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Brick and Mortar Facilities

Many of our business practices were originated in vertically integrated manufacturing based companies. Over the past few years, the United States has transformed from a manufacturing to a service base work force.

Innovation is a form of service. Today, innovation companies as well as marketing and distribution companies typically source the manufacturing. There are two types of innovation companies: product based and service based. The product based companies are formed around creating a single product. The service based innovation companies mission is developing technology. Historically, marketing and distribution companies typically obtained new technology from the acquisition of product based innovation companies. Competitive innovation companies contain only the key personnel necessary to manage the innovation activities. The creation of product based innovation companies with subsequent acquisition results in a constant employee turnover and low employee training. A better system is the use of service based innovation companies which can optimize for efficiency, cost, an skills.

A significant cost is a "Brick and Mortar" facility. One of the residual myths left from the vertically integrated organization is that you must have a "Brick and Mortar facility" in order to be able to do technical project work. While once true, this is no longer the situation. Today, technical work is primarily done with computers. Project work is performed with internally and externally networked computers.

In design projects, the use of Computer Aided Design (CAD), Computer Aided Manufacturing (CAM), computer assembly modeling, software based stress analysis, and stereo lithography greatly reduce the need for laboratory prototypes. Today, the majority of technical work requires only high end computers, specialized software, and trained, experienced personnel. The minimal laboratory work required is done best by companies that specialize in these services. The high number of successful projects completed by MDS was accomplished by linking customer, special service providers, and MDS computers.

Using technology, instead of "Brick and Mortar facilities" greatly reduces core innovation cost, facility requirements, staffing lag time, facility energy consumption, and development time. The greatest benefit occurs when a service based innovation company has no facility.