Makerspaces are collaborative and inspiring work areas equipped with tools, technology, and materials designed to foster innovation and creativity. They provide a unique environment where individuals can experiment, prototype, and bring their ideas from concept to reality.  The role of corporate makerspaces has evolved from being incubators for experimentation to strategic assets that drive transformative solutions. They are now integral to improving product development, and fostering a culture of continuous improvement, learning and creativity. Looking ahead, the integration of more advanced technologies and a stronger emphasis on sustainability and cross-industry collaboration will enable organizations to re-imagine their value proposition for the customer, regain their footing from the incoming tidal wave of new technology and revolutionize the way entire industries work.

Creating a highly productive makerspace that would engage the mind in new levels of creative problem solving and superior design thinking is both an art and a science.  To do this well requires more than access to technology and instruction. When I inherited the GE’s Product Management Academy the curricula focused on driving value and expand margins of existing products.  Stephen Lomnes, Daniel Caratini, Tom Shaginaw, and the team at GE’s Global Research Center had uncovered a formula for expanding margins through measurable differentiated products, strategic pricing, freeing cash flow, variable cost productivity and cost modeling.  They developed a playbook for optimizing the product lifecycle for the existing portfolio, delivering products that led in the market, sunsetting those that were on the tail end of their value proposition, and refining the milestones on multi-year contracts to produce double digit growth.  The playbook established standards for managing existing products and portfolios with optimized cost and value to the customer. We needed to broaden our approach as new business models (subscription, platform, sharing, on-demand, D2C, pay per use, freemiums, data monetization and marketplaces) were re-shaping the purchasing behavior across several industries.

Disruptive technology alone could wipe an entire portfolio off the market.  Our leaders needed to create their business anew by leveraging trends they believe would endure and radically shifting how they delivered and collected value.  Just as the internet made several products obsolete, we were forced to think about what replaces each of our products on the market and rethink our financial models. With these new technological advances, how would the industrial ecosystem transform the way we work and consume?  How would today’s demands and needs be met in the future?  What new demands and needs would appear? How would customers expect to pay for them? Re-inventing products, services and business models that transform how an industry will operate in the future requires the nurturing of visionary, courageous, and pioneering leadership, a disruptive mindset, with curiosity and willingness to dream outside of the status quo, permission to play and fearlessly explore uncharted territory, and become highly attuned to customer needs and tolerances to take calculated risks in the face of uncertainty.

A Movement to Inspire, Develop, and Connect Makers of the Future

To build understanding of how trending and emerging technology had potential to revolutionize products and services, we first gave our engineers, scientists and inventors access to software and hardware.  We partnered with the highly creative experts at GE Digital and GE Global Research Centers to set up our first Makerspace at the Global Leadership Development Center, Crotonville in Ossining NY. Our campus Dean and sponsor, Peter Cavanaugh, a pioneer and innovator in his own right, has already bought into and was actively championing the maker movement. He generously budgeted for and funded all of the equipment.  

Some of the technology available in Crotonville MakerspaceÒ when it opened included:

• Artificial Intelligence (AI): We incorporated AI tools to analyze data, predict trends, and automate complex tasks. AI can drive innovation in product development and operational efficiency.
• Internet of Things (IoT): We utilized IoT devices to create interconnected systems that can monitor and optimize processes in real-time, enhancing the functionality and responsiveness of prototypes. 
• Blockchain: We used with blockchain technology for secure and transparent data sharing and collaboration, which was crucial for multi-stakeholder projects and ensuring data integrity and confidentiality.
• Internet of Ecosystems: Over time these three technologies (Internet of Things (IoT), artificial intelligence (AI), and blockchain) were used to develop an interconnected network of ecosystems. This helped engineers observe the interdependencies and collaborative interactions between different sectors, industries, and organizations and create a more integrated, efficient, and sustainable approach to managing resources and operations across various domains.
• VR and AR Tools: We integrated virtual reality (VR) and augmented reality (AR) tools to enable immersive design, testing, and collaboration experiences. These technologies can help visualize complex systems and interact with prototypes in a virtual space.
• Robotics: We provided controls, sensors, connectable devices, actuators (Devices that convert energy into motion, enabling the robot to move and interact with its environment).
• Raspberry Pis, Arduino: Raspberry Pis and other hardware was well stocked in vending machines. Developers had access to open-source electronics platforms like Arduino, MATLAB and Simulink.
• 3D Printers; We used 3D printers and Computer Assisted Drawing to design and create End Use and On Demand parts, jigs, fixtures and on-demand tools, implants and prosthetics. 
• Servers, iPads, Mobile Phones: We provided access to Hardware and Software needed to capture, integrate, parse and analyze data.
• Big Data Analytics: We used big data analytics to inform decision-making processes, identify market trends, and optimize product development cycles.
• Telepresence Robots: We purchased two iRobots, the first of their kind, allowing remote employees to collaborate in a more visceral and engaging experience, and be present in a 3D representation versus a flat screen.
• Eco-Friendly and Energy Efficient Materials: We promoted the use of sustainable and recyclable materials in prototyping and product development. We implemented energy-efficient systems and renewable energy sources within the makerspace to reduce carbon footprint.
• Chemicals, Reagents and Gases: Chemists had access to the latest solvents, and a vast array of chemicals and gases at the Research Centers to synthesize and test new compounds.  This included NMR, IR spectrometers, mass spectrometers, chromatographs (HPLC, GC), and X-ray diffractometers for compound characterization.
• Electrical, Plumbing, Construction, and Office Supplies: The makerspace was always stocked with construction and crafting supplies so an engineer could access a variety of medium to design and build a prototype and get feedback on its performance.

Boundaries inspire breakthroughs. 

State-of-the-art and multi-functional makerspaces and labs served as active classrooms where product developers could test, iterate and integrate a variety of new functionality to solve complex customer problems. Unfortunately, as one might expect when creativity is unleashed without parameters, the urge to over-engineer was not one that many teams could overcome, and some brought products to market that no one wanted to or could afford to buy. After this issue cost one of our teams 3 years and $30,000,000, Daniele Merfeld, VP of the Global Research Center began providing chemists, scientists, and engineers a framework for designing to value and create game changing advancements by applying solutions across various industries. Janice Semper and Vivian Goldstein developed and launched FastWorksÓ, a new framework that would allow product owners with or without a STEM background to think like a lean start-up and get value laden products to market faster.  I introduced a five-day Business Model Innovation Sprint to develop a strategic growth mindset, introduce emerging business models, and re-design profitable alternatives to the way value could be delivered.

Rik Dryfoos taught a framework called Agile Ways of Working for Software engineers to bring their product online faster using Lean Management and combining tools and techniques from Design thinking and DevOps.  He joined me at Crotonville to facilitate a series of design challenges where product designers from IT and Manufacturing functions would experiment with machine learning, configurators, computer assisted drawing, sensors and robotics.  We demonstrated use cases for Digital Twins, Digital Threads, IoT, Advanced Robotics, Sensors, AR, VR, and 3D printing, showing how manufacturing (both machines and software) could be enhanced through digitalization, becoming what we called Brilliant Factories. Although engineers, scientists and technologists led the design and roadmap for our products and influenced how investments would be allocated for future innovation, we still needed to reach business executives and leaders without a STEM background as they were the financers of the future.  They needed to see and articulate the return on invested capital to investors and show how new business models could be used to disrupt pricing, distribution, and market share.  Digitally capable products also generate value in the form of data, a highly prized commodity in the development of technology.  Not capitalizing on this trend left millions of dollars on the table. 

