Advanced Materials Systems
Challenges associated with traditional business models of selling materials by volume have become increasingly apparent in overall industry performance over the last two decades. Increasing commoditisation and competition, driven by a large and growing portfolio of global players, are putting significant pressure on companies to identify new sources of value to drive growth. At the same time, many companies have been struggling with innovation and often have to rely on other approaches to achieve their growth objectives.
As a result, many sectors of the manufacturing industry have seen significant rates of erosion in value creation over this same period of time, and many companies now realise that new approaches to value creation will be necessary for success in the future. Meanwhile, industries that are enabled by materials are particularly well poised to capture value in current global markets through the development of new functional solutions to address global unmet wants and needs.
DTTL’s Global Manufacturing Industry group’s Advanced Materials Systems (AMS) framework provides a new approach for companies to target these opportunities for innovation and invigorate value creation. The approach urges companies to move beyond the frontier of invention of new molecules and materials into the realm of functional solutions as a new source of growth and innovation.
Achieving the desired outcomes/results, however, will require additional and different types of capabilities and approaches beyond those required for the invention of new materials. For example, system-level design and engineering will be a core capability necessary to leverage combinations of both new and existing materials and process technologies. In addition, new business models, together with new approaches to partnerships and collaborations that extend well beyond current concepts of “open innovation,” will likely be essential to create and grow new businesses based on functional solutions. The AMS concept is therefore a call to action for players in the AMS ecosystem to rethink conventional strategies and approaches for creating innovation and growth.
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