This is the executive presentation I held at IDTechEx conference on Printed Electronics in April 2014 in Berlin on "Software Defined Supply Chain".

1. The New Software Defined Supply Chain:
How New Technology Is Re-Writing The Rules for Manufacturing, Global Trade & Investment
IBM Institute for Business Value Berlin, April 1st 2014
© 2014 IBM Corporation© 2014 IBM Corporation
Thorsten Schröer
thorsten.schroeer@de.ibm.com
+49 172 2039067

2. People can have the Model T in any
© 2014 IBM Corporation© 2013 IBM Corporation2
People can have the Model T in any
color – so long as it’s black.
HENRY FORD

3. Ford Automotive Output, 1901-1914
$5 Daily Wage Introduced
Assembly time down to 1.5 hours
© 2014 IBM Corporation3
Shift to moving
production line
Model T Introduction
Assembly Time Per Car: 14 Hours

4. Ford Automotive Output, 1901-1924
© 2014 IBM Corporation4

5. STANDARDIZATION MODULARIZATION DIGITIZATION
© 2014 IBM Corporation5

6. PARTSCUSTOM STANDARD
3 KEY RULES
OF PRODUCT DESIGN
© 2014 IBM Corporation6
COMPONENTS MODULESASSEMBLY
MECHANICAL DIGITALCONTROLS

7. 3 CHARACTERISTICS
OF INDUSTRY STRUCTURE & TRADE
Economies of Scale BIG
© 2014 IBM Corporation7
Multi-Tier Supply Chains COMPLEX
Low Cost Supply Chains GLOBAL

8. © 2014 IBM Corporation8

9. 3 NEW
TECHNOLOGIES
3D PRINTING OPEN SOURCEINTELLIGENT ROBOTICS
© 2014 IBM Corporation9

10. STANDARDIZATION
3D PRINTING
NO ECONOMIES
OF SCALE
COST PER UNIT VOLUME PRINTED
$/CUBIC CM - BLENDED AVERAGE
-
© 2014 IBM Corporation10
ON DEMAND
MANUFACTURING
LOCATION
ELASTIC
-
79% -
92%

11. MODULARIZATION
ROBOTICS
HARD
AUTOMATION
FLEXIBLE
TYPICAL COST PER ROBOTIC
ASSEMBLY STATION
© 2014 IBM Corporation11
FLEXIBLE
ROBOTICS
INTELLIGENT
ROBOTICS
-
90%

12. DIGITIZATION
INTELLIGENCE
MOORE’S
LAW
OPEN SOURCE HARDWARE
DESIGNS ON THINGIVERSE
© 2014 IBM Corporation12
OPEN
SOURCE

13. HARDWARE CONSTRAINED
BUILD A
MOLD OR
CAST
HARDWIRE
PRODUCTION
LINE
DEVELOP
EMBEDDED
CHIP
© 2014 IBM Corporation13
SOFTWARE DEFINED
PRINT PARTS
DIRECTLY BY
SOFTWARE
RECONFIGURE
ASSEMBLY THROUGH
SOFTWARE
DIGITAL CONTROLS
USING SOFTWARE

14. SOFTWARE DEFINED
© 2014 IBM Corporation14

15. © 2014 IBM Corporation15

16. Will be most
affected by
Strategies
should you
Are the best
locations to
Will these
technologies
Do I need to re-
engineer my
▶▶▶▶ WHO ▶▶▶▶ WHAT ▶▶▶▶ WHERE ▶▶▶▶ WHEN ▶▶▶▶ WHY
© 2014 IBM Corporation16
these
technologies?
adopt to be
competitive?
invest going
forward?
impact
investment
decisions?
end-to-end
business
processes?

17. 4 DIFFERENT PRODUCTS COST
VOLUME
SIZE
COMPLEXITY
PERSONALIZATION
© 2014 IBM Corporation17
WASHING
MACHINE
INDUSTRIAL
DISPLAY
MOBILE
PHONE
HEARING
AID

18. 5 GLOBAL LEADERS
IBM RESEARCH
John Cohn
Phil Reeves Leo Bonnanni
© 2014 IBM Corporation18
John Cohn
PLANT LOCATION
INTERNATIONAL
David Zaharachuk
Mike Watson Alex Scott

19. EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation19

20. EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation20

21. EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation21

22. EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation22

23. EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation23

24. EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation24

25. 1 INTEGRATED MODEL
© 2014 IBM Corporation25
PLANT LOCATION
INTERNATIONAL

26. 3 AMAZING RESULTS
COST
SCALE
© 2014 IBM Corporation26
SCALE
CO2 IMPACT

27. LOWER COST
23%
AGGREGATE NORMALIZED UNIT COST
© 2014 IBM Corporation27
23%
CHEAPER

28. LOWER SCALE
90%
AGGREGATE NORMALIZED
MINIMUM ECONOMIC SCALE
© 2014 IBM Corporation28
90%
LESS VOLUME
REQUIRED

29. NOT NECESSARILY GREENER
AGGREGATE NORMALIZED
CO2 ANALYSIS
9%
HIGHER
© 2014 IBM Corporation29
HIGHER
67%
LOWER

30. SMALL
SIMPLE
© 2014 IBM Corporation30
SIMPLE
LOCAL

31. RECOMMENDATIONS
FOR INDUSTRY
© 2014 IBM Corporation31

32. FULL REPORT & MODEL NOW AVAILABLE
© 2014 IBM Corporation© 2013 IBM Corporation32
FULL REPORT & MODEL NOW AVAILABLE
ONLINE AND ON YOUR MOBILE DEVICE