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Productivity Resources Sustainability

Beyond Ownership: Business models for sustainable, smart appliances

Watch a short video explaining the potential of shared ownership business models in the manufacturing sector.

Research overview

What factors the drive consumer adoption of digitally enabled products?

This project, from InterAct funded researchers, has investigated the assumption that a lack of consumer demand lies behind manufacturers’ underinvestment in Industrial Digital Technology. It focused on domestic washing machines as a widespread product that could be ripe for innovation, and which is under pressure to improve its environmental performance.

The findings suggest that consumer resistance to digital features stems from a lack of clear perceived benefits. While manufacturers focus on promoting the technological features of their products as a competitive advantage, customers value outcomes and experience offered. Moreover, customers expressed a dislike for refurbished washing machines and scepticism about alternative revenue models as potentially exploitative. Demonstrating value for money and cultivating trust are major challenges.

For manufacturers, the key recommendation is to place the customer’s experience and expected outcomes (e.g. peace of mind and clean clothes on demand) at the heart of their innovation, rather than emphasise product features.

Technology should be harnessed to support delivery of such outcomes and may be enabled through business model innovation. For example, assured maintenance leading to peace of mind can be delivered through a combination of digital technology (condition monitoring, predictive analytics etc) and business model innovation (shared ownership, access-based service etc).

You can find out more about the project, it’s findings and the team’s recommendations in the full report below.

This research was conducted by Ahmad Beltagui (Aston Business School), Ana Isabel Canhoto, Daniela Castillo, Amireza Alizamani (University of Sussex – Business School), Ramin Behbehani (Brunel Business School) Niraj Kumar (Essex Business School), Maren Schnieder (Anglia Ruskin University). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or to propose potential applications/collaborations, please contact Ana Canhoto or Ahmad Beltagui.

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Productivity Resources

Webinar – Unlocking the UK’s regional manufacturing productivity

Watch the full recording.

Research overview

This webinar, led by InterAct researchers in partnership with The Productivity Institute’s ‘Midlands Productivity Forum’, offers an analysis of the comparative productivity of the manufacturing sector across different UK regions, specifically the East Midlands, West Midlands, and Yorkshire. Drawing on data from the Office for National Statistics (ONS), the manufacturing sector has been identified as the largest contributor to output growth per hour, with a rate of 0.7 compared to 0.1 for the total UK industries, underscoring its critical role in driving regional economic performance.

Expert researchers from InterAct’s ‘Future of the Economy’ team will examine findings of a recent report exploring key factors affecting regional productivity. You’ll hear more about the impact of collaborative R&D grants that foster technological advancements and innovation, as well as labour market dynamics that ensure the availability of skilled and adaptable workers. Our team will then highlight how the innovation ecosystems of these regions contribute to building resilience in the manufacturing sector.

The insights derived from this analysis are intended to support stakeholders—including regional policymakers and industry leaders—in making informed decisions to enhance regional economic growth. Join us on November 4th to find out more, as we work to promote a more productive, resilient, and sustainable manufacturing sector across the UK, ensuring long-term economic growth.

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People Resilience Resources

W20 UK: ‘Future of flexible work’ report 2024

Research overview

Workplaces are experiencing rapid transformational change. Flexible working is key to future success, attracting and retaining a talented workforce and a competitive edge, and enabling people with caring responsibilities or other significant commitments to juggle the competing demands of work and their personal lives and well-being. 

The UK government has recently announced plans to give full time workers the right to request a four-day work week from day 1. The W20 UK Future of Flexible Work Report covers the current flexible working landscape, responding to new flexible working legislation, and gives recommendations for government, employers and employees on “dancing the tango with flexible work” to achieve a successful outcome for all with better work-life balance.

Work-life balance and flexible working play a pivotal role in empowering women to fully engage in the workforce while managing care and domestic responsibilities. Women often bear a disproportionate responsibility for caregiving and domestic duties and flexible work options can enable them to navigate their personal and work roles more seamlessly. This report highlights the significance of accommodating diverse needs through flexible working practices, particularly for women juggling multiple responsibilities. 

By highlighting best practices among employers who have embraced flexible work, the report emphasises the importance of creating inclusive workplaces that consider employee well-being as synonymous with productivity. By offering flexibility in work arrangements, organisations can not only attract and retain valuable talent but also foster a culture of equality and support, ultimately contributing to better employee outcomes and greater gender parity in the workforce.

This research was conducted by Ann-Maree Morrison and Barbara Cleary (W20 UK Co-Chairs).

For further discussion or potential collaboration, please contact Ann-Maree Morrison MBE.