To build these capabilities, I facilitated a series of innovation sprints for the Academy, and invited leaders of all levels to participate in designing for future cities, attending cross industry innovation jams, and rapidly launching startups that sold their idea using a new business model.  We gathered senior product owners and business leaders across healthcare, aviation, power, renewables, oil and gas, digital, and transportation and challenged them to re-think their value proposition in the market.  We introduced emerging business models and technology and sent them off to design and pitch new business cases in three days. We showed them the impact of inventors like Steve Falk who developed a monitoring mat for prenatal infants to avoid the wear on their skin from the adhesives used in medical leads and monitors, and Doug Dietz who re-imagined the patient experience, so children would not require sedation to undergo MRI scanning. I partnered with Lawrence Murphy, a well admired Stanford D-School graduate who led Global Design at GE Healthcare. They learned how to develop strategic foresight and a growth mindset, spot unmet or unspoken needs through deep empathy, retrain their brains to operate at genius levels of creativity, elevate the user experience, use data to drive their decisions and investments, create rapid prototypes and MVPS to validate proof of concept and establish ballpark estimates and value. 

They experienced the advantages of diversity and inclusivity through crowdsourcing. They experienced the limitations that biases bring, and how to mitigate this reflexive urge that is a normal part of brain functioning. To think outside the box, they needed to get outside the box. Broadening participation both cross functionally and outside of the organization enabled them to dismantle comfortable echo chambers and see new opportunities, while speeding up time to market.  We encouraged them to work past fear, doubt and uncertainty by replacing perfectionism and procrastination with a bias for action and the principle of immediacy as they competed against each other in 8-week sprints to fully ideate, test, and launch new products and businesses.  We cultivated a mindset of “Progress over perfectionism” and “We win or we learn.”  We constricted and expanded parameters and guidelines for their deliverables and established scorecards to judge market viability and financial forecasting of their inventions.  Using our lean start-up methodology, participants were able to launch and reap profits in less than a fiscal quarter.  Several developed profitable side hustles and autonomous applications, others sold their ideas like ParkShark (which later became Park Mobile) back to their city officials.  By the end of the year, almost 60% of our business leaders had a lucrative side hustle or hobby.

While we were not alone, only a few seemed to have followed.  Other Makerspaces like MIT’s Fab Lab became a hub for innovation, allowing students and entrepreneurs to develop prototypes and solutions to real-world problems. This makerspace has led to numerous startups and patents, demonstrating the power of hands-on learning and collaboration. The Fab Lab has spawned innovations in areas such as prosthetics, sustainable energy, and educational tools, showcasing the potential of makerspaces to drive technological and social advancements. TechShop, a member-based makerspace, provided access to industrial-grade tools and software. Members included hobbyists, entrepreneurs, and artists who collaborated on projects ranging from consumer products to art installations. TechShop was instrumental in the creation of notable products like the Square payment system and the DODOcase for iPads, illustrating how access to tools and a collaborative environment can spark significant commercial innovations. Caterpillar’s investment in makerspaces and innovation accelerators has yielded significant results, contributing to both product development and operational efficiency. The company’s 3D Printing & Innovation Accelerator, which includes the Additive Manufacturing Factory and the Cat® MicroFoundry, has facilitated numerous advancements in prototyping and manufacturing processes. The use of 3D printing for prototyping has significantly reduced the time and cost associated with developing new parts. For example, Caterpillar saved approximately $160,000 in time and labor by 3D printing 36 different track links for testing before final production​

People are our Competitive Advantage

Talented employees bring unique skills and a variety of experiences and perspectives that differentiate the company from competitors. They lead to the development of proprietary technologies, superior service offerings, and a stronger brand reputation. They excel in understanding and anticipating customer needs, enabling the company to deliver exceptional customer experiences and build a loyal customer base. By fostering a culture of creativity, collaboration, and excellence, these employees not only drive the company’s strategic vision but also enhance its agility and brand reputation, ensuring long-term success and differentiation in the marketplace. Cultivating a disruptive mindset in top talent requires a structured approach including a framework, a toolkit, and set of guiding principles to breakthrough inertia, fear of failure, uncertainty and doubt.  

