Cutting edge innovation to come from China

%3CP%20align%3Dcenter%3E%3CIMG%20border%3D0%20src%3D%22/new_maoyi_en/cn/admin/news/NewsFile/-1/20141215153936682.jpg%22%20width%3D500%3E%3C/P%3E%0D%0A%3CP%20align%3Dcenter%3E%3CFONT%20face%3DVerdana%3EPeter%20Williamson%2C%20professor%20of%20international%20management%20at%20Cambridge%20University%27s%20Judge%20Business%20School%2C%20believes%20new%20management%20ideas%20are%20emerging%20out%20of%20China.%20NICK%20J.%20B.%20MOORE%20/%20FOR%20CHINA%20DAILY%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CSTRONG%3EInnovation%20helps%20firms%20keep%20pace%20with%20changing%20market%20trends%3C/STRONG%3E%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EPeter%20Williamson%20believes%20the%20Chinese%20are%20emerging%20at%20the%20cutting%20edge%20of%20global%20management%20practices.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOne%20of%20the%20world%27s%20leading%20management%20experts%2C%20he%20argues%20managers%20in%20China%20are%20now%20taking%20a%20lead%20in%20the%20way%20the%20Japanese%20did%20in%20the%201980s%20with%20their%20ideas%20of%20%22Just%20in%20Time%22%20and%20%22Total%20Quality%20Control%22%20that%20revolutionized%20manufacturing%20and%20customer%20care.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20argues%20China%27s%20contribution%20is%20in%20building%20management%20systems%20that%20can%20deliver%20%22accelerated%20innovation%22%20that%20can%20keep%20pace%20with%20a%20fast-changing%20domestic%20consumer%20market.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22What%20we%20are%20seeing%20in%20China%20is%20a%20lot%20of%20this%20accelerated%20innovation%20and%20different%20ways%20of%20speeding%20things%20up%20as%20well%20as%20reducing%20costs%20that%20has%20not%20yet%20quite%20coalesced%20into%20something%20recognizable%20like%20what%20came%20from%20Japan%20such%20as%20%22Just%20In%20Time%22%20but%20it%20is%20heading%20in%20that%20direction.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22It%20is%20building%20toward%20a%20Chinese%20management%20style%20and%20a%20Chinese%20way%20of%20doing%20things.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWilliamson%2C%2057%2C%20who%20is%20professor%20of%20international%20management%20at%20Cambridge%20University%27s%20Judge%20Business%20School%20and%20travels%20to%20China%20six%20times%20a%20year%2C%20was%20the%20co-author%20with%20his%20colleague%20Eden%20Yin%20of%20an%20article%2C%20Accelerated%20Innovation%3A%20the%20New%20Challenge%20from%20China%2C%20which%20appeared%20in%20the%20influential%20MIT%20Sloan%20Management%20Review.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20article%20has%20prompted%20a%20debate%20in%20the%20business%20media%20and%20among%20management%20academic%20institutions%20globally%20as%20to%20whether%20management%20practices%20in%20China%20will%20soon%20become%20a%20template%20for%20Europe%20and%20the%20United%20States.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22I%20think%20that%20is%20a%20very%20interesting%20question%20and%20something%20I%20debate%20a%20lot%20with%20Western%20companies.%20I%20believe%20the%20answer%20will%20be%20%22yes%22%20because%20it%20actually%20fits%20in%20with%20the%20demands%20of%20modern%20society%20to%20reduce%20lead%20times%20and%20have%20faster%20product%20development%20cycles.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22What%20the%20Chinese%20are%20able%20to%20do%20is%20to%20take%20a%20new%20technology%20and%20rather%20than%20it%20taking%2010%20or%2015%20years%20to%20produce%20a%20mass%20market%20product%2C%20as%20is%20currently%20the%20case%2C%20to%20actually%20come%20up%20with%20one%20in%20one%20to%20two%20years.%20I%20believe%20this%20will%20become%20more%20common%20and%20that%20in%20order%20to%20compete%2C%20established%20Western%20companies%20and%2C%20indeed%2C%20Japanese%20ones%20will%20need%20to%20learn%20it.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWilliamson%20and%20Yin%27s%20recent%20research%20was%20the%20result%20of%20interviewing%2050%20representatives%20of%20some%2023%20companies%20over%20a%20period%20of%20three%20years.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWhat%20they%20found%20was%20Chinese%20companies%20taking%20advantage%20of%20a%20vast%20supply%20of%20engineers%20that%20enables%20them%20to%20industrialize%20the%20innovation%20process%2C%20much%20in%20the%20same%20way%20as%20they%20did%20producing%20cheap%20goods%2C%20which%20enabled%20the%20country%20to%20become%20the%20manufacturing%20workshop%20of%20the%20world.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22What%20China%20has%20is%20a%20lot%20of%20mid-level%20engineers%20who%20are%20relatively%20low%20cost%20in%20terms%20of%20salaries.