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Productivity Resilience Resources Sustainability

Remanufacturing in the aerospace industry: Perceptions and practices of circular economy business models in aerospace small to medium-sized enterprises

Research overview

Global aviation currently contributes approximately 2% of greenhouse gas emissions; the projected growth in global aviation will create annual CO2 emissions of 1.8 billion tons by 2050. Consequently, the sector has made a commitment to achieve net-zero carbon emissions by 2050.

Government policy strategies such as the Aerospace Sector Deal, Jet Zero and Destination Zero focus on sustainable aviation fuel and aircraft efficiency for the transition to zero emission flight. Although, attention to the whole aircraft life cycle including design, manufacture and recovery has been relatively lacking.

This project sought to support SMEs in the aerospace manufacturing industry by exploring remanufacturing business models, a form of Circular Economy Business Model (CEBM), to help them move towards a sustainable future.

Embracing the ‘Circular Economy’ can minimise the consumption of finite resources as well as the production of waste and emissions. CEBMs, which are often represented as R-imperatives or R-models, can not only contribute to sustainability but also to business model innovation by extending the value proposition to value recreation, redelivery, and recapture.

This project conducted case studies of five SMEs in the UK aerospace industry to explore:

  1. The extent of their current practice of, and plans for, remanufacturing
  2. Barriers they face in their current or potential remanufacturing business models
  3. Drivers for them to engage with a more sustainable business model

Find out more and download the full report below.

This research was conducted by Dr Rachael Lamb (University of Bristol), Dr Eun Sun Goodwin (University of Wolverhampton), Dr Michael Rogerson (University of Sussex) and Dr Alisha Tuladhar (University of Surrey). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

Categories
Productivity Resilience Resources

Accelerating Industrial Technology Digital (IDT) adoption in UK manufacturing through Open Innovation

Watch a short explainer video about how manufacturers can use an Open Innovation approach to effectively partner with industrial digital technology experts to future-proof their business.

Research overview

If solutions involving Industrial Digital Technologies (IDTs) that meet the needs of UK manufacturers are readily available, they can be obtained through market-based contracts or licensing agreements. However, some manufacturers may have more complex requirements that necessitate highly customized solutions or even the development of new technologies. In these situations, manufacturers and IDT providers may need to engage in Open Innovation.

Open Innovation (OI) means working with external partners to find solutions to innovation-related problems. It is a distributed innovation process based on purposively managed knowledge flows across organizational boundaries.

InterAct funded researchers offer new Open Innovation insights, allowing manuacturers to use an Open Innovation approach to effectively partner with industrial digital technology experts to future-proof their business.

Both systematic research and anecdotal evidence show that OI has many benefits, such as:

  • Improved time-to-market
  • Access to a wide variety of external knowledge
  • Reduced costs
  • Shared risk

This research was conducted by Dr. Andrei Gurca (Queen’s University Belfast) and Dr. Kate Broadhurst (Loughborough University). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussion or potential collaboration, please contact Andrei Gurca or Kate Broadhurst.

Categories
Productivity Resilience Resources Sustainability

Transforming supply chains: UK Supply Chain Survey 2024

Research overview

A new survey of manufacturers and technology companies has revealed the key challenges facing companies when it comes to digitalisation of supply chains. The Digital Supply Chain Hub programme has conducted its own research uncovering organisations’ attitudes towards the digital transformation of supply chains. Interviews were held with supply chain professionals in large manufacturing businesses and SMEs, as well as technology and innovation professionals developing solutions for supply chains.

It has revealed that insufficient resources are one of the most common barriers to digital transformation when it comes to supply chains. There is a growing need to upskill workforces in using new digital technologies and deep tech such as the internet of things and artificial intelligence. Enhancing efficiency and automation, building resilience against disruptions, and developing a more sustainable supply chain are key priorities for large manufacturing businesses while SMEs surveyed are slightly less likely to be prioritising supply chain digital transformation, with 14% saying they don’t currently have any supply chain top priorities.

Overall, the research shows that there is considerable appetite for digital supply chain solutions and that large businesses in particular are prioritising this crucial development.

However, talent shortages, market competition, and access to funding are most likely to be preventing technology and innovation professionals from developing and providing innovative digital supply chain solutions to UK manufacturers, with a need for further investment and robust policies to drive transformation.

The data can be explored using the interactive graphs, examining differences in views from large manufacturers when compared to SMEs. Regional variations in supply chain challenges can also be examined.


Take the next step and connect to a community of supply chain experts, tools, and resources with the Digital Supply Chain Hub.

Building on the research and business engagement of the programme, the Digital Supply Chain Hub platform has been designed to facilitate strategic collaboration between manufacturers and digital solution providers. The platform will meet industry demand to accelerate the digitalisation of supply chain operations, driving resilience and sustainability through the application of deep tech solutions.

