Innovative technologies contributed significantly to various sectors, improving these areas and simplifying people’s work. Future innovation can be any technological or scientific advances that can alter individuals’ lives (Hernandez-de-Menendez & Morales-Menendez, 2019). For example, such educational tools as virtual labs, digital games, simulations, and smartphones enable students to access high-quality education in any part of the world (Hernandez-de-Menendez & Morales-Menendez, 2019). Innovations will soon be widely implemented in preventive care to allow people to change their lifestyles based on their genetic predispositions and laboratory parameters to reduce the risk of chronic diseases (Yoon, 2020). Furthermore, technological upgrades in diagnostics may detect malignancies at early stages to prolong patients’ lives (Yoon, 2020).
Moreover, 5G technologies can improve economic situations in many developing countries, increasing the quality of life globally (Yoon, 2020). It appears that future innovations are essential to simplify daily procedures and make education, healthcare, and economics stronger. Several companies started working on developing new technologies that will upgrade human existence within the next decade.
Main body
The two recent centuries were particularly full of technological advancements, some of which changed the understanding of distance, while others continue to save people’s lives. For instance, laptops and smartphones that allow people to make video calls to their friends and family on a different continents altered the conventional realization of space and time (Yoon, 2020). Furthermore, computed tomography and magnetic resonance imaging machines help doctors diagnose and treat various diseases, while robots assist in surgeries. Artificial intelligence (AI) is believed to further advance medical screening and diagnostics (Yoon, 2020). Simulation boards help medical students learn anatomy without the need to be constantly exposed to cadavers (Hernandez-de-Menendez & Morales-Menendez, 2019). Robotics has already transformed the modern construction industry, eliminating some dangers for workers (Yoon, 2020). Moreover, in the industrial sector, “AI and machine learning, using real-time, high-fidelity data from billions of connected devices to efficiently and proactively reduce harmful emissions and decrease carbon footprints” (Yoon, 2020, para. 16). It is crucial to continue developing similar tools with improved features to broaden individuals’ possibilities. Indeed, many modern firms prepare for the future through these innovations.
Various companies work on creating novel disruptive technologies that may alter the course of the history of humanity. These tools include wearable devices, digital twins, cloud computing, natural language processing, facial recognition, voice interfaces, robots, autonomous vehicles, drones, 3D and 4D printers, and quantum computers (Marr, 2020). The companies that work on developing these innovations are Huawei, Samsung, LG, Apple, IBM, Xiaomi, and Google (Capital on Tap, 2021). For example, Huawei, a Chinese tech company, started to focus on 5G and edge computing (Capital on Tap, 2021). Firms like DJI Innovations, Ambarella, GoPro, Lockheed Martin LMT, and 3D Robotics manufacture unmanned aerial vehicles (Insider Intelligence, 2020). 3D Robotics, a company based in California, creates smart drones with advanced GPS navigation and autonomous control that will not require human participation (Insider Intelligence, 2020). It seems that “search and rescue missions, firefighting, law enforcement, and transportation will be transformed by drone technology” (Insider Intelligence, 2020, para. 19). These vehicles are considered to be not only environmentally sustainable but also beneficial for big cities with heavy trafficking.
It is crucial to implement these technologies correctly to avoid repeating past tragedies and create a better future for the next generations. Indeed, humanity should consider both benefits and potential dangers of future innovations. Broad internet access and cloud storage may threaten the security of individuals and businesses due to the constant upgrade of malware programs; hence, cybersecurity should also be developed at the same pace (Marr, 2020). In fact, according to Marr (2020), “as businesses face unprecedented new threats, the ability to avoid and mitigate cybersecurity threats will be critical to success over the next decade” (para. 20). Moreover, 3D and 4D printing have already started to be applied in such areas as biology, medicine, architecture, and engineering (Marr, 2020). However, it may also be implemented in creating weaponry that can destroy entire cities and harm millions of people. Therefore, as history shows, the global community needs to formulate regulations based on ethical and moral standards to prevent the malicious use of innovations.
Summary
In summary, future innovations will play an enormous role in people’s lives. Indeed, novel technologies are already changing the world today, allowing individuals on different continents to connect and save patients through timely diagnosis and intervention. More innovative products such as 5G, edge computing, modified robots, 4D printers, and autonomous drones will be released to the market soon. Such companies as Samsung, Huawei, Apple, Xiaomi, and Google work on making computers, smartphones, and wearable devices better, introducing facial recognition, natural language processing, and artificial intelligence software into them. However, it is always crucial to remember the risk of malicious use of all these technologies; thus, proper regulations should be established to ban any spiteful actions.
Innovation is the principled exploitation of ideas related to knowledge of those entering the industry as well as those moving out of the industry for the purpose of hastening modernization within the company and expansion of the markets with the intention of advertisement to the outside (Chesbrough 2003). This paper will focus on the importance of innovation for firms to compete in many industries and then go further to illustrate the response by citing examples of the industries. Furthermore, the paper will discuss the characteristics of industries that exhibit short and long technology cycles plus the factors that influence the length of technological cycles in an industry.
