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“How Enterprise- Academic Collaboration can drive Design
Innovation in China”
1 INTRODUCTION
Thank you for your kind welcome.
This is a wonderful time to be in China, with the Shanghai expo
and the Automotive Expo showcasing Chinese innovation at a
crucial moment in the global economy’s return to growth.
I’d like to thank the Ministry of Science and Technology, PTC and
the British Embassy for their kind invitation.
Whenever I discuss China with business and government leaders,
there is a moment when the sheer scale of China comes home to
them.
From the growth of the Pearl River delta or the rapid expansion of
the Chinese Automotive industry in what is now the largest
vehicle market in the world; Chinese growth leaves leaders
sharply aware that the world is changing.
They’re right.
It is.
So the challenge for them, and for all of us, is how to harness that
changing world.
I believe there is only one sure path to commercial success – a
sustained focus on the value of applied research, and on using
that research to meeting the needs of the community via
constantly innovative product and process design.
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In other words, the opportunities China offers can only be grasped
by developing what President Obama calls “an Ecology of
Innovation” amongst businesses, universities, students and
workers.
To do this well requires partnership and collaboration between
equals.
2. What WMG does
The creation of strong links between business and academic
research is the mission of my professional life.
I founded Warwick Manufacturing Group thirty years ago. We had
a staff of two and a single shared office.
We now have more than 220 academic staff and academic bases
in China, Singapore, Africa and around the world. We have
trained more than 24,000 students and awarded 6,000 research
degrees.
We exist to show business that investing in academic research,
design innovation and product development will help them
develop the quality products and processes that their customers
demand.
Our vision is to use academic rigour to solve complex real world
problems in industry.
That vision has guided us as we have grown.
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We now carry out world class research in engineering in fields as
varied as automotive, housing, healthcare and cryptography.
We work with commercial partners to broaden the skill base of
their employees, and our students work is focused on the
importance of applying research and the scientific method to the
world around them.
We offer modular degrees so as many workers as possible can
gain these insights. Whether undergraduate or graduate, our
courses are project-oriented right from the beginning, and are
developed in partnership with employers, so a company has a
real commercial incentive to support employee learning.
This market focus helps us understand the needs of our global
partners. We have a huge range of these, from private sector
global leaders like PTC, Jaguar LandRover, Tata and China
Aerospace to leading public sector innovators.
It is this practical focus that has made us successful.
This year, we were awarded the Queen’s Award for excellence in
Higher Education, an honour reserved for the highest level of
achievement in Education.
3. FOCUS ON DESIGN AND SKILLS
So our focus is on partnership with employers making real world
experience central to our work.
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The UK is a fantastic place to do this work. The UK has a world
leading Science base, with genuine quality in research and
openness to students and businesses from all over the world.
In addition the UK has outstanding sectoral strengths, from
Pharmaceutical, to aerospace to automotive, all set in an open
trading economy. Companies like Rolls Royce, GSK and GKN,
who are presenting here today, are leader in their fields and
leaders in applied research.
WMG is at the heart of a cluster of advanced manufacturers and
innovative companies, a position that means we have been able
to build long term relationships with world class companies, which
in turn has attracted those who wish to share that expertise.
We know our partners need a future workforce with ever greater
skills and understanding of engineering principles.
So we start early.
Our work begins in the secondary school classroom, where we
provide training for teachers, curriculum development and work
based courses for students.
This has the major benefit of introducing students to the software
and techniques that they will use at university and at work, and
inspiring them with the incredible things a scientific, design based
approach to the world can deliver.
It has real benefits for employers too. 82% of British schools now
use 3D solid modeling software based on that used in universities
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and workplaces, smoothing the transition between school,
university and work.
4. WMG & CHINA
So our credentials in industrial design, research and development
are strong, but as everyone knows, China is unique.
It rewards hard work and understanding.
I’ve long known how much we have to learn from Chinese science
and research.
My first visit to China was back in 1981, when I was invited to
view the Long March Rocket programme, with the great Dr Liang.
That was a stunning insight into Chinese capability. I was blown
away by the brilliance of the engineering and ever since I have
been focused on building strong links between WMG and China.
In 1998, the Group established a direct relationship with the
Chinese Government body responsible for all overseas training,
the State Administration of Foreign Experts Affairs.
Today we train 250 Chinese Students each year and have strong
research partnerships with Chinese Universities, such as Harbin
and Wuhan and businesses like China Aerospace.
