Category: Innovation

Question:

Analyse the ‘Strategic Outsourcing at Bharti Airtel Limited’ case applying insights from the module to answer the following questions

“I declare that this work is entirely my own in accordance with the University’s Regulation 11 and the WBS guidelines on plagiarism and collusion. All external references and sources are clearly acknowledged and identified within the contents.

No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done it may result in me being reported for self-plagiarism and an appropriate reduction in marks may be made when marking this piece of work.”

Question 1

Introduction

Bharti like any other growing telecom company was faced with the challenge of managing network expansion for its growing customer base. In order to succeed in the Indian mobile phone market firstly, Bharti must focus its services on providing excellent customer services through “error-free” services (low call drop rates, value-added service, etc), cost efficiency, and innovation in new products and services.

Secondly, Bharti must scale up network coverage to cover its growing customer base and Bharti must come up with a strategic and sustainable business model that will enable it to increase network infrastructure simultaneously as customer demand increases.

Discussion

Bharti should focus on its four core competencies to succeed in the Indian mobile phone market. Core competencies in Sales, Promotions, Customer Care/ Services, and Identifying Customer’s Pain Points (Harvard Business Review, 2012). From a sales point of view, Bharti can offer mobile telecom service at $0.01 to $0.005 per minute, perhaps the lowest rates in the world. Bharti enjoyed compounded annual growth in sales revenues of 120% and growth in net profits of 282% per year between 2003 and 2010. Its market cap has steadily grown over the same period and stood at around US$30 billion as of 2010 (ibid.).

For branding and promotions, Bharti went for a variety of advertising using different brand ambassadors, starting from cricket icons like Sachin Tendulkar to renowned music composer A.R.Rahman to cine stars like Shahrukh Khan, Madhavan, etc (Jeyavelu and Radha, 2008). It also carried out a combination of both functional and symbolic campaigns. Bharti conducted regional campaigns to ensure a wide reach to even the most remote areas. Bharti also ensures all campaigns had a common theme and went for high visibility advertising, targeting a variety of customer segments (ibid.).

Bharti took several awards for marketing and brand excellence as well as for distribution and service excellence over the last few years. In 2004, Bharti has announced the ‘World Communications Best Brand of the Year(ibid.). This was a prestigious award that recognized outstanding performance by companies and brands from across the world in the telecommunications industry.

A survey conducted by The Economic Times (ET) Brand Equity in 2007 also recognized Bharti as The Second most trusted Brand’ in the world (ibid.). Bharti also implemented comprehensive intelligence and data warehousing capabilities which helped it better understand customers’ usage patterns and predict network coverage demand. This service enables Bharti to identify customers’ pain points and make relevant improvements to better serve its customers (ibid.).

Bharti also focuses its services on providing excellent customer services through “error-free” services (low call drop rates, value-added service, broad coverage, etc), cost efficiency, and innovation in new products and services. Bharti introduced new and innovative products that were received well in the market and enabled the Company to maintain its leadership position in the Indian mobile phone market despite highly competitive pressures. For example, in 2005 the company introduced new products like BlackBerry wireless solution, Airtel Live, and Ring back tones (Hello Tunes) which were all firsts in the country (ibid.).

Conclusion

Bharti must focus on its four main competencies; Sales, Promotions, Customer Care/ Services and Identifying Customer’s Pain Points, by doing this well the company can succeed in the Indian mobile phone market. Bharti’s strength was grounded in its brand management, people management, and customer management capabilities.

Question 2

Introduction

“Outsourcing refers to the practice of transferring activities traditionally done within a firm to third-party providers within the country or “off-shore” (Sen and Shiel, 2006). In the case of Bharti, the proposed outsourcing agreement is to multinational vendors operating within the country. The author strongly agrees with Gupta’s proposed outsourcing agreement. Gupta’s strategy includes handing over responsibility for the build-up, maintenance, and servicing of the telecom network to an equipment vendor.

Gupta considered Ericsson, Nokia or Siemens as potential partners. In addition, Gupta’s strategy also considers outsourcing the build-up, maintenance, and servicing of Bharti’s core IT infrastructure to IBM. The next section discusses the advantages and disadvantages of the Gupta outsourcing agreement, backing them up with relevant theories and examples from an external source. Furthermore, the following section highlights how the outsourcing agreement works toward building Bharti’s core competencies.

Discussion

This section discusses the advantages and disadvantages of the Gupta outsourcing agreement and then highlights how the advantages of the outsourcing agreement work towards building Bharti’s core competencies discussed in question 1.

Advantages of Bharti’s Proposed Deal

Firstly, the proposed deal can enable Bharti to reduce operating costs (Oshri, et al, 2009).

Typically, suppliers will always want to sell more equipment than required, while the operator will aim to maximize coverage and capacity with as little equipment as possible. The outsourcing of the build-up, maintenance, and servicing of the telecom network to equipment suppliers can reduce the operating cost because this agreement helps get rid of the inherent conflict of interest between Bharti and telecom suppliers. The proposed agreement will ensure the optimum use of equipment to provide the required network capacity.

A typical network uses only 60% to 70% of its installed capacity at any point in time, it is an industry practice to purchase excess 20% to 30% capacity to in order to keep on step ahead of customer demand. For Bharti, in terms of capital assets, the excess 30% excess capacity through 2007 would represent around $300 million to $400 million, hence outsourcing this process presents a huge cost-saving strategy for Bharti.

Secondly, the proposed outsourcing deal not only gives Bharti access to the best possible technology, these partnerships also enable Bharti to focus on core competencies (ibid.). By freeing itself from managing technology, the company can use all its resources to focus on its core competencies – strategic management i.e building its own strategy without external consultants; increasing sales revenue, branding and promotions, and providing excellent customer services – through constant innovation and providing value-added services, identify customers pain points and working with regulation and regulators.

Finally, the proposed outsourcing deal helped improve Bharti’s Time-to-Market (Ibid.) From the case study, when there is a need for network expansion, typically the process of planning, tendering, financing, purchasing, and installation could take between six months to a year. With this partnership, the speed comes because each partner is a specialist and can do a bit better than anyone. This entire arrangement allows Bharti’s network utilization to be high all the time. The agreement gives Bharti the ability to increase network capacity in a quick time and creates a situation where the capacity is made only when they are ready to be consumed.

Disadvantages of Bharti’s Proposed Deal

Firstly, the proposed outsourcing agreement can be hindered by the cultural difference between the two organizations (Oshri, et al, 2009). Bharti being an Indian-based company with a start-up culture, IBM was quite the opposite. The potential vendors looked at the deal as an arrangement where the main objective is to provide world-class infrastructure while for Bharti, the main objective is to respond to a high-intensity environment of growing customer needs. There is bound to be initial glitches between these two diverse objectives, but communication between the two parties can help in sorting this out. Secondly, the proposed agreement state that Bharti staff carrying out the task to be taken over by the vendors would be transferred to the vendors respectively. This can lead to another important issue of loss of loyal staff.

In terms of achieving Bharti’s core competencies, the proposed agreement to outsource the telecom infrastructure to suppliers such as Ericsson, Nokia, or Siemens and internal IT infrastructure to IBM will enable Bharti to focus on improving Sales, providing excellent customer services through “error free” services (low call drop rates, value-added service, etc), cost efficiency and innovation in new products and services, promotion and identify customers pain points. These outsourcing agreements will enable Bharti to free up resources as they no longer have to worry about technology.

Conclusion

The proposed outsourcing agreement presents more advantages than disadvantages to Bharti and will help Bharti achieve its core competencies. The main advantages provided by the agreement are cost saving, quicker time to market, access to the best technology, and enabling focus on core competencies.

Question 3

Introduction

Bharti outsourcing agreement like any other presented some major concerns mainly due to uncertainties the deal could cause for Bharti itself. According to the case study, a senior employee acknowledged the fact that vendors such as Ericsson/Nokia /Siemens have access to the best technology but questioned the vendor’s operative expertise in managing network installation, servicing, and maintenance of the Telcom infrastructure.

Another issue raised by the marketing and IT department was if IBM will be willing to work fairly with other vendors, would the agreement mean Bharti will no longer have access to certain creative new applications? Also, whether hardware and software not supported by IBM would no longer be available. There were also concerns about staff relocation, some staff might not want to be transferred or the vendors might not want to take them. The following section discusses Bharti’s major concerns about entering an outsourcing agreement with IBM and Ericsson, Nokia or Siemens in detail, backing each point with relevant theories.

Discussion

Firstly, Bharti’s main concern with the outsourcing agreement to Ericsson, Nokia or Siemens is their delivery competency (Feeny, D et al, 2005) – particularly the vendor’s lack of domain expertise (ibid.). The vendor may provide access to the best technology, but that doesn’t necessarily mean that they are competent in planning, building up, installing, servicing, and maintaining of telecom infrastructure.

This increases the chances of Operational risk (Aron, R et al, 2005) as network expansion processes might not operate smoothly after being outsourced. To avoid this risk, Bharti being more experienced in planning, building up, installing, servicing, and maintaining of telecom infrastructure can codify the process and share knowledge with vendors (ibid.). Alternatively, domain expertise can be transferred from clients to vendors via employee transfer which is already included in the agreement. This will allow vendors to apply and retain sufficient professional knowledge of the target process to meet Bharti’s requirements.

Furthermore, another concern with the outsourcing agreement to Ericsson, Nokia or Siemens is Bharti’s lack of control (Feeny, D et al, 2005). The proposed agreement gives full control of the management of telecom infrastructure to the vendors. The telecom infrastructure is the backbone on which Bharti provides services to its customers. In a case where an issue arises such as a power failure, Bharti has no control and is fully dependent on the vendors to rectify such issues. The major effect will be felt by Bharti and this can damage the brand image or even make loyal customer switch providers.

Bharti can solve this problem by ensuring the selected vendor has good relationship competency (Feeny, D et al, 2005), this will ensure the vendor will go to the far extent to cultivate a win-win relationship that will align Bharti and vendors’ goals and incentives over time.

Thirdly, Bharti’s main concern with the outsourcing agreement to IBM is their transformation competency – particularly in IBM technology exploration (ibid.). Technology exploration is the willingness and ability of a vendor to swiftly deploy new technology to support critical services and ensure client meet their improvement targets (ibid.). For instance, in a case where IBM fails to innovate or is behind competitors in deploying new technology, Bharti will be directly affected by this because competitors might have more advanced technology hence gaining an advantage over Bharti.

Finally, an additional concern with the outsourcing agreement to IBM is their delivery competency (ibid.) – particularly the lack of sourcing. Sourcing is the vendor’s ability to tap the resources needed to meet the client’s service targets (ibid.). The proposed agreement permits IBM to manage all Bharti internal IT architecture, and applications including applications provided by other vendors. IBM might not be willing to implement a third-party application that carries out an operation better than their own product. This puts Bharti employees at a disadvantage because they might not have access to new better creative applications.

IBM might not be willing to work fairly with other vendors. Software and hardware that are not supported by IBM might no longer be available. Employees may be required to learn new skills to effectively use IBM technology, this puts pressure on HR to deploy the required training and initially can lead to less productivity.

Conclusion

The two major concerns Bharti would have about entering an outsourcing agreement with IBM and with Ericsson, Nokia or Siemens are their transformation competency and delivery competency respectively (Feeny, D et al, 2005). For IBM, Bharti can solve this problem by ensuring the selected vendor has good relationship competency, this will ensure the vendor will go too far extent to cultivate a win-win relationship that will align Bharti and vendors’ goals and incentives over time. For Ericsson, Nokia or Siemen, Bharti can share knowledge by codification and through domain expertise transferred from clients to vendors via employee transfer.

