perspectives on innovation competitiveness in chemical industry

© Dr. Otto C C. Lin 2014

Prof. Otto C C Lin

林垂宙教授

2014. 04.14

Perspectives on

Innovation Competitiveness in Chemical

Industry

Whatever has happened to these business giants?

Dow Chemicals Union Carbides

Kodak American Cyanamid

Hercules Monsanto Mobi Oil

Exxon Digital Equipment Corp

Sperry Univac Wang Laboratory

……

etc, etc

3

社會經濟進步: 生產要素

•人力 •土地 •天然資源

•資本 •機器 •管理

•科技研發 •創新能力 •創業精神

工業經濟知識經濟

農業經濟

4

Rank 1978 1981 1991 2002

1 GM GM GM Ford

2 Ford Ford IBM GM

3 IBM IBM Ford Pfizer

4 AT&T Boeing AT&T IBM

5 GE GE Digital Eqpt. Microsoft

6 U. Tech U. Tech E. Kodak Intel

7 E. Kodak Du Pont HP Johnson & Johnson

8 Du Pont Exxon Boeing Motorola

9 ITT E. Kodak General Electric Cisco Systems

10 Chrysler Xerox Du Pont HP

11 Xerox AT&T Dow Merck

12 Exxon ITT U. Tech Pharmacia (Pfizer)

13 Boeing Dow Motorola Lucent

14 Dow Honeywell Bristol-Myers Squibb Bristol-Myers Squibb

15 3M HP Merck GE

16 Sperry Rand Sperry Johnson & Johnson Eli Lilly

17 Honeywell 3M Chrysler Wyeth

18 P & G Johnson & Johnson 3M Sun Microsystems

19 McDonnell Douglas Merck Xerox Delphi

20 Johnson & Johnson P & G P & G Boeing

U. Carbide (23) Exxon (23) Du Pont (25)

Top 20 R&D Expenditure of US Companies (Business Week)

2013

Toyota

Novartis

Roche

Pfizer

Microsoft

Intel

GM

Nokia

Volkswagon

Johnson &

Joshson

Sanofi-Aventis

Panasonic

Honda

GSK

IBM

Cisco

Daimler

AstraZeneca

Global

5

Knowledge

知識: 概念/現象/事物

/理論/方法

Invention

發明

Innovation

創新

What is Innovation?

甚麽叫創新？

Wealth/Resource

/Benefit

財富/資源/效益

創新

• 一個講求效益的經濟性程序

• 涵蓋多種形式

- 技術、產品

- 過程、制造、持續改善

- 營業模式等

• 多種專門才能具創業精神的團隊

• 社會環境機制的配合

6

Most Innovative US Organizations-2013

1. Apple 2. Facebook 3. Google 4. Amazon 5. Sqaure 6. Twitter 7. Occupy Movement 8. Tencent 9. Life Technologies 10. Solar City 11. HBO 12. Southern New Hampshire University

13. Tesla Motors 14. Patagonia 15. NFL 16. National Marrow Donor Program 17. Greenbox 18. Jawbone 19. AirBNB 20. 72andSunny 21. Siemens AG 22. Dropbox 23. Kiva Systems 24. Starbucks 25. Genetech

© Dr. Otto C C Lin-2011

老子第十一章

三十輻共一轂，當其無，有車之用;

埏埴以為器，當其無，有器之用;

鑿戶牖以為室，當其無，有室之用。

故有之以為利，無之以為用。


老子的 “自然相對論”

The “Natural” Relativity of Lao-tze

有無

Have Have not

Full Empty

Solid Void

Real Virtual

Hard Soft

Hard Power Soft Power

32

The vertical computer industry, circa 1980

The transformation of the computer industry

FROM Only the paranoid Survive, by Andrew S. Grove, © 1996 by Andrew S. Grove

Used by permission of Doubleday, a division of Random House, Inc.

Source : Lee, Miller, Hancock and Rowen, “The Silicon Valley Edge”, 2000

IBM DEC Sperry Univac

Wang

Sales and

distribution

Application

Software

Operating

Systems

Computer

Chips

33

The transformation of the computer industry FROM Only the paranoid Survive, by Andrew S. Grove, © 1996 by Andrew S. Grove

Used by permission of Doubleday, a division of Random House, Inc.