Innovation has enhanced the effectualness and well organized plans that are efficient in manufacturing of merchandise and availing them to the market. The development of new industries has been facilitated too. This has been a success on the side of innovation since in most cases; companies that do not continuously innovate on proper ways of developing, manufacturing and distributing procedures of their goods efficiently are mostly likely to collapse due to stiff competition from their rivals (Chesbrough 2003).
Innovation is important during conventions of the future challenges of the environment. Incase of need to reduce wastes found in the environment, the amounts of carbon should be reduced. Conversely there is a need to discover innovative habits to split the connection between financial augmentation and resource exhaustion and ecological deprivation. Innovation has also at large boosted economic growth.
The increase in the relevance of innovation as an approach in competition has greatly been influenced by globalization of the market. This has led to stiff competition that has resulted in swifter and creation of quality products and services to the customers thus pressure being exerted further on competition. Information technological advancement has assisted in creating rapidity for innovation. Information technologies have assisted firms to diversify their merchandise and help to strike the competitor.
According to Chesbrough (2003), one of the characteristics of an industry that exhibits a short technological cycle is that its structure is mostly informal due to the absence of inflow of new ideas. The same ideas of the people who started the firm are still in use. The owners of these firms can not compete with others as the means to outdo the fellow competitors are unavailable. If there is stiff competition in the located place, then this business will automatically collapse.
Single products and services are offered on an entrepreneurial basis. For collective individuals, single products are offered with variations in quantity at different times. The goods are not of good quality as a result of absence in competition. In addition to that, the goods produced are only those that are required and their demand is high too,
The total outcome depends on the individual’s hard work. If quality products are manufactured, then the total outcome for the owner will be high. In addition to that, his availability to the customers will count a lot. If he avails himself to the customers all through, then the outcome will be high. Though, despite all these, these industries are characterized by low outcomes as compared to industries exhibiting long technological cycles.
Industries with long technological cycles having high standard advancement expenses are forecasted to be capable of displaying advanced altitudes of attentiveness as well as stable competition, perpendicular amalgamation, investment and exploration strength, plus lesser paces of entrance and egress than industries with a short technological cycle.
Goods and services produced by these companies are of high quality. The amount of goods produced is also constant due to high demand. Goods are also diversified into a variety of other products as a result of in cooperation of new ideas within the company from innovation. Goods are of high quality and owners of these industries are capable of competing with other firms and even beating them. These companies are very stable.
Information and communication technologies have transformed accessible businesses leading to promotion in production and intensification. They have permitted firms to avail fresh goods as well as services to the marketplaces offering new techniques towards latest information businesses. All these industries exhibit low costs of marginal production; both of them experience impacts of the network (Chesbrough 2003).
Network industries are regularly exemplified via momentous explicit speculation in communications and a need to restructure. Lessening of network industries has led to new confrontations being faced in firms. Dictatorial disputes comprise the governing access to a set of connections, general services moreover the prices for various goods. All these are universally attributed to the competition as a result of innovation.
The momentum of the customers influences technological development. In circumstances where the consumers tend to spend their capital freely in purchasing the merchandise, fellow customers will also be prompted to establish new ways concerning their expenditure. However, decline in frequencies of spending by customers is also inhabited too. Whenever the expenditure of consumers rises, one will try as hard as possible to satisfy all their needs. The manager therefore searches for some innovative ideas from colleagues and thus leads to adoption of new technological methods (Chesbrough 2003).
Innovations gained technologically closely relate to manufacture along with utilization of new products or else creation of presented goods by means of new methods. Once the manager of the organization receives and co operates new ideas that are mainly as a result of technological advancement, then the faster the technological cycles in a firm. However, the pace of technological innovation varies as it takes place at a preferably constant rate.
Varying quantities of the inventories affect the length of technological cycle advancement. Goods are mostly vast when the demand among the customers is high. However the reverse happens when the demand reduces. This decline has a negative impact on the advancement in the technological cycle of an industry. With regard to this, an individual will tend to wait until the fluctuation in the amount of goods produced is done away with before focusing on technological improvement of the industry.
Reference
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business School Press, Boston.
Technology plays a critical role in disruptive innovation since more advanced products frequently create opportunities for the organization to succeed in the market. It is the standard business cycle where more established companies try to pursue “sustaining innovations,” allowing the rivals to disrupt the market by introducing new technologies (“Disruptive innovation,” n.d., para. 2; Harvard Business Review, 2019). One of the notable examples is the establishment of FedEx, which proposed a more practical and functional way to deliver products and defined the concept of “express mail” (Mitzkus, 2022, para. 24). The company introduced this idea with the help of innovative technologies and creative thinking, showing the importance of these factors in disruptive innovation.
Nevertheless, there are multiple risks concerning disruptive innovation that might be costly for the organization. For instance, ethical issues, the possibility of financial loss, and the reluctance of employees to try innovative approaches are some of the common threats. Moreover, by definition, disruptive innovations do not satisfy the organization’s current customers, aiming for a different niche in the market (“Disruptive innovation,” n.d.). The company must carefully evaluate its rivals’ actions by assessing their strengths, weaknesses, and opportunities and estimate its comparative advantage to decide whether pursuing disruption is profitable in the short and long term (Amadeo, 2022). In summary, the greatest risk is that if the company commits to disruptive innovation, its customers might prefer the products of the organization’s rivals that provide sustaining innovations.