Question 4

Introduction

In the context of outsourcing, governance refers to the mechanisms, processes, and people that oversee and direct a business entity’s third-party contracts and relationships. (EY, 2016) The implementation of an effective information technology outsourcing governance has become an important problem for modern outsourcing companies. Efficient IT outsourcing management will ensure that Bharti’s IT outsourcing strategy is in line with the business goals.

A study by (Weill and Ross 2004) shows that companies with superior IT governance achieved 25 percent higher profits than those with poor governance, given similar strategic objectives. Bharti needs an effective governance mechanism to mitigate some of its concerns and capture any outsourcing advantages identified. In the discussion, Bharti’s outsourcing concerns will be reviewed and effective governance mechanisms to mitigate concerns will be suggested by the author.

Discussion

Organizations with ineffective IT outsourcing governance suffer due to inaccurate information quality, inefficient operating costs, loss of competitiveness, lack of control, and failure of the organization itself (Schwartz 2004, Woodhead 2004). Vaswani (2003), a study to determine the effectiveness of IT outsourcing governance mechanisms, revealed that three mechanisms— an IT outsourcing steering committee, senior management involvement in IT outsourcing, and corporate performance measurement systems — have been positively linked to the effectiveness of IT governance.

Firstly, Bharti can utilize this mechanism by setting up an IT outsourcing steering committee, the committee serves as a high-level managerial team, comprised of representatives from divisions within Bharti (such as Business executives -Mittal, and the CIO- Akhil Gupta), with the main function of linking Bharti Telecom Infrastructure and IT architecture outsourcing strategy and main business strategy (Nolan 1982; IT governance Institute 2003b). Bharti can also set up a Vendor Management Office (VMO) that reports directly to the steering committee.

The VMO is responsible for constant monitoring and reporting of risk/issues and status and governance reports on a regular basis to the steering committee. VMOs also monitor the knowledge transfer process (Deloitte, 2014). Bharti VMO requires Service management and an IT service management department (ibid.). Each of these departments works with vendors in their respective areas to ensure service delivery runs smoothly. Services management manages day-to-day vendor interaction and is accountable for service delivery (ibid.). The IT service manages vendors’ relationship, manages vendors’ performance, track vendors’ finances, provides vendors governance, adherence to agreed service levels, and facilitate resolutions of vendor-related issues (ibid.).

For Bharti, a steering committee can mitigate the concern of Ericsson, Nokia, or Siemens delivery competency– particularly the vendor’s lack of domain expertise. This governance mechanism will ensure the codification and transfer of required knowledge to the vendors through the activities of the VMO.

Furthermore, one of the steering committee’s duties is to oversee the implementation of the board’s strategic agenda. For Bharti to achieve this outcome, an effective performance management mechanism is necessary. In order to ensure the quality of services delivered by vendors, network capacity and IT infrastructure will be subjected to a number of quality control checks specified on the service level agreements (SLAs).

These include new application implementation delay, hotline customer satisfaction, and measure of network quality, such as the number of dropped calls, the number of incomplete calls. A penalty and reward mechanism can be set up to manage performance effectively. Such a system enables the management and the board to detect and correct any deviations and alter the strategy when necessary (IT Governance Institute, 2003b).

This governance mechanism can mitigate Bharti’s concerns (such as lack of control in the Nokia/Ericsson or Siemens agreement and lack of technology exploration in the IBM agreement), this will ensure the vendor will go to the far extent to cultivate a win-win relationship that will align Bharti and vendors goals and incentive over time.

Finally, many researchers have investigated the critical role of senior management in the success of IT outsourcing governance. Senior management involvement appears to result in effective IT outsourcing planning (Rockart 1988; Schuman and Rohrbaugh 1991; Earl 1993; Cerpa and Verner 1998; and Sohal and Fitzpatrick 2002).

Bharti can involve senior management through a practice of ensuring senior interactions with vendors and also through regular meetings as per contractual agreement and through relationship alignment – i.e. annual senior interviews (Delioitte, 2014). This governance mechanism can mitigate the concern of IBM domain expertise in lack of sourcing. Senior management meetings can ensure IBM and Bharti’s objectives are aligned.

Conclusion

In conclusion, for Bharti, effective governance will ensure Bharti captures the advantages for outsourcing and also mitigate some of Bharti’s concerns. The governance mechanisms include the involvement of senior management, the implementation of an effective performance measurement system, and the creation of an outsourcing steering committee.

Question 5

Introduction

Outsourcing involves both vendors and clients and it is important that both parties mitigate any concerns to ensure a win-win situation. In the discussion, any major concerns that IBM or Nokia should be aware of regarding the outsourcing agreement with Bharti would be outlined and reviewed.

Discussion

Firstly, a major concern for Nokia is the risk of being stuck with a significant investment in network equipment that they made on behalf of Bharti in the event that Bharti did not use the equipment. This presents concern because according to the case study, Bharti will only pay for network capacity when the capacity is up and running and have been used by Bharti customers.

Furthermore, a concern for both Nokia and IBM is the cultural difference between the companies. Bharti is an Indian-based company with a start-up mentality, and the vendors are the completely opposite – large multinational companies. The proposed agreement states that Bharti staff presently carrying out tasks that would be taken over by Nokia be transferred to Nokia. For Nokia, this also creates a concern of managing the cooperative cultural mix and managing sudden expansion in the number of employees.

Finally, a major concern for IBM was the payment structure. The proposed agreement states that IBM will receive a share of Bharti’s revenue for its services, although IBM has to invest in Bharti immediately without any form of down payment. In a case where Bharti makes a low revenue, IBM is at a risk of losing. Also, IBM will have to forecast Bharti’s revenue growth in order to estimate how much it would get paid, this forecast estimation is often inaccurate. The governance mechanism to mitigate this is the involvement of senior management (Delioitte, 2014). Senior management meetings can ensure IBM and Bharti’s objectives are aligned. IBM can also be involved in Bharti’s internal board meeting as per the contractual agreement since their revenues are tied.

Conclusion

In summary, the major concern of IBM and Nokia about entering an outsourcing agreement with Bharti is the cultural difference, the payment structure, and the risk of investing in unutilized network equipment. Some of these concerns can be mitigated through effective governance mechanisms such as involving senior management.

Bibliography

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Executive Summary

Use key words from the assignment brief

The following report will investigate the extent to which Starbucks Corporation is an innovative firm. This will be done by identifying their core innovation activity, determining the set of circumstances, as well as, the processes used to develop it. Ultimately representing how this activity contributes towards the overall sustainability and competitive advantage of the firm.

The opening section, 1.0, will introduce the report, giving a brief overview of the nature of Starbucks Corporation, by defining its activities as well as communicating the core innovation activity of the firm.

Section 2.0 identifies the drivers of innovation influencing Starbucks core innovation activity. This will be shown by the technological advances, changing customer needs, intensified competition and strategic intent that play an equally important role in driving Starbucks core innovation activity, before discussing the disadvantages of these drivers.

The next part of the study distinguishes the three different degrees of innovation; incremental, breakthrough and radical and how alongside the innovation ambition matrix, can be used to categorise Starbucks core innovation activity.

Thereafter, the Pentathlon Framework is used in section 4.0 to understand how Starbucks engage in open innovation which allows the co-creation of ideas between Starbucks and their customers. This method is used to develop the core innovation activity to its implementation and highlight how each part of the model is interdependent to Starbucks sustainable competitiveness.

The final section of the report examines the AVAC model, focusing on how Starbucks generate competitive advantages through their activities, value, appropriability, and change as well as showing how each element contributes towards Starbuck’s overall sustainability.

Introduction (200 words)

The LEGO Group is one of the largest toy manufacturers in the world, committed to providing children with “good quality play” as a building block to laying a foundation for future adult life (The Lego Group 2018). LEGO which was founded by Ole Kirk Christiansen in 1932 in Billund, Denmark. The companies name originates from the first two letters of two Danish words: leg godt, which loosely translates to ‘play well’ (Robertson 2013). Reasoning that no matter how hard times were, parents would want to support their children, an insight which sustained LEGO through almost a century of subsequent global recessions.

LEGO’s product portfolio started with the craft of wooden toys, moving onto the iconic studded plastic brick and is now adopting to an increasingly digital world which has reduced demand for conventional physical toys (reference). To retain competitiveness, LEGO has introduced a range of technologically advanced products such as the Mindstorm EV3 which is based on the successful mindstorm toy. Thus, allowing children to play with physical toys whilst incorporating technological abilities to meet the modern children’s needs (reference).

LEGO’s brand values; imagination, creativity, fun, learning, caring and quality are all focused on providing the consumer with the best possible experience with guaranteed quality and originality (LEGO Group 2018). To ensure consumers are provided with the best experience, LEGO introduced the Future Lab which is a department with the sole focus of providing the future of play to children worldwide in order to remain competitive in a technologically advancing world (Ringen 2015). This innovation lab is paramount to ensure the capability ceiling of LEGO is raised to allow for progressive development of technology in line/ahead of competitors (Goffin and Mitchell 2016).

Finish this section with more references and mention the core innovation activity.

System of Play:

• Lego brick
• Mini-figure

Triple number of products between 1993-98

Designers were given freedom until 2003 when Lego changed and provided their designers with minimal bricks to choose from to reduce costs and increase creativity

Innovation is looked at from 2 angles – http://blog.bearing-consulting.com/2013/02/08/the-lego-innovation-story/#

1. Understanding children – spending time with the families in various countries to get an understanding of what they want
2. Give designers scarce choices which influences creativity

Circumstances: The Innovation Landscape (600 words)

Drivers of LEGO’s Core Innovation Activity

According to Goffin and Mitchell (2016), there are five main drivers of innovation which can be seen in Figure 1.0. Four of these drivers will be assessed to explore how they contribute to LEGO’s core innovation activity.

Figure 1.0, Drivers of the need for Innovation (Adapted from Sheth and Ram 1987).

Technological Advances

Technology has become a prominent driver in most industries over the past couple of decades; the toy industry is not an exception (reference). Once LEGO’s business model was retuned in 2004 after many failed transformational innovation attempts, the company regained focus on the core products of LEGO and started making money again (reference). This proves that breakthrough innovation is not always required to maintain traction in the external environment.

However, continual innovation is required in the competitive toy market as traditional toys become less sought after than more advanced toys such as video games (reference). Thus, the Future Lab is used to identify these changes in consumer behaviour and provide creative solutions. For example; LEGO augmented reality allows the user to virtually play with various characters from the LEGO portfolio (Sawy et al. 2016). Technological advances has driven this innovative change in the LEGO company from physical to virtual toys however, the Future Lab also focuses on traditional toys as they are much cheaper and more practical for consumers therefore still in demand (reference).

• Significance of technological discontinuity
• Unpredictable
• Threaten to render exiting capabilities useless
• Range of features, configurations, standards
• Competence-destroying (destroys previous incremental patterns of innovation)
• They implemented many of the common innovation tools in the time leading up to the crash: they had a huge focus on disruptive innovation and searching for blue oceans, the formed diverse creative teams, and they tried several different versions of open innovation.
• Nearly all of the products that resulted from these efforts failed – and that is what led to the collapse.
• Then, as LEGO successfully launched the Architecture Series, and LEGO Games, and a whole series of wildly successful new products, they used the same set of tools to create these breakthroughs.

Changing Customers and Needs

Teece (2010) states that innovations should be driven by the changing needs of customers. LEGO has displayed its ability to change and add to its product portfolio by not only catering to the needs of children, but also to a growing adult customer base (reference). This change in customers is a result of LEGO being viewed as a highly useful tool to increase creativity both on a personal and business scale (reference). Through understanding customer needs, LEGO is able to aim its products and services at the relevant target market therefore increasing customer satisfaction (Chen and Poppvich 2003).