The hub is accessible to businesses of all sizes and can help tackle problems often encountered during the search for a suitable supply chain partner. The platform provides matching capabilities to connect companies with the right partners for their specific needs. The hub also offers educational courses to address key skills gaps and provides tools for companies to assess their current supply chain resilience and data readiness.

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People Productivity Resilience Resources

Digital Transformation: A Made Smarter roadmap for SME manufacturers

Research overview

Are you running a UK manufacturing business and looking to embark on a digital transformation journey? If so, this free whitepaper is the perfect place to start.

Aimed at ambitious SMEs it acts as a guide, explaining the concepts of digitisation, digitalisation, digital transformation, and continuous improvement.

Made Smarter help manufacturers better understand and navigate current and future trends and make the case for how industrial digital technologies can solve problems and create growth opportunities.

This whitepaper explains the process of how we support SME manufacturers with digital transformation through grant funding and skills and leadership training programmes. It also showcases some of the hundreds of businesses who have benefitted from our intervention across the country.

Finally, hear from Made Smarter partner organisations such as Make UK, the Centre for People-Led Digitalisation (PLD) and InterAct on how they are working with Made Smarter towards a common goal and find links to the best resources available to get you started with digital transformation today.

Categories
People Resources

Flexible working and manufacturing

Research overview

Flexible working continues to increase, including for frontline workers, according to new data from the flexible working experts at social business Flexibility Works.

Did you know 67% of workers work flexibly, up from 61% last year and 46% before the pandemic? Now, 85% of workers either already work flexibly, or would like to.

The spotlight on flexible working is moving from hybrid for home workers to different types of flexibility that frontline workers, like those in manufacturing, can use to improve their work life balance and wellbeing, and deliver significant business benefits too.

You can download Flexibility Works’ Flex for Life 2024 report free to access:

  • Big picture flex: A short, need-to-know overview of what’s happening with flexible working in workplaces.
  • Business case for flexible working: Latest data evidence from employers and workers.
  • 7 Steps to flex: Data-driven guidance on how to get flexible working right, including in frontline industries.
  • Business stories: Examples of where flexibility is working well, including McAllister Litho Glasgow’s print factory.

The report is based on data from Scottish employers, workers and unemployed adults looking for work and is Scotland’s most comprehensive analysis of flexible working. The findings are similar to UK-wide studies.

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Productivity Resources

Process Oriented Holonic (PrOH) Modelling Methodology

A short video explaining the benefits of, and reasoning behind, the development of the PrOH Modelling methodology

Research overview

PrOH Modelling is a type of soft systems methodology that is used to enquire into and improve complex systemic organizational process problems. As a soft systems methodology PrOH Modelling emphasizes understanding, definition, consensus building and action taking to solve problems. It is particularly useful in processes that are dependent on lots of human activity and decision making, have a high degree of subjectivity and have numerous different stakeholders with diverse backgrounds and opinions. PrOH Modelling is best used in an action research or intervention based context where a researcher is an active participant in organizational strategy and operations and is able to maintain an independent and objective perspective.

The PrOH Modelling approach has been successfully applied in numerous manufacturing contexts including:

  • Improving leanness and productivity in automotive manufacturing
  • The challenges of digitalizing an aerospace supply chain
  • Upscaling supply chains for the manufacture of electric vehicles

The prohmodeller.org website exists for the community of PrOH Modellers. This includes those who wish to use it for academic research projects such as masters dissertation or doctoral theses, those who wish to use it for change projects in their own organizations, or in a consulting capacity in other organizations. We also welcome users to develop the method and share new case study examples with the community.

This research was conducted by Professor Ben Clegg and Dr. Krishna Balthu (Aston University). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or to propose potential applications/collaborations, please contact Ben Clegg.

Categories
Productivity Resilience Resources

Industrial digital technologies for UK SME exporting manufacturers

Research overview

This research project examines the drivers, barriers, and performance outcomes of adopting industrial digital technologies (IDTs) in UK manufacturing firms. The findings outlined in the report and toolkit provide insights on the interventions that facilitate IDT adoption to enhance the performance of SME manufacturers exporting to international markets.

The project collected primary data from focus groups, interviews and a survey of 303 UK manufacturing SMEs currently exporting products. The outcomes from this primary research were used to develop an IDT adoption toolkit and decision-making model. This toolkit allows UK SME manufacturers to benchmark their level of IDT adoption against the industry standard, to identify which specific IDTs will have the greatest impact on improving their business performance across many indicators, and additionally can direct users to the digital solutions most relevant to their needs, thereby simplifying the process of IDT adoption.

Dr Hanh Pham, Dr Richard Hodgett and Prof Chee Yew Wong (University of Leeds). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or to propose potential applications/collaborations, please contact Hanh Pham.