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Executive Interviews: Interview with David Ahlstrom on Global Economy and Global Managers
October 2008
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By Dr. Nagendra V Chowdary
Prof. David Ahlstrom Professor in the Department of Management at The Chinese University of Hong Kong. 
Corporate R&D labs used to be the
key for companies to create
competitive advantage. But in the 21st
century, innovation is moving out of
the lab and across the globe. The
research indicates that a real source
of competitive advantage is skill in
managing innovation partnerships.
For instance, Boeing's unique assets
and skills are increasingly tied to the way the firm orchestrates, manages,
and coordinates its network of
hundreds of global partners.Innovation is increasingly driven
through collaborative teams due to
product complexity, availability of
low-cost but highly skilled labor
pool and advances in development
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tools. At a macro level, what's
driving this trend? Is this going to be
a competitive necessity or a
competitive choice? What are the
advantages to companies that do it
well?
Innovation has always been in the lab
and out on the shop floor (or at the
hospital bedside). Management
innovation (or process/treatment
innovation) is a very important part of
technological change. For example, in
the late 1960s, what took about 100
man-hours to unload a ship now
takes about 4 man-hours. This is
because of new process technologies
and containerization. This represent
a very significant productivity
improvement and one of many
supply chain innovations that firms
(and consumers) have benefited from. What do you think are the critical
principles that the companies
should follow to form and manage
successful collaboration programs?
Are there any best practices from
any company?
As I have found in my research, it
is important to understand what
criteriamanagers in other firms and in
other countries and cultures seek out
in their strategic alliance partners. Just
like any relationship, it is important
to find out what the other side needs
and what problems they have. What is the role of business
schools in preparing the future
managers capable of handling
increased business complexities and
working with diverse work groups?
I think business schools have a major
role to play. They should be
educating future managers for sure,
but they should also be educating the public about the role of business,
management, and commerce in the
economy. A business education is
not for managers alone, and this is
something that the critics of business
schools are missing. It is very
important to educate the general
population about what business
really does, and how it helps the
economy and society. Business
schools have a very important task to
play in helping people understand
the vital role business has in our
society today.
1.
The Soviet Economy Case Study
2. ICMR
Case Collection
3.
Case Study Volumes
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The Interview was conducted by Dr. Nagendra V Chowdary, Consulting Editor, Effective
Executive and Dean, IBSCDC, Hyderabad. This Interview was originally published in Effective Executive, IUP, October
2008. Copyright © October 2008, IBSCDC
No part of this publication may be copied, reproduced or distributed, stored in a retrieval
system, used in a spreadsheet, or transmitted in any form or medium electronic,
mechanical, photocopying, recording, or otherwise without the permission of IBSCDC. |