Lastly, the government might try to restrict disruptive innovations due to their potential threats to people’s security and privacy. The most practical way to limit the effects of new technologies is by implementing regulatory policies that specifically address the problematic issues. One of the notable examples is the ban on Amazon’s cashless stores in Philadelphia in the United States at a legislative level (Muldoon, 2019). The state government was concerned with the inability of customers to pay with cash and blocked the stores because of its perceived inconvenience and forced cashless payments (Muldoon, 2019). As a result, the government has the capacity to restrict innovative technologies in case they present risks to certain population groups or disrupt the market significantly.
Historically, humanity has been changing its primary forms of residence in accordance with society’s needs. From deep caves protecting people from predators and forces of nature to immense agglomerations – these patterns have been determined by development, as well as external factors. At first, humans lived in small groups, the size of which was conditioned by its defensive capacity. Next, as interpersonal relationships grew in importance, people established larger settlements, the nature of which has constantly been changing across eras. By the 20th century, as large-scale industrial production became effective, the idea of urbanization appeared, leading to the further growth of the world’s leading cities. At that point, patterns of urbanization have already been affected by global industrial development.
A similar tendency is observed today, although the urbanization of the 21st century is largely enabled by advanced technology, which redefines the existing concepts while introducing new ones. Smart cities have become an integral element of the contemporary urbanization discourse, having several important facets. The purpose of this paper is to review urbanization in the contemporary conditions enabled by technological development.
Review of Literature and Discussion of Key Concepts
The concept of urbanization, as well as related tendencies, has been an area of intense interest for researchers across the globe. As such, the term itself is not a recent one, as the history of the world has seen several instances of deliberate urbanization studies since the 19th century. As the present paper aims to analyze the concept in all its complex and evolving nature, a comprehensive review of literature is required. This way, it is possible to examine and analyze the existing body of knowledge, synthesizing the findings in accordance with the current state of the phenomenon. Therefore, an array of fifteen relevant sources has been selected in the light of several criteria.
As the paper’s objective is related to the current circumstances and patterns of urbanization, it was decided to focus on the most recent articles published within the past five years. In addition, while the study aims to incorporate the international perspective, all sources were expected to be published in English to ensure their availability to the general expert community. All of the sources have been placed in three major categories, reflecting the synthesized theme of each one.
Urbanization and Its History
In order to provide a comprehensive examination of the matter at hand, it is important to understand the key concepts, which lie at their foundation. As such, the idea of urbanization is the cornerstone of the research and the most significant phenomenon in this regard. Boustan et al. (2018) trace the history of urbanization in developed countries to the first half of the 20th century. It was at that point that planning and development of cities became considerate and based on specific patterns. Furthermore, urbanists focused on organizing a city’s space in accordance with expert findings, reflecting the needs of the population.
At the same time, Clark (2020) adds that the first attempts at proper urbanization in Europe could have been observed prior to the 20th century. Baron Haussmann’s Paris is one of the most vivid examples of such a reorganization. However, urbanization was not systemic at the time, meaning that there were only individual, often large-scale and controversial, projects (Clark, 2020). Accordingly, urbanization as a developed discipline only acquired its position in the 20th century.
From that point, urbanization became a prominent concept, which has been receiving increased attention in the late 20th-early 21st centuries. The city population has seen a stable increase, which inevitably led to higher density and cost of living in urban areas (Rahayu and Mardiansjah, 2018). As a result, consequent studies were required to seek new ways of city organization, which would make them better suited to accommodate the ever-increasing population (Boustan et al., 2018). Modern challenges require urban planning to remain optimal in terms of infrastructure capacity, but it should also be convenient for residents (Kumar, 2017).
The primary objective of 21st-century city design is to maintain the right balance between comfort and capacity, economic and personal. As the majority of the world’s population lives in cities, the urban environment per se becomes the reflection of humanity, including its rapid technological progress.
Factors of Urbanization and Technological Development
Overall, the importance of urbanization in modern society has ensured its status as a complex, multifaceted discipline. One of the primary areas of related research comprises the factors, which enable and determine the direction of urbanization in the current environment. In fact, the 21st century has become a nearly perfect period for urban planning studies, as it is possible to observe data from a variety of nations, each being of a different level of development.
As such, Li and Wang (2016) provide an overview of the Chinese path to urbanization since the 1970s. In this country, macroeconomic policies, technological progress, and city planning became interrelated. As the government took effective economic reforms in the late 20th century, China saw a rapid increase in high-tech products and services. These advancements became gradually implemented in large cities, which attracted more residents from other areas. As a result, the three elements synergized since economic policy enabled technological progress, which attracted residents who, in turn, posed new economic and technological requirements. As a result, quality urbanization was conditioned by this continuous circle of development.