We deliver annual training courses tailored to the needs of
selected managers from most of the major industries and
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institutions in China, including oil and gas, automotive, transport,
and defence industries,
We’ve educated more than a dozen Chinese billionaires at WMG.
Business leaders like Henry Tseng learnt how to lead with us.
We’ve established relationships with more than 170 Chinese
companies.
Our courses are specifically developed for each cohort of
participants with an intensive two-month period of teaching and
project work, with modules selected to meet the needs of the
individuals.
The 2007 cohort, for example, was mainly from high volume
manufacturing industries and covered such subjects as logistics,
production and material control and financial analysis and control
systems. Some 600 senior managers have attended these
courses.
5. CHINA’S CHANGING STRENGTH
So from our perspective as a long term partner, what do we see in
China?
Well, outstanding growth, obviously, but what’s significant is the
change within that growth.
Most of China’s growth last year is attributable to the strong
stimulus package put in place by the government.
The scale of that investment astonishes outsiders.
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If we take only Transport, China plans 30 urban transit projects –
more mass rail and tram schemes than any other nation. There
will be10 High Speed rail links – more than anywhere else in the
world.
In Green technologies, China’s investment is world leading, with a
$220 billion dollar investment planned.
Chinese research too has been strengthening fast over the last
decade, with an impressive increase in citations in Scientific and
Technical journals, as you can see here. Leading Universities,
such Tsinghai, are increasingly focused on developing global
partnerships to increase the impact of their research.
6. CHINESE INNOVATION
The result of this stimulus is that Chinese R&D spend will match
that of Japan this year.
Another way of looking at this is that China’s research spending
will be double that of Germany, regarded by many as the world’s
leading high tech manufacturer.
Much of the explanation for this lies in the unique understanding
of the importance of engineering amongst China’s leadership.
I’m constantly saying to western leaders that 18 of the top posts in
the Central Committee are held by engineering graduates. As a
result, China has a leadership uniquely committed to scientific
innovation.
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The Chinese challenge is to seize this unique opportunity of a
growing market, expanding research funding and determined
leadership to become stronger innovators.
7. CHINA’S SKILLS NEEDS
So how is China’s education system meeting the challenge of
expansion?
The first point is to salute the rapid expansion of China’s
University sector. 6.1 million students will graduate China’s
Universities this year, a staggering number.
Yet despite a labour market that is hungry for high skilled workers,
there is a gap between graduate capability and Industrial need.
44% of Chinese executives rate recruited skilled staff as their
biggest issue – and it is an issue that runs from the university
sector right down to Secondary school.
A March 12 article in People’s Daily about college graduates
summed up the situation.
“New workers at Huachen Brilliance Auto Factory in Shenyang,
Liaoning province need experience in welding, distribution or
logistics, car maintenance, or electronics – knowledge that most
college graduates and migrant workers do not have.
“As a result of an influx of new technology and management
ideas, the type of workers we recruit has changed completely,”
said Li Xuelian, a spokesperson for Brilliance. “The quality of
people we recruit is much higher now.”
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The pressure of Global competition requires a global standard of
Labour. It is vital that Universities and Businesses work together
to develop such a qualified workforce.
Whatever happens, China will grow, but it will be far better if that
growth is made in China.
8. THREE OPPORTUNITIES
I can see three major opportunities to be taken in China.
Each of them requires a focus on product and process design.
The first is expanding China’s share of both existing and
expanding large markets. Some of this can be achieved via
acquisition, as Geely have shown with the purchase of Volvo, but
acquisitions won’t deliver long term growth without constantly
improved products. Last year’s Volvo won’t be competitive in
world markets for long.
Next, satisfying the product needs of the fast growing domestic
market will create a whole galaxy of new products, and that will
mean design decisions that make the most of limited consumer
budgets.
Only designers who intimately understand the Chinese consumer
will win in this market. Here it will be vital to get greatest impact
from China’s R&D investment and ensuring knowledge transfer so
cross-over applications find their way to market.
Finally, there is the need to maximize both workforce skills and
capital investment to improve productivity. The challenge of
improving productivity is a constant, no matter how much Labour
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is available. Wage pressure will be constant, as will ever greater
regulatory burden, in this environment, both greater
mechanisation and lower cost production processes will be key to
competitiveness. These too will require innovation.
9. Only design innovation can grasp opportunities
It is my view that seizing those three opportunities requires one
consistent element- an emphasis on design innovation.
To achieve sustained growth requires invention that creates
outstanding products and processes.
