PROXIMITY BUSINESS – from Global to Local (G-Local)
PROXIMITY PRODUCTION ALLOWS FOR
lower costs, greater value for customer,
less pollution and relaunching of local economies.
One of the characteristics of the next Market is its transformation from Global to Local (or rather to G-Local).
<see The real concept of Glocal>
This happens not only for the commercial aspect, but also for the production: Proximity Production, in which
the Production becomes independent
from the geographical context.
< see Towards a radically new model of Industry 4.0: introduction to a Smart Fabrication plan >
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This new dimension offers lower costs, less pollution, relaunching of local economies (and, by extension, relaunching national economies), greater product customization due to the characteristics of the area needs and the specific needs of the Customer [see Rule “Customizable/Evolving products “].
This transformation (like every aspect of functional innovation to the current era of disruption) is driven by more pressing needs:
● Customers absolutely need cheaper products; and there is a need for recovery of a more ecological dimension (for example reduction in transport).
● to restore local economies (unemployment, etc.)
● it becomes much easier to develop an on demand production (cost cutting of unsold products)
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This change is favored by emerging Smart Manufacturing methods (an by the evolution of the “fake trend” Industry 4.0):
● with the ability to create easily and quickly, in an extremely economical way. light “production lines”, quickly adaptable to different productions.
● the possibility of operating in modality of “remote production*” (and of Franchising production© <<see Transplant factories, in “Manufactory 4.0 e Franchising-Transplant Factories”>.), and in a Value Web° (a dynamic system of suppliers that replaces the Value Chain).
<see The misunderstanding on Industry 4.0: towards Manufacturing 4.0 >
Compatibility with the PROXIMITY BUSINESS Market (Local, Glocal)
One of the characteristics of the next Market is its transformation from Global to Local (or rather to G-Local).
Localization occurs not only for the distribution aspect, but also for the Production aspect.
The new Proximity Production mode allows to easily and quickly, in an extremely economical way, light “production lines”, quickly adaptable to different productions.
With the new software and hardware technologies it is possible to operate in “remote production” modality (and of Franchising production <see “New Production / Distribution methods: Franchising-Transplant Factories” >).
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It is therefore crucial to develop the products of the new generation taking into account the following characteristics:
DISTRIBUTED PRODUCTION
As already mentioned in some previous Rules, it is necessary to be able to develop forms of Distributed Production°, ie to be able to:
● manage Values Web° instead of Supply Chain. In other words, it is necessary to use systems for the management of product development and production capable of having the maximum integration of the partners distributed on the globe. But it is also necessary to redefine the methods of collaboration. The Company must therefore be able to work with the Partner in both directions (output and input): it must also be able to receive input from the various local Partners to improve its product.
● develop an open and “non-hierarchical” structure: which has the ability to integrate new partners at any time (even the customers).
The structure must be characterized by “non-hierarchical” collaboration and co-creation links: each level must be able to interact with any other level (in both directions, of output and input). In this way everyone benefits from the skills and intelligence of the other. And a collective intelligence develops (which is also widespread Intelligence) which increases the value of the Product.
● Technically speaking, we must base ourselves on a Framework able to provide not only an “file” output, but, among other things, to support the local partner “remotely” (being able to remotely control the machines, operating in “videoconference, etc …) ..
DIS-INTERMEDIATION
One of the peculiarities of the new distributed Market is a radical change in the distribution of the Product. For example, there is a transformation of intermediation.
Intermediation is considerably reduced, and features change: intermediation goes from being a minus for the consumer (it does not bring benefits to the consumer, but only an increase in the price), to be a plus (in this case the intermediary “adds value to the product – for example the consulting component).