Intensified Competition

In order to flourish, businesses need to innovate (Makhmoor and Rajesh 2017). In a highly competitive market, this is said to be more difficult for an organisation, however, Porter (1998) considers that the direction and pace of innovation is driven by competition. This increase in competition may have been a driver for LEGO creating the Future Lab in an effort of creating unique products which are much harder to replicate than the LEGO brick which is no longer trademark protected which led to a rise in competitors duplicating their brick (reference).

Strategic Intent

Strategic intentions of LEGO have led to products and services being tailored to best suit the target market, evident through the reduction of LEGO’s product portfolio since 2004. This reduction was initiated by new CEO, Jorgen Vig Knudstorp, who was appointed in 2004 and identified LEGO’s decline as ‘over innovation’ due to increased competition and technological advances (reference).

Disadvantages of Drivers of Innovation

The five drivers in this model limit the scope in which innovation can be measured due to important drivers being missed out such as environmental (Taalbi 2017). This could be seen as an important driver for LEGO due to their involvement with children and vast quantities of plastic (oil derivative). The model also has a narrow focus on just one driver rather than multiple drivers with contribution.

Categorization of Core Innovation Activity (600 words)

Degrees of Innovation

LEGO’s innovations will be categorised into three main degrees; incremental, breakthrough and radical (Goffin and Mitchell 2016).

Degree of Innovation

Explanation

Investment (%)

Incremental Innovation

(Core)

Toys for Girls (Ref)

Licensing Agreements (reference)

LEGO Ideas (Minecraft etc)

60%

Breakthrough Innovation

(Adjacent)

LEGO Mindstorms EV3 (LEGO Group 2018)

LEGO Architecture

20%

Radical Innovation

(Transformational)

Augmented Reality App (Sawy et al. 2016)

20%

Table 1.0, Degrees of Product Innovation (Adapted from Goffin and Mitchell 2016).

Incremental Innovation

The incremental strategy of LEGO has been central to operations since the company was founded, following a structure much the same as Mintzberg (1989) model of Design, Failure corrected by adjustments and leading to success. These incremental innovations build on company knowledge and present capabilities to improve existing products, services and processes (Bessant 2008). LEGO’s future Lab incorporates open innovation to

• 1998 – Mindstorms
• 2004 – 4 MUP’s helped develop the new toy
• Ninjago – 2011 – ask kids what they like/don’t like
• 1999 – star wars Lego was first brought out and it was a big hit.
• Lego went back in the box after 2003 and started making money again
• Lego hits – Stars wars, harry potter, Bionicle
• Galidor – big failure – Had a tv show and game etc. People saw this toy as not a Lego toy, so it didn’t do well

Lego looking to target the adult market using crowdfunding for its new idea (Lego Forma). This is the latest in 2018.

Breakthrough Innovation

• Lego Games – moved from toy shelf to game shelf too
• Lego friends – very profitable
• International Networks for technology creation – 19. Journals on Models
• Radical Innovation
• From Wood to plastic
• From plastic to technology components (Sensors etc)

Processes Supporting the Core Innovation Activity (600 words)

The Pentathlon Framework

Figure 2.0 is a representation of the model which will be discussed in relation to LEGO’s innovation processes. The framework is used by companies as a tool to respond to challenges by generating, selecting and implementing innovative ideas (Oke 2007).

Figure 2.0, The Innovation Pentathlon Framework (Adapted from Goffin and Mitchell 2016).

Ideas Generation

To allow idea generation to flow, ideas must be collected from both internal and external sources (sowrey 1990). External idea generation has become more accepted in recent years due to companies recognising the fundamental benefits and insights into consumer behaviour (reference). This is known as open innovation which allows consumers to put forward ideas and ultimately be part of the development process of both new products and incremental changes (parjanen, Hennala and Uotila 2011). LEGO’s Future Lab applies this method through a website called LEGO ideas which is a crowdsourcing platform used to gain consumer knowledge and influence innovative new ideas from outside the company (Liu, Zhao and Sun 2018). Other users can vote on this platform and if the LEGO set reaches 10,000 votes, the set will be put into production within reason (reference).

Through open innovation, LEGO is able to tailor their sets to the current consumer trends which should in turn increase profitability (Schenker-wicki and Inauen 2012). This method of innovation does come with drawbacks, such as the sheer volume of requests and time required to manage the large volumes of submissions. This may waste valuable resources and rely too heavily on consumer feedback therefore take the ingenuity away from the designers or vise versa (reference).

Ideas Selection

Once ideas have been selected, it is vital that an effective selection process is used to select and develop the best ideas further (Goffin and Mitchell 2016).

Ideas Implementation

Innovation Strategy

People, Culture and The Organisation

Limitations of the Pentathlon Framework

Contribution (600 words)

Allows the company to remain competitive in a changing environment

AVAC framework – Lecture 4, slide 25

Conclusion (100 words)

References

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2. ROBERTSON, D., 2013. Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry.
3. Lipkowitz, D. (2012). The LEGO book. Dorling Kindersley.
4. THE LEGO GROUP, 2018. The LEGO Brand. [online]. Available at: https://www.lego.com/en-gb/aboutus/lego-group/the_lego_brand [Accessed 4 Dec. 2018].
5. RINGEN, J., 2015. How Lego Became the Apple of Toys. Fast Company, (192).
6. GOFFIN, K. and MITCHELL, R., 2016. Innovation management: effective strategy and implementation. 3rd ed. Basingstoke, Hampshire: Palgrave Macmillan.
7. SHETH, J.N. and RAM, R. 1987. Bringing innovation to market: how to break corporate and customer barriers. New York: Wiley.
8. SAWY, O.A., KRAEMMERGAARD, P., AMSINCK, H. and VINTHER, A.L., 2016. How LEGO Built the Foundations and Enterprise Capabilities for Digital Leadership. MIS Quarterly Executive, 15(2).
9. CHEN, I. and POPOVICH, K. 2003. Understanding customer relationship management (CRM). Business Process Management Journal, 9(5), pp.672-688.
10. MAKHMOOR, B. and RAJESH, V. 2017. Why Business Model Innovation Is the New Competitive Advantage. IUP Journal of Business Strategy, 14(1), pp.7-17.
11. OKE, A. 2007. Innovation types and innovation management practices in service companies. International Journal of Operations & Production Management, 27(6), pp.564-587.

Introduction

Innovation is considered as the most primarily bandied about terms in the modern era of global business. The newly devised products and services of an innovative organization offer various numbers of innovative and creative features, traits, and consumer touchpoints in amalgamation. The purpose of the assignment is to explain the innovation strategies and innovation dynamics with reference to the organization “Sony”. Every individual industry progresses via stages of steadiness and calmness when innovation is regarding what can be improved further or stages of disruptions where the rules of the business get completely changed. The potential consumers have evolved in the modern years to become increasingly habituated to explore for the latest, convenient and fashionable products offered by the organisations. In this assignment, some key theory discussion and analyses will be conducted in order to understand the level of innovation and innovation dynamics in the specific organization.

Key Theory Discussion and Analysis

Sony’s focus on innovation from survival

Sony has shifted its focus towards innovation from survival as it has laid emphasis on the creation and development of new products such that the trend of the market shifts completely. Sony has combined artificial intelligence and robotics with everyday gadgets or electronic products. The organization developed PlayStation and walkman that was invincible for several decades. However, the organization faced several losses in the period 2008 to 2014. In that period, software earned the profit and not hardware. However, the organization made such strategies and implemented them that turned out to be in favour of the organization.

The organization developed Aibo that is a robotic dog. The organization also developed a humanoid robot named Qrio. The leaders of the organization took steps that changed the direction in which it was moving forward (Asia.nikkei.com, 2016). The organization developed 4K television that had ultrahigh-definition. The organization started investing on PlayStations and music that proved to be a boon for it. In the era, while the sales of the organization fell manifold that resulted in the association to cut down approximately 10,000 jobs all around the world. The organization made decisions of connecting robotics and AI with the network. The organization put in several efforts in robotics and AI in order to get back its lost battle.

The management of the organization made a drastic decision of shifting its emphasis to emphasis and come out of its comfort zone. The organization started taking risks as organizations like Apple entered and took over the market. Therefore, the organization made decisions of working on Artificial Intelligence (AI) and robotics so that such innovations can aid it to conquer the market. The organization started focussing on the development of hardware or electronic gadgets of better quality with innovative features so that the customers can be benefitted from it. The organization mainly emphasized on Artificial Intelligence (AI) so that the adverse situation that the organization was facing can be turned around. The audio-video technologies that the organization developed embedded robotic and Artificial Intelligence (AI) capabilities in them. The organization embedded Artificial Intelligence (AI) technology in its camera app ‘Xperia’ as the ‘AR effect’, this application utilized Augmented Reality (In.finance.yahoo.com, 2019). The Smile Shutter and face recognition function of the digital cameras and PlayStation respectively are the examples of AI that the organization worked on and achieved in order to change the market trend. The AI-based product that the organization developed was ranked number one in the market. The organization put in several efforts in robotics and AI in order to get back its lost battle.

Sony’s Generic Strategy

In order to gain the competitive edge of other organizations in the world of electronics and technology Sony adopted a generic strategy like Porter’s Model. Sony adopted intensive strategies in order to give tough competition to its competitors in the market. The competitive strategy adopted by Sony is the uniqueness of its products. The intensive strategy adopted by the organization mainly focuses on increasing its share in the market in the field of games, financial services, entertainment, and electronics (Sony.net, 2019A). Behind the success of PlayStation uniqueness was the prime factor. The organization gained an advantage over organizations like Nintendo through product differentiation.

The continuous focus of the organization on innovation aided it to decrease the cost of production and increase its profitability. The main purpose of the organization was to penetrate the market so that it can increase its sales. The other motto of the organization was product development, that is, to embed new innovative features in its products so that the quality of services offered to the customers can be improved. Market development was another strategy adopted by the organization so that it can reach more customers by expanding its branches (Sony.net, 2019B). The organization adopted diversification so that it can offer its customers a wide range of products.

Sony’s Intensive Growth Strategies

Intensive strategies are defined as the specific strategies, which requires additional intensive knowledge and efforts in order to enhance the performance and productivity of the existing products or services in the market (Luo et al., 2011). The three types of intensive strategies that Sony has adopted are market penetration, product development and market development. Market penetration is considered as the primary intensive strategy of Sony as it is focused towards the aim of improving the productivity and profitability of the business by increasing the level of sales in the market where the organization operates. The main goal is to acquire a large volume of the market share by attracting potential consumers. For example, Sony improves its business by escalating its marketing initiatives and various campaigns to improve the sales of its PlayStation devices (Chiesa and Frattini, 2011). The organization implements its differentiation generic strategy in order to attain a competitive edge over its major rivals and to support the penetration process into the market. Sony implements its product development plan as a secondary intensive strategy in order to devise more effective products and services than compared to the competition in the market. In other terms, this second strategy is executed in order to support the generic plan of differentiation in regard to the design and features of the product.

For example, Sony has continued to improve the performance and design of its gaming products in order to provide their potential consumers with the best gaming experience (El-Nasr et al., 2016). The gaming products and services of Sony have been a major driver of growth for them as they have helped in outperforming the competition in the market. Diversification is considered as the least important intensive strategy as its goal is to achieve growth and development via new developments and progress in the business. However, the significance of this strategy has decreased over the years due to the decision of the organization to pay attention to specific products and services.

R&D structure for AI x Robotics at Sony

In order to come out of the adverse stage that the organization, Sony was facing it invested huge sums on research and development so that it can stand up and win the lost battle. The organization worked in Artificial Intelligence (AI) and robotics in order to offer new innovative products to the customers. The organization did immense research and came up with Aibo the robot dog. The history of Sony begun in D21 laboratory wherein the starting of 2000s or the 21st century the organization’s focus was to create a robot version or edition of living things or creatures. The organization took several steps to make sure that the recent developments that were made can change the market trend and turns out to be in favour of the organization. The organization started expanding its market by increasing the diversity of its products.