While China is a prominent example of rapid, high-tech urbanization in the contemporary world, global society has other examples, as well. Tripathi (2020) has analyzed this phenomenon in the light of the BRICS countries (Brazil, Russia, India, China, South Africa). As it was inferred, macroeconomic factors remain one of the key enablers of worldwide urbanization. The range of these factors is broad, comprising direct foreign investment, import-export balance, and inflation.
Simultaneously, modern economies increasingly rely on advanced technology, adding another source of progress’s indirect influence on urbanization. Based on the technological principles, Rossi and Di Bella (2017) divide the world’s cities into two major categories. Developed agglomerations, such as New York or London, are seen as “model high-tech cities,” which demonstrate a substantial degree of technology-conditioned planning. At the same time, there is an array of cities from emerging economies, which have not yet reached similar levels of development. According to Rossi and Di Bella (2017), such “start-up” cities still retain the emphasis on technological solutions in urban planning. Therefore, the active role of technology is not limited to either type of nation and particular city.
The technological side of urbanization is explained by its practical orientation in today’s landscape. High-tech advancements have become integral elements of people’s lives instead of theoretical concepts. The technology is applied in practice, and humans are able to observe the implications of its development in person. Accordingly, high-tech solutions in the context of urbanization are expected to address acute issues related to this phenomenon.
For example, while urbanization has yielded substantial benefits for society, it has also had a serious environmental impact (Munir & Ameer, 2018). Therefore, further planning is to consider this effect and implement new, advanced solutions aimed at preserving the environment. Returning to the case of China, Wang et al. (2018) view urbanization and technology as two inseparable notions, which have directly influenced the nation’s economic success in the past decades. Cutting-edge solutions implemented at all levels ensure the comfort of residents, providing them with an incentive to relocate to urban areas and apply their skills with maximum productivity. Consequently, all parties see benefits, as the local economy sees an increase in content, motivated workers.
Smart Cities
Furthermore, today’s technological development has acquired an unprecedentedly high pace, as new advancements are regularly introduced in an array of spheres. In the 21st century, once urbanization experts realized the immense potential of technology, the concept of a Smart City (SC) emerged. This notion is complex and multifaceted, and, in its general understanding, it represents an urban area, which utilizes the opportunities on the Internet and modern technological solutions in favor of its sustainable development. According to Camero and Alba (2019), while there is a lack of consensus regarding the exact definition of an SC, most views are based on the leading role of information technology.
On the other hand, the Smart City concept is not officially recognized by key international organizations, such as the United Nations. As such, it is often deemed a marketing construct erected by large brands willing to promote their sales (Allam & Newman, 2018). Nevertheless, despite the controversy, the SC phenomenon is real, and it gains momentum, and science and IT are further developed.
As described earlier, Smart Cities and their residents rely heavily on the use of technology, which is expected to facilitate an array of mundane objectives. Kim et al. (2017) refer to such a system as the Internet of Things (IoT). The primary idea of this concept revolves around sensors and databases, which are interconnected via the Internet. This information exchange enables advanced recognition, control, asset management, and communication (Kim et al., 2017).
The IoT incorporates state-of-the-art technological findings into the everyday urban environment, allowing most residents to benefit from recent scientific research. The nexus between the IoT and the SC symbolizes the practical orientation of modern technology, its better applicability. New advancements are longer exclusive to the Army, closed laboratory facilities, or corporate giants. On the contrary, the Internet of Things is the Internet of the People, allowing urban residents to feel the benefits of the large Smart-City framework.
From a practical standpoint, the idea of an SC is prevalent in developed countries, especially in Europe. Caragliu and Del Bo (2019) state that European SC initiatives have seen a significant increase in funding, which entailed a rapid growth of new projects. This tendency is viewed as mostly positive because sufficient budgets attract major players who sometimes develop groundbreaking initiatives. As the urban population continues to increase, so does the funding for Smart City projects. The world’s leading companies and governments have engaged in this race of comfort, convenience, and modernity.
Technological Development and Contemporary Cities
The findings presented above synthesize the contemporary views of urbanization, technological development, and Smart Cities. In fact, “Smart” is the key notion in this regard because of the duality of its meaning. From one perspective, it represents the digital nature of modern urbanization. The Internet is no longer a recent invention or an unusual means of entertainment and pastime. On the contrary, access to the Web has become an indispensable component of modern life.
It presents so many opportunities that the Internet can even be called an integral human right of the 21st century. As it has acquired a vital status in professional and academic activities, experts look to expand the web-based framework to encompass all the various spheres of a person’s life. Smart Cities seek to facilitate transportation, communication, shopping, tourism, and banking through the profound implementation of modern technology. The exact nature of such innovations varies depending on the location and its requirements. This paper examines three prominent examples of the technological solution in contemporary cities.
Kenya: M-PESA
Kenya is a developing country in Africa, which actively seeks new opportunities to increase the quality of its residents’ lives. Among other issues, the 21st century in Kenya has been characterized by alarmingly low levels of common financial literacy of the citizens. M-Pesa, literally translated from Swahili as “mobile money,” aims to provide Kenyans with access to financial operations from any part of the country. The electronic wallet can be used with a regular Internet-connected smartphone to execute an array of financial operations with personal funds, including withdrawal, transfer, and electronic payment (Onsongo, 2019).
