John Schober, Director of Innovation, MAGNET

Last week, I attended the CoDev 2012 Conference in San Diego–which had as its focus the topics of Co-Development and Open Innovation. This was the eleventh annual such gathering, sponsored by The Management Roundtable and the Product Development Management Association. The conference’s tagline is: “Achieving Higher Open Innovation Returns While Managing Risk, Cost & Uncertainty.”

Open innovation is the practice of looking outside your organization for expertise and/or ideas that can help you pursue new products or new business models.

I expected to hear about a long history of success stories from many of the companies presenting case studies which included large firms such as Corning, Avery Dennison, and Kraft Foods.

What I actually heard was that a disciplined, systemic approach to open innovation that has full backing of the organization is more of an aspiration than a reality right now, as these firms are still working on how to make it work for them.

It should not surprise me that these firms don’t quite have it right because open innovation is difficult, even for large firms.  Getting your organization to make innovation a key element of your business strategy is difficult enough in its own right, and figuring out how to systemically involve others from outside your organization only adds another level of complexity.

The principles of open innovation are definitely worth incorporating into your growth strategies, notwithstanding the challenges described above.

You don’t have to have a formal open innovation program to benefit from outside expertise and exposure to alternate ways of thinking. These benefits include potential new pathways to growth and in many cases a lower total cost of your innovation initiative.

Send me an email if you’d like to learn more about open innovation, as I can share with you some of the presentations from the CoDev 2012 conference.

Robert Schmidt, Senior Consultant, MAGNET

Are you a manufacturer that:

• Has ideas for new products or innovative processes that could deliver double-digit growth?
• Needs help in developing and realizing your growth potential?
• Is ready to work closely with experts through the entire commercialization process, from vetting to launch?
• Wants to be “Meaningfully Unique” in a commodity world?

If your answer to all these questions is “Yes,” we at MAGNET want to reach out to you.

This year, MAGNET is formally launching a comprehensive new program called Partnership for Regional Innovation Services to Manufacturers (PRISM). This is a long name for a program with a simple purpose: help small- to medium-size manufacturers in Northeast Ohio thrive in today’s global marketplace.

PRISM is a new business model and natural evolution of MAGNET’s original mandate. The concept is simple: Help manufacturers realize their growth plans faster, cheaper, and with less risk while creating a continuous flow from innovation thru launch. With PRISM, participating manufacturers will be able to leverage all Northeast Ohio’s many regional assets to create sustained manufacturing growth for Ohio.

PRISM clients will have easy access to MAGNET’s well-documented 4-D innovation process, an entire network of partners, including economic development organizations, government agencies, universities, service providers — and perhaps most significantly, to their peers: other collaborating manufacturers.

To become one of a few selected manufacturers in the inaugural PRISM program, call my colleague contact MAGNET to confidentially discuss your growth ideas and business plans. Call us toll free at (800) 669-2267.

Submitted by Bob Schmidt, Senior Consultant, MAGNET; voice: (216) 432-5346

Aaron Marshall, Product Development Manager, MAGNET Product Design & Development

MAGNET’s Product Development Manager, Aaron Marshall, has been instructing a graduate level class that runs this semester at Kent State University, located in Kent, Ohio.  The goal of the class is to teach students how to come up with ways to make products more sustainable, while using a program called Sustainable Minds.

“Sustainable Minds is a software that allows you to create a baseline of your products,” Marshall says. “It helps the students analyze how sustainable products are.”

This Life Cycle Design II class allows the students to think critically in order for them to come up with unique ideas to improve, redesign and modify components in order to make a product achieve certain standards.

“I’m teaching them how to think differently and how to evaluate a product from the sustainable design standpoint,” says Marshall.

Their final project of the semester will require the students to come up with corporate sustainability goals and then redesign a product to achieve those goals.

