Cooperation with S.M.E.s in recent years David Mackay Research Fellow

1. Cooperation with S.M.E.s in recent years David Mackay Research Fellow Strathclyde Institute for Operations Management University of Strathclyde, Glasgow, UK

2. Purpose • To share experiences of University/Industry collaboration with a focus on the SME community • Objectives • Describe the context of interactions • Discuss the mechanisms applied • Share the key learnings

3. Strathclyde Institute for Operations Management Background • University of Strathclydefounded in 1796 as the Anderson’s University. Today it is the 3rd largest University in Scotland • Strathclyde Institute for Operations Management (SIOM)founded in January 2007 to bring together world leading expertise in operations management • SIOM brings together about 25 academics and 20 research staff across the Engineering and Business Schools of the University • Strathclyde Business Schoolin the top 30 business schools world wide • One of the leadingEngineering Faculties in the UK with the highest ratings in teaching quality and research

4. Dave Mackay M.Eng Dipl. Man Research Fellow, Strathclyde Institute for Operations Management 6 Years – large manufacturing organisations 15 months - high growth SME 2 years University to SME knowledge transfer 3 years part time PhD student and researcher in Management Processes and Competitive Advantage Who am I?

5. 3 important things about me… Now you know more about me, you should feel comfortable asking questions about my presentation…. My son Jack My wife Jen My team – Glasgow Rangers

6. The Future for SMEs?

7. Value Value Scottish Industry is Changing Shape Value Design Make Serve Creativity FUTURE KEY PROCESSES Personalisation Design Customisation Development Service

8. Company size No of Companies A vision for manufacturing in Europe • Few large companies many SMEs • High value innovative enterprises • Primary competitive basis other than cost • Competing globally… not locally • Healthy margins • With progressive and enlightened management teams • Flexible and agile… continuously scanning the environment for opportunities and threats • Collaborating internationally with like companies with complimentary competencies develop and deliver innovative products, services and processes

9. How we help Mechanisms for engagement

10. “The existence of technological opportunities can be quite firm specific and the recognition of such opportunities is affected by the organisational structures that link institutions, primarily universities, to the business enterprise” Teece, Pisano and Shuen, 1997 Scottish SMEs don’t tend to go to their local University in search of solutions to their problems….only 1.1% of small businesses go to Universities or colleges for advice (Source: FSB biannual member survey, 2006) Why? Lack of awareness Bad perceptions of University Firefighting – lack of external contact This creates a competitive opportunity for those organisations that do engage The challenge for the University is to offer a range of engagement mechanisms which remove barriers for co-operation University Industry Collaboration

11. Events One off information sharing Industry speakers Networking/collaborative meetings Host special interest groups Consultancy Bespoke advice Technical as well as knowledge based Company Specific Training Focused modules – e.g. six sigma yellow belt training – Project management workshops Engagement Mechanisms (1)

12. Physical Rapid Prototyping Facility Reverse Engineering Capability Virtual Prototyping Facility Example - Digital Design Suite DMEM (part of SIOM) hosts the only integrated physical, virtual and reverse engineering prototyping facility in the UK. Used to improve all aspects of the design and innovation process and experience. Students are educated in leading edge techniques which enhance and improve the product creation process

13. Student Placements and Projects Final and penultimate year group and individual projects with industry Company accesses capable minds and university facilities free Practical training raises the capabilities of students University led research University engages in “case study” research Zero cost for participation Share in results Training Courses Develop whole company programmes around specific needs E.g. Change leaders programme Engagement Mechanisms (2)

14. University Led Research Example “Manage Processes” are the business processes which:- • Deal with uncertainty • Learn & Adapt the business • Create order (planning and control) • Orchestrate business A piece of SIOM research attempted to better understand how these worked in both SMEs and Large organisations. This required conducting 40 case studies in 8 different countries

