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InterAct Blog

Industrial metaverse for manufacturing systems: hype or future reality?

Nikolai Kazantsev, Russell Goh, Bethan Moncur, and Chander Velu

Our project aims to provide a coherent interdisciplinary summary of established knowledge from academia and practice on the application and potential benefits, barriers, and risks of a metaverse in manufacturing, mainly focusing on bridging technical and social insights.

Metaverse is expected to provide numerous benefits, particularly in production process optimisation, employee induction and collaboration. The most surprising research finding so far is just how varied the definitions of metaverse are. For our study, we define industrial metaverse as” a sensory environment that uses extended reality to blend the physical and digital worlds to transform how businesses design, manufacture and interact with objects”.

The existing industrial cases reveal technological barriers such as immaturity, lack of sufficiently strong communication networks and sustainability concerns. Other cases include cybersecurity risks like cyberattacks and data protection/privacy issues. The social barriers include jurisdictional and legislative difficulties, lack of cooperation between companies necessary to achieve interoperability and the need to change worker and user mindsets. 

Figure 1. Industrial metaverse as a new interface to the products’ manufacturing system

Although the data suggests immersion as a driving force of the metaverse[1], a full immersion can not be achieved without impacting the senses and feelings of a user. For example, in sensory marketing, similar impacts (experience stimuli) are used to trigger purchasing intention (Dewey, 1925; Schmitt, 1999), however, in the physical reality. Hence, we envision a similar trend in the digital world, where an industrial metaverse will extend the numeric and graphical data (such as reports) into coherent immersive experiences that will also affect feelings, Figure 2.

Figure 2. Industrial Metaverse as a combination of senses stimuli

Our conceptualisation efforts aim to prototype an industrial metaverse that activates several senses (sight, sound, temperature, and smell) and test how the extended experience triggers actions.

“Highly promising results are expected for the intersection of resilience and sustainability,” said Nikolai. “For example, based on the sensory marketing research that positions smell as the strongest attractor for purchasing decisions, we aim to virtualise the production conditions with sight, sound, temperature, and smell and enhance experience stimuli in the metaverse. We think it will better inform purchasing choice and support the demand pattern for clean energy, ethical production, and fewer emissions along supply chains.”

After the first results of the systematic literature review, we wish to explore the feasibility of the extended reality to shift decision-making towards more expensive but more sustainable decision-making along the manufacturing value chain[2]. Over the following months, our research aims to exemplify our concept using a scenario based on food manufacturing system for chocolate production. To do so, we will integrate the popular Augmented Reality platform with audio, temperature and smell generator devices to extend the experience for a policy-maker, manufacturer or customer making a hard choice between a cost-efficient vs. sustainable manufacturing system. This prototype will be used as a sensory dashboard for an extended representation of material sources, production conditions, carbon footprint and energy sources to better inform the stakeholder about the impacts of their decision.

“Carbon emission, working conditions, and energy consumption remain underexplored in the real world but visible in the metaverse. Hence, the metaverse can be used to raise awareness about manufacturing systems.”

Yet, It is unclear if being informed on carbon emissions in real-time will impact manufacturers’ use of their machines and shift the regulation imposed by policymakers. For example, would the smell of burning Amazon forests shift a consumer’s decision-making closer to more expensive sustainable purchase better than the printed carbon footprint number on the product package?

Figure 3. Industrial metaverse as a sensualisation of real-time data sharing   

The project has an open innovation philosophy, so we wish to create a discussion space around the metaverse application for manufacturing and are open to collaboration with the InterAct researchers and the industrial community.

To disseminate the findings, we plan to run a public event involving technology providers, industry, academia and stakeholders from the local public administration at the end of 2023.

References:

Academic

Dewey, J. (1981). The later works, 1925-1953 (Vol. 3). SIU Press.

Schmitt, B. (1999). Experiential marketing. Journal of marketing management15(1-3), 53-67.