Find out more about the MAGNET Product Design & Development group at www.magnetpdd.org

Chris Mather, Managing Director, SMART Center

On Tuesday, January 24, tenants of The Incubator at MAGNET had a networking meeting here in the MAGNET Seminar Room.

For this month’s event, they welcomed Chris Mather, Managing Director of the SMART Commercialization Center for Microsystems, located at Lorain County Community College (LCCC).

In 2010, LCCC received a $5.5 million grant from the Wright Center for Sensor Systems Engineering administered by Cleveland State University to grow new jobs, businesses and educational programs in the high growth industry of sensor technologies.

Mather introduced our tenants to the capabilities of the SMART Center. The SMART Center offers back-end packaging solutions for companies who manufacture sensors, micro-electrical mechanical systems (MEMS) and other silicon-fabbed devices. This morning, our Incubator tenants learned about how the Center can help them with chip packaging, surface mounting, reliability testing, and inspection issues.

Mather also shared that, while the center is currently housed in around a 3500 sq.ft. space, ground was recently broken for a brand new 35,000 sq.ft. facility attached to the LCCC’s Entrepreneurship and Innovation Center.

Mather noted that the SMART Center has been recognized by a national expert as “one of the top centers of it’s kind in the country.” And he emphasized that the SMART Center is “open for business” to all area manufacturers, not just startups.

The SMART Center is just one of Northeast Ohio’s many great resources for our technology-focused Incubator clients. One of our goals at MAGNET is to help our Incubator clients learn about all the resources available to them.

–Contributed by Dave Crain, Director Entrepreneurial Services, MAGNET

Subject matter experts from NASA Glenn Research Center in Cleveland can be made available for free to help you solve a technical challenge you may have with a new or existing product. To help with any other costs that might arise in solving the problem, Cuyahoga County and the City of Cleveland have allocated  $450,000 in low interest loans that companies selected for this program can utilize.

A FREE briefing session explaining all the details will be held at 1:00 p.m. on Wednesday, January 25 at MAGNET headquarters in downtown Cleveland. Register online or contact Linda Barita at (216) 391-7766. For complete details, visit www.magnetwork.org/nasa.

Media Coverage: NASA Glenn teams up with Cleveland, Cuyahoga County for small-business loan program, by Robert Schoenberger, Cleveland Plain Dealer, January 3, 2012

Mike O'Donnell is a Senior Consultant for MAGNET Client Services

For a continuous improvement project to be effective and sustainable, it requires a systems approach involving the entire organization. Management should guide the organization in four fundamental areas to ensure success:

1. Purpose: Maximizing customer value;
2. Process: Continually improving speed and defects for factory and office;
3. People: Involving people in improving the process, providing knowledge, and tools;  and
4. Sustainable Culture: Encouraging change, communicating success, and results.

Here’s an example of how this systems approach to continuous improvement can yield great results, even in industries seemingly unrelated to manufacturing:

During the past several years, MAGNET has worked with healthcare institutions in Northeast Ohio to refine best practice techniques for implementing Lean and other continuous improvement tools in the healthcare environment. The Lean approach’s effectiveness has long been proved in many other industries, including manufacturing, services, business/office processes, and information technology.

For example, in 2009 and 2010, MAGNET partnered with the Humility of Mary Health Partners (HMHP) in Youngstown, Ohio, to pilot a Lean continuous improvement project for HHMP’s three facilities that employ more than 5,000 workers. As a result, in 2010 alone, HMHP realized $1.7 million in savings from reduced overtime.

The HMHP project clearly demonstrated that a Lean and continuous improvement approach is effective in the healthcare environment and delivers significant return on investment.

The method that MAGNET consultants have utilized at HMHP and other healthcare providers in the region is based on acknowledged Lean principles. Key elements include:

• Strategy development with senior management;
• Chartering teams to analyze and execute improvements in areas identified by management; and
• Developing a plan with management to sustain improvements and results in their businesses.

