1

Based on material provided by:John Voeller

ASME White House FellowCKO, CTO, Senior VP

Black & Veatch Engineering

Presented by:Jorge Vanegas

ProfessorGeorgia Institute of Technology

Innovation Fuel:Ideas Desired, Funding Required

“Innovation and Implementation, key factors of successin today’s global marketplace”

2

Some quick points of departure…

3

A Definition of Innovation“The commercial or

industrial application of something new – a new

product, process, or method of production; a new market or source of

supply; a new form of commercial, business or financial organization.”

Joseph Schumpeter, 1934, in The Theory of Economic Development

Innovation can create value and occur in all dimensions,e.g., product, process, strategy, business models, and financing.

4

InventionInvention InnovationInnovation

Linear innovation modelLinear innovation model Dynamic innovation modeDynamic innovation mode

Build to forecasted demandBuild to forecasted demand Sense and respond to demandSense and respond to demand

IndependentIndependent InterdependentInterdependent

Single disciplineSingle discipline Multiple DisciplineMultiple Discipline

Product functionsProduct functions Value to customerValue to customer

Local R&D teamsLocal R&D teams Globalized 24x7 CollaborationGlobalized 24x7 Collaboration

From To

The nature of innovation is changing…

Source: Egils MilbergsCenter for Accelerating Innovation

5

0 25 50 100 125 150

Automobile

75Years

0

50

100TelephoneElectricity

Radio

Television

VCR

PC

Cellular

Inte

rnet

% P

enet

ratio

n

Innovation is accelerating, measured by speed of market penetration…

Source: Egils MilbergsCenter for Accelerating Innovation

6

We need to invest in technology, innovation, and commercialization…and we need to invest wisely..

Source: FIATECH

The waves of technological change are coming faster…

7

Let’s begin with a fundamental premise…

8

… Despite these challenges, we are not innovating aggressively, nor do we have

global innovation teaming… Why?

We all face similar challenges across the globe…

• Energy• Water• Natural resources depletion• Environmental improvement• Infrastructure maintenance and replacement• More food for more of the world

9

A possible answer is that we lack critical abilities…

• No ability to coordinate complementary efforts• No ability to prevent duplication• No ability to learn from past successes or failures• No ability to know how much we are spending• No ability to know who knows what• No ability to pre-examine combinations sure to

occur

10

In addition…• The climate for full life-cycle innovation in the

mature world is in desperate need of re-animation and re-organization.

• Those that must take thoughts to actions, objects to products, markets to sales, start-ups to enterprises are all suffering from different forms of oxygen starvation, regardless of the risk taking appetite of angels and investors.

• The consequences are being felt in almost every sector.

11

The Challenge• There are no single solutions or simple fixes, but

there is a critical element we must cultivate: Integrated Innovation.

• This presentation will describe this concept, provide examples of what happens when we do not address it, and highlight approaches to incorporating it into our future.

12

What some nations are doing in innovation• Europe has expanded Esprit to Globus, and

making inroads to true global execution• Japan has broken language limitations and now

have national access to the world’s innovations• China has announced a national R&D

knowledge base containing everything they and others do, in one massive dynamic taxonomy

13

What one country has done to make the future come true faster than

others…

An article by Anthony FaiolaWashington Post Foreign ServiceFriday, March 11, 2005; Page A01

14

Humanoids With Attitude Japan Embraces New Generation of Robots• Analysts say Japan is leading the world in rolling

out a new generation of consumer robots. • Some scientists are calling the wave a technological

force poised to change human lifestyles more radically than the advent of the computer or the cell phone.

• Officials predict that every household in Japan will own at least one robot by 2015, perhaps sooner.

15

Examples• At the 2005 World Expo just outside the city of

Nagoya:– Mitsubishi Heavy Industries' yellow midget robot,

Wakamaru will be greeting visitors in four languages and guiding them to their desired destinations…

– A trio of humanoid robots by Sony, Toyota and Honda will be dancing and playing musical instruments at the opening ceremony…

– NEC's PaPeRo, a robotic babysitter that recognizes individual children's faces and can notify parents by cell phone in case of emergency, will be taking care of children…

16

Examples (cont.)• Saya the cyber-receptionist at Tokyo University of

Science, with voice recognition technology allowing 700 verbal responses and an almost infinite number of facial expressions from joy to despair, surprise to rage...

• A wheelchair robot now being deployed by the southern city of Kitakyushu that independently navigates traffic crossings and sidewalks using a global positioning and integrated circuit chip system…

17

A Contrast…• In the quest for artificial intelligence, the United

States is perhaps just as advanced as Japan, but analysts stress that the focus in the United States has been largely on military applications.

• By contrast, the Japanese government, academic institutions, and major corporations are investing billions of dollars on consumer robots aimed at altering everyday life, leading to an earlier dawn of what many here call the "age of the robot”…

18

But the robotic rush in Japan is also being driven by unique societal needs…

• Staffing the factory floors of the world's second-largest economy in the years ahead – e.g., line of worker robots with human-like hands able to perform

multiple sophisticated tasks• Overcoming the aversion of youth to so-called 3-K jobs --

referring to the Japanese words for labor that is dirty, dangerous or physically taxing– e.g., guard robots that can detect and thwart intruders using sensors and

paint guns, also put out fires and spot water leaks

• Providing therapy for the elderly who are filling Japanese nursing homes at an alarming rate, while often falling prey to depression and loneliness – e.g., a robotic baby harp seal

19

What will proliferation of these types of robots into business do to the low and medium employment

tier?

