-TECHNOLOGY AUTHOR-
TIBAZARWA
Chapter 4: Innovation Supply Chain
The innovation supply chain is the principal source of value for a process automation supplier, with core goals enabled by the supplier’s Design and IP portfolio. The supplier’s strategy at ecosystem management must include the process framework to maximize the opportunity value under the regulatory constraints of the safety critical supply chain.
This chapter will cover key elements of a sustainable growth-oriented supply chain for innovation of process automation solutions: (1) Technology Supply Chain Management, looking at the value chain and value creation and capture, (2) Design and IP, focusing on solution architecting and design, (3) Safety Critical Supply Chain, expounding on hazard analysis, security and shock resiliency, and (4) Ecosystem Management, understanding principles of platforming, complementing and collaboration.
4.3 Ecosystem Management
The differences in resources, timeframes and underlying disciplines for the different elements suggests the use a framework that unifies the value-creation opportunities with the complex range of value-capture opportunities in the manufacturing industry. Davies (2007) emphasizes the importance to a technology strategy of considering the overall ecosystem, while Cusumano (2002) advises on the need for a technology player to be clear about platform leadership vs. platform complement. The Market Value-Chain and Ecosystem model of Figure 4-8 was synthesized based on the recommendations of manufacturing automation business value of Martin (2006), the manufacturing process engineering fundamentals of Liptak (1985), the manufacturing system safety principles of Leveson (1999), manufacturing process control elements of Kuo (1991), and process automation strategies of Shinksey (1979).
Each supplier’s Ecosystem Management practices must be aligned with its ecosystem strategic intent. In a hub-and-spoke network for example, the supplier should have a clear understanding of its role as an ecosystem hub or recognition of its limitation to be a spoke. As an ecosystem hub, the supplier must fulfill its platform leadership responsibilities and obligations as defined in Cusumano (2002), including fostering partnerships with other suppliers, hubs and competitors. How the ecosystem is managed will impact the business value of the entire technology supply chain.