MAGNET’s method includes 10 essential steps:

1. Education on Lean tools, their applications, and barriers to success;
2. Identify critical processes, Lean methods, and metrics for improvement;
3. Prioritize and select key processes for improvement;
4. Develop the case for change, and communicate to the organization;
5. Develop team charters, establish, and facilitate teams for analyzing and implementing solutions in their designated processes;
6. Use Lean tools analyze the current state and develop a future state plan, typically using value stream mapping;
7. Develop an action plan and manage the plan with regular status reviews to implement the improvements;
8. Implemented tracking/reporting tools and education for managers to enable real-time monitoring of process metrics;
9. Ensure public recognition of each team’s success; and
10. Maintain management support for the change process and continuous improvement efforts.

“HMHP is proud of the fiscal responsibility we have displayed in this unprecedented effort and we thank our many employees for working together, with support from MAGNET, to reduce our overtime costs while simultaneously maintaining the excellence in patient care and service that we are known for,” said Robert Shroder, HMHP President and Chief Executive Officer in an HHMP press release dated May 10, 2010.

We at MAGNET are interested in hearing about you and your organization’s continuous improvement results, and the effectiveness of the  methods and tools you use. Comment below or email me at michael.odonnell@magnetwork.org. Let us know what is working and what is not.

MAGNET Executive Vice President Fatima Weathers

As a growth strategy, innovation is not a buzzword that will pass with time.

Successful companies have systems for harvesting and vetting ideas that can lead to growth and competitive advantage. Such systems produce a steady flow of ideas that result in innovative products, processes, or services.

Everything from new products to talent recruitment requires a culture of innovation that permeates every aspect of the firm. Innovation is what differentiates winners from those struggling to keep their heads above water.

High quality and lean operations are not a competitive advantage. They are sine qua non business fundamentals that must be maintained just to stay in the game. Managing the fundamentals won’t move you to the head of the class. Smart manufacturers know this.

So, how does a company establish an innovative culture?

Start by implementing a system for gathering ideas from all corners of the organization and from other organizations.Set goals and establish a process to measure what happens from idea generation to idea implementation. If you can’t figure it out, get help! Invest in capital and talent that will position your organization to accelerate innovations.

It’s time for bold and deliberate steps that lead to double-digit growth.  That is, unless you’re just trying to keep the doors open and the seat warm until you can get the gold watch and sail into the sunset.

Lead By Example!

Submitted by Dan Berry, President & CEO of MAGNET

Vocational Guidance Services (VGS) secures service and product contracts and can provide workers to manufacturers who help meet operational and production needs while advancing VGS’s philanthropic mission. In the case of labor intensive work, temporary labor and services contracts, these workers are VGS employees and VGS therefore pays all of the wages and fringes.

If the employer likes what they see from these workers and decides they would like to hire them as employees, the company then become the employer and pays the wages.

In order for this “Social Enterprise” approach to succeed, VGS knows that commercial price, quality and delivery expectations must be achieved by the participating companies. To help companies meet these expectations while employing people challenged by disabilities, VGS provides a unique blend of social service supports and business management finesse. This enables VGS to provide paid work experience to over 1,000 people daily!

This program helps people dealing with physical disabilities, mental disabilities, economic challenges and/or a history of incarceration find jobs. To discuss how to get involved as a community-based employment site, contact Jim Hudak, vice president of VGS, at (216) 881-6028, or VGS’s sales manager Brad Sommerfelt at (216) 881-6015.

Kristin Hyla, Project Coordinator, MAGNET

Did you ever envision yourself working in a manufacturing job?

Personally, when I was in high school in 2003, the manufacturing industry was completely foreign to me.  If you would have asked me, I would have envisioned a manufacturing job as tiresome, low-paying and dirty.  Who even knew there were options other than a four-year college degree that could lead to a good job?

According to “Addressing Today’s Skills Gap in Manufacturing”, a recent study conducted by Deloitte and the Manufacturing Institute, 60% of people polled showed great interest in a manufacturing job for themselves.  Even better, there are over 600,000 manufacturing jobs currently waiting to be filled!