The organization collaborated with Olympus in order to develop a neurosurgical microscopic system. This enabled the doctors to open or create small holes in the patient’s body and use instruments like thin forceps specially designed and endoscope that is long and thin in order to perform operations. The doctors need not cut open abdomen of the patients. The organization further worked on the improvement of medical conditions so that the method of operation can be improved and people can be given a better quality of life through artificial intelligence (Sony.net, 2019C). The researchers and developers of the organization further did research so that the medical equipment can be improved and people can be given better treatment.

However, the main emphasis of the organization was to train people to use the tools so that these developed equipment do not prove to be a bane. It was mandatory to make several steps so that the equipment and the gadgets developed are fruitful for human beings. Several tests were conducted to make sure that the products developed are useful and does not have any hazard. Therefore, the organization took the topic of training the employees and the users very seriously so that any adverse effect or negative results are not produced.

The organization is working on machine learning in order to develop innovative products for customers. Sony had taken such measures that brought robots closer to Artificial Intelligence (AI). The organization made its first attempt in 1999 when the organization released AIBO the robot dog. The organization also worked on Artificial Intelligence (AI) and incorporated into digital cameras. Smile Shutter was the function that was incorporated in the digital cameras developed by Sony that was disruptive innovation as it changed the trend of the market (Sony.net, 2019E). The organization also worked on its PlayStation and added Face Recognition feature in it (Sony.net, 2019D). These developments completely changed the trend in the market and proved to be advantageous for the organization as it made the organization earn huge amounts of profit and overcome the closes that its face before.

The organization also worked on its hardware or electronic products and developed $K television with ultrahigh-definition. The organization also worked on Audio Video technology and music so that the experience of the customers in terms of entertainment can be improved. The organization is continuously working on its features so that innovation can be incorporated more and more so that the quality of the products can be improved which in turn will improve the quality of lives of the people or customers. The organization worked on it not only to take control of the market but also to make sure that people or its customers are benefitted from it. Thus, the organization laid emphasis on AI and robotics.

Social Value through Disruptive Innovation

Sony’s Initiatives in Robotics and AI

The organization is amalgamating its prevailing strengths in various units and areas including audio and video technologies and mechatronics with robotics, technology and artificial intelligence (AI) in order to provide the consumers with new proposals and schemes leading to the expansion of the robotics field. For example, the autonomous entertainment robot was pre-inaugurated in the year 2018 and it is considered as the outcome of the organization’s effort in leveraging robotics and AI in order to devise such a robot that interacts and develops a bond with human beings (sony.net, 2019). The appearance and capability of Aibo have evolved in recent times to be considered into account for utilization in different environments. For example, Sony Lifecare Incorporation is planning to adopt Aibo in order to enhance the quality and quantity of its residential services. The Mars Desert Research Station (MDRS) situated in the USA has borrowed two Aibos in order to conduct research regarding the process of establishing a life and living on the planet of Mars (sony.net, 2019). The project handled by the MDRS is focused on monitoring and managing the influence on interpersonal relations and advantages from experiencing a robot within the enclosed research station (Keisner et al., 2016).

Sony’s Initiatives in Automotive Image Sensory

The organization in the year of 2014 proclaimed that it would exploit or materialise image sensors for utilization in the automotive sector. Sony has always positioned the automobile industry in the primary choice for its business of image sensors and it is constantly working on R&D in order to popularise the notion of self-driving vehicles (Mukhi and Lakhani, 2016). In order to promote the notion of safety and preventive measures in self-driving cars, the organization has introduced a safe-zone notion named Safety Cocoon (sony.net, 2019). This concept of safe-zone is focused on securing the safety of the car in different driving conditions by 360˚ monitoring around the self-driving car. In other terms, it means enabling early planning and preparation in order to avoid risk and casualty. The automotive image sensors of the organization provide various benefits and advantages to the users including greater sensitivity, wide extent of dynamic range and mitigation functions, that also help in reducing flickering when portraying traffic signals or signs. The primary aim of Sony in the field of automotive image sensors is to drive the acceleration of the trend of self-driving vehicles or cars by sharing and communicating this long-term vision with its collaborated partners (sony.net, 2019).

Global Education

The mission of Sony Global Education Incorporation is to develop an educational infrastructure for the interlinked societies of future times. The entity is focused on fostering the people held liable for carrying the initiatives to cater to the problems and issues faced by the modern world in order to explore solutions for a brighter future of the world. For example, Sony in the year of 2017 introduced an interlinked robotics kit named KOOV for the future innovators (sony.com, 2019). KOOV helps the learner to understand the concept of coding by organizing various blocks into different shapes to develop robots that are specially programmed in a different way.

Disruptive Innovation Journey of Sony

It can be said that the disruptors of the modern world can easily evolve into the future’s disrupted. Disruptive innovation specifically refers to the technology whose implementation essentially influences the way or the manner in which a sector or industry operates. Disruptive innovation is completely differentiated from disruptive technology as that kind of innovation focuses on the utilization of the technological elements instead of focusing on the technology itself (business today.in, 2019). In the modern field of the business world, a majority of the technologies and inventors have eventually led to disruptive innovation. At the initial stages, Sony’s potential of disruptive innovation was a long and uncertain journey but since its establishment, the organization has properly managed to convert the faded potential into a profitable business. In the year of 1970, Sony caused disruption to its imaging business under the leadership of Shigeyuki Ochi. Next, in the year 1972 and 1977, Sony developed a pixel image sensor along with the assembling of the CCD R&D team. This team was termed as costly and every individual member had to encounter insults and criticism from other colleagues and staffs. It can be said that disruption takes place when the compulsory mainstream consumers start purchasing the devised products or service in a large volume.

Sony by introducing its CCD-V8 i.e. an 8mm single-unit VCR along with a camera with an installed CCD chip of 250,000 pixels marked its inauguration of new successful business as the eye of the camcorder was introduced on a global scale (sony.net, 2019). This uncertain journey of converting a blurry potential into a successful business not only bought success and fortune to the organization Sony but also caused disruption to the camera industry. Hence, it can be said that innovation amalgamated with technology is an essential and crucial competence to possess.

Sony: Disruptor to Disrupted

There is a second face to this key theory discussions and analysis and it is that how does an organization as Sony termed as a preeminent example of disruptive innovation evolved on to become a loser. There are various reasons for this and the primary reason is the failing power or potential of Sony in the field of consumer electronics and music. However, the stock prices of the organization have always been stable such as $47.94 billion in 2012 to $68.35 billion in 2017 (digit.hbs.org, 2019). The organization has always been avoiding and missing valuable opportunities that have eventually led them to be dwarfed by negligible competitors including Samsung and Apple. The market capital of Sony is estimated to be of 1/30th of Apple and 1/9th of Samsung. Hence, it can be said that Sony is still sustaining in the business but winning is not the throne of possibility in the short-term business.

Figure 1: Total Revenue of Sony from 2008 to 2017

(Source: digit.hbs.org, 2019)

The secondary reason behind the organization’s failure was to adjust its model of business that explains how Sony developed values. It is important for every business organization to reevaluate their business strategies and plans in accordance with the acceleration of technological innovations and initiated change in specific industries. Sony never reevaluated its business strategy in the middle of technological innovations and changes. The organization has always paid attention towards its hardware, developing the potential of its extensive R&D that offered sustaining and disruptive innovations including Sony Trinitron or Discman (hbr.org, 2019). Hence, it can be concluded that Sony failed in reanalyzing on how it developed values and this hampered its potential to progress into the shift from the notion of hardware to software. The organization, for now, is focusing on its gaming platform and the specific values that it has developed for its potential users via networking and software.

Programs for generating Innovations

Startup Acceleration Program develops startup projects and supports business activities

The Startup Acceleration Program was launched by Sony in the year of 2014 in order to gather ideas and notions prevailing beyond the various business categories and shape them for commercialization (sony.net, 2019). This was possible due to the knowledge of a vast range of human and management resources by Sony Group in different sectors including electronics, financial services and many more. In the coming years, the organization is planning to launch businesses and gain innovative and creative breakthroughs by leveraging coordination and collaboration involving talent and technology both. This would be possible by pacing the establishment of tie-ups and partnerships with potential joint venture entities operating actively in their specialized fields of business. This program was utilised by the organization as an approach to establish business start-ups and materialize standardised concepts and notions by tapping into the production and design knowledge that Sony Group possesses.

The first ever initiative that the organization has carried out under the shade of the program is known as “First Flight” i.e. an e-commerce portal providing a specific platform to the organization for developing links and connections between their launched start-ups and potential consumers (sony.net, 2019). This initiative focused on the specific potential consumers who have a taste for new products and services and who are interested in converting business ideas into successful and profitable business. Under the planning of the initiative and crowdfunding framework, a project under evaluation process for start-up establishment tends to attract a large volume of consumers in acknowledging their reviews regarding whether it can be used as a marketable product or not. Additionally, various business proposals and developments in the process are reported daily on the e-commerce website in order to acknowledge the reviews and feedbacks by consumers and then incorporate it to improve their service. However, the programs for generating innovations and other solutions for pacing the exploitation of business concepts were expanded to encompass business entities operating outside the Sony Group. The Group has also installed a Creative Lounge in Tokyo to trial and test the new ideas and notions with the help of 3D printers and other important equipment (sony.net, 2019).

Expansion of the Startup Acceleration Program Worldwide

In the year of 2016, Sony Group established its European hub of the program in Sweden and it utilises the similar processes and methods as the Japan hub (Tasic et al., 2015). The European team assembled constantly shares ideas and notions with the Japanese team while executing workshops and training programs for the hardworking European staffs and employees to guide them in developing successful ideas and networks. Till date, three auditions have been conducted with the effective cooperation and active involvement of the individual employees from various countries such as Netherlands, UK, Belgium and many more. The two things that Sony wanted its specific program to accomplish are the cultivation of a new pool of entrepreneurial talent and effective training of experts and professionals having the desire to pace the establishment and function of new potential businesses (sony.net, 2019). The start-up projects evolved from the program have been guided by a small group of elite and expert members by gaining a lot of support and help from people specialised in various fields. The amalgamation of Sony’s entrepreneurial talent pool and innovation knowledge affords potential opportunities to extract the maximum of the potential of staffs and employees.

Cultivation of Startup Projects and Initiatives

Sony Group in the year of 2016 launched a project named “Startup Switch” i.e. an annual business strategy for new start-ups and businesses (sony.net, 2019). The entries are auditioned and screened before selecting the winning entry and the organization awards a prize and supports the startup to pace business development by delivering mentoring with promotional and technical activities.

Conclusion

It can be concluded from the assignment that innovation is the major key to restoring and sustaining the shine of Sony and to achieve this Sony pursues various innovative initiatives focused on enhancing the quality of the product or service. The organization has portrayed its potential to lead effectively and sustain relevantly by backing up from the pack in every virtually known category of a camera. The purpose of the assignment was to explain the innovation strategies and dynamics of Sony in a detailed manner and by including discussion of key theories and concepts used by the organization. It has been concluded that the more Sony has attempted to play it safe, the more it has dealt with obstacles and struggles. The organization has lost its sense or judgement of direction and eventually grew risk and threats-averse. In this assignment, the various innovations and programs for generating innovation have been demonstrated.

