The document discusses the significant role of innovation and digital manufacturing in revitalizing the U.S. manufacturing sector, highlighting increased R&D investments and the importance of prioritizing innovation portfolios. It emphasizes the collaboration between industry, academia, and government through the Digital Manufacturing and Design Innovation Institute (DMDII) to enhance efficiency and economic growth. Key challenges include product failure rates and the necessity for intelligent decision-making frameworks in R&D investment to drive successful outcomes.

2. Today’s speakers
Jacob Goodwin
Digital Manufacturing
and Design Innovation
Institute (DMDII)
jgoodwin@uilabs.org
Tearsa Coates
Decision Lens
Sr. Product Marketing
Manager
tcoates@decisionlens.com

3. Innovation is the future of manufacturing
Innovation and R&D have spurred a major upswing in
manufacturing investment
Manufacturing Private Fixed Investment in R&D
($Bn)
National Science Foundation, Science and Engineering Indicators
The growth rate of manufacturing firms is at its fastest pace
since 1993 (U.S. Census, Business Dynamics Statistics)
Manufacturing represents 60% of all U.S. R&D employees
and 75% of U.S. private sector R&D (Bureau of Economic Analysis, Dept of
Commerce)

4. … More specifically, digital innovation
DIGITAL DESIGN
Examples include 3D printing, rapid and low cost prototyping,
innovation networks, and crowdsourcing
Executive Office of the President, June 2014
DIGITAL MANUFACTURING
“New technologies are lowering the cost and reducing the time
required…to design, test, and produce new products, creating a
new source of advantage for U.S. manufacturing”
MIT Production in the Innovation Economy Commission, 2013
BIG DATA
The iterative innovation cycle between engineering and production
on the shop floor is responsible for…firms increasingly reconnecting
production with development and design.
Executive Office of the President, June 2014

5. But the stakes are very high
Over 250,000 new products launched annually (Forbes)
66% of new products fail within the first 2 years (Booz & Co)
96% of all innovations fail to return their cost of capital
(Deloitte – Doblin Group)
Cost of new drug development $350M-$1B; of new
medical device $25M - $100M (Forbes)
~75% of all new CPG and retail products fail to earn
$7.5M in first year (HBR)

6. One cause? Lack of prioritization.
(Source: Booz & Co Global Innovation Study 2013)

7. (Source: Booz & Co Global Innovation Study 2013)
One cause? Lack of prioritization.
1. How can you intelligently and
strategically evaluate your innovation
portfolio and elevate the ideas that
will truly resonate in the
marketplace?
2. How do you set organizational
priorities against which to compare
your unique R&D investment
portfolios?
3. How can you combine your disparate
data sources with expert judgments
for a clear view of your highest ROI
investments?
Prioritization

8. Decision Lens is a strategic prioritization
and enterprise resource optimization
solution for critical decision-making in R&D.

9. Dozens of Leading, Global Organizations Use
Decision Lens for Portfolio Prioritization
Commercial State and Local Federal

10. Innovators Spotlight: DMDII
Transforming U.S. Manufacturing Through
Digital Innovation
The Digital Lab for Manufacturing is a Chicago-based
manufacturing hub designed to explore
innovations that significantly reduce the time and cost
to design, source, and manufacture.
DMDII leverages industry-academia-government
partnerships to ensure the secure integration of digital
manufacturing and supply chain data, creating billions
of dollars in value for the industrial marketplace and
spurring long-term U.S. economic growth and job
creation.
Jacob Goodwin
Director of Membership
Engagement and
Communications
DMDII

11. DIGITAL LAB FOR
MANUFACTURING
"I’m here to announce that we’re building Iron Man…
Not really. Maybe. It’s classified.”
- President Obama

12. TODAY’S MANUFACTURING
• Materials: Rising costs and supply
constraints
• Production Overcapacity: reduced
profitability
• Labor: Increasing costs globally, skills
gap
• Outsourcing: separation of designers
and makers has stunted innovation
• Barriers for Sharing Data and
Information: technology, skills,
incentives, security, trust, IP, standards

13. FUTURE MANUFACTURING
• Digital link between design and
fabrication
• Connected machines, factories,
and supply chains
• Transparency into supplier
factories
• Data aggregation, analysis, and
action across the product lifecycle
• Leverage the power of data and
networks for rapid innovation