What does this mean?
Invention is self explanatory. It is an innovative solution to a need,
whether that need is known or unknown. But that alone is not
enough. When researchers discovered how to communicate
wirelessly over pairs of frequencies more than 60 years ago, it
was hard to see how this would come to dominate
telecommunications. It was the designers of mobile products that
translated research insight into commercial application.
So design can be thought of as “invention plus”. It is invention
plus the skills needed to translate and commercialise a product or
process successfully.
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10. Innovation comes from R&D
This pattern hold true through any number of technological
breakthroughs from research.
Whether we are talking about the development of the LCD
screen, or the development of ARPAnet, we can see how the first
source of innovation is Research and Development.
But the process cannot stop there if it is to change lives.
It needs to translate into products. This is where applied research
and Design innovation is central.
11. Profit from Design
What’s more, it is the best designs that build profits.
Those who have profited most from the establishment of the
Laptop market are not GRID, who developed the first laptop, but
companies like Lenovo who have met consumer needs best.
In the same way, the first models of bicycles were rapidly
replaced by superior, ergonomic designs that have stood the test
of decade. The firms who led the way in that process still exist
today.
Even in a field as complex as aerospace, it is the iterative process
of superior design solutions to difficult problems that have taken
us from bi-planes to dream liners.
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12. Design is key to innovation
Why is design such a powerful tool for growth?
For a manufacturer, without design, all you are doing is assembly.
Value lies not merely in building a product, but in being able to
build it better.
The attempt to develop an improved product teaches you the
weaknesses and strengths of your product.
The act of asking what can be done better provides insight into
how and where a product can improve.
Embracing the pressure to find a better design also forces you to
ask tough questions.
After all, If you don’t you will discover that somebody else has..
13. A growing need for quality design
This gap shows the need for quality domestic design innovation
built on a collaboration of equals.
The government and business leaders clearly understand this
need, and have made it a key part of the “Made with China”
campaign.
Only global partnerships can help deliver this innovation. From
the adoption of the global standard CAD-CAM software to
carrying out research with Universities, the future of design
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innovation is one of partnership across nations, across sectors
and across the Business-Academic boundary.
As markets overseas get tougher, with low growth, there is
increased need for China designed products which ensure a more
revenue returns to manufacturers – and this research and design
process will require partnership with institutions which can help
Chinese industries meet consumer needs at home and abroad.
This is why innovative manufacturers, like Geely, Chery,
Changan. and Shanghai Automotive, are developing partnerships
with leading research oriented and design companies, such as
Lotus, Ricardo, GKN, and PTC.
14. JLR
Talking theoretically is all very well, but I am an engineer.
I want to share with you some of the ways research partnerships
have made business breakthroughs at WMG.
We are leaders in Experiential Engineering – engineering the
process in which consumers experience a product. Think of the
sensation a driver gets from accelerating- what is it that gives a
sense of quality, or power, or thrill? One answer to this is the
sound experience the driver has.
So we have been researching consumer reactions to sound in the
premium automotive sector. We have developed ways to convert
the driver’s subjective reaction to sounds into objective measures
for suppliers and vehicle designers to aim for –whether the growl
of engine acceleration or the solid “clunk” of a door closing safely.
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15. Research Breakthroughs
Nor is the impact of design innovation limited to traditional
manufacturing.
Take our work on healthcare at WMG. Because we have
experience in materials science and in the automotive sector, we
were able to develop a bioceramic synthetic bone product which
is based on the manufacture of Catalytic converters.
This product is easier for tissues to bond with because it shares
the porosity of human bone.
Research is also key to improving process, as a part of the
continual search for product quality improvement.
We can see this in our work on spot-welding aluminum.
By developing the ability to resistance spot weld aluminum for a
car manufacturer, we removed the need for complexity in
production – as over 3000 rivets were no longer needed in each
vehicle. We also reduced product weight and cost.
The same principle is at work in our research to end the plastic
paint shop in automotive manufacture.
Painting plastic parts is time consuming, expensive, complex and
leads to high CO2 emissions. So we have developed techniques
to develop an in-mould solution to parts painting, so the painting
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stage can be integrated with part moulding, providing lower cost,
lower waste and higher quality fittings.
16. The Challenge: Integrated research & design innovation
So how do we deliver these innovations for our industrial
partners?
One of the key elements of our approach is our Engineering
Doctorate.
