Earlier quoted context omitted.
> which incurs training costs, integration costs, loss of intellectual capital, logistics loss, and results in an inferior product What I'm arguing is that, in order to effectively outsource, one must get good at the so-referred training and integration costs, while hedging against logistics issues. Otherwise you will get, as you prophesy, an inferior product. But I'm not convinced that's inevitable. Of note, keeping…
> What I'm arguing is that, in order to effectively outsource, one must get good at the so-referred training and integration costs, while hedging against logistics issues I think by now we have demonstrated that this is false, no? In the 1960s, it was a popular idea (especially among managers) to assume that a company can have a core competency of "management" rather than making products or services. If true, such a…
No, that isn't the argument at all. A manager at an ice cream factory doesn't need to understand aircraft manufacturing tolerances. If a manager at an ice cream factory outsources the production of chocolate, and the chocolate that arrives as an input is slightly off-grade, it's not going to cause thousands of tons of aluminum and human flesh to come crashing out of the sky.
Risk management has its similarities across disciplines, just as the principles of Lean Manufacturing are similar across disciplines. But you can't effectively outsource something you don't intimately understand, which (by the way) is why it's impossible to outsource research.