Here It Is. Now, You Design It! The idea is that the most successful companies no longer

Question:

Here It Is. Now, You Design It!

The idea is that the most successful companies no longer invent new products and services on their own. They create them along with their customers, and they do it in a way that produces a unique experience for each customer. The important corollary is that no company owns enough resources—or can possibly own enough—to furnish unique experiences for each customer, so companies must organize a constantly shifting global web of suppliers and partners to do the job.

Source: Fortune, May 26, 2008

a. Describe this method of organizing and coordinating production: Does it use a command system or incentive system?

b. How does this method of organizing and coordinating production help firms achieve lower costs?

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