In the consulting and technology industry, many companies tout themselves as software factories. What they’re trying to say is that they have the processes and the rigor to ensure a predictable output. If you give the same task to 10 different people, you’ll get the same result. While consistency in output can be important, the challenge with the ‘Factory’ approach is that it takes the creativity and human element out of the equation.

A factory is a mental model for low-skilled workers doing repetitive tasks. A lab is a mental model for highly-skilled workers seeking innovation by experimentation and constantly pushing the boundaries.