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 Products or projects with a high strategic fit with China mainly make use of competencies that have both a high competitive advantage and a good availability in China. Well, how to come to an effective decision tool now? The above assessment needs to be carried out for the (different options of) projects that need to be evaluated. Projects are compared on their strategic fit with China competencies and on a first estimation of their cost saving potential. Figure III: Project screening tool
 The tool gives an easy, understandable and comparable view on what projects or products can be carried out in China and what can better be kept outside China. Furthermore, is gives a comparison between the different projects and several options for a certain project so that effort will go only to those options that make good sense in China. Further analysis is only needed for projects with a high potential in China. Time intensive and costly evaluation of projects with low potential is not needed anymore. Leverage the knowledge about competencies to develop your China growth strategy and even the global manufacturing/R&D network Once you have evaluated the competitive advantage and availability in China of each future competence, you will know what competence to develop, retain and divest in China. Your China growth strategy can now be derived – the product/projects with the highest strategic fit should be developed. The result of the competence assessment in China can also be the input for you to design your global manufacturing and R&D network. Based on the competitive advantage and availability of competencies in different regions, the global manufacturing and R&D resources can be better allocated. The author is managing director of Arthur D. Little, a global management consulting firm. (For more biz stories, please visit Industries)
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