How to create value beyond the traditional supply chain

Posted on 9 Nov 2017 by Jonny Williamson

Stephen Chadwick, managing director EuroNorth, Dassault Systèmes, speaks about value creation systems and the importance of cross-industry-thinking.

At the Manufacturer Leaders Conference, Chadwick will be speaking about how to create value beyond the traditional supply chain.

The Manufacturer recently chatted with Stephen Chadwick about the term ‘Experience Economy’, the transformation of traditional supply chains and his expectations around The Manufacturer Leaders Conference in Liverpool – 15-16 November.

What are the drivers of the digitalisation of manufacturing (both in 2017 and the year ahead)?

The key drivers from a UK perspective have never been more evident than now. There is a plethora of new technologies arriving on an almost daily basis focused on the digitalisation of the manufacturing industry.

These include ‘3DEXPERIENCE Twin’ concept and the knowledge that senior leadership levels in companies can deploy technology to produce and deliver more value regarding production methods.

We have the excellent Government sponsored paper that came out this week, the latest review that pulls together a lot of stimulating thoughts that the UK needs now.

And of course, the SME base which is important for the British economy in terms of how it can access transformational technologies.

Transformation is no longer about iterations of efficiency improvement. More important is a substantial transformation of production capability to drive the UK market forward.

What’s the size of the opportunity (particularly for UK businesses)?

There are a few measures written about in the press. You can also read the latest review report, which members of my team helped put together. Juergen Maier’s done a very good job chairing the authorship.

The figures in the report represent the impact the digital transformation of cross-industry manufacturing has on the UK’s GDP.

It shows, the time is now and it has never been more so. If the UK does not act, this country will become a second-tier manufacturing nation.

IIoT has transforming the traditional face of the factory through streamlining processes and maximising production yields - image courtesy of Datawright.
Image courtesy of Datawright.

We must focus on OEMs, traditional supply chains, and their transformation into a value creation ecosystem.

If we don’t act, we will fall behind our competitors in Europe, the US and the ever more productive Chinese market.

What are your expectations surrounding the upcoming Industrial Digitalisation Review?

Digitalisation is an overused word, and there are a lot of buzzwords in the industry today created by technology companies these include IoT, Industry 4.0, IR4, the 4th industrial revolution.

We must create a value framework that becomes an ecosystem transcending traditional supply chains.

The times of supply chains methodologies where a big OEM has a procurement department buying parts from a supplier, are over.

Now, we have to create value beyond the traditional supply chain approach and think how that value can be brought into end products.

We need to create new information by analysing data. Sharing this information helps us make better decision and create new ways of working. It is about a proper transformation, not just about an incremental change to efficiency.

Cross-industry approaches to manufacturing can take best practice methods from other industry verticals. This enables us to create knowledge and solve manufacturing issues by looking at completely different sectors.

How is digitalisation changing the reality of what an engineer, designer & maker is and does?

In the future, it will no longer be about the replacement of jobs through technology, but about creating new ways of working.

Stephen Chadwick will be a keynote speaker at The Manufacturer Leaders Conference in Liverpool in November. 

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There are keen young graduates and apprentices coming from training and colleges with fantastic new approaches. These talents need to be merged with the existing experience within our industry.

The days of incremental increases, lean manufacturing and so on are over. Now, it’s all about bringing new ideas coming from other industries such as high-tech or life sciences into the industrial manufacturing marketplace.

What are the biggest challenges in terms of bringing new engineers into the industry?

Digitalisation gives engineering a new credibility because engineers can now solve the many of the world’s problems. The image of an engineer working in a dirty environment is outdated.

The challenge we face is that nowadays engineers with high-quality degrees are being seduced into working in other industries. We need those clever people working inside the industry and not migrating to other sectors.

What are you excited about speaking at this year’s Manufacturer Leaders Conference?

I am very much looking forward to the event.

Earlier this month, we hosted, in conjunction with The Manufacturer, an event around UK manufacturing with many cross-industry-senior thinkers.

Their views reflected those of the paper that refers to the latest review, asking how we can bring the UK’s leading cross-industry companies together to drive forward the value of UK manufacturing.

Apple and GE unveiled a new Predix software development kit (SDK) for iOS.

I think the debate is going to shape a leadership approach and I think the timing of the event now is perfect, and I am incredibly excited.

I am looking forward to gaining new insights into knowledge transfer, better-practice examples, and to creating new connections within the community.

What business achievements are you particularly proud of over the past 12 months?

Dassault Systèmes is very successful in the UK. But, I am particularly proud of a long-term collaboration agreement with Scania, in Sweden, which was announced last week.

We now help the company take their next engineering and production journey. I am also very proud that Scania will use the 3DEXPERIENCE platform as the base of its future PLM that will integrate all product and process authoring tools.

How does your business approach innovation, what does it mean to you?

Innovation is the DNA of Dassault Systèmes. We help our clients and partners to go through many innovation steps to find the right solutions and products for the market. Equally they are bringing all their stakeholders into the knowledge environment together.

Because consumers want experiences as well as products we help manufacturers and their customers join and benefit from the ‘Experience Economy’.

What are the most important decisions you make as a leader within your organisation?

The most valuable decisions I make are about talent.

I focus on three key priorities, which are growth of the business, people and the development of talents, and bringing together different functions to perform something good for the overall business.

Those three drivers are how I drive and measure my business in EuroNorth.

Dassault Systémes EuroNorth comprises the UK and Ireland, the Nordic and Baltic regions, and Benelux. The EuroNorth region accounts for nearly one-quarter of Dassault Systémes’ global revenue.

While steering the business to financial success, Chadwick is leading the drive to extend Dassault Systémes’ footprint and deliver customer value.

His role also covers the integration of corporate acquisitions, R&D, regions and brands, into one unified team – one Dassault Systémes.

He previously held senior management positions at British Telecom and EMC, following a distinguished fifteen-year career with The Royal Navy.

In his current role Chadwick combines this military and business experience to deliver business growth through the deployment of Dassault Systèmes 3DEXPERIENCE Technology.

Chadwick holds an MBA with merit from University of Bath School of Management, has an HND in Electronic Systems Engineering (Royal Navy), and is a qualified Weapons Engineer.

An award-winning IT strategist, Chadwick was elected Chairman of the Defence Information Systems Council in 2011, and he is a Fellow of the Institute of Directors.