Monday, August 22, 2011

More on Innovation and Cost Management

Forbes published a 3-article piece looking at US outsourcing (largely as a by-product of cost-savings measures) and the implications on the state of US manufacturing and what that means about our ability to continue to innovate.

This piece largely mirrors the article I posted in early July.

Based on the follow-up comments to my original article... I think my feelings are pretty well known on this. In short: while cost-cutting measures like outsourcing may provide a huge short-term gain, it can come at the expense of long-term health of an organization.... in this case due to the lack of experience and expertise. No easy answers here, folks…. just food for thought.

More after the break...
Amplify’d from

Decades of outsourcing manufacturing have left US industry without the means to invent the next generation of high-tech products that are key to rebuilding its economy, as noted by Garry Pisano and Willy Shih in a classic article Thus in “Restoring American Competitiveness” (Harvard Business Review, July-August 2009)


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