

  3. Overview • Modern Theories of Innovation Development, Economic Globalization and Technology Commercialization Combine to Provide Powerful Insights for Renewed Economic Growth. • International Defense and Security Requirements depend on the Commercial Marketplace. Dual-Use Technology, Products and Services Coexist in the Marketplace and Support Each Other.

  4. Theories of Innovation and Disruptive Technology • Disruptive Innovation Theory • Underserved, Overshot and Non-User Customers • Low-End Disruption • New-Market Disruption • Resources, Processes and Values Theory • What you have; What you do; What you want to do • Emergent Strategy Theory • Uncertain Circumstances – Adapt to Market Signals • Patient for Growth – Impatient for Profit

  5. Impact of Globalization on the Development of Innovation and Commercialization • 10 Flatteners: • Berlin Wall Came Down –Renewed East-West Linkage • Netscape Went Public – Dot-Com Boom • Work-Flow Software – Connectivity & Productivity • Outsourcing – Commodity Process Sourcing Options • Offshoring – Cost-Efficiencies • Uploading – Open Sourcing, Equal Access, Podcasts • Supply-chaining – Strategic Process • Insourcing – Comparative Advantage – Refocus on Core • Informing – Google, Search Engines, Access to information • Collaborative Initiatives – VoIP, Wireless, File-sharing

  6. Impact of Globalization on the Development of Innovation and Commercialization • Triple Convergence: • Convergence #1: All 10 Flatteners are Happening Together • Convergence #2: Work Habits Changing from Vertical & Exclusive to Horizontal & Inclusive • Convergence #3: Three Billion New Digital Workers Entered the Global Economy

  7. Concept Integration • Redeploy Resources – Talent and Infrastructure • Cross Disciplines • Cross Border Collaboration • Horizontal Integration • Mass Customization • Global Communication, Supply Chain & Delivery Processes • Dual Use Markets • Industrial (Shipbuilding), Power (Density, Portability), Digital (Communications, Processing), Miniaturization (Power requirements, Weight, Functionality), Bio-Medical (Instrumentation, Clinical)

  8. Case Study Examples • Philadelphia Naval Shipyard • Closed as part of Base Realignment and Closure Process • Aker Shipyard Opened on Site • Build Commercial Ships using European Design, construction practices, and specialized modules • Austal Shipyard, Australia • Build Fast Ferries – new technologies and designs • Open plant in US using Australian Design and construction practices • Building commercial and military ships in same plant • HP – Precision Electronic Test Equipment for Defense and Aerospace Industry • Laser Printers • Inkjet Printer Technology • Personal Computers • Nano-Technology Research • Medical use of Inkjet Technology • Precision Inkjet Technology combined with Nano-Technology

  9. Challenges • Nurture Scientific Expertise and Comparative Advantage • European Single Labor Market for Science • Opportunities for International Collaboration • NATO Science for Peace • EU Research Framework Programme – FP7 • http://cordis.europa.eu/fp7/home_en.html • Underserved, Overshot and Non-User Customers • Miniaturization Markets (Non-Market Markets) • Commercialization Process – Persistence Counts! • Patient for Growth – Impatient for Profit

  10. Final Observations • Globalization Brings Great Opportunities • New Ways to Connect to the World • Traditional Expertise More Important Than Ever • Low-End Disruption is a Dual-Use Start Point • Collaboration is Key

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