Recommendations

The various recommendations advised to Sony Group are as follows:

• Improving the Quality of products and services – The organization needs to devise design-related quality initiatives and schemes. Sony requires relevant units and departments such as original equipment and design manufacturer i.e. OEM and ODM in order to comply with the quality standards and norms set by the groups.
• ·Improving the safety of the products and services – It can be said that offering of dependable products and services that can be utilised by the consumers safely is the primary objective and priority for Sony. It needs to ensure that the explanations and knowledge provided to the potential consumers regarding safety are appropriate and easy to understand.

Reference List

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Company Description and Market Analysis

Also known as the Road and Transport Authority, RTA is an organization responsible for not only planning but also providing necessities of transport in Dubai and the neighboring cities. The primary objective of this organization is to provide reliable, efficient, and integrated transport systems that will help Dubai to achieve its vision of serving significant interests of the UAE (Smith 2010). Formed through the 2005 declaration number 17, RTA believes that since Dubai is among the world’s fastest-growing cities, there is a need to provide high-quality infrastructure. Through Dubai’s government agenda of improved transport, RTA embarked on a mission to provide not only smooth but also safe roads for UAE. RTA’s main competitors are the Public Transport Agency (PTA) and the Transportation Systems Department (TSD). The organization has adopted a matrix organizational structure (Kamoun, Werghi & Al Blushi 2010). Through this structure, the organization’s management team can achieve concrete results through its team of experts in the various functional areas. (See fig. 1)

In 2014, alongside other awards, RTA received the ISO certification in the Energy Management system award. Visits to the company’s website (www.rta.com) has continued to increase over the years. With over 2million visits in 2009, the organization’s website has made up to 117 percent increase. After introducing Salik toll gates in 2007, RTA was able to raise 1.658 billion Dirham. Although the organization’s revenue was 1.2 billion Dirham in 2007, it is expected to increase to about 5 billion Dirham by the year 2016. With its headquarters at Marrakesh Street Umm Ramool, RTA is a government agency within the Government Administration industry. RTA is a public company with about 1001 to 5000 employees. Through its mission of developing an integrated transport system that will provide notable services to all stakeholders, RTA promotes growth initiatives in Dubai. The organization motivates its employees through the formulation of friendly legislations and policies, utilizing innovative strategies and technologies, and adhering to the global demands and practices (Edquist 2010). Primary roles of RTA include providing intercity transport, maritime transport, vehicle registration, road beautification, and rail and road projects.

Innovation Policies and Strategies at RTA

Since its inception, RTA has actively taken part in adopting policies and strategies that foster innovation. The main source of innovation for this organization is effective leadership. According to Mattar Al Tayer, the executive, and chairman of the RTA Executive Committee, RTA takes part in initiatives and programs that promote innovation. Addressing the issues of innovation at RTA has come as a result of the directive from the President of the United Arab Emirates, His Highness Sheikh Khalifa. RTA has put in place a standing committee that monitors its innovative strategies and policies. Also, the standing committee has put in place an innovation incubator that ensures that the current innovative procedures meet global standards (Rad & De Moraes 2009). The global strategies at RTA have been in line with the creation of innovating technologies and materials such as the rail vibration sensors and the heat-resistant asphalt.

Through its rewarding approach, RTA has continued to motivate its customers and employees in contributing ideas that will promote business processes. Also, RTA has assigned more financial resources to research awards. In line with comments made by RTA’s president, this move has stimulated employees to take part in innovations (Smith 2010). In line with these insights, the organization has effectively utilized Maslow’s hierarchy of needs theory. Marlow’s theory of the hierarchy of needs suggests that when an employee’s needs are met, they will be motivated to perform.

There are many strategies RTA uses to promote innovation. At the beginning of this year (2015), RTA embarked on research on the use of driverless vehicles. This research aimed to deploy the autonomous cars in Expo 2020. In the same spirit of innovation, RTA will complete the ongoing makeover to the Smart Government Project (Rad & De Moraes 2009). In line with SGP, RTA will introduce innovative, smart, and user-friendly applications to meet its consumer’s needs. Presently, RTA smart services have scored above 90 percent when compared to other smart applications. According to the president, RTA will soon start an electric bus test run. The electric buses will be powered by rechargeable batteries and will have the capability to travel up to 200 km and speed of 100 km/h (Kamoun, Werghi & Al Blushi 2010). As highlighted in the Dubai Metro Projects, the 75 km stretch mass transit systems and the spanning roads have proved a successful invention of driverless cars. Build on the Artificial Intelligence skill, these innovative strategies have proved to be successful. Furthermore, the floating bridge projects have made residents to travel with ease. These strategies have proven a successful application of RTA’s innovative strategies and policies.

Recommendations, Suggestions, and Conclusion

While innovative practices at RTA have made traveling efficient, there is a need for other countries to adopt such innovation strategies. One of the most remarkable strategies to be incorporated at RTA is the use of research in advancing the existing business practices. Through forming institution-based research teams, RTA can utilize research to promote innovation (Dubai Award for Sustainable Transport: RTA Portal 2015). These teams should be evenly distributed throughout the organization’s agencies and sectors. The organization should take part in the detailed evaluation of its current suggestion system to improve innovation. In conclusion, this paper has provided a set of not only useful but also practical recommendations and insights that can be used to foster the enhancement of public sector innovation (Smith 2010). Therefore, the collected information on Road and Transport (RTA) is significant to the developing transport field. Since innovation strategies and policies have been successful in other countries, RTA must establish and exploit a connection mechanism. This connection will help RTA reduce effort duplication and the waste of useful synergies between the various national strategies.

Brief Summary

Innovation in the public sector involves the formation and application of new processes, services, products, and method deliveries resulting in enhanced effectiveness and efficiencies of the outcomes (Rad & De Moraes 2009). In line with an understanding of this term, innovation in the public sector facilitates the application of new concepts in producing better results. Innovation has taken place across the spectrum of the United Arab Emirates government public sector entities. This paper discussed strategies and policies that support the management and commercialization of innovations at the Roads and Transport Authority (RTA). Alongside how the organization protects its IPR, it also discussed the processes and sources of innovation at RTA. On understanding the nature of these strategies, this paper also discussed the appropriate recommendations, suggestions, and conclusions on the unitization of innovation in UAE.

Reference List

Dubai Award for Sustainable Transport. 2015. Web.

Edquist, C 2010, ‘Systems of innovation perspectives and challenges’, African Journal of Science, Technology, Innovation and Development, vol. 2, no. 3, pp. 14-45.

Kamoun, F, Werghi, N & Al Blushi, M 2010, On the Appropriateness of Incident Management Systems in Developing Countries: A Case from the UAE, Journal of technology management & innovation, vol. 5,no. 4, pp. 57-69.

Leonard, V & LeBrasseur, R 2008, ‘Individual assignments and academic dishonesty: exploring the conundrum’, The Australian Educational Researcher, vol. 35, no. 1, pp. 37-56.

Smith, D 2010, Exploring Innovation, 2nd edn. McGraw-Hill Education, Europe.

Innovations in the automobile industry have always been undertaken in response to change and the changing needs of the customers. Current innovations do take into consideration the emerging issues such as environmental awareness, safety concerns, comfort, fitting of new software to increase efficiency, and the general view of luxury. The current innovations in cars have influenced the market trends and growth of the industry thus contributing to the growth and development of the economies. Innovations range from hardware designs to software. The current innovations and trends in cars have been influenced by consumer attitudes towards car purchase with a focus on fashion-conscious strategies (Morrison, 2007).

Innovations in interior design have focused on ergonomics and the comfort of the passengers. This has been enhanced through “the development of shapes, proportions, surfaces, and placement of instrument panels such as seats, doors, pillar, trims, and headliner among others,” (Automobile, 2010, p. 1). Current innovations in cars’ interiors incorporate customized materials to create uniqueness and individuality in the clients. Interior design has been focused on ensuring that the driver and passenger interact with their vehicles and increased flexibility to serve their dynamic needs (Dodge, 2009; Fusion exterior design, 2009).

The focus of exterior design has been on “surfaces, proportions, and shapes of the vehicles,” (Automobile, 2010, p. 1). The innovations in exterior design have focused on the customization of past designs with few differences in engine capacity. Current innovations in the exterior innovations of cars focus on creativity and research to produce cars that fit in with the individuality of the customers through eliciting emotional reactions.

There has been an enlarged scope of design choices with customization of past designs to fit in a new era that has drawn a lot of inspiration from art in all areas such as the Japanese art of folding paper in the design of the BMW X Coupe concept car (Springer Link, 2007). The color and materials design has focused on research, designing, and development of interiors and exteriors. Current innovations have also focused on creativity in design and research to incorporate new materials. The process has focused on the specifications, needs, and individuality of the customers with the incorporation of customized cars that fit in with the culture and relate well with the clients (Foresee car design, 2010).

Diesel cars have been termed as slow and noisy though cheap (Ecomoto, 2007). However, current innovations have produced diesel cars fixed with high-performance engines. In addition, the cars have been fitted with particulate filters with high speed of the engine and clean filters.

Petrol cars are economical due to their economic value, especially on short distances. They are the highest used. Current innovations have been in the incorporation of dual systems that allow cars to run on either gasoline or LP gas. Manufacturers have also adopted direct injection fuel systems where injection of petrol is into the cylinder and not mixed with air to improve the fuel economy (Springer Link, 2007).

Car innovations in the recent era have thus focused on mitigating effects such as environmental pollution and effects of global warming (McLernon, 2009). International concerns have focused on the green concept and hence the development of green cars. There has been increased development of hybrid and electric cars and air and battery-powered cars such as the Toyota Prius which minimize carbon emissions (Zero pollution motor air car, 2010).

The adaptation of the green concept has been revealed in the exterior design through the use of recyclable materials for car bodies. Interior design has incorporated materials that are environmental-friendly in car parts and the design of interfaces such as speakers. Focus has also been on the provision of sound-proof systems to avoid pollution (Ecomoto, 2007). There has been increased innovation in fuel vehicles such as liquified petroleum gas (LPG).

This is because LPG is termed as a green fuel due to its ability to decrease exhaust emissions and run smoothly decreasing engine wear and tear (Ecomoto, 2007). Another innovation in cars has been the LPG cars that have engines meant to run on propane (Zero pollution motor air car, 2010). However, the cars have dual systems for gasoline and LP gas because of the few LP gas stations available. The engines are designed to automatically switch between the two fuels (Ecomoto, 2007).

The government has influenced developments in the car industry, especially in the green concerns. The government also steps in during economic recessions to boost the industry in matters such as funding of the car industry, providing incentives such as tariff reduction and packages for greener production especially in the manufacturing industry (Coopers, 2008).

The greatest impact of the new car innovations is on the environment. The new innovations will enable car users to reduce air pollution due to the reduced levels of carbon dioxide emitted by cars. This will in turn have a long-term reversal effect on climatic change (Guardian, 2004)).

The new car innovations will help car owners to reduce the amount of money spent on car fuel. This is because the new car innovations will produce cars that are fuel-efficient and which can use alternative forms of fuel. Thus, society will be able to save or reallocate the money that was initially spent on car fuel to other more important uses. Lastly, the new car innovations do not compromise the luxury and comfort of car users. People will still be able to enjoy these benefits but at considerably lower costs.

Reference List

Automobile. (2010). Automation and growth team. Web.

Coopers, M. (2008). Green car innovation. Web.

Dodge, S. (2009). Caliber design styling. Web.

Ecomoto. (2007). Environmental Trends, Green innovation, Electric cars & Hybrid cars. Web.

Foresee car design. (2010). Car Designs. Web.

Fusion exterior design. (2009). Cars. Web.

Guardian. (2004). The top 10 green cars. Web.

McLernon, N. (2009). The U.S. is Green with In-sourcing Innovation. Web.

Morrison, A. (2007). The Automobile as Accessory: current car trends. Web.

Springer Link. (2007). Cultural differences influence government policy on vehicle innovation. Web.