While the concept of the application is not unusual for an average resident of a developed country, it has become a revolutionary invention for Kenya. In fact, many citizens remain unfamiliar with electronics and even cautious about them. The initiative’s goal is to provide Kenyans with a reliable payment instrument, which can be safely used anywhere, but additional effort is required to overcome the rooted concerns about e-payments.
Vienna: Smart City
In the case of Europe, modern technology is embedded in the residents’ lives on a more profound level. Vienna, the capital of Austria, is one of the cities, which have developed a considerable number of high-tech initiatives under the label of a Smart City (Fernandez-Anez et al., 2017). Figure 1 introduces the conceptual framework of an SC, as well as its practical reflection in the case of Vienna. This example demonstrates how the focus of SC’s has shifted from specific sectors to general strategic policies, which define the engagement and experience of all stakeholders. Vienna’s model of the Smart City is comprehensive and unified, and the initiatives are expected to be proposed along the same lines (Fernandez-Anez et al., 2017). This way, the innovations will resemble an entire ecosystem instead of a set of technologically advanced projects. The unity is important, as it allows residents to avoid contrasts and benefit from the seamless, technologically-advanced experience.
Figure 1. The Conceptual Framework and Practical Observations of Vienna as a Smart City (Fernandez-Anez et al., 2017).
New York: Heart of Urban Technology
New York is another prominent example of modern high-tech urbanization, which is worth discussing. Zukin (2020) reviews this city as the front line of global innovation and a place where new breakthrough initiatives are developed. Projects from both private and governmental sectors are actively tested in New York, causing a mixed response from the population. From the corporate side, companies like Uber and Airbnb change the rules of their industries, providing customers with unparalleled levels of comfort and convenience. At the same time, they are considered disrupting innovations, which interfere with well-established rules of the market and even cause legislative dilemmas.
Simultaneously, the government of the United States is eager to apply new technological advancements in such a well-developed, densely populated area. Surveillance equipment, facial recognition software, and other systems, which are said to ensure the safety of the communities, face active resistance from some social groups. Accordingly, the progress and Smart Cities are not inherently positive, and the public may oppose some of the advanced initiatives.
Conclusion
Ultimately, urbanization is a well-established concept, which has been present in society for the past century. While there had been attempts at deliberate city planning before that, they lacked the scale, complexity, and evidence base of the modern discipline. Urbanization never exists in isolation, as it is closely connected to the external factors, which define it. In fact, it is consistent with the vector of society’s development. Today, as the word is characterized by rapid technological progress, the same can be said about the urbanization patterns. Governments and corporate leaders seek to build Smart Cities, which will utilize the full capacity of information technology. However, the presented case studies show that the degree of technological influence and its reception may vary depending on the context.
References
Allam, Z., & Newman, P. (2018). Redefining the smart city: Culture, metabolism and governance. Smart Cities, 1(1), 4-25. Web.
Bo, W., Tao, J. L., Jong-Youl, L., & Hyun-Sang, H. (2018). The links between science, technology and urbanization on the road towards Chinese exceptionalism. Journal of China Studies, 21(4), 177-199. Web.
Boustan, L., Bunten, D., & Hearey O. (2018). Urbanization in American economic history. In L. P. Cain, P. V. Fishback, & P. W. Rhode. (Eds.). The Oxford Handbook of American Economic History, vol. 2 (pp. 75-99). Oxford University Press.
Camero, A., & Alba, E. (2019). Smart City and information technology: A review. Cities, 93, 84-94. Web.
Kim, T., Ramos, C., & Mohammed, S. (2017). Smart City and IoT. Future Generation Computer Systems, 76, 159-162. Web.
Kumar, U. (December 4, 2017). Urbanization. Wiley Online Library. Web.
Li, B., & Wang, N. (2016). The influence of technological innovation on urbanization quality: A case study of Chinese innovative cities. Atlantis Press.
Onsongo, E. (2019). Institutional entrepreneurship and social innovation at the base of the pyramid: The case of M-Pesa in Kenya. Industry and Innovation, 26(4), 369–390.
Rahayu, P., & Mardiansjah, F. H. (2018). Characteristics of peri-urbanization of a secondary city: A challenge in recent urban development. IOP Conference Series: Earth and Environmental Science, 126. Web.
Rossi, U., & Di Bello, A. (2018). Start-up urbanism: New York, Rio de Janeiro and the global urbanization of technology-based economies. Environment and Planning A: Economy and Space, 49(5), 999-1018. Web.
My topic is to evaluate the role of science and innovation in society. In turn, it is important to see how societies are different in their opinions of science and technological innovation and evaluate the impact of these differences. Firstly, it is critical to study the importance of science and innovation because the fields high influence the life of people by making it more convenient such as the usage of elevators (Nicoll and Zimring 111). In turn, it can reduce deaths from illnesses by inventing new medicines (Cook 102). Additionally, the negative impact is present, as the innovation pays great attention to the development of the weapons and other military aspects. In the end, the role of innovation and science cannot be ignored and underestimated, as it has a strong influence on the way of life of many individuals and makes it easier or more difficult in some cases.