When leaders gained confidence in their innovation and agility, they coached their people differently and shifted the culture in their organization. They proactively encouraged experimentation and looked for opportunities to break past the status quo, get closer to the customer to understand their experience, and forge partnerships across diverse networks. They activated other visionary leaders around them who were emboldened to innovate at speed, adopt new technology, develop adaptive and inclusive ways of doing business, while ensuring a sustainable profit margin.  We also saw them advocate and refer their talent to the Academy. Within two years they sent over 7500 product leaders who returned to their respective businesses and delivered $2B in cost productivity and margin expansion. The training paid off for itself. The Academy expanded with eight new programs that leveraged the Makerspace to develop capabilities needed to run  and sustain a profitable business, and an online learning platform with 12 e-Learning courses for JIT and On Demand learning prior to a Sprint.

Graduates of the Academy developed new products resulting in 20+ patents/trademarks under the GE brand, including chemical solvents for oil extraction, fuel efficiency technologies for jet engines, 3D printing enhancements for healthcare imaging, digital twins for machine performance prediction, and ecologically sustainable wind turbine designs. They achieved safety, quality and speed to market, enhanced competitive positioning, and improved customer satisfaction for long-term sustainability. Crotonville MakerspaceÓ and Product Management Academy uncovered hidden talent and honed the strategic vision, financial acumen, and design capabilities of all who participated, leading to significant commercial and technological advancements across several industries.  After the announcement that GE would divest into three companies; Healthcare, Aerospace, and Vernova, the 80+ Acre conferencing facility in Ossining NY was sold.  Much has been pontificated about GE’s performance and the legacy of its renown corporate university, Crotonville.  Crotonville was never meant to be a campus, it was meant to be a collective.  The Makerspace’s fundamental purpose and outcome was to cultivate a mindset of excellence in the hearts of leaders who could see, move and create the future.

Conclusion: Small Spaces; Big Profits

Prior to the prevalence of makerspaces, former GE leaders and Crotonville Graduates went onto successfully manage profitable organizations like James McNerney (Boeing and 3M), Robert Nardwlli (Home Depot), Lawrence Johnson (Albertson’s, Tom Tiller (Polaris). Andrea Jung (Avon) and Beth Comstock (Sector leader in tech and Innovation). Bre Pettis, Co-founder of MakerBot, which revolutionized the consumer 3D printing industry. MakerBot started in the NYC Resistor hackerspace also credits his experience at GE  The Makerspace expanded access to innovation strategy and transformed how inventors and entrepreneurs approach product development.

The Maker Movement has enabled micro-manufacturers to create a wide range of products, leading to the formation of new companies and job creation across diverse sectors such as medical devices, electronics, and sustainable energy. These environments not only facilitate rapid prototyping and advanced manufacturing but also foster a culture of continuous improvement and cross-industry collaboration, crucial for sustaining competitive advantage in today’s dynamic market. As such, makerspaces are integral to driving economic growth and technological progress.  They can generate more revenue per square foot than the boardroom, inspiring entrepreneurs  like Ben Kaufman, Founder of Quirky, a company that brought inventions to market through community collaboration, leveraging resources from makerspaces, and Alice Brooks and Bettina Chen, Founders of Roominate, a line of building toys designed to inspire young girls in STEM, which originated from their time at the Stanford Product Realization Lab.

Innovative Talent is the most powerful driver of competitive advantage, and they thrive when given real life challenges to solve collectively through targeted training programs, and dynamic environments like makerspaces. The evolution of corporate makerspaces, from simple experimentation areas to strategic assets, highlights their critical role in fostering innovation, improving product development, and nurturing a culture of continuous improvement. By integrating advanced technologies, fostering cross-industry collaboration, focusing on sustainable innovation, enhancing training programs, leveraging data analytics, creating immersive environments, and promoting agile methodologies, corporate makerspaces can drive ecosystem-wide advances and help companies achieve groundbreaking innovations. By providing access to advanced technologies and fostering cross-industry collaboration, makerspaces also enable organizations to reimagine their value propositions and revolutionize their industries.

These evolved makerspaces will be pivotal in addressing complex challenges and seizing new opportunities in an exponentially changing technological landscape.