ITAC Update: An Informational Newsblast for Manufacturing and Technology Businesses

April 2006


Relocation and Efficiency Programs for North Brooklyn Manufacturers
Got a question? Ask ITAC Online Solutions.
Profiting From Open Innovation
Looking at RFID for Inventory
Upcoming ITAC Events
About ITAC

Relocation and Efficiency Programs for North Brooklyn Manufacturers

The City of New York approved funding to address the needs of manufacturers in proximity to the recently rezoned Greenpoint/Williamsburg neighborhoods. Funding is available for firms to improve energy usage (the North Brooklyn Energy Grant (NBEG) Program, space utilization and relocation (StayLean and MoveSmart) within the City. Additionally, reimbursement for actual moving costs is available directly through NYC.

North Brooklyn firms (located in Community Board One) should contact Dana Ruppert at NYIRN at druppert@nyirn.org or 212-404-6990 x 19 to learn more about energy efficiency programs. For information about StayLean and MoveSmart programming contact Jane Tabachnick at jtabachnick@itac.org or 212-442-2990 for more information. For more information about direct relocation reimbursement, contact NYC's 311 hotline.

Roundtable on Digital Simulation

Attendees listen raptly to Michael Katz, technology personnel recruiter. ITAC hosted a "Roundtable on Digital Simulation" event in March 2006 to lead a discussion between government representatives, industry leaders and educators on the possibilities of digital simulation in national security.  

Got a question? Ask ITAC Online Solutions

Have you ever had a technical question, or needed research assistance, but you didn't know where to turn or who to ask? ITAC can provide the answers you need through ITAC Online Solutions. Online Solutions is a NO-COST technical assistance service that provides technical, business, research and information assistance quickly and easily. The Online Solutions service includes an on-line library of information with a database of technical business and engineering documents and resources. If you can't find exactly what you need in the library, Online Solutions includes a technical, marketing and problem-solving "Ask an Expert" hotline service that ITAC also provides FREE to our customers. Click here to find answers to your business questions at ITAC Online Solutions

Profiting from Open Innovation

The way in which companies identify, develop, and effectively manage innovation has changed significantly in the last 10-15 years. There has been an increasing trend towards a process called "open innovation."

It used to be that large companies like Bell Labs, Xerox, IBM and others conducted research projects to identify innovations that might promote the company's core business. If the research project was deemed useful in promoting the core business, it was further developed. Research projects that did not promote the core business were shelved. That style of internal, vertically-integrated, closed innovation has given way to a more open process, where a company may offer new processes, technologies or product ideas to be licensed by other companies that have the capability to further develop them. Those that succeed often match a new business model with the new idea.

According to Henry Chesbrough, author of Open Innovation, the erosion of the closed process has been due to the following trends.
  1. Increased job mobility of skilled workers.
  2. Expansion of venture capital.
  3. External options for unused technologies.
  4. Growth of access to intellectual property through the internet.
  5. Increased availability of highly-capable outsourcing partners.
To thrive in this period of open innovation, R&D managers must guide their organization so they can source external knowledge as well as generate knowledge. They need to be able to use external technologies to create value while at the same time use internal technology to expand that value. Chesbrough makes the following key points.
  • Without a business model, technology has no intrinsic value.
  • Actually, the value of intellectual property depends on the effectiveness of the business model employed.
As larger companies are abandoning the not-invented-here (NIH) syndrome, they are becoming better consumers of external research generated by universities, federal labs, individual inventors, and start-up companies. At the same time, smaller companies are becoming more adept at pursuing partners that can help them minimize risk and maximize their growth potential.

Interested? ITAC can help you. If you are a manufacturer looking to develop new products, contact Jane Tabachnick at jtabachnick@itac.org. If you are developing new technologies or products and you wish to locate potential partners or bring your technology to market, contact Franklin Madison at fmadison@itac.org. Both can be reached at 212-442-2990.

