Knowledge Processes and Networks
Automotive Sector
Ulrich Jürgens/Antje Blöcker/Stewart MacNeill
Birmingham , 10 April 2008
European Core Industry
Source: Alphametrics 2008
below 1
1 - 2
2 - 3
3 - 4
4 - 5
above 5
Employment in NACE 34 in % total employment
2006(NUTS 2 level)
Regional location of jobsThe process of regional
specialisation develops
around innovation clusters
Source: Alphametrics 2008
Restructuring
OEM affiliateor spin-off
Supplier
Sub supplier
OEMlocation country A
OEMOEM
Outsourcing(near/far)
Off-shoring
Allied orrival OEM
OEM affiliateor spin-off
Sub supplier
Supplier
Sub supplier
Allied orrival OEM
Supplier
The caravan moves on
Country B
Restructuring Dynamics – Crossing Organizational and National Borders
Source: Blöcker/Jürgens 2008
Worlds of Production
Standardised
Specialised
Generic
Dedicated
Sports cars Motorsport
Niche Vehicles
Luxury Cars
Mass Production
High investment in R&D expensesOEM dominated knowledge processes in in-house research centre (centralisation) and Simultaneous Engineering Centre, Segmentation in basic research and series development
R & D expenses and operating investment - in% of turnover -
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
DCX VW PSA Renault Fiat auto GM Toyota Ford Nissan BMW
20022003200420052006
Source: Alphametrics 2008
Character of Knowledge Processes
• multi-technology industry: with no specific analytical base/scientific discipline as a point of departure. Specific to the auto industry are the requirements and capabilities of technological integration.
• multi-actor industry, composed of a multitude of specialists and with a strong, ongoing trend towards further specialization (new business models
• multitude of interfaces– Interfaces between academic disciplines. Differences in the methods and mindsets of
people with a background in mechanics and electrics/electronics have recently been playing an increasingly important role (not least as a source of problems).
– Interfaces between functional organizations within firms. The classical interface is that between product development and production.
– Interfaces between firms and other external actors involved in processes of various sorts.
– Interfaces between hierarchical levels and between planners and executors of work (as exemplified by the classical Taylorist divide).
• New important role of non-automotive knowledge (e.g. from the health sector or from aerospace)
• Many contradictory goals and interests
OEM
R&D-Department
System- Supplier(e.g. Door-Modul, Frontend,
bumper, plastic tanks
Engineering Service Firms
Small specialzed Engineering Firms(construction,
Rapid Prototyping,Simulation)
Software- Service Firms(CAD-Systeme, Data-managementsystems)
Consultants(e.g. Projectmanagment, Simultaneous
Engineering, TQM, Kaizen)
Parts- and Components-Suppplier(e.g. glas, gaskets, tubes
Primary Service Relation
Secundary ServiceRelation
Adapetd from Rentmeister 2003
• OEM control over system architecture: Examination is the core process of knowledge creation and transfer as an integral part of all phases
• 1st-tier-Supplier control over new knowledge areas(electronics, new materials ...)
• Universities & research institutes play an increasing role in basic research, e.g. engine technology: New local/regional public-private Innovation Networks for analytical knowledge
• Engineering Service Firms are agents of 'Open Innovation and for non-automotive competences
Knowledge Networks?
Challenges: Knowledge dynamics
• Diversity and distribution• Closed proprietary knowledge• Front-loading• Protection of knowledge• Digitization• Labour mobility and knowledge
migration
Changing structure of occupations
Percentage point change in division of employment in EU15, 2000-2007
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0Expanding jobs
Source: Alphametrics 2008
Very low share of women: 94 % of engineers and 93 % of skilled workers are men
Engineers-5
0
5
10
15
DE ES FR ITEU15
NMS
DE ES FR ITEU15
NMS
Business, finance, salesSkilled workers
-4
-2
0
2
4
6
8
10
DE ES FR ITEU15
NMS
DE ES FR ITEU15
NMS
Production line workers
Change in % of women employed between 2000 and 2007
Professionals Skilled and semi-skilled worker
Source: Alphametrics 2008
Knowledge Categories
Analytical Synthetic Symbolic
Exploration(Search and research)
Basic physics, chemistry-Thermodynamics-Acoustics-metallurgy
Product-Sensors, electronics, systems, hybridsProcess-Systems design, integration teamsSupply matrixDownstream relationsMarket research
-Societal and political trends-Brand image and perception (values)-Demography, Health
Examination(Trialling, testing, standard setting, benchmarking)
Test/trial-Catalysts-Dynamics-Noise and vibration-Fuels/efficiency
product and process triallingRegulation-Safety-Environment-(homologation process)Production methodsLogistics – upstream and downstream
Styling -Concepts – aesthetic and ‘hard’ innovations interaction
Exploitation(Commercialisation)
Specialist firms-e.g., engine, chassis, body+-Universities and research institutes
Commercialisation- product mix- Supply matrix and logistics management-Patenting – specialist firms and research institutes
-Branding, brand values-Communication, PR, (selling) -Presentation-Downstream-Dealerships-Specialist Firms
Policy Fields
Knowledge Target Policy
Implicit - organisations
Networked
Explicit knowledge targets
Top down aimed at mass production ( Pre-1975 – mid 1990s)
Shared – but increasing local influence 1995 - 2004
Local Strategy –knowledge based Regional specialisms 2004 onward
Public support Science/business parks Location Grants
QCD measures Networking Clusters
Science/engineering Centres of Excellence New technology
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