Wednesday Panel: The Changing Business Model - Are we seeing only the tip of the iceberg?
Wednesday, October 22 10:00 a.m. - 12:00 p.m.
Riverview Ballroom
The increasing application of advanced electronics hardware and software technologies to the systems and subsystems of the automobile has resulted in players from the electronics industry, ranging from system integrators and chip makers to contract manufacturers and holders of intellectual property, collaborating in non-traditional ways with traditional automotive OEMs and suppliers in the race to deliver the most competitive value proposition to our industry's ever more demanding consumers.
This panel will explore the implications of this continuing trend on today's automotive industry supply chain relationships and predict the changes in the business model that will be necessary to successfully navigate through this period of profound change in our industry.
Organizer:
George Perry
CEO, Yazaki North America
Moderator:
Thomas T. Stallkamp
Industrial Partner with Ripplewood Holdings, LLC, and Founder and Principal of Collaborative Management, LLC
Mr. Stallkamp is an Industrial Partner with Ripplewood Holdings, LLC, a private equity firm in New York and the founder and Principal of Collaborative Management, LLC, a private business consulting firm. From 2000 to 2004, he was Chief Executive Officer of MSX International, a business outsourcing firm. Prior to becoming Vice Chairman of DaimlerChrysler Corporation in 1999, Mr. Stallkamp was its president and a member of its board of management. During close to 20 years at Chrysler Corporation, he helped lead the company to new stability and growth in the uncommonly competitive automotive industry.
Mr. Stallkamp became known for developing new business processes and enhanced partnerships with the automotive supply community, thereby improving product quality and cost efficiencies. Under his leadership, Chrysler developed its Extended Enterprise™ concept and introduced SCORE (Supplier Cost Reduction Effort) as a structured approach to work jointly with suppliers in cost, product and process improvements. He is the author of "SCORE - A Better Way To Do Business," (Wharton School Publishing, 2005) which details how firms can implement collaborative relationships.
Mr. Stallkamp holds a BS in industrial management and economics and a MBA from Miami University (Ohio). He was awarded honorary doctorate degrees from Georgetown University and Miami University. He currently serves on the boards of Baxter International, Inc., Borg Warner, Honsel International Technologies (Belgium) and AsahiTec (Japan). He is also chairman of the Board of Trustees at Babson College in Wellesley, Mass.
Panelists
Saul J. Berman
Global and Americas Strategy Practice Leader
IBM Global Business Services
Dr. Saul Berman gets to collaborate with the glamorous clients of Media & Entertainment and specifically with Direct-to-Consumer opportunities. He is currently working on studying innovation in business models and how technology like the DVR can affect an entire industry and maybe, eventually, the world. In 2005, Dr. Berman was named one of the top 25 most influential consultants by Consulting Magazine.
Ray Gage
Business Development Manager, Microsoft Corporation
Ray Gage has worked as a business development manager for Microsoft Corp. for 12 years developing new business alliances in the auto industry. He served as business development manager for the e-business automotive group and the emerging markets group. The last five years he has led the business development efforts for the Automotive Business Unit in North America with a focus on Ford and SYNC.
Prior to joining Microsoft in 1998, Gage was chief operations officer for a regional ISP, Voyager. He also served as vice president of sales for OnTime Software, and director of sales for Prodigy Services Company.
Gage earned a bachelor's degree from Central Michigan University and an MBA from Cleary University. He currently lives in Genoa Twp, Mich. with his wife and their four children.
Paul Kirsch
Vice President, HUGHES Telematics
Paul Kirsch joined HUGHES Telematics in September 2006 as Vice President, responsible for Original Equipment Manufacturer (OEM) business development.
Prior to HUGHES Telematics, Kirsch was Vice President of the OEM Business for XM Satellite Radio. His responsibilities included the entire range of manufacturer and third-party content provider partnerships, from Honda and Harley Davidson to United Airlines. In addition, Kirsch headed up the OEM introduction of award-winning in-vehicle data applications, including real-time traffic and weather services.
Kirsch previously spent nearly two decades at Delphi in various engineering, sales and marketing and product development positions, in the U.S., Europe and Asia. Most recently, he was the General Director, Sales, Marketing and Planning for Delphi Thermal and Interior Systems, a multi-billion dollar division of Delphi. Prior to that, he served in the same position for the Delphi Safety and Interior Systems business unit. Kirsch began his career with Delphi as a product engineer.
Kirsch earned his MBA from the University of Michigan and a Bachelor of Science in Mechanical Engineering from the University of Pittsburgh. He serves on the Oakland University Business School Curriculum Advisory Board at Oakland University. He is also an avowed auto and personal aviation enthusiast, as well as an accomplished triathlete. He donates time to Ride-for-Hope, a local charity which is committed to improving living conditions in developing countries.
Based at HUGHES Telematics' Detroit, Michigan office, Kirsch and his family reside in the Detroit area.
Phil R. Martens
Senior Vice President and President, Light Vehicle Systems Business Group, ArvinMeritor
Phil Martens is the senior vice president and president of ArvinMeritor's Light Vehicle Systems business group. In this position, he is responsible for the overall strategic and operational management of the company's passenger vehicle components, modules and systems business.
