Localized Modularization
Description
Via David Li:
"John Hagel and John Seely Brown articulated well on how the open manufacturing work in China in their 2006 presentation in Davos with the example of motorcycle industry in Chongqing. --- Few Westerners could find Chongqing on a map. Yet this central Chinese city is home to a network of companies whose vibrant new way of designing and manufacturing motorcycles is a prototype for disruptive innovation. The network uses a distinctive management process that economists at Tokyo University, who have studied such networks in-depth, call “localized modularization”—a loosely controlled, supplier-driven approach that speeds up time to market, cuts costs, and enhances quality.
The heart of this new system is a series of “process networks” mobilizing specialized companies across many levels of an extended business process. Entrepreneurial, privately owned motorcycle assemblers such as Dachangjiang, Longxin, and Zongshen orchestrate the networks.