In turn, it is also essential to study different views, as they can help see various opinions and ideas about innovation and science in the modern world. Nowadays, some people tend to think that innovation has to devote itself to the development of green policies (Chen 531). In turn, other members of society consider that innovation has a bad influence on our health and physical activities (Nicoll and Zimring 111). Lastly, some people pay attention only to the positive aspects of innovation and science. In the end, the different views help see the problem from dissimilar points and discover all sides of science and innovations. Furthermore, it also helps find a compromise and solution about the usage of the innovations and discoveries in the world.
Works Cited
Chen, Yu-Chan. “The Driver of Green Innovation and Green Image: Green Core Competence.” Journal of Business Ethics 81.3 (2008): 531-543. JSTOR. Web.
Cook, Harold. “The History of Medicine and the Scientific Revolution.” Isis 102.1 (2011): 102-108. JSTOR. Web.
Nicoll, Gayle, and Craig Zimring. “Effect of Innovative Building Design on Physical Activity.” Journal of Public Health Policy 30.1 (2009): 111-123. JSTOR. Web.
Defects of vision are very common these days. Almost everyone begins to feel the need to use glasses sooner or later. The invention of glasses is undoubtedly considered one of the greatest inventions of mankind. Vision, being one of the fundamental properties of human perception and understanding of the world, very often requires help in the form of glasses. This accessory leads to an increase in confidence, an improvement in appearance, and a psychological state, as a person begins to better sense the world around them. It should be admitted that I have faced such a problem, and the above statements refer to me to a great extent.
Many people believe that contact lenses are a modern device for improving vision, invented recently, but this is not so. The first to attempt to create these lenses is Leonardo da Vinci. It was he who, in the 16th century, drew up sketches showing a device that directly touches the eye and corrects vision. Da Vinci is considered by most historians to be the first inventor of lenses. After da Vinci in the 17th century, the scientist Rene Descartes proposed the next prototype for modern lenses – it was a small tube filled with liquid. At one end was a magnifying element, and the other end was attached to the eye. The first lenses, which are officially considered the beginning of ophthalmic progress in this industry, were proposed in 1898. Since then and up to the present time, contact lenses have gone through a global path of improvement and improvement, and today any person suffering from ophthalmological disorders can comfortably and easily improve their life with this particular device.
Contact Lenses
As surprising as it may sound, attempts to create contact lenses were made at the end of the 16th century. And the first experience belongs to Leonardo da Vinci himself. However, the invention of the master at that time did not find proper recognition and was safely forgotten for almost 400 years. It was not until 1887 that the German glassblower Friedrich Müller took advantage of Leonardo’s idea (Eye Society, n.d.). Almost 30 years had passed, and the company “Carl Zeiss” has established the production of special sets of contact lenses. Until the mid-50s of the 20th century, all lenses were made of glass, and they had similar parameters, the diameter was 20-30 mm, and the thickness was 1-2 mm (Eye Society, n.d.). These lenses covered almost the entire visible part of the eye, both the sclera and the cornea.
A breakthrough was the fact that in 1947, there was the first contact lens with a small diameter. It covered only the cornea and was made of plastic, and not like glass before. It was after this that the contact lens became the shape it still has. A new word in the production of contact lenses was the invention of the Czech scientist Otto Wichterle in the late fifties (Eye Society, n.d.). He invented a transparent, stable polymer that is great for making soft contact lenses.
Contact lenses have expanded the range of options offered by conventional glasses. For people with poor eyesight – including myself – there is an opportunity to get rid of the accessory, which sometimes causes inconvenience. This mainly applies to the field of sports – with the advent of contact lenses, it became possible for many to be involved in all its types in situations where good vision is necessary. Everyday life has also become much easier, as contact lenses are almost invisible, unlike glasses.
Laparoscopic Surgery
With the advent of fiber optics, not only the quality of diagnostics has improved, but also the widespread introduction of this method into surgical practice has become possible. A new era in the development of endoscopic surgery began in 1986 when it became possible to transfer a color image from the eyepiece of a laparoscope to a monitor screen (Mandal, 2019). It became easier for the surgeon and the assistant to coordinate their actions. The creation of a high-resolution video camera with the ability to magnify the image by several dozen times made it possible to record videos that are of great importance both for training and for analyzing the surgeon’s actions.
In the history of the development of laparoscopy, the development of methods of hemostasis during laparoscopic operations is considered essential. It is aimed at preventing and stopping bleeding: suturing electrocoagulation, and the use of a laser. The introduction of new technologies into practice has facilitated the use of laparoscopic access for gynecological operations in many clinics around the world and the expansion of the volume of surgical interventions.
The method of laparoscopy takes a special place in the treatment of gynecological diseases. It is effective both for planned treatment and urgent surgical intervention. Today, endoscopic surgery in gynecology and other fields is beginning to occupy a leading position all over the world. Laparoscopic surgery, in contrast to the traditional one, excludes the possibility of complications such as adhesions in the abdominal cavity (Mandal, 2019). In addition, new technologies make it possible to completely restore the reproductive function of expectant mothers. Thus, modern methods of laparoscopic surgery not only put the health of their patients at a lower risk but also significantly improve their quality of life and overall well-being in the future.
