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HIGHL IGHTS A D V A N C E D M A T E R I A L S & P R O C E S S E S | F E B R U A R Y / M A R C H 2 0 2 0 5 1 Mahoney CEO CORNER ASM Materials Solutions Network Background In this column, I review how the Materials Solutions Network was formed and remains, to this day, a business model that is being adapted to service a range of needs, from ASM members to the materials community at large. The ASM Materials Solutions Network was formally launched in May of 2018 after about a year of testing the business model with Parker Hannifin, the founding cli- ent member. How It Works In the simplest terms, the Materials Solutions Network is a match-making exercise in which ASM Operations acts as an objective, trusted agent. ASMgathers the requirements of a client member and matches the client’s needs to the capa- bilities of one or more provider members. ASM’s value lies both at the beginning and the end of this matching process. In the beginning, the client member usually requires assistance to turn their problem set into a series of tasks that can easily and effectively be completed by a provider. ASM’s operations process is integral to the formation and agreement on standard statements of work that are readily and fully executable by Materials Solutions Network pro- vider members. At the end of the project, multiple providers supply information/results, as required by the statement of work, at various times and in various formats. ASM’s consolidation of all the information into a usable format (typically from or in our Granta cloud instance) greatly reduces the clients’ hours required to digest the project deliverables, and greatly increases client ability to take action from the statements of work completed by provider members. Why It Works The need for and shortage of materials expertise has been on the rise in recent years, with the continual push for more fuel efficient transportation, increased demands on electronic devices, and advances in medical devices and biomaterials, to name only a few of the many market driv- ers. In a 2013 McKinsey study on 12 disruptive technologies, five were in advanced materials markets. At the same time, an American Society for Engineer- ing Education survey showed that materials science engi- neers comprise less than 2% of undergraduate engineering degrees. ASM’s ability to locate experts in our membership, communicate needs, hold to deadlines, and aggregate results (all in place from our successful publishing business) rendered the activation of ASM’s membership to help solve physical materials problems (the Materials Solutions Net- work) a natural progression. Performance to Date Between 2017 and 2019, the Materials Solutions Net- work has grown on a pay-as-you-go basis into a multi-mil- lion dollar annual line of business within the ASMOperations P&L. To date, the line of business has achieved 60+% com- pound annual growth rate (CAGR) in revenue and 89% CAGR in net revenue. This performance has been a significant driver in ASM’s positive cash flow and improved operating net achieved during the ASM Renewal. At the same time, client satisfaction has remained very high. For example, Parker Hannifin recently presented ASM with an additively manufactured pure titaniummodel of the Dome, as a gift for the Materials Solutions Network helping Parker’s aerospace division become operational with addi- tive manufacturing. Who Wins The membership of ASM is realizing the outcomes of the Materials Solutions Network, some directly, and some indirectly. Direct benefits currently accrue most readily to ASMmembers who lead companies that become client and/ or provider members of the Network. Indirect benefits are beginning to accrue to the general membership as well. The non-proprietary, pre-competi- tive know-how gained by ASM through facilitating Network projects is contractually reusable by ASM; with the option to publish, create education courses, develop trouble shooting and safety guides, and more. A key business structure with- in the Materials Solutions Network has enabled the ongo- ing buildup of Dome educational laboratories and related new courses. Finally, the materials community as a whole will increasingly realize the continued innovation and progress of key emerging and disruptive technologies through the Materials Solutions Network. By accelerating through the Network the provision of materials knowledge transfers and other expertise to corporations, which are investing inmate- rials-intensive products and processes, ASM is delivering a new way to fulfill its scientific, technical, and education- al mission. If you would like more information on ASM’s Materials Solutions Network, please contact Ryan Milosh, chief sales and marketing officer at ryan.milosh@asminternational.org . William T. Mahoney, CEO, ASM International bill.mahoney@asminternational.org CEO CORNER