13 August 2013

Ambergris, Pearls & Silk serve roles similar to Lawyers, Consultants & Outsourcing Agents

Luxury products made in living organisms play roles analogous to outsourced professional services in companies
George ILIEV

Living organisms sometimes produce biologically-expensive materials to isolate themselves from harmful factors in their environment. Ambergris, a thick oily substance used in expensive perfumes, is produced in the digestive tract of sperm whales to encapsulate the beaks of squid they swallow and stop them from damaging their intestines, according to Italian research published in the journal Geology.

Similarly, pearls are produced when an oyster tries to seal off an irritant inside its shell by covering it with layers of nacre (mother of pearl). These irritants are often microscopic worms or some other organic material. Contrary to popular belief, grains of sand are rarely the cause of pearl formation.

Silkworms ensconce themselves in cocoons of silk for the same defensive reasons: the vulnerable chrysalis (pupa) needs to isolate itself from the environment during the crucial metamorphosis process of turning from a caterpillar into a butterfly.

In the corporate world there are analogous phenomena: companies use valuable resources to hire external help - lawyers and consultants - to deal with dangerous or potentially harmful situations. When a company like Apple wants to isolates itself from labour disputes and complex legal and cultural issues in its production and supply chain, all it takes is to outsource production to a faraway company like Taiwan's Foxconn. Thus Apple can stay focused on its in-house R&D and marketing - done comfortably inside its California silk cocoon - though at the price of severing valuable feedback loops from the real world.

(Photo: Akoya pearls. Source: Wikipedia)