Retailers have been faced with big challenges, including the emergence of smartphone shopping and the continued e-commerce boom. It is no secret that today's e-commerce shoppers now expect to receive items quickly. Since retailers frequently offer comparable products at similar prices, speed of delivery is becoming an increasingly important factor for many online shoppers. This puts tremendous pressure on warehouse operators.

For their global innovation strategies, many companies have long relied on their ability to assemble people with key capabilities and critical knowledge. They typically do this through co-location: bringing together designers, engineers, technologists, and other creative thinkers in a few innovation centers at home and in lead markets. The new products and services they create are then disseminated to markets across the world. But as the range of knowledge needed for global innovation becomes wider and more varied, co-location is no longer sufficient.