Product development in a hyper-connected world


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Lamentations over the predicament of our country’s manufacturing industry have dominated headlines over the past year. There is, however, a light behind the storm clouds. As Dr Glenn Stevens, the Governor of the Reserve Bank of Australia, pointed out, ‘Even as industries are shrinking, new industries can grow up’.

This report – "Product Innovation in a hyper connected world: The Australian Maker Movement” – takes a different, more radical outlook. Our view is that the future of Australian manufacturing is fundamentally shifting, and could lie with our emerging ‘maker movement’. Australia finds itself at a disadvantage for labour- intensive, low-skilled manufacturing however, technologically voracious and interconnected Australians have collectively built a digital foundation for the vibrant maker movement.

Business would be well advised to observe how the successful startups outlined in this report find ways to participate, learn, and shape the movement. Moreover, we urge Australians to take pride in the emerging movement, which showcases the good old Aussie ingenuity of making things happen.

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  • Product development in a hyper-connected world

    1. 1. Product innovation in a hyper-connected world Centre for the Edge, Australia The Australian Maker Movement
    2. 2. The recent announcements by Holden, Ford and Toyota to cease automotive manufacturing in Australia made clear the industrial challenges that the country faces. Lamentations over the predicament of our country’s manufacturing industry have dominated headlines over the past year with economic modelling by the Australian Productivity Commission predicting that the end of local car manufacturing may cost up to 39,000 jobs in total as factories across the country shut down. Australia is facing industrial challenges
    3. 3. 3 There is, however, a light behind the storm clouds
    4. 4. The future of Australian manufacturing is fundamentally shifting. The future of manufacturing in this country could lie with our emerging Maker Movement. 4
    5. 5. Making is the next generation of inventing and do-it-yourself. The act of making is not new. For millennia people have been manipulating objects to suit their needs. What is new is how modern technologies, globalisation, and cultural shifts are enabling and motivating individuals to participate in making activities and removing barriers from design and prototype to manufacturing to selling and distribution. What is “Making”? 5Image source: Alan Levine
    6. 6. As Chris Anderson puts it, “We are all born makers”. A maker is someone who derives identity and meaning from the act of creation. What distinguishes contemporary makers from the inventors and DIYers of other eras is the incredible power afforded them by modern technologies and a globalised economy. Today makers can create hardware to explore the deep ocean, to go into space, and to solve critical problems that were previously the domain of large, well-funded organisations. Who are “Makers”? 6Mark Pesce, creator of Moorescloud
    7. 7. What distinguishes contemporary makers from the inventors of other eras? The maker ecosystem empowers contemporary Australian Makers to bring innovations to market. 7 The DIYer is now less of a putterer and more of a player. Ted Hall, CEO of ShopBot Tools
    8. 8. The Australian Maker Ecosystem
    9. 9. The Australian Maker ecosystem 9 Online marketplaces Technology Platforms which inspire and teach new skills Physical Maker Spaces that provide access to tools and mentorship Access to manufacturing hot-spots to meet massive scale products, but also to produce small batches more economically New financing options that allow hobbies to scale into business Image source: Pierre Pocs
    10. 10. What role does technology play? • Cost-effective computer and communication technology facilitates connectivity, sharing and learning • Australians are technologically voracious and interconnected–building a strong digital info-structure for the emerging movement • The cost of hardware has dropped sufficiently to allow it to be hacked like software. 10
    11. 11. Founder Phil Bosua trained as a sparky. Phil’s light bulb moment came while enjoying a couple of beers at a friend’s house. LIFX light bulbs are multi-coloured, energy-efficient, Wi-Fi-enabled LED light bulbs. Phil raised over $1.3 million on Kickstarter and pre-sold 110 thousand units. LIFX has secured major global retail partners. A successful Maker 11
    12. 12. What could you make? The Super Awesome Micro Project makes a statement about the possibilities offered by our ‘non-linear hyper- connected society’. Steve Sammartino, project founder A whacky idea transforms into a reality! A life-sized car, made entirely of Lego, running on air, that really can be driven along a road.
    13. 13. • The maker movement is backed by the Australian government, schools and universities. • Supply and demand curves are changing. In 10 years-time institutionalised industry leaders will be saying “Why didn’t we see that coming?” Making is not a fad or a trend Making is a movement 13
    14. 14. We can see the movement gaining momentum
    15. 15. Remember the impact of digital disruption on traditional media companies? The digitization of information empowered people’s desire to create. The growth of free content create, initially, by amateurs, drove many media companies into terminal decline. Learn from the past 15Image source: Eileen Warren
    16. 16. Digital disruption is now moving into the physical and product level. Look to the Maker Movement to understand the economic landscape to come Learn from the past 16Image source: John Abella
    17. 17. Take pride in your movement It showcases good old Aussie ingenuity and a desire to get things done. Help shape its direction. 17
    18. 18. • Boost sensing capabilities • Leverage platforms for R&D • Accelerate learning • Reimagine the enterprise as a platform. The Make Movement represents opportunity 18
    19. 19. Product Innovation in a hyper connected world The Australian Maker Movement Read our report Product innovation in a hyper connected world. Observe how successful Australian start-ups find ways to participate, learn, and shape the movement. Follow our suggestions from ‘How to Make Something of the Maker Movement’. How to take action 19
    20. 20. Peter Evans-Greenwood (email) Fellow Centre for the Edge, Australia Peter lives at the intersection between business and technology, and has held leadership roles in global organisations as well as start-ups and research and development labs. Contact Peter Williams (email) Chief Edge Officer Centre for the Edge, Australia Peter is an innovator and thought leader, founded the eBusiness Consulting group in Deloitte, was CEO of The Eclipse Group as well as founding Deloitte Digital. Contact Kitty O’Leary Summer Fellow Centre for the Edge, Australia Kitty is voraciously learning about the edge of business and technology, bringing perspective to her work from a background that spans corporate life and art history. Author Eddie Harran Explorer-In-Residence Centre for the Edge, Australia Eddie has spent the last seven years immersing himself in edge communities across Europe, the U.S. and Asia Pacific and now focuses on education & community building. Author Helping make sense of emerging opportunities at the edge of business and technology The Centre for the Edge 20
    21. 21. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. About Deloitte Australia In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit Deloitte’s web site at Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited © 2014 Deloitte Touche Tohmatsu. MCBD_Syd_06/14_050317