Zero pollution motor air car. (2010). Green hybrid electric cars. Web.

The relevance of big data to various organizations

Such a team as big data is now widely used by many IT professionals, scientists, and business executives. This term is supposed to describe a large collection of data sets that can grow almost at an exponential rate. One of the main trends is to implement technologies that can store, analyze, or categorize growing volumes of data. These technologies can apply to various organizations. For instance, one can mention the banking industry and medical institutions such as hospitals. It is necessary to show why these technologies can be relevant to these organizations.

Banks

First of all, these tools can be of great use to financial institutions such as banks because they have to work with various types of data that can be varied and complex. In particular, these organizations have to record information about their clients, business, partners, transactions, and so forth. Moreover, these data sets continuously grow in size because banks can interact with millions of people who can be living in various countries. This is one of the main aspects that can be identified. Additionally, big data technologies can help banks to improve their relations with customers.

In particular, financial analysts can analyze the way in which customers use different channels such as call centers, websites, or tellers (Groenfeldt, 2013). For instance, these tools can be used to analyze the voice recordings of employees in order to detect the most common errors that they make while interacting with clients. Additionally, these technologies are helpful for understanding why clients can be satisfied or dissatisfied with the quality of services (Groenfeldt, 2013). Therefore, the effective performance of organizations is also dependent on the use of information technologies.

Additionally, big data technologies can assist banks in analyzing the behavior of corporate clients. In particular, one can speak about small and medium-sized businesses (Crosman, 2013). For instance, bankers can better understand what kind of services entrepreneurs need. This is one of the details that can be singled out.

It should be noted that the application of big data technologies have become relevant to financial institutions at the time when the use of the Internet has become very widespread. The managers of banking organizations want to understand why clients can experience difficulties while making online transactions (Groenfeldt, 2013). Nevertheless, this information can be effectively analyzed if a bank implements big data technologies. At present, these applications are adopted by large international banks, but in the near future, they can be relevant to smaller companies.

Additionally, the adoption of big data technologies is helpful for the detection and investigation of fraud cases. For instance, these tools can reduce the costs of fraud screening (IBM, n. d.). This is one of the problems that bankers struggle with. In turn, the analysis of big data can make this process more efficient. Apart from that, these technologies can assist financial organizations in assessing the risks of giving credit to a specific counterparty (IBM, n. d.).

For instance, the managers of banks can determine what kind of factors can prevent a person or a business from repaying one’s loan. Therefore, these organizations can improve their risk management strategies. It should be kept in mind that the lack of these safeguards is one of the factors that contributed to the collapse of many financial institutions.

Overall, the use of big data can contribute to the effective performance of many banks. In particular, they can improve the retention of customers and reduce operational costs. Secondly, these tools can make banks more responsive to the changes in the behavior of consumers, partners, and competitors. This is why their benefits should not be overlooked.

Hospitals

Furthermore, the ability to examine big data is of great use to medical organizations. It should be noted that hospitals have to record various types of information. For instance, they have to store patients’ records, the information about employees, the data collected in the course of clinical trials, insurance numbers, and so forth. Furthermore, medical institutions can store data related to such areas as nursing, clinical care, public health, dentistry, and so forth. Therefore, they have to find ways of storing and processing this information which has such characteristics as complexity, variability, velocity, and increasing volume. Many of the traditional technologies and software applications cannot cope with this task. This is one of the main issues that can be identified.

Moreover, big data technologies are critical for analyzing the relationship between or among several variables (SAS, n. d.). Hospital administrators pay close attention to the patients’ outcomes and their satisfaction with the quality of healthcare (Kayyali, Knott, Kuiken, 2013).

For instance, the research indicates that the employment of full-time nurses increases the satisfaction of clients with the services provided by a hospital. Similarly, medical workers may want to determine which method of treatment is more effective. For instance, orthopedic surgeons can compare the outcomes of patients who used artificial joints designed by different manufacturers. So, hospitals need to know how the experiences of patients can be improved. This goal can be better attained if a hospital has big data technologies.

Therefore, it is possible to say that the understanding of big data can be of great benefit to medical institutions. Moreover, there are many research hospitals. Scientists working in these organizations often test the efficiency of treatments. They can derive many opportunities from analyzing large samples of data. Furthermore, big data technologies are critical for maintaining performance records of medical professionals (Kayyali, Knott, Kuiken, 2013). This information can be used by hospital administrators and patients.

Additionally, modern hospitals are driven by the need to reduce operational costs (Kayyali, Knott, Kuiken, 2013). This is one of the objectives that administrators are concerned with. For instance, they want to know which method of labor organization can reduce the running expenses. Moreover, hospitals attempt to reduce the turnover of nurses. In order to cope with these tasks, one has to examine many sets of data. For example, researchers often determine what kind of policies can prompt nurses to stay in a hospital. The development of policies should be based on verified evidence that can be derived from the study of big data. Therefore, it is possible to say that hospitals should be able to analyze information in order to improve their operations.

These examples indicate the growing relevance of big data technologies. These tools can help management make more informed decisions. In particular, the analysis of large data sets can be used to develop policies which can enhance customers’ satisfaction. This information can improve the performance of both private and public organizations. This is why these technologies can be widely adopted.

Reference List

Crosman, P. (2013). How Big Data Helps Banks Strengthen Ties with Small Business. Web.

Groenfeldt, T. (2013). Banks Use Big Data To Understand Customers Across Channels. Web.

IBM. (n. d.) Deriving Business Insight from Big Data in Banking. Web.

Kayyali, B., Knott, D., & Kuiken, S. (2013). The big-data revolution in US health care: Accelerating value and innovation. Web.

SAS. (n. d.). Big Data – What Is It? Web.

The Internet as a Network of Networks

The internet is referred to as the network of networks since computers are not all connected at the same level. Instead, they are grouped into smaller networks known as Local Area Networks (LANs) (Anatole et al. 70). These smaller systems or LANs are composed of few computers that can communicate together. In the event they want to communicate to another computer outside the network, they pass the message through a getaway to the other computer. Hence, the small networks are linked to other networks through getaways, which ultimately result in the formation of a worldwide network of computers, namely the internet.

DHCP and NAT

Network Address Translation (NAT) refers to an Internet Protocol (IP) and mapping technologies, which allow the sharing of a single internet connection over a single IP portal. In other words, each computer does not require a unique IP code. The NAT decides how communication will be done via the computers (Anatole et al. 69). The technology is used in residential places or offices for its security features. The Dynamic Host Configuration Protocol (DHCP) is an internet configuration setup where computers are assigned IP codes through a DHCP source. Unlike NAT where computers share a single IP code, the DCHP automatically allocates each computer a distinctive IP code. Both protocols are important since they allow computers to communicate easily by effectively routing and relaying information and communication to the right computer without confusion.

Internet 2

Internet 2 refers to the collaboration between over 100 US colleges and other institutions to develop networking and sophisticated applications for research and scholarship (Anderson and Agarwal 616). The goal of Internet 2 is to develop a high–bandwidth interlink through a networked infrastructure that guarantees express internet to support such applications.

Steps of Risk Assessment

Risk assessment follows three steps. The first step is the recognition of hazards where the focus is on anything that can cause harm concerning the subject of the risk, for instance, a computer network. The second step is the classification of the intensity of the jeopardy. In this case, the focus is narrowing down hazards that have higher risks (Armbrust 55). The last step is the establishment of control procedures to reduce or eradicate the jeopardy. In this case, the focus is on abolishing the areas of vulnerability to ensure that the hazards no longer pose any danger.

Assets of Data Communications Network

Assets are important in the data communications system. The communication setup needs a minimum of six assets (White 12). The first asset comprises the control systems, which are meant to direct, administer, and regulate other systems and devices in the network. The second asset includes data acquisition systems, which encompass a collection of sensors and communication links that are meant for data collection and provision. The third asset comprises the networking facilities, which include routers, switches, firewalls, and modems. The other asset category relates to hardware platforms such as machinery and central processing units. Security assets are a significant addition to the data communications system (Anatole et al. 68). The last asset class involves suppliers who provide the internet and connectivity for communication and data transmission to go through.

Online Backup

Online backup refers to a method of offsite data storeroom or remote backup where an individual or an organization places entire or parts of the contents of the hard drive on a remote server or a computer with a network link (Armbrust 50). A backup is very important in allowing the retrieval of important data if the main data is lost through computer breakdown or other ways such as fire or robbery. Storing online backup has more advantages since it allows an individual to access the stored information and data wherever it is needed as long as internet connectivity and a computer are available. However, the disadvantage of an online backup is that it is entirely dependent on the availability of network connectivity. Further, it is prone to unauthorized access through hacking or other forms of illicit access.

Components in Typical Policy

A security policy has several components. Among these components, three typical components seem outstanding. The first component is the rationale (Hutchins, Cloppert, and Amin 80). The rationale indicates the main objectives that the security feature is meant to address such as reducing the cost of data loss and improvement of recovery times. The second constituent of a security policy is scope or span. The span relates to the guidance of what and whom the security policy covers. The span may indicate the departments, organizations, processes, and lines of business among other areas of coverage as defined by the security policy. The third important element is the responsibilities. This constituent defines who handles the functionality of the security policy. The identified party oversees its successful implementation.

Physical Security

Physical security refers to the measures that an entity undertakes to protect property, paraphernalia, software, and information from physical actions that can cause severe damage or loss of such resources or an organization. Physical security is very important since it allows organizations or individuals to protect their property from events such as fire, flooding, and burglary among other substantial occurrences that can cause grave harm to possessions, which are vital for the functionality of an organization. Some of the examples of physical security measures include anti-burglary doors, fireproof cabinets and rooms, and firefighting equipment.

Symmetric and Asymmetric Encryption

Symmetric encryption refers to an encoding technique, which uses surreptitious words, a numeral, or a string of haphazard letters to change the content of the message in a particular manner, which can only be decoded by parties that have the concealed marks, numerals, or the string of scripts (Anderson and Agarwal 615). As long as the correspondent and the beneficiary have the undisclosed key, they can encrypt and decode the messages by entering the key.

Asymmetrical encryption overcomes the shortcoming of surreptitious keys by applying two related keys (Anderson and Agarwal 615). In the symmetrical encoding, whoever has the underground key can encrypt and decode the message. In the asymmetrical encryption, this shortcoming is overcome by the use of a second tool, namely the duo key. In this case, the first key is made public, meaning that anyone can send a message to another individual. However, the message can only be decrypted using the second key, which is kept private.

Biometric System

Biometric security systems are used for the identification and authentication of people via their fingerprints or voices among other features (Nagar, Nandakumar, and Jain 52). Biometric systems can improve security by ensuring an elaborate database of people who access a given location. An organization can track the movement of people in and outside a location, hence allowing easy tracking of security breaches.

Computer Forensics

Computer forensics relates to the application of investigative and diagnostic techniques of gathering and storing evidence. Such substantiation may be availed in a court of law.

Green IT

Green IT is a concept that relates to the efforts that are dedicated to the sustainable use of Information Technology and related resources (Melville 4). Green IT is important since it finds applications virtually in all fields of business. IT-related emissions can have negative impacts on the environment and hence the need to control such effects.

Works Cited

Anatole, Lécuyer, Fabien Lotte, Richard Reilly, Robert Leeb, Michitaka Hirose, and Mel Slater. “Brain-computer interfaces, virtual reality, and video games.”Computer 10.1(2008): 66-72. Print.

Anderson, Catherine, and Ritu Agarwal. “Practicing safe computing: a multimedia empirical examination of home computer user security behavioral intentions.” MIS Quarterly 34.3 (2010): 613-643. Print.

Armbrust, Michael. “A view of cloud computing.” Communications of the ACM 53.4 (2010): 50-58. Print.

