Monday, 14 December 2009

Integration, resilience and specialization in meeting the user experience

Information Arbitrage has a very interesting post on vertical integration. It, and the comments, go wider than vertical integration, into what sorts of organizational structures are best able to support an experience economy and keep up with user needs and aspirations driving technology. The author, Roger Ehrenberg has moved from a firm belief in a tight organizational focus and specialization, citing Apple as an example of how having tight control over hardware and software enables them to provide a user experience not matched by Dell/Intel/Microsoft. His case for integration is based on speed. My suspicion is that flexibility in investment, freedom from IPR wrangles and the ability to move resources are more important than organizational speed. The need for flexibility and redundancy in supply chains is discussed. There are some very good comments.

The move to deglobalisation or reglobalisation with much less material travelling round the world (especially with slow steaming) looks quite likely.

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