BIZCHINA> Review & Analysis
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BIZCHINA> Review & Analysis
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Successfully deciding what manufacturing and R&D to bring to China
By Wu Congjian
Updated: 2008-05-04 16:40 • Companies are increasingly investigating what parts of manufacturing and even R&D make sense to be put in China • When doing so, decision makers want to have a quick and easy decision tool which already gives a clear indication on the China feasibility rather than starting up an expensive, time consuming evaluation every time an opportunity pops up • To enable an easy decision, companies need to change their traditional thinking model of deciding based on products or components into deciding based on competencies • This competency approach provides an innovative way to develop a mid-term China growth strategy When deciding on what products to be manufactured in China, many will conclude – it is easy, move the low end product or simple parts/modules to China to take the advantage of low labor cost and keep the high end products and complex parts/modules out side China to protect IP. But is it true? The answer is no. Actually many companies are considering to manufacture or even to develop more and more high end products/modules in China. But this task is very challenging – so many factors have to be considered and many people will need to be convinced. Therefore the decision processes are often very time consuming - each time, an intensive evaluation process has to be carried out Think what to do every time somebody walks into your office with a new great China idea or potential China nightmare! Is there any method to first easily screening the future projects to identify the highest potential ones in order to save valuable time? Based on our experience with multinational companies in China, Arthur D. Little has now developed such a tool that enables companies to define their mid-term China strategy and to make a quick screening of what manufacturing or R&D activities can be successfully carried out in China. This tool offers an essential guideline for expansion in China, ensures activities are carried out at the right location and provides you a clear answer when somebody walks into your office again. (For more biz stories, please visit Industries)
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