Petit, O., Velasco, C., Wang, Q. J., & Spence, C. (2022). Consumer consciousness in multisensory extended reality. Frontiers in psychology13.

Industrial

https://www.radiantvisionsystems.com/blog/creating-full-sensory-experiences-future-ar/vr/mr/xr

https://www.ericsson.com/en/6g/internet-of-senses

https://www.bitstamp.net/learn/web3/extended-reality-virtual-reality-augmented-reality-and-more/

https://www.designnews.com/augmented-reality/metaverse-will-engage-all-five-senses


[1]64% of industrial cases describe metaverse as a realistic user experience

[2] The team is considering to apply for further funding via the newly launched Impact Booster Competition of Made Smarter Innovation Challenge

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Report Resources Tool Video Webinar

Business Model Innovation and Digital Servitization in UK Manufacturing Small and Medium Sized Enterprises

This project explores the application of digital servitization business models in the context of UK Manufacturing Small to Medium Sized Enterprises (SMEs), by empirically depicting its antecedents and firm-level implications. Following the completion of a large empirical study, the key contextual and organisational factors that determine successful implementation of business models have been identified. The study’s key findings suggest that SMEs can achieve high performance through adoption of digital servitization business models, depending on how well each model aligns with the organisation’s context and design.  

To assist the UK Manufacturing community, in addition to the main report, the project’s deliverables are accessible to stakeholders through its dedicated microsite, SME toolkit, video training manual and practitioner webinar.

Download “Business Model Innovation and Digital Servitization in UK Manufacturing Small and Medium Sized Enterprises - report” Business-Model-Innovation-and-Digital-Servitization.pdf – Downloaded 90 times – 1.46 MB

Project MicroSite 

The microsite provides SMEs with a valuable resource that practitioners can engage with, to better understand digital servitization and its corresponding business models. Developed in an illustrative manner, the microsite provides a visual overview of the study’s data and key findings and constitutes the project’s primary means of impact on business practice. 

SME Toolkit 

A key project output, the self-assessment toolkit aspires to assist SME principal decision-makers in diagnosing the contextual and organisational conditions of their business and determine the suitability of digital servitization business models. Toolkit users are invited to complete an anonymised questionnaire and in turn, they receive a recommendation of which business model might represent the best match to their current conditions. 

Video Training Manual 

The video training manual represents a step-by-step guide to the toolkit and provides users with the key terms of interest and the process of answering the toolkit questions.  

Online Webinar 

As a primary dissemination activity, the project’s first ex-post webinar has been delivered in early August 2023 to raise awareness about the project, communicate the study’s findings and promote the publication of the main report and its accompanying intellectual outputs. 

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InterAct Blog

Toyota, you and a “human centric” digital manufacturing future

Russell Watkins

The Interact tagline was carefully crafted when Made Smarter and ESRC stumped up the money to make this network a reality. That tagline being: “pioneering human insight for industry” with the spoken aim to create a “network that aims to bring together economic and social scientists, UK manufacturers, and digital technology providers to address the human issues resulting from the diffusion of new technologies in industry”.

Yes, yes and yes again – this is what drew me to interact in the first place. It makes perfect sense when you think about it; in our factories, to make things, you need to bring machines, materials, and a method of doing it together with people. People are the glue that make the 4Ms work in harmony. And yet, walking the halls of Smart Factory conferences – the exhibitor wares on show are 95% things or data.

IoT, Sensors, robots, cobots, AI and data analytics are all critical, in tandem with people. We need to concurrently invest in skills to get the best out of these innovations, especially if we want a long term functioning society to manage this nascent 4th industrial revolution, without unrest and social upheaval.

