Honda is a large transnational firm with automotive design and manufacturing teams in multiple locations, trying to balance pressures of greater localization and globalization of its operationsl5. Honda provides an example of the linkages between many business processes and the recognition of the importance of human communication in managing knowledge.
Honda has taken a two-pronged approach to increasing both its turnover and profitability: each region has clear strategies within a firm-wide context, and is heading towards self reliance in production capabilities; at the same time, Honda is improving its already strong research and development (R&D) capacity and implementing lower cost development strategies in its two major locations–Wako-shi (Tokyo) and Los Angeles–to enhance its competitiveness. Essential to Honda’s approach has been the development of multi disciplinary redesign teams and the supporting infrastructure which enables those teams to quickly capture, convey and share their knowledge and development work utilizing sophisticated communications networks, particularly between Wako-shi and Los Angeles.