15. The “Deal” with SMEs • Who does the research? • Researchers and academics from SIOM or partner University representatives • What do we need from companies? • A resource to co-ordinate visits and information collection (approx. 4 hours) • Access to each of the management team individually (approx.1.5 hours each) • (optional) Access to a group of technical level workers (approx 0.5 hours total) • What does the company get in return? • Confidentiality assured – both on an individual and collective basis • Free consultancy – a report based on the interviews collating the “MANAGE” processes in the organisation with the current version of the model • Access to the final output of the research

16. Collaborative Research University and companies share risk and responsibility Very close long term working relationship Companies involved receive full benefits of research Embed Graduate – “KTP” DTi sponsored scheme Recent graduate employed by University for two years but works full time in a company Supervised by academic to embed research output Company Driven Research Company approaches University with a research requirement E.g. Advanced Forming Research Centre Engagement Mechanisms (3)

17. Strathclyde Institute for Operations Management Collaborative Research Project - Example • FutureSME • What is it? - A major collaborative project funded by the European Commission through the Framework Programme 7 • Objective – to develop future business models tools and techniques for European Manufacturing SMEs that would prepare them to compete globally in the 21st Century • How? - Collaborative R&D… guided with SME end users • - Development of practical tools and techniques • - Demonstration… with SME end users • Who? – 26 partners in total – 13 manufacturing SMEs, six R&D partners and seven intermediary organisations… from UK, Ireland, Poland, Czech Republic, Turkey, Slovenia, Italy, Sweden • Budget? – €6m over four years

18. What are the people issues? Skills, Education, Attitudes and Behaviours How can we support these companies? Government policy, support services, funding, etc. Strathclyde Institute for Operations Management Research Project - Example What are the future business models? FutureSME… Architecture How can these companies transform? How can we classify today’s SMEs? e.g. Capacity to engage and change In the next 4 years we want to build up on what we have done so far… and build a model that would transform the competitive basis of European SMEs!

19. Unique Engagement Paths We have learned from our interactions with SMEs that it is essential that companies can select the most appropriate mechanisms for engagement

20. Highland Spring first engaged with SIOM members over 10 years ago as a relatively small SME Since then, it has participated in all available mechanisms to co-operate with the University This co-operation delivered many results including:- a waste level reduction of 5% Line speed increase of 43% Line downtime reduced by 31% Improved production outputs to meet sales turnover increase of £11million and a three-year projected increase in profits of £1.65million to be achieved in only two years. Highland Spring Ltd is now the UK’s leading bottled water supplier. Through collaboration with SIOM led by Professor Umit Bititci, the company has transformed its operations delivering outstanding results and has now outgrown SME status The relationship between Highland Spring and SIOM continues to go from strength to strength. Highland Spring

21. Key Learnings Reflections, Thoughts and Conclusions

22. Can select a series of specific interactions to suit circumstances Minimum cost resource delivers results “Just In Time” A chance to “talent spot” Benefits for SMEs

23. Produce industry relevant research and transfer technology/knowledge into practice Educate students and graduates to meet the needs of employers Raise funds and generate future research opportunities University Benefits

24. Share expectations up front Build up relationship over time Needs tolerance – “come and go” Can deliver outstanding results and growth Continuous dialogue required – start the conversations early Key Learnings

25. Develop a relationship that suits you but be proactive Engage as partners with the university Develop abilities before your competitors Systemise your approach – have process owners Work together – avoid fragmentation Value your capabilities! Advice SME University

26. Tomorrow's best practices Strategic Excellence Innovation Learning Networking Strategic Response Challenges for Co-operation?… Working together increases the chances of SMEs and Universities surviving and thriving. Through co-operation, we will attempt to lead the development of tomorrow’s best practices. Will you? Competitive Maturity/ Low Competitive Advantage/ High Value Today’s best practice= Operational Excellence Lean, 6-Sigma, Waste, eBiz, ERP, CRM, TPM, BSC, etc Low Level of Excellence High

27. Thank you for your attention Any Questions?