AMT's membership includes machine tool and software companies used in the CAD/CAM industry. Machine tools are the large machines that are used to create a variety of parts such as engine blocks out of raw materials typically by using a variety of cutting devices. AMT's membership also includes software companies used in the CAD/CAM industry. This is a classic American industry. This industry employees many of my relatives who live in Minnesota and Wisconsin.
Back to the beginning of the story. I was ask to line up a Sun Manufacturing Executive to speak at AMT's Annual Member Meeting in October 2006. When my third contact at Sun was no longer available to speak, I called the President of AMT, John Byrd, to apologize that we had let AMT down. After finishing the half-hour long conversation with Mr. Byrd, Peter Eelman, VP of Marketing for AMT, called me and asked if I would like to do the keynote. While I was flattered that I would be asked to give this keynote, I explained I would Need to get up to speed on the machine tool industry.
To prepare for the Annual Meeting, I spent two days in Chicago at the International Manufacturing Technology Show (IMTS) meeting with a number of companies in mid September. IMTS is the world's largest trade show of machine tool companies. I was very fortunate to have Paul Warndorf, ATM's CTO, taking me through IMTS introducing me to the largest as well as the most influential hardware and software machine tool-CAD/CAM companies.
At the end of the second day I met with John Byrd, along with a number of his VPs, to discuss what he learned. I told them I felt the machine tool industry did not have a manufacturing problem, but a computer science collaboration problem. When I inquired on the economics of our industry, I was told that the American machine tool companies have seen their domestic market share go from 70% in 1986 to 15% in 2006.
I made two suggestions for the machine tool industry:
1) They needed a wakeup call to start a revolution.
2) They needed to hear from someone who has led technology revolutions.
I said that I could, with proper preparation, do the wakeup call. The real challenge was that I knew of only one person who had the credentials to discuss the technology revolution that our machine tool industry CEOs would be able to relate to. That person was Dr. Dave Patterson of University California at Berkeley. I told AMT about Dr. Patterson's leadership with RISC and RAID. I said I would reach out to Dr. Patterson, but I felt the odds that Dr. Patterson would be available to do this, in a little over five weeks time, would be a long shot at best.
Fortunately for the American machine tool industry, Dr. Patterson agreed to change his busy schedule to come to speak at our member meeting.
There were numerous emails, con calls and meetings during that brief five week period to bring both Dr. Patterson and me up to speed as well as to collaborate on the wake up call and the revolution or "moon shot" as I called it.
The title of my talk was, "How The Internet's Participation Age Will Drive Dramatic Changes In The Machine Tool Industry".
Historically, the Machine Tool industry has been very Microsoft centric from the developer tools to the systems running the actual machine tools on the shop floor. I drove home the importance of open systems and open standards to AMT's members. I discussed the importance of taking advantage of the grid to reduce costs. Embracing standards has been a huge problem for our industry. In 2005, the manufacturing industry lost $90 billion dollars in data incompatibility costs. I discussed Sun's NFS Connectathons as a viable mechanism we could model to take standards from theory to reality.
The title of Dr. Patterson's talk was "Creating a Thriving Manufacturing Base in 21st Century America".
Dr. Patterson explained the "miracle" of university research. Dr. Patterson pointed to one example after another of university research efforts that turned into multi-billion dollar a year companies and industries. As he summarized his presentation, Dr. Patterson issued a set of challenges to the CEOs in attendance to start the revolution. There was a lengthy Q&A session after Dr. Patterson's talk.
The meeting was a tremendous success. Dr. Patterson was brilliant and I was not too bad myself :-) in providing a wakeup call and issuing a set of challenges to our industry with a clear framework to accomplish these very important goals.
Next I will blog about what has happened in the past year since Dr. Patterson and I spoke in Lake Las Vegas at AMT's Annual Members Meeting.....