He joined the company in September 2006, and prior to that role, spent more than 18 years in various leadership positions with Ford Motor Co., including group vice president of Product Creation; vice president of North American Product Creation; and vice president of North American Product Development. Martens joined Ford in 1987 and held various engineering positions until 1999, when he was named managing director of Planning, Design and Product Development of Mazda Motor Co. in Hiroshima, Japan.
Martens holds a Ph.D. in engineering from Lawrence Technical Institution, a Master of Business Administration from the University of Michigan, and a bachelor's degree in mechanical engineering from Virginia Tech. He is a member of the National Advisory Council for the University of Michigan Engineering Schools.
ArvinMeritor, Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets.
Donald L. Runkle
Chairman, EaglePicher Corporation
Chairman, Autocam Corporation
Operating Executive, Tennenbaum Capital
Director
- Environmental Systems Holdings
- Lean Enterprise Institute
Donald L. Runkle is a recognized business leader and product/process innovator. He has led divisional profit turnarounds, international acquisitions and divestitures, created new business channels, and co-led a large IPO. He is steeped in the Toyota Production System and strategic purchasing. He has led sweeping implementation of these techniques into industrial enterprises. He has led countless product innovations and built engineering teams with award winning technical strength. Runkle is Chairman of EaglePicher Corporation and Autocam Corporation, both privately held, and is an operating executive for Tennenbaum Capital Partners advising on potential investments. He is a board member of Environmental Systems Holdings, the Lean Enterprise Institute. He has consulted for EADS, United Technology, Alcoa, Flextronics/Solectron, Rocky Mountain Institute, and Asia Automotive Acquisition Corporation at SPAC on various topics including lean implementation, electronics, fuel cells and business strategy.
Prior to these most recent endeavors, Runkle was Vice-Chairman of Delphi Corporation where he was the senior executive for deploying lean principles, streamlining and integrating engineering, manufacturing, and purchasing. He served on the Board of Directors and Strategy Board, the company's top two policy-making groups. Runkle was Delphi's Chief Technology Officer, responsible for Research and Development, Global Supply Management, and executive leader for engineering and manufacturing. He was also the leader for the DaimlerChrysler and Commercial Vehicle customer teams, two of the larger and higher growth customer accounts.
Runkle began his career as a co-op student at Eastman Kodak and Ford Motor Company. Following graduation, he joined General Motors, where he held a variety of assignments, including chief engineer of Chevrolet, chief engineer of powertrain and racing at the Buick Division, director of Advanced Vehicle Engineering, vice president of GM's Advanced Engineering Staff and vice president of GM's North American Engineering Center where he was GM's top engineering executive. Under Runkle's leadership, countless product innovations were introduced and many national racing championships were won along with Car of the Year and Top Ten Engines.
Runkle was named President of Delphi Steering Division in 1993 where he led a significant turnaround and divestiture of uncompetitive assets. Subsequently, beginning in 1996, as President of Delphi Energy & Engine Management Systems Division another turnaround was achieved. In 1998/99 he co-led the IPO and spin-off of Delphi from General Motors. In 2000, he acquired Lucas Diesel and consolidated it with the Energy and Chassis Divisions into a single entity. Runkle was named executive vice president of Delphi Corporation in 2000 with responsibility for the Dynamics & Propulsion sector, about a $14B enterprise. His responsibilities also included Delphi's Product & Service Solutions aftermarket and non-automotive division. During his tenure at Delphi, Runkle led many international acquisitions. He became Vice-Chairman on January 1, 2003 until July, 2005.
Runkle has a bachelor's and master's degrees from the University of Michigan in mechanical engineering. He was also a Sloan Fellow, receiving his master's degree in management science from the Massachusetts Institute of Technology. He has published numerous articles and holds a patent.
Runkle is a member of the Society of Automotive Engineers, Tau Beta Pi and Pi Tau Sigma Engineering Honorary Societies, a life member of the Shingo Academy, which recognizes distinguished manufacturing excellence, a recipient of the Wu Manufacturing Leadership Award, which identifies role models for visionary and strategic thinking leaders, and a recipient of the ASM Medal for the Advancement of Research.
John Thomas
General Manager and Senior Director of the Model S Electric Sedan Vehicle Program, Tesla Motors
John is the Sr. Director of the Model S Electric Sedan Vehicle Program and General Manager of Tesla's Rochester Hills, Michigan Tech Center. This vehicle is completely new; designed from a clean sheet of paper (CAD Screen) solving for high efficiency and low mass in order to achieve record breaking range on a single charge with the massive Li-ion battery pack while also delivering surprise and delight features related to performance, utility and user interfaces.
This will be the highest production volume pure electric vehicle ever produced with an annual volume starting at 20,000 units.
Prior to joining Tesla 2.5 years ago, John worked his way up in the automotive industry with 16 years in product & production engineering at General Motors and Ford, followed by 11 years of increased responsibility at major Tier 1 automotive suppliers in program management, sales & marketing, and operations culminating in a VP & General Manager position running Collins & Aikman Specialty Products Group and a senior executive role at Magna Steyr Corporation.
John has a BS in Mechanical Engineering, Business Administration and an MBA while also being certified as a Six Sigma Black Belt, Certified Managerial Accountant and Lean Practitioner. John has been an SAE member for several years.