This research points to the inherent and little-understood differences between co-located and globally dispersed projects as being the root cause of the reluctance to embrace the opportunities of global innovation
As the trend toward knowledge dispersion grows and intensifies, the opportunities for co-located innovation will recede further in favour of a globally integrated approach. Being able to set up and manage global projects to replicate the benefits of co-location while leveraging dispersed knowledge will be paramount to building and maintaining competitive advantage. Readers will learn how to accomplish this goal.
For most of the twentieth century the story of innovation was largely one of co-location – innovation took place in one country, albeit at different locations, but where people shared the same context and culture. But this can no longer remain the case, as the knowledge and skills needed for innovation are becoming increasingly scattered around the world. Today, lead customers, technologies and capabilities are just as likely to be found in emerging markets as they are in Japan, the United States or Western Europe. To remain competitive, companies need to learn how to leverage this dispersed knowledge. In other words, innovation has to become a globally integrated activity.
Despite having dispersed innovation networks, many companies remain steadfastly wed to co-located innovation through transnational, multi-domestic or home base, local adaptation models. Why is this the case, when global projects can deliver significant value and competitive advantage, as well as reduce time to market and cut development costs through parallel development across multiple sites? These global projects are a lever for integration, attracting and deploying knowledge from around the world, and promoting cross-site learning and knowledge sharing.
Our research points to the inherent and little-understood differences between co-located and globally dispersed projects as being the root cause of the reluctance to embrace the opportunities of global innovation. Far too many companies bring co-location mindsets, processes, capabilities and structures to global projects without realizing that in a co-located environment, much of what happens in terms of communication, co-ordination and collaboration happens naturally, due to proximity, shared norms, culture and experience. As we will outline below, planning and managing global projects means that the modes of communication, co-ordination and collaboration all need to be approached differently in order to account for the challenges of distance and difference, and to reap the benefits of global innovation.
Invest time in defining the innovation and project
Strong project management driven from a lead site
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