CT Scan Technology
Computed tomography is a method of non-destructive layer-by-layer examination of the internal structure was proposed in 1979 by Godfrey Hounsfield and Allan Cormack, who was awarded the Nobel Prize for this development. The progress of CT scanners is directly related to the increase in the number of detectors, that is, to the increase in the number of simultaneously collected projections. The first generation device appeared in 1973; there was one tube pointing at one detector (International Society for Computed Tomography, 2016). Further progress is associated with the advent of spiral computed tomography and an increase in the number of detectors. Then, the first multi-slice computed tomography (MSCT) appeared (International Society for Computed Tomography, 2016). In them, along the circumference of the gantry, there are not one but two or more rows of detectors.
It seems reasonable to state that CT is the leading method for diagnosing many diseases of the brain, spine, lungs and mediastinum, liver, kidneys, pancreas, adrenal glands, aorta and pulmonary artery, heart, and several other organs. CT can be used both as a method of primary diagnosis and as a clarifying technique when a preliminary diagnosis has already been made using ultrasound or clinical examination. Then, MSCT is the best method for diagnosing diseases of the lungs and bones of the skeleton. With the introduction of a contrast agent, CT allowed me to obtain high-quality three-dimensional images of blood vessels and the heart, including coronary arteries and aortocoronary shunts. Hence, CT contributes to the advanced monitoring and prevention of several severe diseases using the latest computer technologies.
Adrenergic Blockers
Alpha-Blockers
Adrenergic blockers are drugs that block different types of adrenergic receptors in organs and tissues, preventing the realization of the effects of natural biologically active substances – a mediator of norepinephrine and adrenal hormone adrenaline. Norepinephrine and adrenaline realize their effects by interacting with special structural components of cells that are called adrenergic receptors (Oliver et al., 2019). Depending on their location and function, they are classified into alpha (α) and beta (β) -adrenergic receptors.
α-blockers block α-adrenergic receptors in the vessels, which leads to their expansion and, as a result, a decrease in blood pressure, as well as the normalization of peripheral circulation. In addition, due to the blockade of α-adrenergic receptors of the urinary tract, α-adrenergic blockers, facilitate urination in patients with benign prostatic hyperplasia (Oliver et al., 2019). Nicergoline dilates blood vessels in the brain, and improves cerebral blood flow, increasing blood flow to the ischemic (oxygen-deficient) areas of the brain. I had to use alpha-blockers to eliminate acute migraine attacks. This is their primary aim, which alleviates life significantly when it comes to considerable stress and anxiety.
Beta-Blockers
The creation in 1948 of the theory of beta-adrenergic reception (Ahlquist), and 15 years later – of pharmacological agents capable of causing their blockade, was an important achievement in clinical pharmacology (Oliver et al., 2019). This was the beginning of the widespread use of active drugs in medical practice. Beta-blockers eliminate the harmful toxic effects of the adrenaline hormone or norepinephrine neurotransmitter on the heart.
With an excess of these substances, the heart rate, blood pressure, and oxygen demand of the heart muscle increase. If the heart rate reaches 90 or more beats per minute, this condition is called tachycardia or tachyarrhythmia. Blocking beta-adrenergic receptors by the drug eliminates tachycardia (Oliver et al., 2019). At the same time, the heart rate decreases, myocardial oxygen demand decreases, and blood pressure decrease. The pressure-lowering effect is used in the treatment of hypertension. I have never used beta-blockers, but they have an essential role in terms of dealing with heart diseases.
Oliver, E., Mayor, F., D’Ocon, P. (2019). Beta-blockers: Historical perspective and mechanisms of action. Revista Espanola de Cardiologia, 72(10), 853–862. Web.
The proposal revolves around the idea of the nexus between digital transformation and innovation. This idea has acquired particular importance in the current landscape, as enabled by rapid technological progress. In the digital economy, organizations are expected to raise the degree of innovativeness and introduce new, revolutionary concepts into the framework. However, many companies fail to attain the optimal level of digital innovativeness. This study theorizes that the underperformance may be conditioned by the lack of understanding of the profound connection between innovativeness and digital transformation. The proposal includes a synthesized review of literature, which provides insight into the history of the notion of digital transformation, its current understanding, and existing research voids. This information conditions the direction of further research, which is to explore barriers, enablers, and strategies of digital transformation in underrepresented industries through a multi-level, mixed-methods case study. The practical orientation of the study ensures its applicability in the current economic environment characterized by the increasing complexity of the organizational landscape.
Introduction
The 21st century has marked the beginning of a new era – the era of advanced technology widely applied across various settings. While science saw considerable progress and breakthrough inventions in the previous decades, it is by the 2010s-2020s that humanity manages to increase its pace by manifold. The Internet has become universally applied, which marked its transition from military and scientific tools and niche entertainment products to an instrument of immense practical potential. Grubor and Jakša (2018) refer to Web access as a basic necessity in a range of situations, including advanced business practices. Furthermore, the importance of the Internet has been highlighted in other spheres of both professional and personal activities.