20

Let’s take a deeper look at technology opportunities…

21

Three Broad Technology Opportunities• Biotechnology

– e.g., genetics, proteomics (large-scale study of proteins, particularly their structures and functions), synthetics

• Nanotechnology– e.g., from MEMS (Micro-Electro-Mechanical Systems ) to Smart

Dust (Autonomous sensing and communication in a cubic millimeter)

• Quantum Technology– e.g., New interdisciplinary field straddling the boundary between

computer science and quantum physics, including quantumcomputation, quantum cryptography, and quantum teleportation

22

• Incredible opportunity to discover a whole new view of life saving, repairing and helping people directly or by improving food, textiles, materials

• The problem is that we are novices at so much of this we may not know what questions to ask, much less answer.

… With our frequent need to pull things assimple as drugs after introduction, what dowe do when a proteomic effort goes wrong…?

Biotechnology

23

… The question is are we really ready to handle even a major spill of things smaller than pollen that can act …?

Nanotechnology• IBM just created a new division to build technology

in this domain with strong focus on sensors• Asia is developing stacking and communication

standards to energize development• Critical fabrication systems are finally ready• Top priority at major research universities

24

… However, what if the wrong type of peopleget access to these technologies and use themto create harm and havoc…?

Quantum Technology• Zero time of flight communications• N-state computing – at least 4, maybe more• Sensors multiple orders of magnitude more

sensitive• Unbreakable encryption no one can hack

25

Characteristics of emerging technologies…• Architectures

– Proactive, Intelligent, Pseudo-Standards…

• Devices– Self-organizing, Self-repairing, Collaborative, Assistive…

• Methods– Stronger Integration, Self-Awareness…

• Knowledge Driven Processes– ???? Still fermenting…

26

… and the challenges they can cause• Legacies are just now starting to be built…

– How do you ensure that we do today will not become a memory of yesterday, but the foundation of tomorrow…?

• Scenarios have yet to be examined…– How do you explore thousands of possible outcomes,

impacts, and implications created, both good and bad…?

• Control mechanisms for who can know and see what…– How do you ensure open collaborative access, while

maintaining control and ensuring security…?

27

Advances will require attitude, technology, policy, and legal

changes, and a basic awareness of the consequences of not taking

these extra steps…

28

Bench Prototype

Basic Science

Concept Perfection

Policy Plan

Field Prototype

Tech Transfer Plan

Implementation Plan

Commercialization Plan

Current practice often carries consequencesthat destroy much of the life cycle value…

Investment Plan

Legal Plan

R&DPlan

Efforts

Time

29

… Most likely life cycle will be a fantastic product with high profits for some years that will then be completely absorbed by future litigation and second-guessing of

maker intentions …

The issues…• From the outset, no parallel consideration of:

– Policy issues from outset– Investment, commercialization, implementation, and

technology transfer issues– Legal issues

• No parallel consideration of consequences if any of the above are not proactively addressed

30

… Each of these constitutes elements of anintegrated innovation process …

A better option…• We must learn integrated innovation, with parallel

tracks with strong synchrony:– Science– Technology– Commercial value– Social consequence– Policy analysis and anticipation– Legal scenario planning and pre-emption

31

Integrated Innovation – Through planning andcompletion of the overall life cycle of the contribution…

Basic Science

Concept Perfection

Bench Prototype

Field Prototype ClassicR&DPlan

Efforts

Policy Plan

Legal Plan

Tech Transfer Plan

Investment Plan

Implementation Plan

Commercialization Plan ParallelEfforts

We MustDo Sooner

Time

32

Specifically for the construction industry, some additional and final

food for thought…

33

(Est. 1999 data)

We need to remember that, although the business of construction is still large…

• Global…………….$3.2T• Domestic US…..$1.1T• Construction….$710B• Renovation……$282B• Maintenance.…$148B• Materials………$353B• 109M homes

Residential $326B

Public Works$130B

Industrial$28B

Commercial/Institutional $227B

Source: Jack Snell, NIST

34

… the industry still lags behind the economy…

(at least in the U.S.)

35(Compiled by Dr Karen Manley, QUT, based on OECD 1999, Main Industrial Indicators; OECD STAN; USNational Science Foundation. US figure 1996 only.)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Japa

n

Nor

way

Finl

and

Fran

ce

Net

her'd

s

Den

mar

k

US

UK

Aus

tral

ia

Spai

n

Italy

Irela

nd

… still has low levels of construction R&D as proportion of value added…

36

Highly fragmented

Local

Handcrafted

Serial approvals

Adversarial

Slow, unpredictable

Reactive

Prescriptive

Wasteful

… and finally, as an industry, can we overcome existing barriers…?

We need to go from:Integrated

Global

Manufactured components

In-process quality assurance

Alliances & partnerships

Fast, reliable

Proactive

Performance

Efficient & sustainable

To:

37

So the final fundamental question is:

Do we need new innovations…… OR do we need processes to ensure

integrated innovation and to enable earlier and more robust adoption of all innovations,

with some surety that we will be able to extract full value without retrenchment or

destruction of value?

38

The answer could be YES to both…

We need need new innovations…… AND we need processes that ensure

integrated innovation and to enable enable earlier and more robust

adoption…

39

So to close, what we will explore in the next breakout session are

precisely these answers within the context of the “burning questions”

we identified inBreakout Session 1…

… WHAT can we do about them? …HOW can we do it?

… and WITH WHAT resources can we do it?

40

Thank you…