Source : Lee, Miller, Hancock and Rowen, “The Silicon Valley Edge”, 2000

The horizontal computer industry, circa 1995

Sales and

distribution

Application

Software

Operating

Systems

computer

chips

© Dr. Otto C C Lin 2008

34

Dell NB PC

Inspiron 600M ODM: Taiwan

Austin,TX

Micro-

processor

Graphic Card

Memory

Cooling Fan

Mother Board

DVD/CD Dr

Removable M

Power ADPT

LCD Display

Wireless Card

Moderm

Battery

Hard Disk Dr

Carrying Bag

Power Cord

Key Board

Intel-Philipines

Intel-Costa Rica

Intel-Malaysia

Intel-China

Samsung-Sha/Korea

Quanta-Sha/Taiwan

Compal/taiwan

Wistron/Taiwan

Samsung-Korea

Nanya-Taiwan

Infineon-Germany

Elpida-Japan Samsung-Korea

LG-Philips-Korea

Toshiba-Japan

Sharp-Japan

ChiMei-Taiwan

Hannstar-Taiwan

AU Optronics-

Taiwan

Austek-XZ/Taiwan

Liteon-GZ/Taiwan

Foxconn-SZ/

Taiwan

Seagate-Sg/USA

Hitachi-Thai/Japan

Fujitsu-Thai/Japan

Toshiba-Php/Japan

Delta-Thai/Taiwan

Liteon-Sha/Taiwan

Samsung-SZ/Korea

Mobility-Sha/USA

Alps-Tianjin/Japan

Sunrex-SZ/Taiwan

Darfon-XZ/Taiwan

Source:

Thomas L Friedman,

“World is Flat”, 2003

The Dell NB Computer

Family-2000

Penang, Malaysia

Cloud Computing, circa 2010

Trend of Advanced Manufacturing

先進製造技術發展之趨勢

Engineering

Focus

Production

Requirement

Process

Focus

Quality

Business

Strategy

Numerical

Control

Stability

Automated Machines

(NCs, CNCs, …)

TQM &SPC

Proprietary

Computer-aided Design and

Manufacturing

Flexibility

Factory Automation (DNC, CAD/CAM

FMS, CIM, QC, TPM)

Six-Sigma

Standard

Design, Manufacturing

and Service

Agility

Business Automation

E- Mfg/ E-Enterprise

Life Cycle Optimization

Collaboration

1970 1990 2010

Reference: Prof. Jay Lee, U. Wisconsin, 2004

1910 1930 1950 1970 1990 2010

Industrial

Chemistry

Unit

Operations

Transport

Phenomena

Computational

Science,

Simulations

Innovation Networks

Valu

e a

dd

ed

Evolution of Chemical Engineering 1900-2000

(Ref. O. C. C. Lin, 2004)

Molecular &

Surface

Sciences

Nano-, Bio-

Sciences

Basic Chemicals

Dyestuffs

Rayon, Bakelite

Nylon, Textiles

Polymers/Plastics: PVC, PE, PP

PS, ABS,PU, Epoxy, PTFE, Acrylics

Consumer Products Chemicals

Fine/Specialty Chemicals

Bioengineering Products

Coatings, films, additives

Electronic chemicals

G M Products

Pharmaceuticals

Pharmaceutical chemicals

Microelectronics

Penicillin, DDT

Fertilizers

Low

Carbon

Economy

Sustainable

Development

Chemical Industry Trends (O.C. C. Lin, 2004)

化學工業技術發展的趨勢

1960s 2000s

Material Homogeneous Composite, Structured

Processing Large scale, Continuous Small scale, Flexible

Resources Capital Intensive Information Intensive

Business

Strategy

Cost, Efficiency Quality, Value, Innovation

Business Scope National Global

Business

Content

Product Manufacturer Solution Provider

Driver

Technology

Microelectronics IT, BT, NT

Technology Base Intra-disciplinary Inter-disciplinary

Tech. Focus Macro-,Meso-, Scale Micro-, Nano-, Scalability

Social Concern Pollution Control Global Warming

Business Models of the Future (Reference: H. Felcht, 2001)

• Traditional chemical conglomerates and diversified groups restructure into four types of focused companies

Molecule Supplier

Problem Solver

Traditional

Conglomerates

Life

Sciences

Specialty

Chemicals

Fine

Chemicals Commodities

Specialties have a low ratio of purchase cost savings to

associated substitution cost for the customer

Commodities

Specialties

Cost Savings

for Customers

if substitution product

is 1% cheaper

High

Low

Low High

Risk for Customers

of product substitution

Source:

U -H. Felcht, 2003

Specialties

• higher growth rates

• lower cyclicity

• higher margins

Development of Companies in the Chemical Industry (Reference: H.Felcht, 2001)

Rhone Poulenc Hoechst Sandoz

Ciba Geigy

ICI

Rhodia Celanese Clariant Ciba

Special. ICI Zeneca

Aventis Novartis Avecia

Astra Astra Zeneca

Novartis Syngenta

Astra Zeneca

• Conglomerate

• Commodities

• Specialties

• Life Sciences

• Pharma

• Agro

(Based on: A. Riemann, CITplus 3 (2000) 6, 8-11)

老子: 有無相生 Lao tze:Symbios of Real and Virtual

Chapter 40 (第四十章)

天下萬物生于有，有生于無。

All thing exists on the real,

and flourishes from the virtual.


Competitiveness: Symbiosis of Real and Virtual 有無共生

The Real (實體)

- Hardware (硬件)

- Vehicle (載具)

- Platform (平台)

- Hard Power (硬實力)

The Virtual (空虛)

- Software (軟件) - Inventiveness (創意)

- Functions (功能 )

- Soft Power (軟實力)

Competi-

tiveness


Ref: Otto. C. C. Lin, “The Technology Innovation Quartet”, 2013

.

Industrial Trend:

Profitability of Technology Giants (2013)

Company Type Revenue, USB Gross Margin

VMWare Software 5.2 86.0 %

Oracle Software 37.2 80.9 %

Microsoft Software 77.8 74.0 %

EMC Hardware 23.2 62.3 %

Cisco Hardware 48.6 60.6 %

Intel Hardware 52.7 59.8 %

Google Software 59.8 56.8 %

IBM Hardware 99.8 48.6 %

H-P Hardware 112.3 23.1 %

Source: Wall Street Journal, 2014-03-07

Cloud Computing: Product Innovations

Twitter

Dropbox

Facebook

Youtube Google Apps

Social

Outreach

Services Multiple

Small

Large

Simple

Source: ITRI Today, 2011

Chemical Engineering Business Management

o * Front End – Electronic commerce o * Back End – Global supply chain management o * Zero environment Impact: Reduce, Reuse, Recycle o * Minimum inventory & warehousing o * Maximum marketing & tech service o * Globalization of market, technology and capital o * Local strength for competitive advantage o * Values for customer o


42

Energy & Environment

Product Strategy & Planning VALUE as

PERCEIVED

by Market Materials Supply & Logistics

Research & Development

Manufacture

Marketing & Distribution

Sales & Customer Services

Accounting & Financial Planning

Hu

man

Reso

urc

es

Man

ag

em

en

t

Behind a Successful Business (Source: O.C.C. Lin, 2009)

Price Cost

Success Factors in the New Business Models

Molecule Supplier

Problem Solver

Traditional

Conglomerates

Life

Sciences

Specialty

Chemicals

Fine

Chemicals Commodities

• Process Tech

•Raw Materials

•Energy

•Supply Chain Mgmt

•Customer Orientation

•Technical

Capabilities

•R&D Competence

•Patents

•Business Plan

•Sales &

Distribution

•Know market needs

•Application

Technologies

•“Magic Ingredient”

Source: U-H Felcht, 2003

33

團隊與分工

管理與文化

商業計畫 ( O.C.C. Lin, 2009)

能源與環保

產品策略與規畫

研究開發製造

行銷與通路

業務與客戶服務

財務規畫

供應者-使用者關係

商業模式

物料供應物流管理

Competitive Business Innovations

•Product concept: Niche advantage

•State-of-art hardware

•Compatible software

•Simplified manufacturing process

•Up-gradable values-in-use -Customer needs

- Societal Trends

•Changing Challenges of Globalization

• Management Agility

• Sustainable Innovation Culture

• Soft Power in Business Management

© Dr. Otto C C Lin- 2014

成功創業者的價值觀

品質

至善

信義

立業

以人

為本

堅忍

毅力團隊

精神

創造利基

機敏

策略


Otto C. C. Lin

The Technology Innovation

Quartet:

Secrets of Successful

Entrepreneurship

Commerce & Culture Press

Taipei, 2013

ISBN

978-986-5812-02-7

© Dr. Otto C C3Lin-2013

Thank You,

Discussions Welcomed

謝謝, 歡迎討論！

[email protected]

[email protected]

http://www.occlin.net

mailto:[email protected]

perspectives on innovation competitiveness in chemical industry

Education