MBAs have destroyed the US/Europe. How? Outsourcing all the jobs/manufacturing to China. This caused so many knock on effects. Some include an angry unemployed population electing Trump/other populists, the west being caught with its pants down during COVID when things we needed could not be obtained from China...many others as well.
Then subsequently after all the manufacturing jobs were outsourced the next thing to be outsourced was R&D(to suppliers). For example: Car companies shutting down one division after another and just relying on suppliers. Ford used to have in house seat development, their own metallurgical teams etc. All of it outsourced to suppliers who are trying to spread out their costs so everyone gets the bare minimum because all of the fundamental tooling is reused for every customer. The MBA dream was to outsource everything including manufacturing and just stick a badge on the finished car at the end.
It is a cancer that has permeated a lot of western business(so many MBA grads have to go somewhere right? They ended up at almost every company regardless of industry)
We are finally starting to swing back to pre-MBA. Tesla for example was criticized heavily for doing things like bringing seat manufacturing in house. They understood that everything a user touches and feels should be in house profound knowledge and I believe it is benefiting them in terms of customer satisfaction. Furthermore material science knowledge sharing with SpaceX is very exciting to see and will hopefully increase innovation in the industry.
Its not only Tesla, small business is turning the ship around as well. Another example is Origin USA. They wanted to bring back jiu jitsu gis manufacturing but discovered that most industrial looms were rusting away or shipped overseas. They found one loom in Maine and pulled the old guys who knew how to run it out of retirement to help teach a new young generation to slowly start bringing that experience and capability back into the US.
A lot of profound knowledge has been lost. People forget that technology and what we enjoy does not magically come out of nowhere. It requires sustained effort and on the ground knowledge that has to be maintained or it will be lost.
The lowest grade I got in my business degree was Information Systems. The reason I got that grade is that I made a case for in-sourcing development based on my personal experience, where we provide services for cheaper than consultants, that aligns with OUR business processes.
The only answer to any and all business IT questions in non-IT companies is to outsource. The reasoning is that it is considered a support activity on Porter's value chain, and as such should be cut cut cut cut cut cut and cut some more.
Hilariously we're also taught to adopt best-of-breed software for ERPs, CRMs, and SCM tools AND CHANGE OUR BUSINESS PROCESSES TO MATCH THE SOFTWARE. You know, like Target did when they moved to Canada, adopted SAP, and ended up failing hard, because their entire competitive advantage came from a custom in-house developed supply chain management tool that beat all of their competitors.
You know its interesting you bring this up. My first internship out of college was with Colgate-Palmolive which from what I recall was one of the largest SAP users in the US at the time (early 2010s). I heard among the grapevine that it was a massive effort to change the whole company around to the "SAP" way of doing things and that competitors (like P&G I think?) attempted but failed to implement SAP and suffered due to it. I don't know if P&G eventually managed to convert to SAP and I often wondered if Colgate could have been run better without SAP?
It was so ingrained into their operations and personally I don't think they could attract the caliber of engineer required to implement an in house system better. The lack of good devs in the industry is a massive problem for companies like Colgate. You just won't get the FAANG caliber devs working for a toothpaste company unless you really go way above and beyond in compensation and even then that might still not be enough to get the numbers you need.
My guess is that SAP(or other ERP) is better than in house for a company that has no competitors that have successfully implemented in house. As soon as you have a competitor that can implement in house better (maybe Amazon compared to their competitors?) then the balance shifts and SAP becomes a liability more than an asset. Not sure, just brainstorming.
I left after a year because coming out of an engineering college with a CS degree doing some complex stuff and then having to writing reports in ABAP depressed me immensely and resulted in one of my worst productive years in my career. I was eventually not offered a full time position because I was so depressed that I just did not complete my projects towards the end of the internship. On a positive note, Colgate was very accommodating and they treated me extremely well when I was there. It worked out though as I am much happier today doing Angular/Python dev.
> A lot of profound knowledge has been lost. People forget that technology and what we enjoy does not magically come out of nowhere. It requires sustained effort and on the ground knowledge that has to be maintained or it will be lost.
This is something that I wish people would understand when it comes to the right-to-repair movement. For example, if nothing changes, in a couple of generations the only knowledge that will exist for repairing farm machinery will be dictated by manufacturers and will only include processes that are profitable for those manufacturers. The worst outcome would be one with parts serialization and keys that are controlled by a foreign country.
A really good example that shows the importance of independent knowledge is board level laptop repair. Until I watched Rossman's YouTube channel I though a bad motherboard was unrepairable. Then, after a bit of watching, I started to realize there are a lot of repairs that are practical, but the knowledge has almost been wiped out by large manufacturers that benefit from whole part or whole machine replacement rather than repair.
>The worst outcome would be one with parts serialization and keys that are controlled by a foreign country.
This is one way how the US keeps its partners in line. Sure they will sell tons of aircraft and destroyers to countries like Saudi Arabia/Israel/etc. Hell they will even give money to these countries to then have it be spent right back to American companies. But the actual maintenance/parts/upgrades are controlled 100% by the US. They force the country to accept that it is better than nothing and at the same time help the US keep a leash on the country purchasing the equipment.
This concept is being expanded even further. At DEFCON in 2019 there was a talk about retrofitting older war tech with DRM and custom parts to better control who can utilize the equipment should it get out of the hands of the "intended customers". For example, in the Soviet war on Afghanistan, one amazing piece of equipment that helped tip the scales of the war in favor of the US backed Mujahideen fighting the Soviets was the Stinger portable missile system. More recently it has been discovered that systems like these are provided under the table to groups that the US wishes to unofficially support but sometimes tend to go missing and end up being used against the US. As a result, there are now efforts to bolt on digital parts serialization + access control modules to prevent "unauthorized" use/track whereabouts. I find the thought of adding DRM to 1980s technology hilariously silly but then I was treated to Single Sign On/DRM being added to DOOM....yes that DOOM, the one from 1993.
Then subsequently after all the manufacturing jobs were outsourced the next thing to be outsourced was R&D(to suppliers). For example: Car companies shutting down one division after another and just relying on suppliers. Ford used to have in house seat development, their own metallurgical teams etc. All of it outsourced to suppliers who are trying to spread out their costs so everyone gets the bare minimum because all of the fundamental tooling is reused for every customer. The MBA dream was to outsource everything including manufacturing and just stick a badge on the finished car at the end.
It is a cancer that has permeated a lot of western business(so many MBA grads have to go somewhere right? They ended up at almost every company regardless of industry)
We are finally starting to swing back to pre-MBA. Tesla for example was criticized heavily for doing things like bringing seat manufacturing in house. They understood that everything a user touches and feels should be in house profound knowledge and I believe it is benefiting them in terms of customer satisfaction. Furthermore material science knowledge sharing with SpaceX is very exciting to see and will hopefully increase innovation in the industry.
Its not only Tesla, small business is turning the ship around as well. Another example is Origin USA. They wanted to bring back jiu jitsu gis manufacturing but discovered that most industrial looms were rusting away or shipped overseas. They found one loom in Maine and pulled the old guys who knew how to run it out of retirement to help teach a new young generation to slowly start bringing that experience and capability back into the US.
A lot of profound knowledge has been lost. People forget that technology and what we enjoy does not magically come out of nowhere. It requires sustained effort and on the ground knowledge that has to be maintained or it will be lost.