Ponder for a second on any investment you make in a manufacturing business. The following are likely to be true:

Somebody has to research the market

Somebody has to talk to vendors

Somebody has to negotiate and buy it

Somebody has to commission it

Somebody has to programme it

Somebody has to maintain it

Somebody has to load and unload it during the shift

Somebody has to change the kit over or update the programme/parameters

Somebody has to respond to it when the Andon goes off

Somebody has to act on that

Somebody has to interpret the data that comes out of sensors

Somebody has to troubleshoot

Somebody has to problem solve and…

…a number of people have to find kaizen to keep you competitive.

‘Somebody’ might be multiple people for each of these activities. What is clear is that ‘Somebody’ needs to considered alongside the physical and data innovation that Industry 4.0 has to offer. InterAct are, comfortingly, working in that space.

This raises an important question about where manufacturers should invest in digital manufacturing. Investment always warrants head scratching as capital dollars/pounds/euros and yen are scarce, but thinking is free. The mantra I’d advise you to adopt underpins the model below. Invest where you SHOULD, not just where you CAN.

This requires pausing, thinking and coming to the CapEx table with a business problem to solve – low productivity or persistent specific quality issues for example. Having said that, the lean start-up principle of creating proof-of-concepts means we can place multiple bets (run trials) on various technologies, as long as we treat them like little experiments to learn whether they’re worth investing in further.

A smart way of thinking about all of this is the Toyota style thinking that I experienced on my last two trips to Japan. They think of it as a numerator and a denominator. The numerator represents the equipment you use to create value that your customers will buy. The aim is to improve the equipment work. The denominator represents the people working in the manufacturing business and asks whether we can improve people’s work.

Within this model, the categories to invest time and resources in are those that:

For the Equipment – “predict problems” or detect “early symptoms” of problems (both of these are likely Safety, Quality or Delivery related)

For the People – “eliminate low value added work” (like walking around checking things at the start of the shift or the admin burden of logging results/performance) or “reduce variation in standard work” (as an example, think 2 setters on opposite shifts changing the same machine from part A to part B, but the first setter takes twice as long)

The real gold to be mined is in the 2 bubbles that serve both. Digital manufacturing done well can “visualise issues” that are hidden to the human eye or our current data harvesting and sensor inputs. Rather nicely, if you listen hard enough to the data, it can identify the next, best kaizen to take you forward.

The idea is this; if you focus on both Equipment and People you’re going to open up a bigger benefit by improving both the numerator and denominator. That sounds very much like competitive advantage to me. As Eddie Jones (yes, the former England Rugby coach) said in his recent book on Leadership “The only reliable advantage we’ve got is to learn faster than the opposition”

InterAct is the best game in town, looking into the future to secure the role of human skill in our bright digital future. Get involved, you can either snooze your way to 2040 and then stand, blinking into the sunlight, complaining about the outcome. Or you can help shape and secure the UK’s place in manufacturing’s coming world order. Interact is moving into an exciting phase in 2023/24 where the research bears practical fruit. There are various ways to get involved, and you can keep up to date with all the latest news and opportunities here.

For more information about Sempai and the support they provide to employers, please click here.

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News

InterAct Systematic Reviews second funding round – successful projects announced

InterAct is pleased to announce the recipients of our second round of Systematic Review funding. These two projects are led by Dr. Dalila Ribaudo of Aston University and Dr. Nikolai Kazantsev of the Institute for Manufacturing, University of Cambridge. The projects will focus on topics relating to ‘Manufacturing in the metaverse’ and ‘Perceptions of manufacturing’.

Manufacturing in the metaverse: Conceptual model and future research directions

Principal Investigator:

Professor Chander Velu – Institute for Manufacturing, University of Cambridge.

Lead researcher:

Dr. Nikolai Kazantsev – Institute for Manufacturing, University of Cambridge.

Project Outline:

The industrial metaverse uses ‘virtual and augmented reality to blend the physical and digital worlds to transform how businesses design, manufacture and interact with objects’.

The project aims to provide a coherent interdisciplinary summary of established knowledge from academia and practice on the application and potential benefits of a metaverse in manufacturing, mainly focusing on bridging technical and social insights.

