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Working the Kinks Out of Decentralized Product Development

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HaileyMcK
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Hurdles
HaileyMcK   3/9/2014 6:14:45 AM
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What do you think are the biggest hurdles to decentralized product development? Do you think that's changed over time?

FLYINGSCOT
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Supply Network Guru
not everyone
FLYINGSCOT   3/7/2014 12:15:16 PM
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I heard that many products are "localized" with alternative parts being redesigned by local design and support people.  Most people do this (I think) with the exception of companies like Apple.  I'd be interested to hear what others have heard about this.

Jacob
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Supply Network Guru
Re: Economics
Jacob   3/6/2014 11:25:42 PM
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"To make this feasible both design and manufacture should be in closeby location especially since rapidly progressing technology needs a proximity of labs and fabs. Also, Manufacturing cannot remain forever in a low-cost region expecting the costs to remain low in that region forever."

Apek, I feel decentralization is very much requiring for companies, so that their expenditure can be minimized. Apart from that many countries are offering single window systems and Tax sops for attracting foreign investments. Moreover, I won't think in near future none of the US/EU countries can beat Asian countries in terms of lower production cost.

Jacob
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Supply Network Guru
Impact of Globalization
Jacob   3/6/2014 11:20:15 PM
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"When the business migration movement began in the electronics sector, there was a fairly clear-cut disaggregation of product development and production -- design in one location and manufacturing in another low-cost, developing region."

Lynn, that's the impact of globalization. This will help companies to lower the actual production cost and hence customers can avail the product/service at a better price.

t.alex
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Supply Network Guru
communication is the key
t.alex   3/6/2014 9:30:54 AM
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Between remote locations, communication is very very very important! And companies really do need to have proper change management system in place as well.

apek
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Blogger
Economics
apek   3/4/2014 1:08:04 AM
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"This is a natural evolution of the electronics supply chain's penetration into emerging markets, and it clearly makes economic sense. "

While it could certainly make Microeconomic Sense but it really does not make any sense from a Macroeconomic point of view. Decentralization of Product Development does make a lot of sense but for Decentralization to benefit the economy .... Decentralization has to happen in domestic economy.

"When the business migration movement began in the electronics sector, there was a fairly clear-cut disaggregation of product development and production -- design in one location and manufacturing in another low-cost, developing region. As domestic demand in emerging economies has grown, manufacturers are increasingly looking to design products specifically to meet niche local customer requirements. "

To make this feasible both design and manufacture should be in closeby location especially since rapidly progressing technology needs a proximity of labs and fabs. Also, Manufacturing cannot remain forever in a low-cost region expecting the costs to remain low in that region forever.

SP
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Supply Network Guru
Decentralized product development
SP   3/4/2014 12:48:33 AM
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Yes its almost universal that design happens in many parts of US and production goes to China. But it makes lot of business sense to get the production done in China. One can easily see the Dollar margins. And also its too risky to to give away or outsource the design work, if you do that you can easily another company selling the same design as yours. Its a difficult situation.



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