Hutchins, Eric, Michael Cloppert, and Rohan Amin. “Intelligence-driven computer network defense informed by analysis of adversary campaigns and intrusion kill chains.” Leading Issues in Information Warfare & Security Research 1.1 (2011): 80-84. Print.

Melville, Nigel. “Information systems innovation for environmental sustainability.” MIS Quarterly 34.1(2010): 1-21. Print.

Nagar, Abhishek, Karthik Nandakumar, and Anil Jain. Biometric template transformation: a security analysis. Michigan, MI: Michigan State University, 2010. Print.

White, Curt. Data Communications and Computer Networks. Boston, MA: Cengage Learning, 2012. Print.

Theoretical Foundation: The Pillars that the Research Stands on the Theories Used as a Fundament for the Study

Diffusion of innovations theory

There are many ways in which the concept of a Diffusion of Innovations Theory can be approached from. According to the existing definition, Diffusion of Innovations Theory deals with defining the rates of innovation acceptance within a particular cultural setting towards the efficiency of social network and the rates of technological development within the given culture. In other words, a Diffusion of Innovations Theory is a set of principles and laws that helps define the ways in which “an innovation is communicated through certain channels over time among the members of a social system” (Rogers, 2010, p. 5).

In the setting of the present-day world, the given definition presupposes that an innovation can only become popular and well recognized once the existing social network system, such as Facebook, is utilized. However, Rogers argues that the Diffusion of Innovations theory can be used not only for commercial purposes, but also for the purposes of educating students. In other words, Rogers makes it obvious that educators must communicate efficiently in the course of the teaching process so that the latter could flow in the most productive way possible. It is imperative to stress that Rogers specifies five key stages of diffusion process, i.e., “knowledge stage, persuasion stage, decision stage, implementation stage, and confirmation stage” (Rogers, 2010, p. 21), therefore, making it easier for teachers to apply Rogers’ postulates to the educational setting.

Seminal source

When it comes to discussing the origins of the theory and the factors that have predetermined its appearance, or, at the very least, played an essential part in the process of theory creation, one must stress that Rogers was basically the first person to push the concept of Diffusion of Innovations into the world of research. Indeed, when it comes to the analysis of the relevant sources that date back to the origins of Rogers’ theory, one will most likely find out that Rogers was, in fact, the very first person who actually suggested that the popularity of innovations has something to do with the social network and communication between the potential customers and the target audience. However, when it comes to picking the work that literally launched numerous researches on the issue, one must give credit to Gabriel Tarde, the person who actually came up with the idea of innovations diffusion (Deleuze, 2004). Despite the fact that Rogers was the first to coin the term, Tarde was the one to create the concept: “Tarde observed certain generalizations about the diffusion of innovations that he called the laws of limitation” (Rogers, 2010, p. 40). That being said, Tarde’s The laws of limitation can be considered the seminal source (Sharma & Sharma, 1997).

Alignment with the research question

The relation of the Diffusion of Innovations theory suggested by Rogers to the given paper is obvious. As the research question concerns the attitudes among teachers towards the use of technological innovations in educational settings, the positive aspects of the technology use in class will help define the reasons for teachers to be eager towards technology use during lessons (White, King & Tsang, 2011).

It is worth mentioning, though, that the study will also revolve around the cases of teachers being unwilling to utilize modern media for academic purposes. In the given case, the theory of Diffusion of Innovations will allow to seek the avenues to overcome the prejudices among reluctant teachers.

The current study and other researches based on the theory

It would be a mistake to consider that the given theory is far too young to have been used in any other research except for the given paper. Quite on the contrary, the Diffusion of Innovations theory has quite a history of being used as the fundament for numerous papers, including the studies conducted in the field of education, business and healthcare. Therefore, it can be assumed that the Diffusion of Innovations concept is well worth being adopted in the given study as well. Of all the studies that used the Diffusion of Innovations theory as their basis, the following studies should be mentioned.

Valente, T. & Davis, R. (1999). Accelerating the diffusion of innovations using opinion leaders. AAPSS, 566(5), p. 55–67

Despite the fact that the authors of the research do not expand the existing theory, but only use it as a basis for their own academic paper, it cannot be denied that the given research makes an efficient use of the theory in question by applying it to educational setting. It is also noteworthy that the authors of the research trace the history of the theory back to its origins, therefore, creating the premises for its modernization and making it clear that, when refurbished, the given theory can be adopted towards modern concerns.

Bowen, C. M., Stanton, M. & Mammo, M. (2012). Using diffusion of innovations theory to implement the confusion assessment method for the intensive care unit. Journal of Nursing Care Quality, 27(2), p. 139–145

Another intriguing study, the research by Bowen, Stanton and Mammo allows for a better understanding of the theory of Diffusion of Innovations by putting it into a completely different setting; instead of the traditional learning or business environment, the postulates of the theory under consideration are implemented within the healthcare service setting. The given step opens even more possibilities for researchers, proving that the given theory can be used in a variety of scenarios and serves the purpose of integrating technology and information management within literally any environment.

Of course, the papers written by Rogers must be named among the most prominent researches that utilize the basic postulates of the Diffusion of Innovations Theory ad even expand it to the point where it can be applied to practically any setting, starting from business field and up to the field of teaching. With that in mind, such papers as Diffusion of innovations (Rogers, 1983), Diffusion of innovations (4th ed.) (2010), Communication networks: Toward a new paradigm for research (1981) and many other ones.

That being said, it should still be mentioned that the Diffusion of Innovations theory did not always work right and cannot be used as the silver bullet for literally any teaching purpose. While it is important to understand the power of the modern social media, as well as its influence and the staying power of the news transported with the help of social networks, it is impossible to rely completely on technologies in the process of teaching (Wu, 2012).

The theory and its relevance to the proposed study

As it has been stressed above, the theory of diffusion of innovations can be used in a variety of fields and for a number of purposes, seeing how it enhances the process of knowledge management and makes the procedure of information acquisition, processing and further distribution considerably easier. Therefore, it can be assumed that the Diffusion of Innovations theory has a lot to do with the given research. Indeed, it must be admitted that the present-day technology opens ample opportunities for education. However, by far the most impressive quality of modern technology is that it allows for an almost immediate transfer of vast amounts of data to the remote corners of the world. Seeing how studying presupposes that the students must provided with the relevant information to study and consider, it is imperative that every learner should have an access to the given information, which modern social network provides.

Reference List

Bowen, C. M., Stanton, M. & Mammo, M. (2012). Using diffusion of innovations theory to implement the confusion assessment method for the intensive care unit. Journal of Nursing Care Quality, 27(2), p. 139–145.

Deleuze, G. (2004). Difference and repetition. New York, NY: Continuum.

Rogers, E. M. (1981). Communication networks: Toward a new paradigm for research. New York: Free Press.

Rogers, E. M. (1983). Diffusion of innovations (3rd ed.). New York: Free Press.

Rogers, E. M. (1983). Diffusion of innovations. New York: Free Press.

Rogers, E. M. (2010). Diffusion of innovations (4th ed.). New York, NY: Simon & Schuster.

Sharma, R. K. & Sharma, R. (1997). Social psychology. Mew Delhi: Atlantic Publishers and Distributors.

Valente, T. & Davis, R. (1999). Accelerating the diffusion of innovations using opinion leaders. AAPSS, 566(5), p. 55–67.

White, B., King, I. & Tsang, P. (2011). Social media tools and platforms in learning environments. San Francisco, CA: AT&T Lab Research.

Wu, Y. (2012). Advanced technology in teaching: Proceedings of the 2009 3^rd international conference on teaching and computational science. New York, NY: Springer.

Introduction

With the coming of technology, people have discovered that IT applications can be customized to meet their needs. This has led to a high level of innovation that was not there before. With such innovations and making everything accessible through a click of a button, Google Apps is one such application that has made it easier to access any information on handheld computer notebooks.

This report will elaborate on how IT has been essential for business management and the impact it has brought to the society. The approach will be majorly an evaluation of the history of Google Apps and how since innovation it has proved to be essential in the business environment.

IT innovation is one of the key features that have seen business become more workable around the globe. With developing different IT products, it does not only portraying product innovation but also business innovation. Google Apps is one such innovation where business people are able to get business emails, calendars and documents without necessarily sitting in an office.

With Google Apps Innovation, communication among team members has been enhanced hence making business environment more interactive than it was before. A higher level of efficiency has been enhanced since the response to queries in the business environment is quick. With Google Apps data management, expensive and time consuming data storage devices have been avoided since all information is online and accessed as wished by the user (Grove Group, 2011).

Historical review of the topic

Before IT innovation, business communication and collaboration was very manual. In search for a better environment, business owners and employees demanded for a better and faster way to communicate with customers and business partners (Laudon & Laudon, 2011).

This is because they needed an end to walking with address books and day planners written in notebooks. The needed, a break from untraceable business emails that after some time got lost since there was no safe custody of historical email data (Grove Group, 2011). Google Apps came in to answer the queries that business people had.

With Google Apps, companies got a web application that could be customizable to their needs. Through Gmail, Google groups, Calendars, Talk, Docs, Marketplace and Sites, business has become more interactive. Communication to customers and business partners has become faster and better since it can be done across a group within a short time.

Cases or stories related to the topic

With innovation in IT, the business environment is challenged to focus on the services needed by their customers, suppliers, employees and business partners (Laudon & Laudon, 2011). A good example of an innovation similar to Google Apps is in Apple Company. The company has been innovative in introducing successful new products like iPod, iTunes and iPhones to the world of IT (Lindgardt, Reeves, Stalk & Deimler, 2009).

All of those products did not only declare the company a success, but they also enhanced availability of notebooks that could be hand held as compared to the traditional address books and day planners. Music downloads, and information access has been made easier hence enhancing efficiency and convenience to the users. With this kind of innovation and convenient access of information, business has grown to a level higher than where it was before such ideas came to reality.

Notebooks are another innovative communication gadget built for wireless communication and internet access (Laudon & Laudon, 2011). Due to their small size, their portability is high making it easier to serve their purpose. They have been designed to have a higher connectivity to the internet. Their highest computing power coupled with their cheap prices has made internet marketing easier hence impacting the business environment positively.

Different arguments of the topic, e.g. ethical impact on society

According to Cave, Oranje, Schindler, Shehabi, & Robinson (2009), social and ethical changes are highly affected by IT connectivity. With increased IT innovation, the society has been greatly affected both positively and negatively. Some of the negative impacts that IT innovation has had on the society include:

• Decrease in privacy and internet confidentiality which is favored by the fact that information kept in history files. These files can be accessed by making a collection of databases that may reveal information about somebody’s browser, and the person involved. With such exposure, information ceased to be private.
• Insecurity and computer crimes have increases as many people get to learn how to use the applications. It has become relatively easy for people to hack into other people’s accounts, access their information and use it to commit crimes. This is the key reason behind many bank robberies that are common nowadays.
• Addiction to the internet, lack of proper accountability for actions performed over the internet and freedom of action are among the many concerns that have come up with IT innovations (Cave, Oranje, Schindler, Shehabi, & Robinson, 2009). So many illegal businesses are opened since one can work from anywhere and be able to access all they need through Google Apps business. This reduced accountability level which is a key ethical factor.

The positive impact that IT innovation has had on the society include:

• Google Apps as a communication tool has managed to reduce the global society into a small village. Through Google Apps, the society has managed to develop from the traditional organizational boundaries to an extended society where customers and service providers are just a click away (Laudon & Laudon, 2011). This has made business environment more open since everything is communicated via the internet that has been made available to all.
• Through IT innovation, business society has become more competitive than it was before. Customers are able to access a wide range of information on a given service hence providing them with a choice of where to buy from. It has also opened to customers’ comments on a company’s products hence helping the company to provide specialized products as per the customer recommendations (Perner, 2008). This has helped to maintain customers who otherwise could go for better services elsewhere.
• Enduring relationships in the business world that were otherwise hard to maintain has been enhanced by IT. Across the board, constant and frequent communications have made it possible for customers and service providers to keep track of what the other side could be developing. This has enhanced delivery of services that are customer focused (Perner, 2008).