So why are over half of all manufacturers struggling to fill positions?

There is a gap between the skills needed to do the job and those of the job seeker. This skills gap is expected to take the biggest toll on skilled production jobs and is expected to broaden over time.  According to Deloitte, the U.S. needs to position manufacturing with talent to aggressively compete globally; growth and expansion means an increase in middle class jobs.  Manufacturers recognize they need to develop the talent, but rely on informal and outdated methods to accomplish such tasks.

So what steps should manufacturers take?

One suggestion is to reach students in high school, especially those that are at a high risk of dropping out. We need to take a step back, put ourselves into the students’ shoes and figure out how to make them aware of other educational options.  Manufacturers and educators must present manufacturing jobs outside of the stereotypical box.

Manufacturers can also take steps in the right direction by better connecting with educational institutions, implementing knowledge management plans, mentoring and apprenticeship programs.

Why not give a high-risk dropout student a second chance by entering them into a mentoring program?  Provide mentoring opportunities for the math and science students to learn how the curriculum content relates to the real world.

If more options and programs like this were not just available, but consistently presented to students, I believe we could go a long way towards closing the manufacturing skills gap.

Judith writes: Northern Ohio manufacturers can take action to connect with young talent right now by joining MAGNET’s Manufacturing Ambassador program. Whether traveling to regional high schools or welcoming students to your facility, for a small investment of time and effort, you can make a big impact on a young person at the crossroads of their life. For more information, contact Kristin today: kristin.hyla@magnetwork.org, or (216) 432-5324.

Dan Berry, President & CEO of MAGNET

September 22, 2011 (CLEVELAND) – Northeast Ohio is one of 20 regions in the country selected as a winner in the Obama administration’s $37 million Jobs and Innovation Accelerator Challenge, a multi-agency competition to support the advancement of high-growth industry clusters across the country.

The region will receive a $2,062,945 million grant for a collaborative program led by Jumpstart, Lorain County Community College, MAGNET, and NorTech, which will stimulate job creation. This program, the Northeast Ohio Speed-To-Market Accelerator (STMA), is designed to accelerate the speed-to-market for near-production or pilot-production prototypes in the advanced energy and flexible electronics industry clusters in Northeast Ohio.

According to Daniel Berry, President and Chief Executive Officer of MAGNET, “MAGNET’s experience and expertise will enable it to support cluster companies in their efforts to invent and commercialize new products that capitalize on high-growth market opportunities.”

“STMA is led by a close-knit network of nationally recognized service providers in Northeast Ohio with a history of success through regional collaboration,” said Rebecca Bagley, President and CEO of NorTech. “This program will provide a conduit to connect products ready for commercialization with key manufacturers supported by a trained, qualified workforce.”

The STMA will employ a step-by-step process to help accelerate the commercialization of products, increase the global competitiveness of cluster companies, attract additional private capital to the region, and attract students, incumbent workers, and the unemployed to educational and training programs. Jumpstart, MAGNET and NorTech will provide one-on-one assistance to help cluster members meet difficult challenges such as assessing key markets, engaging with commercialization partners and anchoring customers, increasing export revenue, and accessing capital.

Lorain County Community College will lead an extensive network of Northeast Ohio universities in early assessment of cluster workforce needs to develop and implement education/training programs.

“We are excited to be partnering with NorTech, MAGNET and Jumpstart on this federally supported initiative to help commercialize new technologies and ensure there is a talent base ready to support their growth,” said Roy Church, President, Lorain County Community College. “It is this type of robust

collaboration that makes Northeast Ohio a nationally recognized ecosystem for supporting technology-based economic development.”

