7- Exploit universal connectivity to deploy world-class capabilities
In many sectors, the combination of universal digital communication and modern transport networks enables truly global competition in engineering products and services. This challenge is balanced by the accompanying opportunities to develop and deploy world-class teams and ecosystems with an equally global reach. We can build high-performance enterprises that balance the opportunities of human resources (such as educated staff), local industrial capacity, costs and proximity to clients.
Such models are exemplified by many software businesses, or for example, by the semiconductor industry – where specialist ecosystems in IP, tooling, semiconductor fabrication, and electronic product assembly provide an integrated global market, of which many end-users are unaware.
But such examples also illustrate limitations. Strategic (geopolitical) imperatives and localization requirements arising from cultural or regulatory contexts do still exist and are subject to change by forces beyond any enterprise’s control. Asymmetries in competition can arise, for example, where different regulations in product safety, environmental constraints, or employee relationships apply. These factors will constrain flows of knowledge, work and materiel to various extents, depending on sector, geography and political factors.
Given the range of possible disruptions and the speed with which they can occur, successful approaches are likely to combine the ability to adapt to changing circumstances with a range of partners who possess a global footprint. This will allow the rapid growth of capabilities, to take advantage of emerging opportunities and mitigate emerging risks.