Location, learning and logistics

BY / Josh Timberlake, Mark Cotteleer, and David Uhryniak
Illustration BY / Jon Krause

　　Business leaders who misjudge the location of production relative to the location of product and process development resources may adversely impact the company’s long-term competitive position. We explore the link between production location decisions, the nature of the capabilities required to create a product, and the ability of a company to develop the next-generation technologies it may seek.

Consider this scenario in which you want to develop a new capability: You want to learn to drive a car.

　　You’re 16, sitting behind the wheel for the first time. You have spent your life watching Mom and Dad from the back seat. They explained it all to you. Now it’s your turn. Start the car. Put one foot on the brake. Put it in “Drive.” Go easy on the gas and—away you go! You’re driving.

Now reframe the situation in a small but important way:

　　You’re 16, sitting behind the wheel for the first time. You have spent your life watching Mom and Dad from the back seat. They explained it all to you. Now it’s your turn. Start the car.

　　Put one foot on the brake—and the other on the clutch. Move your right foot off the brake and onto the gas. Ease off the clutch and add a little gas. The car lurches forward and dies. Try again.

BY / Josh Timberlake, Mark Cotteleer, and David Uhryniak

Illustration BY / Jon Krause

The article was originally published on Deloitte Review Issue 13, a publication from Deloitte Insights