The specific objectives are:

  1. To clarify the terminology, technologies, and roles the metaverse can play in manufacturing.
  2. To derive the barriers, drivers and benefits of adopting the metaverse for individuals, firms, the manufacturing ecosystem and the economy.
  3. To summarise a conceptual model and outline future research directions of an industrial metaverse in manufacturing.

The industrial metaverse is often explored solely from a technological perspective despite being a fast-growing field of study in various domains. As a result, complex terms and concepts are misinterpreted by the industry, resulting in an overlapping stack of technologies and, therefore, unclear evidence of the application of the concept in manufacturing.

By investigating overlooked social and economic factors behind metaverse applications, the project aims unlock the virtual space for goods manufacturing and transaction, and discover how the interactions between firms and customers happen.

The team is open for collaborations on this research. Please contact nk622@cam.ac.uk if you are interested.

The purpose of a potential collaboration would be to better inform research on the positioning of the metaverse as a technological tool in manufacturing.

The team are keen to hear from:

  • Industrial partners who have already applied some elements of virtual reality or who want to do so soon, but are unclear on how to progress due to the perceived risks or unclear benefits of the technology.
  • This could be technology providers, such as Vuforia, Hololens (MST), Meta or creators of alternative augmented reality glasses.

How to make manufacturing charming again? It is everything, everywhere, all at once.

Principal Investigator:

Dr. Dalila Ribaudo – Aston University

Co-investigators:

Dr. Guendalina Anzolin – University of Cambridge

Dr. Jennifer Castañeda-Navarrete – University of Cambridge

Project Outline:

The aim of this project is to conduct a comprehensive literature review of the perceptions of manufacturing, with a particular emphasis on international industrial strategies.

The team plans to analyse how perceptions of manufacturing have been changing across countries and how governments are taking actions to bring manufacturing back into the policy agenda. One of the main areas where this is happening is the adoption of digital technologies, a field where the changing features of manufacturing are evident.

For example, policy makers need to design industrial strategies that address both the increasingly higher requirement for skilled labour, and firms’ adoption of digital technologies, while also developing strategic sectors, such as semiconductors.

This study will reveal how countries prioritize manufacturing in the context of national and regional industrial strategies (i.e., for example with the levelling up agenda in the UK and the Innovation and Competition Act in the US.

There are four main topics the team will examine that can be linked to negative perceptions on manufacturing:

  1. It is believed to be a declining industry, replaced by services, especially in advanced economies.
  2. Manufacturing is a low-skilled and low-paying employment environment.
  3. Manufacturing is a dirty and polluting industry that harms the environment.
  4. Ideological as well as practical barriers for policymakers to provide sufficient attention to manufacturing.
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Future of Work Resources

Perceptions of manufacturing – survey findings infographics

The InterAct Future of Work team carried out a survey of 2107 members of the public to find out more about the wider perceptions of the manufacturing industry and manufacturing jobs. Their early findings have been summarised in a series of infographics available for download below, and explored further in a series of blogs from Dr. Robert Stewart.

Download “Perceptions of manufacturing - survey findings infographics” Future-of-Work-Survey-Infographics.pdf – Downloaded 553 times – 2.00 MB
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Link Resources

Industrial strategy: a manufacturing ambition

The UK manufacturing sector is an essential contributor to the country’s economy generating £206bn gross valued added in 2022 a fifth higher than a decade ago. It accounts for around half our exports, two thirds of spending on research and development and accounts for a significant level of business investment. The sector employs around 2.6m highly skilled people across the UK, many of them in areas that need levelling up. In short manufacturing matters to the prosperity and security of the UK.

The sector is now at a critical juncture. Ten years ago Make UK (then EEF) set out its case for an industrial strategy. Since then we have had six plans for growth but now find ourselves without one.

