The future of manufacturing: Only the innovative need apply

Siemens runs months of production in a digital simulation to look for electrical, software and automation. “We can actually generate the automation code the machine will need,” explained Orchard. “We can revolutionize the way we do commissioning. We make sure it works. We can train operators in the virtual world. We take that manufacturing blueprint and hand it over to the MES to coordinate all of that to make sure the plant behaves and the product is made right the first time. We can provide native access to the digital twin.”

Siemens already has attempted this in 320 plants. Siemens’ electronics factory in Amberg, Germany, makes 1 million products per month. “That’s one every second, and products are delivered within 24 hours,” explained Orchard. “Since we’ve digitized, we’ve reduced 200 defects/million to just 10. Amberg had 1,200 people working when we started. And we still have 1,200 people working, but production has increased ninefold.”

Siemens’ success has come from innovation. Complacency is the enemy of innovation, but how does a company learn to innovate? “Innovation is an overwhelming word, and we often think it doesn’t apply to us,” said Josh Linkner, author of Hacking Innovation. “Like so many companies, Ringling Bros. and Barnum & Bailey became intoxicated with their own success, and now they’re out of business. Cirque du Soleil took a new approach, and now they perform for sold-out crowds throughout the world. Cirque du Soleil is valued at $2 billion and growing.”

Augmented reality, the Internet of Things, 3D printing, robotics, sensors and automation are all converging and creating a storm of change. “We can no longer rely on the rules of the past,” said Linkner. “The rules of the game have fundamentally changed. The one thing that can’t be outsourced or automated is human creativity.”

Linkner offered five big ideas that are obsessions to innovators.

1. Get curious. “The more curious we are, the more creative we become,” explained Linkner. “We’re very good at pattern recognition. Any time you’re about to make a decision instinctively, pause and ask, ‘Why not? What if?’” Linkner told the story of Jessica O. Matthews, a Nigerian woman who is a Harvard graduate. She’s also the CEO of Uncharted Play and the inventor of the Soccket soccer ball, which harvests energy from the athletes kicking the balls and can use that energy to run a light bulb for up to eight hours.

2. Crave what’s next. “Letting go is harder to do when you’re having success,” warned Linkner. “Too often, we overestimate the risk of trying something new, but we underestimate the risk of standing still. What if we apply planned obsolescence to our daily work? When you’re stuck on a problem, look for a borrowed idea. We can get great inspiration by borrowing from a company that’s outside our viewpoint.”

3. Defy tradition. There are many traditions that can and should be upheld, said Linkner. “But traditions in our professional lives can be deadly,” he cautioned. “Let’s look that tradition squarely in the eye and defy it. Don’t change for the sake of change, but challenge it. Make a list and see what would happen if you flipped it upside-down and did the opposite. You might find ones that work.”

4. Get scrappy. “We think of innovation as an equation that’s tied to our balance sheet,” explained Linkner. “The real DNA of innovation is grit—drawing on internal resources and doing more with less. Throw your imagination and creativity at those big problems.”

5. Adapt fast. “The myth of innovation is that a single lightning bolt of inspiration followed by mindless execution is how things happen,” warned Linkner. “Take the weight of the world off of your shoulders. Micro-innovations can turn into great results. It’s more about the speed at which you respond.” Linkner shared the entrepreneurial story of Tom Lix, founder of Cleveland Whiskey, a premium distillery that has changed the rules of the whiskey industry with its pressurized technology that reduces the aging process from 10 years to a few days.