Explain how this topic is related to the concepts learned from the textbook

There is a very close relationship between this topic and concepts learned from the textbook. One of the points of relationship is the discussion on the ethical and social impact of information systems. In both cases, there has been a clear expression on the positive, and the negative effects that IT has had on the society.

One of the greatest concerns comes in security, privacy and confidentiality of the system. Through IT, privacy has been highly affected since information can be accessed by anybody if the management system is not well maintained. This has increased cases of hacking into private data leading to high levels of crime.

In both cases, IT innovation has brought a positive impact in business environment. There is a common observation that with IT innovation, business has become more interactive and open to all. Communication to customers, service providers and stakeholders around the globe has been enhanced.

Conclusion

IT innovation has had a remarkable impact in business around the globe due to customized communication that came in order to replace traditional notebooks with handheld computer note books. As discussed earlier, it is through different innovative ideas that business world has grown to where it is today.

With Google Apps, communication among group members has grown to a level that has enhanced management. Everybody in the chain of business has been brought to one society where communication and access of information is established. Having mentioned the positive side of IT innovation, it has also come in with great exposure to lack of privacy and confidentiality.

Such exposures have risked business and enhanced internet crimes like Bank robbery and hacking accounts to use in crimes. New technologies in the IT sector have revolutionized the society; it has become easy to handle so many tasks at once and effectively.

References

Cave, J., Oranje, C. V., Schindler, R., Brutscher, PH-B., & Robinson, N. (2009). Trends in Connectivity technologies and their social-economic impacts. Final Report of the study: Policy Options for the Ubiquitous Internet Society, TR-776-EC. Web.

Grove Group. (2011). Historic Message Journaling. Google Apps Marketplace. Web.

Laudon, J & Laudon, K. (2010). Management Information Systems, 11E. Upper Saddle River, NJ: Pearson Education, Inc.

Lindgardt, Z., Reeves, M., Stalk, G., & Deimler, M. S. (2009). Business Model Innovation. The Boston Consulting Group. Web.

Perner, L. (2008). Introduction to Marketing. USC Marshall. Web.

Report

Introduction

Intense competition in the current global markets has provided a strong impetus for innovation-oriented strategic decisions in organisations. Effective innovation decisions are fundamental to successful new market entry, sustained competitive advantage, and profitability (Marsh, 2012). Technological innovation allows for the commercial exploitation of inventions through new products/services (Marsh, 2012).

The changing competitive environment requires the assimilation and integration of business technology in organisational strategies and value chains. A specific technological innovation is the console used in PlayStation in the video games industry. This report explores the development of gaming consoles as technological innovation product, milestones achieved in this area, and impact on organisations. It also includes recommendations for future developments based on the analysis.

Major Subtypes of Technological Innovation

Advances in business technology have created immense opportunities for business growth. The technological innovations related to the PlayStation are described below.

Consoles

Video games that have impacted on firm operations and interactions with customers fall into three groups console, PC, and mobile (Szirmai, Naude, Goedhuys, 2012). Consoles use a devoted hardware is linked to a screen (Xbox) or handheld device, e.g., Nitendo (Szirmai et al., 2012). In contrast, PC games operate on personal computers based on the Windows OS. Some PC games also run on Mac and Linux operating systems. Other games can be played on PC web browsers or gaming websites. The third category is the mobile games that can be played on handheld phones and tablets.

E-commerce

B2C e-commerce platforms have made it easier to buy or sell online. E-commerce encompasses the application of “electronic communications and information” in business transactions for B2B or B2C value creation (Christensen & Raynor, 2015, p. 56). A range of open source e-commerce software exists that support business processes, improved responsiveness to market needs, and omni-channel experience (social media) for the customers (Raphael & Christoph, 2012). Gaming software firms and distributors transact through e-commerce platforms implemented in their consoles.

Mobile Commerce (M-commerce)

M-commerce entails transactions performed via wireless technology or mobile devices, such as cell phones. It is fuelled by the high mobile phone penetration. M-commerce includes a range of services, such as mobile banking, mobile payment (bills), and order placement by consumers, among others (Hill & Rothaermel, 2013).

Business Intelligence/Analytics

Advances in analytics technologies allow the integration of big data in corporate decision-making. Analytics solutions such as service-as-a-software (SaaS) are utilised to forecast or simulate demand levels and manage logistics in real time for optimised supply chains (Liu, Prajogo, Oke, 2016). Firms also use prescriptive analytics deployed in vendor managed inventory to avoid business uncertainties through what/if considerations.

Enterprise Systems

These software solutions support the integration of a firm’s information processing system and relevant data (Lusch & Nambisan, 2015). Enterprise systems facilitate data sharing within the organisation for effective management operations, reporting, and information flows (Lusch & Nambisan, 2015). Implemented within these systems are applications for order fulfilment processing, enterprise resource planning, customer relationship management, supply chain management, etc.

Important Milestones for Technological Innovation

Software

Advancement in computer graphics software characterised the evolution of the video games. The shift to 3D in the late 1990s was facilitated by the development of 3D accelerator software (Greenspan, 2015). The inclusion of the software in the PlayStation led to improved visual quality of the consoles. At the same time, software developers focused on sports/car races, which became popular with gamers. Licensing of multiple publishers and brands also accelerated development in the gaming industry.

Internet

Another important development in business technological innovation is the evolution of the Internet. The Net invented for research, but it quickly developed into a commercial tool (Hakansson, 2015). It has its roots in the 1960 ARPANET network developed for research. In 1983, the number of connected computers increased to over 200, providing an impetus for the development of the Internet Protocol (IP) for standardised data transmission via the Internet (Hakansson, 2015). The Net was still meant for non-commercial use during this period.

Storage Media

The increase in storage capacity from ROM cartridges to discs accelerated the growth of the gaming industry. The CDs had a larger storage capacity than the cartridges. The development of the discs was an important technological milestone in the gaming industry. The early 2000s saw the launch of the DVD technology, which was deployed in the PS 2 (Greenspan, 2015). DVDs were less costly and had a larger storage capacity than the CDs.

Graphical User Interface (GUI)

The development of a GUI, a navigable World Wide Web, and uniform resource locators (URLs) in the 1990s led to the evolution of integrated web-based consoles. In addition, commercial restrictions were relaxed, giving room for e-commerce investment (Hakansson, 2015). The Internet users also increased, making the Net an attractive commercial tool for organisations.

Impact of Technological Innovation on Management Approach

The managerial implications of technological innovation relate to organisational strategy, structure, and personnel. Having a well-defined innovation strategy is useful in predicting the impact of a firm’s portfolio of technologies on its competitive position. The major strategic solutions for the management of technological innovations in the real world are offensive, defensive, imitative, and opportunistic strategies (Baden-Fuller & Haefliger, 2013).

An offensive innovation strategy is meant to give “technical and market leadership” through launching new products/services (Baden-Fuller & Haefliger, 2013, p. 425). Offensive innovators establish in-house R&D units or linkages with research centres to develop unique technical competencies that give long-term competitive advantages. As a result, such firms are research intensive and thrive on patents. For example, Apple followed an offensive strategy in developing the iPod and iPhone.

Fewer firms adopt offensive innovation approaches. Majority use defensive, imitative, or opportunistic approaches to manage their technological innovation. Defensive innovators avoid the risks of being the first movers by being reactionary (Drucker, 2014). However, they are as research intensive as the offensive innovators. For example, Apple used a defensive strategy to develop improved microcomputer devices in reaction to IBM’s mainframe computers. Firms that pursue an imitative innovation strategy copy current technologies, saving them R&D resources and costs (Onetti, Zucchella, Jones, McDougall-Covin, 2012).

For example, many mobile phone manufacturers imitated the touch-screen technology pioneered in Apple’s iPhone. Firms that follow opportunistic or niche innovation approach capitalise on new opportunities in the market. As such, ‘opportunist’ firms lack unique in-house R&D capabilities, but are responsive to market changes (Metcalfe & Miles, 2012). An example of a firm using strategic opportunism is Google with its niche products – Google Earth, Maps etc. (Metcalfe & Miles, 2012).

Technological innovation also impacts on organisational structures and management styles. An effective managerial approach is required to manage disparate teams – R&D, design/engineering, production, and sales/marketing – involved in the innovation process (Bock, Opsahl, George, Gann, 2012). Project managers should create an atmosphere of open communication and cooperation between the functional teams. Further, strong technical training and gatekeeping function are required to realise the goals of multidisciplinary projects. Firms use either functional or project structures to manage innovation efforts.

Functional structures involve “a higher rate of change of the technology’s knowledge base” than project structures do (Bock et al., 2012, p. 287). The management styles involved in technological innovation include lightweight, heavyweight, and independent, based on the vastness of team responsibilities (Davila, Epstein & Shelton, 2013). Further, the management process may involve project planning tools such as PERT/CPM. For example, DuPont Company employed a CPM algorithm to on-schedule construction/repair of its production plants.

Staffing the organisation is done to reflect the critical roles/functions of personnel in the innovation project. An integrated staffing policy considers multiple roles. The idea generators, i.e., innovators, are required to give creative insights necessary for project initiation, while product champions help advocate for the innovation (Camison & Villar-Lopez, 2014). The sponsor is another role required in innovative organisation.

He/she supports the innovators through resource allocation. An organisation also needs a venture manager to harness entrepreneurial efforts within it. The final role is that of a gatekeeper. They serve as important information linchpins of the firm through their relationships with the external technological environment. Besides staffing, managerial actions are required to stimulate innovation or maintain a ‘creative tension’ through effective job assignments, training/development, and reward systems.

Recommended Future Developments of Technological Innovation

Sony entered into the console market with the PlayStation 2 or PS2. The PS2 was a highly successful console, selling over 140m units (Cunningham, Rhode & Whaley, 2012). It was developed to be compatible with many systems, a strategy followed in the development of the PS3. The PS3 included elaborate graphic designs to target skilled gamers and fans. The release of Sony’s PS3 elicited great publicity due to its advanced technical specifications. However, its development was associated with high production costs. The high costs impact negatively on Sony’s profit margins. The recommended future developments for the PlayStation include:

1. Sony should create an online gaming community – online console gaming will offer a virtual reality experience to gamers. Therefore, the online component will be important to Sony’s console business strategy.
2. Digital media incorporation – the PlayStation should integrate digital media into the console system. Differentiated digital products such as images, videos, web pages, and music should be incorporated into the PS4 to improve the console’s appeal as a home media centre.
3. Movie releases – the PlayStation should be designed to distribute Sony Entertainment films to enrich the gaming experience. Movie releases would constitute a strategic improvement on the PlayStation console.

3-Minute Video Pitch

Sony’s PlayStation development from PS2 to PS3 and now PS4 followed a path of continuous improvement of the technical specifications of its console. An offensive strategy was employed in developing PlayStation’s technological trajectory. The improvements made on PS3 led to better visual quality features and gaming experience provided by the PS4. The firm has developed a network of developers and publishers that drive its technological agenda based on customer experiences and preferences.

However, the online gaming segment is not part of Sony’s console business strategy at the moment. In this view, the recommended future developments of the PlayStation include the creation of an online community to test and rate console releases and the incorporation of digital media, including audio music, into the console to turn the PlayStation into a home media centre. Sony entertainment should also consider launching its edutainment movies through the console to expand its product offerings to gamers.

Reference List

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