14. WHAT IS DIGITAL MANUFACTURING?
END OF
LIFE
REUSE
RECYCLE
11001011
PRODUCT LIFECYCLE
AFTER-SALES
SERVICE
11010010010001111011010101111011111
01
SELL &
DELIVER
1010110110100001010010010001111011111010101111011111010111110
1111
FABRICATE
FABRICATE
FABRICATE
QUALIFY
0101010011010101011011010101001001001010010010001111010101011110111110101111101111101
ASSEMBLE
10110110101010101000001101001110111011011010101001010010010111101010010001111010101111011111010111110111110101111101
FABRICATE
000100101010111101010100110101110001011110110100010010001101010101101101010100010101011011010110100111101111101011111011111010111110111110101
DESIGN
101111011010011110111011010111011100110111001011010010001101010101101101010100100100011110101001010010010001111010111111110111110101111101111101011111011111010111110111
1101011111
DATA IS GATHERED AT EVERY POINT ALONG THE CYCLE AND
AGGREGATED IN THE DIGITAL MANUFACTURING COMMONS
DATA
INFORMATION
DECISIONS
VALUE

15. DIGITAL LAB AS ACCELERATOR
ACCELERATE TECH TO MARKET
BIG
MARKET
NEED
UNIVERSITIES &
RESEARCH INSTITUTES
THAT MAKE A LOT OF
TECHNOLOGY THAT
DOES NOT GET USED
INDUSTRY
COMMERCIALIZATION
THAT ADOPTS ONLY
THE MOST MATURE
TECHNOLOGIES
FEDERAL
FUNDS
PRECOMPETETIVE
COLLABORATION
POOLED
INDUSTRY
RESOURCES
INDUSTRY
EXPERTS

16. $320 MILLION
$70 million cooperative agreement
with the U.S. DOD and matching
$250 million from industry,
academia, government and
community partners.
30+
Academia,
government,
and community
partners.
6 OF THE
TOP 20
Engineering schools in the
country, with more than 12%
of all engineering & computer
science students graduating
annually in the U.S.
220,000
Partners, and more, ready to
connect with the more than 185
small and medium sized
businesses that have joined
already.
MORE THAN 315
Local, regional, and national
organizations, community
colleges, and MEP networks
have committed their support.
500+
Supporting companies –
including world class leaders
in defense and commercial
manufacturing industries.
40Industry
partners
THE PARTNERSHIP

17. Create an
Innovative Ecosystem
Increase the innovative capacity of
OEMs and their suppliers through
digital integration and strategic
collaboration.
A partnership of world-class
companies including:
Top engineering schools and the
world’s most powerful computer
including:
Proven talent from a consortium
of state, educational, and
vocational institutions:
Source: McKinsey Global Institute and team analysis
Commercialize
Research
Move ideas from TRL 4-7 through a
network of physical and virtual
demonstration sites.
Strengthen the
U.S. Economy
•$100B in value to OEMs per year
•$30B in value potential to DoD / year
•75,000 jobs created in the first 5 years
OVERVIEW

18. Utilization of high performance
computing to model materials,
products and processes to
enable “design with
manufacturing in mind”.
INTELLIGENT MACHINING
(IM)
ADVANCED ANALYSIS
(AA)
Integration of smart sensors
and controls to enable
equipment to automatically
sense and understand current
production environment in order
to conduct “self-aware
manufacturing”.
THREE FOCUS AREAS
ADVANCED MANUFACTURING ENTERPRISE
(AME)
Agile and robust manufacturing
strategies and integrated
capabilities that dramatically
reduce the cost and time of
producing complex systems and
parts.
OPEN SOURCE PLATFORM
HUB & SPOKE MODEL
DIGITAL
COMMONS A 'hub and spoke' model, where the 'hub' will be the
An open source
technology system across
the entire manufacturing
value chain.
Digital Lab for Manufacturing based in Chicago and
the 'spokes' will be all the applied research on the
manufacturing floors of our partners across the US.
NATIONAL
NETWORK
TECHNOLOGY THRUST

19. PROPOSED* FIRST YEAR PROJECTS
Digitized Factory
optimization
Mobile predictive
maintenance
Next-gen
product design
analytics and
platform
DIGITAL
DESIGN
DIGITAL
FACTORY
DIGITAL
ECOSYSTEM
Intelligent
Machine plug &
play solution
Advanced
analytics
and real-time
shop floor
feedback
CAD-CAM
interoperability
Crowd
source
design
Small, Medium
Enterprise
(SME) portal
Legacy parts
remanufacturing
Supply chain
optimization
DIGITAL LAB’S INITIAL THREE PROJECTS
* Subject to partnership approval

20. http:digitallab.uilabs.org
QUESTIONS?
DIGITAL LAB FOR
MANUFACTURING

21. Want to learn more?
Videos, Research, and Resources
R&D: innovation.decisionlens.com
Capital Planning: capitalassets.decisionlens.com
October 16th at 12pm Eastern
Evaluating Risk and Reward in Innovation
Projects
http://bitly/register-riskandreward
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