Looking at RFID for Inventory

Are your customers requiring you to utilize RFID technology? Large purchasing organizations such as the U.S. Department of Defense and Wal-Mart currently require their suppliers to adopt this technology to track shipments and inventory. RFID, or Radio Frequency Identification is a technology that offers some key advantages for certain inventory tracking situations. Essentially, the term refers to the use of radio waves to identify or locate objects or even people. In the most common embodiment of the technology, an antenna and microchip combination, collectively called a transponder or RFID tag, is used to store an identifying serial number or part number as well as possibly additional information such as product price, date of manufacture, etc. One common example of RFID technology in use in NYC is EZPass, which allows drivers to pay tolls through RFID in order to speed their trip along.

The RFID tag is attached to the item being tracked (or to a pallet holding the item). Using its antenna, the RFID tag can transmit its information using radio waves to an RFID reader, which translates the radio waves into information that can be used by a computerized inventory management system. The RFID tag may be either "passive" (meaning the tag has no battery and draws its power from the reader) or "active," (meaning the tag has a battery which powers its data transmission, like the EZPass).

Why would I want to use RFID?

The key advantage of using RFID over other tracking methods such as barcodes is its ability to overcome line-of-sight issues. When using barcoding, a scanner has to be able to "see" the barcode in order to record its information. An RFID tag, however, can be accessed by a reader regardless of whether it is on a container at the bottom of a large stack, or if the tag has been obscured by snow, grime, paint or other visually obscuring conditions.

Where has RFID traditionally been used?

Most adoption of RFID systems has occurred in settings in which the items being tracked never leave a company's control. Some key adopting industries have included transportation and logistics, manufacturing and processing, and security. They have been used for protection of valuable tools, equipment and inventory items, for the tracking of parts and work in progress, and as a replacement for timecards in time and attendance systems.

What problems are involved in using RFID?

RFID technology continues to be fairly expensive, however some passive units have become more affordable. There is also an issue with standardization among competing vendorsí systems. Developments in RFID have begun to lead to greater distances in readability ranges, larger memory capacities so that more information can be stored on a tag, and lower costs. Organizations such as ANSI and ISO are also making progress toward standardization among systems.

While RFID is unlikely to every replace barcodes in the settings where barcodes are most effective, it is beginning to offer an attractive alternative in places where barcodes have notable limitations. There is also an increasing likelihood that more companies will begin to seek RFID capabilities among their suppliers. As use increases and prices fall, it is likely that RFID will begin to establish new niches in industries where optical technologies are ineffective.

To learn more about how RFID technology can benefit your business, contact Jane Tabachnick at 212-442-2990 or jtabachnick@itac.org.

Upcoming Events

Lean Manufacturing 101 Workshop
Date: June 8, 2006, 8:30 am
Location: ITAC Offices, 253 Broadway, Suite 302, New York, NY
Cost: $95


Would you like to produce faster, better and less expensively with your existing resources?? What if, in doing so, you could increase your sales, improve customer satisfaction and increase profitability? Principals and key managers at local manufacturing firms should attend this workshop to learn how lean manufacturing techniques help firms produce more with existing resources by eliminating non-value added activities. Workshop simulation exercises help participants experience first hand how lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive.

For more information contact Mei Sit at 212-442-2990 or msit@itac.org


FDA Food Regulations: Avoid Penalties! Learn how to comply with FDA Bioterrorism Regulations
Date: Wednesday, May 3, 2006 6:00 pm-8:30 pm
Location: Chinatown Manpower Project, 70 Mulberry St, Room 304, NY, NY
Cost: Free!


Are you a food manufacturer and distributor and need help with complying with the new U.S. Food & Drug Administration (FDA) regulations? Does your business have to comply with the new FDA regulations? Do you need information and help understanding how to comply? If your business has more than 10 employees, your business must be in compliance by June 9, 2006 else you may be fined.

ITAC and the Chinatown Manpower Project Business Outreach Center present a special free seminar to help you answer your questions and be in compliance by the June 9, 2006 deadline. This seminar will feature Jerry Scavo of JSC Services Inc. The seminar will be in English and Mandarin. It will be held at Chinatown Manpower Project, 70 Mulberry St, Room 304, NY, NY 10013. Space is LIMITED. Registration is required. For more information contact Jane Tabachnick at 212-442-2990 or jtabachnick@itac.org.

About ITAC

ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive.

ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.

ITAC 253 Broadway  Room 302 New York, NY 10007-2300 Tel: 212-442-2990 Fax: 212-442-4567