Transcript SOLUTIONS for WOOD

Forintek
Canada
Corp.
SOLUTIONS for WOOD
Knowledge Centres
in Times of Change
Jean Cook and Jim Dangerfield
October 4, 2006
Today’s Presentation
Changing World
About Forintek
What do we need from you?
SOLUTIONS for WOOD
The Changing World
WAL-MART accounts for 12% of all Chinese
imports to US
Europe has replaced Canada as biggest interregional lumber exporter
Russia has replaced US as biggest log exporter
China has replaced Japan as biggest log
importer
China has replaced Canada as largest exporter
of furniture to the US
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The Changing World
Fall of Communism
Demographics
Income Spread
Globalization
Environment
Customer Expectations
Information Technology
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The Changing World
“New Rules & New Business Models”
INFORMATION &
COMMUNICATIONS
REVOLUTION
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The Old China
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The New China
China
Population – 1.5 Billion
World’s 3rd Largest R&D Investor
26 Million Ph.D’s
1 Million Post Graduate Students per
Year Train Outside China
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Dell Computers
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Technology and the Marketplace
1. Inventory
2. Cash cycle
3. Learning
4. Data sales
Bank
Supplier
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F
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“Paradigms Lost & Gained”
Sources of Value
Land
Energy
Materials
Information
Knowledge
Source of Economic Authority
Producers
Consumers
Principle of Economic Constraint
Capital
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Creativity
Amazon Books fights Wal-mart
Wal-Mart brought low prices to
small cities, but its creator also
changed the way Big Business is
run
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Just as mass production
defined the industrial Era,
mass customization will define
the age of Innovation.
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The North American consumer is more
value-oriented (price vs. function) than
consumers in other regions.
Consumers have an ever-increasing
number of alternatives.
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Weight and Value
Sand
$.002 /lb
Cars
$6 /lb
Computers
Drugs
Adopted from David Cawood
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23 million ratio
… this one $900 /lb
Prozac – need one? $46K /lb
... Business has Changed
It is global.
It is knowledge-based.
It requires products with attributes
valued by the customer.
Adding Knowledge is Adding Value
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Today’s Presentation
Changing World
About Forintek
What do we need from you?
SOLUTIONS for WOOD
Forintek Partnership
“A National Organization Headquartered in Vancouver”
Shared Priorities, Shared Risks,
Shared Benefits, and Shared Costs
Industry – 350+ Companies
Provincial Governments
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Québec
New Brunswick
Nova Scotia
Newfoundland &
Labrador
Yukon
Federal Government
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Forintek Mission
Forintek’s Mission is to develop
scientific and technical
knowledge and applications
that will enhance the ongoing
competitiveness of its
members and the Canadian
wood products sector.
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Forintek Vision
Forintek will be a global leader
in wood products research and
technology transfer and the
knowledge center of choice for
the Canadian wood products
sector.
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A Technology Vision
Driven from the Marketplace
Technology for Cost Minimization
Technology to Create Value in
the Marketplace
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Developing Solutions
Data
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Information
Solutions
Provides International Connectivity…
Staff from 29 countries
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Alberta
Research Council
University of
Concordia
University of
British Columbia
CRIQ
Hydro
Québec
CMHC
SHQ
Canadian
Wood
Council
Industrial
Associations
Member
Mills
Equipment
Manufacturers
Laval
University
CNRC
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Taiwan
Japan
University of
Carleton
University of
New Brunswick
QWEB
China
University of
Toronto
CSA
NLGA
Korea
Today’s Presentation
Changing World
About Forintek
What do we need from you?
SOLUTIONS for WOOD
Developing Solutions
Data
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Information
Solutions
The Power of Partnerships
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The Product and Service Pyramid:
From wood products to building solutions
Knowledge Requirements
Solutions
Integrated
systems
Systems
Components
Design Engineering Support
Roof systems
Wall systems Floor systems
Interior systems
Exterior systems
I-joist
Gluelam
LVL
Interior cladding
Exterior cladding
Raw Materials Sawn timber
Adapted from Lars Sandberg, Timwood
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Design & Engineering
Plywood
Engineering
Fencing
Decking
OSB
Production &
Distribution
Requirements
You must be:
Good (quantitative results)
Seen to be Good (customer’s
perception)
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Priorities
Excellence
Efficiency
Timely
Continuous Improvement
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21st Century Resumé
Experience – Multinational, foreign, start-up
Education – Economics, psychology, philosophy, and
form of graduate studies
Extra-curricular – Debating, sports, volunteer work,
travel
80% of US giants have knowledge management
projects under way to share knowledge – demanding
teamwork, and Microsoft has 300 scouts to interview
25,000 applicants for 500 jobs
Leadership will be based on teaming, coaching and
genuine inspiration
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Frontiers in Research Award:
Dr. Luciana Duranti, Professor, School of
Library, Archival and Information Studies,
UBC
Recognized as a worldwide leader in the field
of archival studies, Dr. Luciana Duranti's work
involves the complex and important problem of
ensuring, assessing, maintaining and
preserving the authenticity of digital materials
over the long-term. For her leadership in
opening up new innovative approaches to the
field of archival studies, BC Innovation
Council awards Dr. Duranti the 2006 Frontiers
in Research Award.
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OUR WEBSITE ADDRESS :
Thank You!
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Conflicting Views: But it’s huge
Inter-company trade
of goods over the
internet in hypergrowth
Whoops
2003 value
Forecast Nov 99
$1.3/2.3 trillion
2003 now $4
trillion
2004 now $7
trillion
But
wait ...
The Economist
National Geographic
Mar 2000 - Gartner
Group
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1998 value
$43 Billion
China as a Competitor
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Business
Maximizing
Strategies Performance
R&D < 10% (of Sales)
Compete on R&D,
& R&D
knowledge and
people.
Investment
Increasing
Value Added
Cost Minimizing
R&D < 1%
Compete on raw material,
energy, labor, market
access.
Adapted from Binkley and Forgacs
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Sales Maximizing
R&D > 2%
Compete on promotion,
branding
and distribution.
Consolidation along the Supply Chain
WOOD FIBRE SUPPLY
• Natural Forests
• Plantation
• Recycled
MANUFACTURING
• Capital
• Labour
MARKETS
• Retailer
• Builder
• Consumer
KNOWLEDGE
ECONOMIC
ENVIRONMENTAL
“Research
theOOD
Wood Products Industry”
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SOCIAL
Forintek
Canada
Corp.
The New Protectionism
Global trade agreements will force
innovative NTB to restrict trade
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Regional trading blocks (EC)
Phytosanitary regulations (pinewood nem.)
Environmental restrictions (certification)
Labour & “fair” trade (union initiatives)
Dumping actions (US-Canada SL)
Safeguard action (Japan)
“Research
theOOD
Wood Products Industry”
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GROWTH
GLOBAL
POPULATION
Hunter &
Gatherer
Agriculture &
Domestication
Industrial
Revolution
TIME
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Electronic
Revolution
Knowledge
Revolution
The Curve of Change...
A: Do Nothing
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B: Stop & Fix
C: Launch
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