JumpStart will identify and recruit eligible businesses to join the STMA project; provide management and technical assistance through one-on-one counseling and membership in its First Client Pilot Initiative; help minority businesses secure initial sales to established companies; and identify, pursue and secure new capital to grow businesses.
“This grant is unique in that it allows for multiple organizations to address this opportunity together, each utilizing its own strengths to provide a more comprehensive, yet efficient, set of programmatic solutions,” said Ray Leach, CEO of JumpStart Inc. “We should be able to really accelerate outcomes by working collaboratively.”

First announced in May, the Jobs and Innovation Accelerator Challenge (the Jobs Accelerator) is designed to help regions achieve the demonstrated benefits of collaborative, cluster-based regional development. The Jobs Accelerator aims to accelerate innovation-fueled job creation and global competitiveness by awarding grants to regions that demonstrate the existence of high-growth industry clusters that support a wide range of economic and workforce development activities. The Department of Commerce’s Economic Development Administration (EDA), the Department of Labor’s Employment & Training Administration (ETA), and the Small Business Administration (SBA) are providing funding for the Jobs Accelerator. Twenty awards were granted, averaging $1.8 million per region and targeting several industries, including Health Care, Energy, Advanced Manufacturing, and Information Technology.

Acting U.S. Secretary of Commerce Rebecca Blank, U.S. Secretary of Labor Hilda L. Solis, Small Business Administration Administrator Karen Mills and U.S. Assistant Secretary of Commerce John Fernandez made the announcement today in Washington.

# # #

About Jumpstart: JumpStart Inc. is transforming the economic impact of entrepreneurial ventures and the ecosystems supporting their growth. JumpStart invests time, and in some cases dollars, in diverse, Northeast Ohio-based, early stage companies that are positioned to excel in high opportunity markets. The organization also supports the growth and strengthening of Northeast Ohio’s innovation and entrepreneurial ecosystem by securing a continuous stream of resources for entrepreneurs. www.jumpstart.org
Media Contact: Samantha Fryberger 216-363-5448 (office) 216-832-3673 (cell) samantha.fryberger@jumpstartinc.org

About Lorain County Community College: Established in 1963, Lorain County Community College is the first community college in Ohio with a permanent campus. For 48 years LCCC has served the diverse needs of the greater Lorain County region by providing affordable access to higher education, and now represents Ohio’s fastest growing college serving more than 17,000 students each year. The role of the College has broadened within the community, positioning LCCC as a regional leader not only in education, but in economic, cultural, and community growth—the four cornerstones of Lorain County Community College’s mission. LCCC is working hard to accelerate businesses to enhance regional competitiveness, a priority which the Great Lakes Innovation and Development Enterprise (GLIDE) helps drive forward. GLIDE was developed in 2001 through a partnership between government, the private sector and higher education and its primary function is to support entrepreneurs and companies to retain and create good jobs in Northeast Ohio. GLIDE has advised more than 2,600 entrepreneurs and incubated 50 companies-right on LCCC’s campus. www.lorainccc.edu
Media contact: Tracy Green 440-366-4039 (office) 440-610-9664 (cell) tagreen@lorainccc.edu

About MAGNET: Since 1984, MAGNET—the Manufacturing Advocacy & Growth Network—-has assisted thousands of manufacturers through its Edison Technology Center programs, Manufacturing Extension Partnership services and business incubation efforts. MAGNET is a “one-stop shop” for manufacturers and entrepreneurs seeking the resources to become or remain globally competitive. www.magnetwork.org
Media contact: Greg Krizman 216-432-5311(office) 330-212-1564 (cell) Greg.krizman@magnetwork.org

About NorTech: NorTech is a regional nonprofit technology-based economic development organization serving 21 counties in Northeast Ohio. As a catalyst for growing Northeast Ohio’s emerging technology industries, NorTech is leading efforts to develop regional innovation clusters that create jobs, attract capital and have a long-term, positive economic impact. www.nortech.org  Media contact: Karen Allport 216-363-6897 (office) 216-570-8671 (cell) kallport@nortech.org