There is broad agreement among stakeholders about what the UK needs for a successful industrial strategy. These can be broadly categorised into five themes, skills; infrastructure; finance; innovation and the business environment. To these can now be added significant shifts in the policy landscape from the post Brexit and pandemic landscape, the transition to net zero, rapidly accelerating technologies spinning out from the fourth industrial revolution and the political imperative to spread growth more evenly across the UK.

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InterAct Blog

Distributed leadership as a route to innovation and productivity in advanced manufacturing

Professor Colin Lindsay

New ways of working and leading in manufacturing

Advanced technologies such as robotics and AI, and other forms of digital innovation, open up important new opportunities for the transformation of work in UK manufacturing, with potential benefits for employees in terms of job quality and wellbeing, and for businesses in terms of improvements in productivity and innovation performance.

However, there are concerns that these benefits may not be fully realised if manufacturing businesses fail to innovate their leadership and people management practices to empower people to deploy technologies in an agile and effective way. Our research for the ESRC InterAct Network is working with manufacturing businesses to explore exactly these issues; what sort of changes in work organisation, people management and leadership are required if manufacturing employees across teams are to contribute to driving innovation and productivity?

One important clue as to what’s needed in leadership development might be provided by an emerging evidence base on the impact of ‘distributed leadership’ practices. 

Distributed leadership and empowering people to innovate

One potential constraint on innovation in organisations is the concentration of leadership roles and authority among a small cadre of senior managers. That’s why in a range of organisations, especially in public services such as education and healthcare, there is growing interest in the value of an alternative approach of distributed leadership: “an approach to leadership that endorses work practices that combine knowledge, abilities and skills of many individuals… creating opportunities for leadership to emerge from individuals at all grades and levels within a team or organisation”.  For example, Professor Graeme Currie and colleagues have argued that effective distributed leadership has been, and will continue to be, crucial to healthcare systems’ responses to the Covid-19 crisis.

It’s interesting that much of the current research on the challenges and opportunities of distributed leadership focuses on public services and other service sectors, with somewhat less interest from those studying manufacturing innovation. This is despite the fact that some of the seminal research on distributed leadership focused on its impact in manufacturing – more than thirty years ago, David Barry’s important research on so-called ‘bossless teams’ identified both opportunities in supporting team innovation performance and challenges where team members lacked the skills and resources to lead effectively. David Teece’s seminal work on dynamic capabilities – “the firm’s ability to integrate, build and reconfigure internal and external resources to address and shape rapidly changing business environments” – is another cornerstone for our research. It is notable that Teece and colleagues also cite distributed leadership as an important practice for dynamic and agile organisations in manufacturing and other sectors.

So, what sort of practices might be required for effective distributed leadership, and what are the potential benefits and risks for manufacturers?

Scoping the potential for distributed leadership as a route to innovation

InterAct Network researchers will be working with leading manufacturers in the coming months to explore what works in effective distributed leadership. But we already have some clues from existing research. Where distributed leadership has contributed to productivity and innovation, organisations have tended to make workplace investments to: develop leadership skills and identify succession pathways; re-design job roles to enhance autonomy; and create protected time and real or virtual spaces for leaders at different levels to collaborate and share ideas. The evidence suggests that these practices might be important, but also that context is crucial. Distributed leadership needs to be calibrated carefully to reflect the needs and capabilities of each organisation.

There are also potential challenges associated with promoting distributed leadership that need to be addressed, including: the risk of a fragmentation of accountability and unclear decision-making; gaps in leadership skills and capabilities; and limits to the time and resources available to people at different levels to participate in leadership activities.

A key theme for our InterAct research in the coming months will focus on how, and how effectively, some of our most innovative manufacturers adopt more distributed models of workplace and organisational leadership; the challenges and limits to such practices; and impacts in terms of job quality and innovation performance.

If you represent a manufacturing organisation and would like to share and learn from good practice in leadership and people management for innovation, join the InterAct Network today.

If you would like to access our free research on leadership and people management for innovation in manufacturing, contact: colin.lindsay@strath.ac.uk.