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This question was addressed by our own SAP's Marty Mrugal joined by industry leaders in Boeing, Caterpillar, Phillips Healthcare and the US Advanced Manufacturing Partnership at MIT's Leaders for Global Operations Panel.  They discussed how the three ecosystems of the manufacturing (inner circle below), industrial (next outer circle), and global business commons create a healthy environment for innovation. 

Panelists address innovation related topics such as integration of engineering into production, shifting focus to a customer value chain, standardizing processes in these manufacturing commons and the role of emerging technologies including mobility, in-memory computing, and analytics, and the role of partnerships between government, academia, and industry to meet the growing challenge of ensuring a prepared workforce.

Marty Mrugal described SAP's historic origins of SAP addressing the core "commons" of business transactions in finance, logistics, etc.  Now, new innovations such as mobility, in-memory computing, and analytics are helping address some of the larger issues identified by the other panelists such as engineering engagement on the shop floor, focus on the customer, and employee enablement helping address the challenges of an available workforce.

For more on MIT's Leaders for Global Operations Panel see http://lgo.mit.edu/conference/

For how SAP can help enable your manufacturing see www.sap.com/manufacturing