This document discusses distributed manufacturing and outlines a UK-India initiative as an example. It begins with background on engagements between India and the UK on distributed manufacturing. It then defines distributed manufacturing, describing how it enables localization and customization of production. It outlines how the UK-India initiative could enhance growth for SMEs through knowledge transfer. Benefits for both countries include jobs, engagement in remote areas, and participation in global value chains. 'Business models' are discussed as holistic patterns representing value. The implications for distributed manufacturing business models include infrastructure needs, operations considerations, and tailoring approaches for off-grid communities.

1. ‘Investment models’ for
Distributed Manufacturing in
developing countries
- an example and implications
Mike Gregory – formerly IfM

2. Outline
• Background
• Distributed Manufacturing
• A (replicable?) UK-India initiative
• Business models and their implications
• Distributed Manufacturing for off-grid communities

3. Background
• Distributed manufacturing has emerged as a strong theme during the following key
engagements between India and UK
• UK-India Manufacturing Roundtable, New Delhi, India, April 2014
• Exploring UK-India partnerships in distributed manufacturing Inward Mission to the UK, London,
UK, June 2014
• UK-India Dialogue on Advanced Manufacturing, Bengaluru, India – September 2014
• Manufacturing & Economic Growth; Redistributed Manufacturing Workshops, Cambridge, UK,
23rd of September 2015
• NIAS has an international reputation for multi-disciplinary work focusing on major societal
challenges and involving leading experts from academia, industries and public service.
• University of Cambridge has an international reputation for education, research and practice in
the pursuit of efficient and sustainable manufacturing systems.

4. So what is Distributed Manufacturing?
• Digitalisation of product design, production control, demand and supply integration, that enable
effective quality control at multiple and remote locations
• Localisation of products, point of manufacture, material use enabling quick response, just-in-time
production
• Personalisation of products tailored for individual users to support mass product customisation and
user-friendly enhanced product functionality
• New production technologies that enable product variety at multiple scales of production, and as
they mature, promise resource efficiency and improved environmental sustainability
• Enhanced designer/producer/user participation enabling democratisation across the
manufacturing value chain

5. What the UK-India initiative might do - replicably?
• Enhance growth and productivity - of manufacturing SMEs using
‘Distributed Manufacturing’ principles and techniques
• Develop emerging ‘Distributed Manufacturing’ concepts - as a basis for
collaboration and knowledge transfer
• Provide frameworks for long term collaboration and partnership - in
advanced and distributed manufacturing.

6. Benefits for UK
• Key mechanism for accelerating innovation
through rapid scale up
• Extension of UK manufacturing ecosystem to
include Indian businesses
• Engagement with world class IT capabilities to
leverage for manufacturing
• Access to high quality engineering resources and
networks
• Better understanding of Indian market and access
to expertise
• Visibility and benefits of large and growing multi-
cultural market
Distributed manufacturing in the UK policy context

7. Benefits for India
• Key approach for growing manufacturing from16%
to 25% of the economy
• Creation of jobs within factories, including MSMEs,
and beyond
• Direct engagement of people in remote and less
developed areas
• Development of broad capabilities to leverage
across many sectors
• Vehicle to enable MSMEs’ participation in global
value chains
• Enable ‘leapfrogging’ to the next level of
sustainable manufacturing
Distributed manufacturing in the Indian policy context

8. ‘Generic’ advantages for developing countries
• Sharing of market, manufacturing and engineering expertise
• Market visibility and access through global networks
• Opportunities to add value to local materials e.g. food
• Extended opportunities for ‘import substitution’

9. ‘Business Model’ – what’s that!
• ‘A business model is a holistic, contextualised pattern of attributes (and
activities) representing value proposition, value creation, and value capture.
• Business model innovation seeks to identify unique configurations of
business model attributes to compete with the dominant model and new
entrant models.
• Disruption is the extent to which a new business model acquires the
customers and beneficiaries of the dominant model or creates new markets’.
Source – ESRC Workshop 2015

10. So what does that mean for Distributed Manufacturing?
• holistic – needs to be seen in the wider context of a global industrial ‘ecosystem’
• contextualised – needs to be tailored for materials, products and geographies
• pattern of attributes (and activities) – actually doing something!
• representing value proposition – with clear benefits
• value creation – identifiable and measurable
• and value capture – the benefits can be realised by someone!

11. …and in practical terms…
‘Infrastructure’
•Energy - local generation but need for storage?
•Equipment - grant, leasing or rent model?
•Communications - including IT and internet access
•Training - public support likely to be necessary
•‘Market’ - new ‘transparent’ mechanisms essential
•Logistics - to get stuff out!
Operations
•Product mix - vital to judge correctly
•Responsiveness - dependent on production process
•Payments - cash flow critical for small enterprises

12. Distributed Manufacturing for off-grid communities
• Enabling local production - can capture value locally and provide tradable
goods
• Easy access to product and manufacturing knowledge - can enable
appropriate industrial structures and ‘business models’
• Work will be needed to tailor approaches - for different contexts and the
availability of local resources
• Principles are scalable - and not advanced technology dependent (apart
from internet access)
• An effective ecosystem - requires clear business models for all the actors