%20They%20also%20have%20a%20lot%20of%20people%20trained%20in%20technical%20colleges.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Such%20people%20are%20very%20useful%20in%20industries%20such%20as%20in%20making%20PCs%20or%20in%20pharmaceuticals%20where%20the%20process%20is%20very%20well-defined.%20There%20is%20a%20lot%20of%20work%20that%20is%20basically%20routine%20and%20what%20the%20Chinese%20are%20doing%20is%20speeding%20up%20the%20innovation%20process%20dramatically%2C%20often%20cutting%20the%20time%20needed%20in%20half%20and%20reducing%20the%20cost.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOne%20of%20the%20companies%20that%20Williamson%20interviewed%20was%20WuXi%20AppTec%2C%20a%20pharmaceutical%2C%20biotechnology%20and%20medical-device%20research%20and%20development%20outsourcing%20company%20with%20operations%20in%20both%20China%20and%20the%20United%20States.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIt%20recently%20came%20up%20with%20a%20new%20drug%20for%20chronic%20hepatitis%20C.%20Instead%20of%20having%20a%20small%20team%20of%20top%20PhD%20scientists%20working%20in%20a%20laboratory%20as%20in%20the%20West%2C%20the%20innovation%20process%20was%20split%20into%20eight%20teams%20of%20about%20a%20dozen%20people%20each%20and%20while%20some%20had%20top%20degrees%2C%20others%20were%20just%20technicians.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22People%20think%20pharma%20companies%20are%20super%20high-tech%20and%20that%20they%20are%20coming%20up%20with%20potential%20new%20molecules%20but%20that%20is%20only%20one%20aspect%20of%20it.%20A%20lot%20of%20the%20work%20is%20fairly%20routine%20and%20therefore%20mass%20industrial%20techniques%20can%20be%20used.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWilliamson%20also%20argues%20the%20Chinese%20are%20now%20combining%20the%20vertical%20management%20structures%20that%20are%20common%20in%20many%20of%20their%20companies%2C%20where%20a%20big%20boss%20sends%20his%20edicts%20down%20the%20line%2C%20with%20a%20flexible%20horizontal%20management%20team%20underneath.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThis%20horizontal%20structure%20is%20not%20compartmentalized%20as%20in%20the%20West%20between%2C%20for%20example%2C%20marketing%2C%20product%20development%20and%20sales%2C%20but%20has%20an%20interdisciplinary%20approach%20and%20is%20simply%20charged%20with%20carrying%20out%20the%20tasks%20given%20from%20above.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22People%20at%20the%20top%20and%20even%20in%20companies%20like%20Huawei%20Technologies%20Co%20this%20might%20only%20be%2012%20or%2014%20people%20determining%20the%20direction%20of%20the%20company%20and%20then%20the%20people%20underneath%20are%20put%20under%20enormous%20pressure%20to%20deliver%20the%20projects%20quickly%2C%20whether%20it%20is%20a%20new%20product%2C%20factory%20or%20marketing%20campaign.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22They%20will%2C%20however%2C%20come%20together%20as%20a%20team%2C%20discuss%20things%20over%20meals%20and%20really%20break%20down%20the%20boundaries%20between%20functions%20within%20the%20company%20so%20they%20can%20move%20ahead%20much%20quicker.%20In%20a%20Western%20company%2C%20there%20would%20be%20a%20lot%20of%20circulating%20of%20reports%20between%20various%20departments%2C%20which%20really%20slows%20things%20down.%20The%20weakness%20with%20the%20Chinese%20system%20is%20that%20nobody%20questions%20what%20those%20at%20the%20top%20say%20and%20so%20they%20have%20to%20be%20right%20for%20any%20of%20this%20to%20work.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWilliamson%2C%20the%20son%20of%20a%20British%20entrepreneur%2C%20was%20raised%20in%20Australia%2C%20where%20he%20took%20a%20first%20class%20degree%20in%20economics%20from%20Macquarie%20University%20in%20New%20South%20Wales.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22It%20was%20the%20somewhat%20grim%201970s%20in%20the%20United%20Kingdom%20and%20not%20a%20very%20exciting%20prospect%20so%20I%20decided%20to%20stay%20in%20Australia%2C%22%20he%20says.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20then%20went%20on%20to%20work%20for%20Merrill%20Lynch%20in%20London%2C%20New%20York%20and%20Singapore%20before%20winning%20a%20Fulbright%20scholarship%20to%20Harvard.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAfter%20Harvard%2C%20he%20embarked%20on%20a%20career%20in%20management%20consultancy%20with%20the%20Boston%20Consulting%20Group%20in%20the%201980s%20when%20he%20went%20to%20China%20for%20the%20first%20time%20assisting%20a%20UK%20textile%20company%20expand%20its%20operations%20in%20Tianjin.