Managing Global Outsourcing to Enhance Lean Innovation

Abstract

OVERVIEW:A key to effective and efficient R&D is the ability to commercialize new products quickly and effectively while leveraging the advantages of global outsourcing. The growing role of global outsourcing in new product development (NPD) represents a paradigm shift that has had a large impact on innovation and commercialization. In this article the use of outside innovation and commercialization resources, from contract employees to short-run manufacturers, is explored. We synthesize our research into four areas where R&D managers can most effectively leverage outsourcing throughout the innovation continuum. Opportunities include developing strong strategic partnerships with outside vendors, using rapid prototyping resources to support agile development, using short-run manufacturers to test products and markets before building to volume, and using expert contractors to reduce fixed personnel costs.

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