WMG’s EngD programme was created in 1991 with a unique
focus on a portfolio approach, enabling industrial managers to
develop their career at the same time as studying on the
programme; this was a major factor in attracting senior
industrialists to participate.
Our Doctorate is a research degree but participants are also
required to develop competences required of an engineering
manager, through studying Masters modules, a technique which
has made the degree attractive to companies who need to
strengthen the skills of their next generation of leaders.
The EngD instills academically critical thinking applied to
industrially relevant innovations. Far better for leaders to do
practical research on real business issues than to spend years
imbibing Business school mantras!
The research done has driven practical benefits. For example – A
WMG EngD student developed a system to detect surface and
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internal defects in hot moving steel slabs resulting in a significant
reduction in waste products and quality improvement;
The Eng D is not restricted to traditional manufacturing.
A leading UK homebuilder, Westbury, used EngD research to reengineer their house-building process to achieve mass
customization and higher build quality. It led the firm to develop
the first large-scale off-site homes construction facility for
residential housing in the UK, supplying thousands of units a year.
This business focus is reflected in their fast career rise of
participants. Many are already Directors in companies such as
Rolls-Royce, while others are owners of companies.
17. UK Motorsport
We’re seeing this is process happening in the Motorsport industry.
Advanced motorsport engineering has long been a British
specialty, even as the rest of the UK automotive sector has
struggled. It is a hotbed of innovation for parts, for design
systems and for new design techniques.
The leading firms in this field partner with academic researchers
to solve complex problems in every area from aerodynamics to
fuel efficiency to materials weights.
As a result we now see companies from all over world
subcontract Auto R&D to the UK. In turn, this means that the
parts suppliers follow suit, as they seek to anticipate the new
technologies that will impact their products.
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This shows the importance of global partnerships, customer
understanding, design culture and, most importantly, a continual
awareness of the importance of innovation and applied research
to your industry, where-ever you stand in the supply chain.
18. Major opportunities
I see two major opportunities for Chinese companies, and to
succeed in either area will require strong, ongoing partnership
between companies and applied researchers.
The first opportunity is to extend the share of high value design
and research product development in Western Markets.
To do this will require an in depth understanding of customer
needs and concerns – which in turn requires the ability to judge
how well your product fares against competitors, and research the
ITERATIVE improvements needed to meet consumer and
regulatory standards in these markets.
The second opportunity is the challenge of retaining the current
high share of fast growing domestic market via outstanding
products.
This second environment will be the most competitive in the
global economy. After all, every Fortune 500 and FTSE Chief
Executive says that the BRIC countries are their biggest
opportunities for growth.
Here the challenge is to utilize the research strength of innovators
around the world alongside the insights of domestic experts to
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employ industry leading design techniques so that your product
development is globally competitive. The need is for world class
product innovation to meet domestic market needs.
19. Challenges
In other words, whichever path you see growth coming from in
your industry, there is real benefit to be had by building a
collaborative relationship with globally capable institutions.
So what should you look for in a partner?
I’d argue there are three crucial elements.
Your partners should have a deep understanding of what it takes
to make applied research and design innovation work.
They should have a track record of success in your field – of
delivering real results for companies, not just high flown
statements.
Finally, your partners should have an experience in China and
deep respect for the talents and innovative capability of Chinese
industry.
I believe these principles for successful partnership apply across
a number of fields, whether in academic research or design
partners.
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I would like to conclude by making one final point. The wonderful
thing about innovative design is that it is an iterative process. It is
marked by continual progress.
It is something that moves step by step towards better products.
There are no short cuts, or easy answers, no cookie cutter
application of management consultant “rules”, simply the gradual
development of better designs to meet customer needs.
No product is perfect first time. No insight makes it to market
unadjusted. There is always room for improvement.
What applied research and a focus on design innovation can do is
quicken those changes, and turbo charge your ability to improve
products.
In that light, the priority is developing long term research and
design partnerships that can improve your innovation capability,
whether by developing the skills of your staff, helping you
understand differing consumer needs, or by taking the time to
understand the specific, unique pressures your industry faces.
Done well, this ensures that your internal capability to innovate
and design grows alongside your product improvement.
This double win – of research advance and increased innovative
capability is the heart of what applied research can offer your
company.
In China, the fastest growing and most competitive market on
earth, that could well mean the difference between being an
industrial dynasty or a commercial footnote.
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China is already a major global player. It will certainly be even
more significant in the future.
That significance will be even greater if the needs of the global
economy are not only made in China, but designed in China too. “
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