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22I%20remember%20taking%20the%20train%20from%20Beijing%2C%20which%20used%20to%20take%20about%20two%20hours%20then%20and%20the%20cleaners%20coming%20in%20to%20wash%20the%20floors%20while%20you%20were%20sitting%20on%20board.%20You%20had%20to%20move%20your%20feet.%20Your%20own%20comfort%20was%20secondary%2C%22%20he%20says.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20decided%20to%20return%20to%20academia%20in%201987%2C%20taking%20up%20a%20lectureship%20at%20London%20Business%20School.%20He%20kept%20close%20links%20with%20business%2C%20holding%20a%20directorship%20among%20others%20with%20Glenmorangie%20whisky.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22I%20felt%20that%20if%20I%20was%20to%20return%20to%20academia%20it%20had%20to%20be%20then%20because%20it%20is%20not%20something%20you%20can%20enter%20later%20if%20you%20haven%27t%20published%20things%2C%22%20he%20says.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAfter%20London%2C%20he%20moved%20back%20to%20Harvard%20in%201993%20to%20be%20visiting%20professor%20of%20global%20management.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETwo%20years%20later%20he%20moved%20to%20INSEAD%20in%20Fontainebleau%2C%20where%20eventually%20became%20involved%20in%20setting%20up%20a%20campus%20in%20Singapore.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20also%20further%20cemented%20his%20links%20with%20China%20being%20visiting%20professor%20of%20strategy%20at%20the%20Cheung%20Kong%20Graduate%20School%20of%20Business%20in%20Beijing%20between%202003%20and%202007%2C%20after%20which%20he%20joined%20Cambridge%20University%27s%20Judge%20Business%20School%2C%20where%20he%20has%20been%20for%20the%20past%20seven%20years.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20has%20written%20no%20fewer%20than%20nine%20books%2C%20including%20Dragons%20at%20Your%20Door%3A%20How%20Chinese%20Cost%20Innovation%20is%20Disrupting%20the%20Rules%20of%20Global%20Competition%20with%20Ming%20Zeng%2C%20chief%20strategy%20officer%20of%20Alibaba%20Group%20Holding%20Ltd.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOne%20of%20the%20big%20debates%20in%20management%20circles%20is%20whether%20Chinese%20management%20practices%20will%20become%20recognized%20in%20the%20same%20way%20as%20JIT%20or%20TQM.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EOne%20of%20the%20barriers%20is%20that%20Western%20scientists%20and%20research%20and%20development%20teams%20are%20paid%20well%20and%20do%20not%20want%20to%20do%20mundane%20tasks%20so%20they%20would%20find%20it%20hard%20to%20adapt%20to%20a%20Chinese%20management%20approach.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22If%20you%20went%20to%20them%20and%20said%20that%20you%20wanted%20them%20to%20do%20a%20whole%20series%20of%20changes%20to%20something%20very%20quickly%20or%20re-engineer%20this%20technology%20so%20that%20it%20comes%20down%20in%20price%2C%20they%20would%20kind%20of%20yawn%20and%20say%20it%20is%20not%20interesting.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWilliamson%20predicts%20what%20many%20Western%20companies%20will%20do%20is%20form%20partnerships%20with%20Chinese%20companies%20so%20they%20can%20take%20advantage%20of%20these%20new%20management%20techniques%2C%20particularly%20in%20the%20innovation%20field.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22I%20think%20a%20number%20of%20UK%20companies%20are%20already%20doing%20this.%20What%20used%20to%20happen%20was%20that%20a%20UK%20company%20would%20come%20up%20with%20an%20innovation%20and%20sell%20it%20to%20the%20United%20States%20where%20they%20would%20be%20turned%20into%20mass%20market%20products.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Now%20they%20are%20going%20to%20China%2C%20finding%20a%20Chinese%20company%20that%20has%20got%20this%20product%20design%20engine%20and%20the%20ability%20to%20build%20a%20big%20plant%20fast%20and%20I%20think%20we%20are%20going%20to%20get%20these%20interesting%20new%20alliances%20emerging.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWilliamson%20thinks%20there%20should%20be%20nothing%20surprising%20about%20new%20management%20ideas%20emerging%20out%20of%20China%20because%20of%20the%20sheer%20speed%20of%20the%20development%20of%20its%20economy.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22I%20think%20it%20is%20important%20to%20say%20that%20we%20are%20not%20saying%20that%20Chinese%20organizations%20have%20sat%20down%20in%20a%20room%20and%20come%20up%20with%20a%20new%20strategy%20called%20accelerated%20innovation.%20You%20have%20an%20environment%2C%20however%2C%20where%20things%20are%20moving%20fast%2C%20people%20are%20willing%20to%20try%20new%20things%20and%20where%20there%20is%20hypercompetition.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28Ecns.cn%29%3CBR%3E%3C/FONT%3E%3C/P%3E