Its vital status has become particularly obvious in the fallout of the recent Covid-19 pandemic, causing a global collapse. Students attending educational institutions saw their learning reoriented toward a remote model, which revealed both opportunities and challenges of the digital environment (Garbe et al., 2020). While the Internet possesses immense potential in terms of worldwide communication, the utilization of its instruments lacked general proficiency due to an insufficient level of digital literacy (Ali, 2020). A similar situation can be observed on higher levels, including various professional fields. In the United States, the work-from-home model became prevalent during the peak of the pandemic, which required advanced digital solutions (Brynjolfsson et al., 2020). Evidently, the process was unplanned, which is why it lacked the required smooth transition (McGuinness& Fulton, 2019). As a result, the inability of companies and institutions to utilize modern digital potential has been proved to be a major impediment.
On the other hand, the necessity of digital transformation is not a recent concept, as its importance has been actively discussed within professional communities. Manita et al. (2020) states that the world has passed the threshold of the digital era, which altered various industries’ landscapes. Consequently, organizations exude an increasing interest in the digitalization of their operations, relying heavily on the advanced potential of modern technology (Nambisan et al., 2019). The range of potential solutions, which can be incorporated into a company’s activities, is vast, and it continues to expand exponentially. Nanotechnology, robotization, augmented and virtual reality, mobile applications, and artificial intelligence form merely a portion of envisaged means of enhancing efficiency in the digital age (Nambisan et al., 2019). They are no longer viewed as science fiction or narrow-niche concepts. Instead, state-of-the-art technology has seen increasing recognition from professional communities (McKenna, 2021). In fact, their potential use can be considered an integral requirement for quality innovation rather than an additional, non-prioritized instrument. The current proposal envisages research intro digital transformation from a new angle, viewing it as an indispensable condition of positive innovation in the contemporary environment.
Problem Statement
On the other hand, recognizing the need for digital transformation per se does not suffice. Relevant ideas have been widely theorized, but, as the Covid-19 pandemic revealed, there remain crucial aspects, which often remain uncovered by modern organizations. In many cases, the existing operational frameworks proved to be incapable of meeting the requirements of the process. First, optimal digital transformation needs a suitable technical foundation in the form of hardware and equipment (Tekic & Koroteev, 2019). Digital products are widely available for the general population, but their effective use, monitoring, and maintenance require considerable computing capacities (Gimpel et al., 2018). Second, the implementation of digital transformation is highly demanding in terms of operational literacy. In other words, those who work with new solutions should have a sufficient degree of knowledge. This way, they would be able to ensure a precise assessment of organizational needs for transformation, taking optimal routes to new digital solutions. Nevertheless, as it can be inferred from the recent experience, the aforementioned aspects are often not fully covered by existing strategies.
In fact, one may observe a certain void between the theoretical findings, which acknowledge the vital status of digital transformation, and the practical implementation of the said concept. Simultaneously, innovation is a well-established notion in the corporate environment, as it has been considered to drive the progress and development of organizations (Vial, 2019). According to Bell et al. (2019), entrepreneurial innovation is a self-propelling process, as the exposure to it is observed to promote the innovativeness of an individual. Spoken differently, those who interact with innovative products become more likely to acquire a similar spirit, thus contributing to global progress. The three levels of the process comprise incremental, breakthrough, and transformational innovation. Historically, organizations have been encouraged to focus on the first level, while the transformational stratum received little attention due to perceived risks and expenses.
Nevertheless, the current environment dictates a stronger emphasis on revolutionary digital solutions as the primary means of obtaining a competitive advantage. Consequently, the nexus between digital transformation and effective innovation becomes evident and crucial. As such, the global business environment faces a substantial problem in the form of the necessity to ensure quality development in the digital sphere (Nambisan et al., 2019). The severity of the issues varies across industries, becoming particularly acute in certain settings. However, the problem requires additional research, as particular aspects, goals, and conditions must identified within each specific industry. Identifying the sectors in which the need for better-digitalized innovation is particularly vital will be instrumental in enabling the sustainable development of the global economy, responding to the needs of both service providers and customers.
Research Questions
Based on the observed issues, it appears possible to formulate the following research questions:
How strong is the link between digital transformation and the innovative capacity of an organization?
How does the innovative digital transformation establish an organization’s competitive advantage?
What sectors demonstrate a smaller degree of innovative digital transformation capacity?
Literature Review
Despite the practical orientation of the discussed issue, potential solutions are to be based on rigorous research reflected in the existing literature. Puthiyamadam (2017) explores the evolution of the term’s meaning for the global business environment. As far back as a decade ago, the idea of digital transformation comprised aspects, which would be seen as basic nowadays: effective search engines, data mining, and virtual-space collaboration (Puthiyamadam, 2017). Subsequently, the perception of digital transformation has transformed along with the progress of scientific thought and now focuses on such advanced ideas as artificial intelligence, Big Data, and virtual reality. Bloomberg (2018) encourages researchers to distinguish between the concepts of digitalization and digital transformation. The first notion refers to a business strategy, which aims at enhancing an organization’s operations through the implementation of information technology. The idea of digital transformation prompts decision-makers to venture beyond the point of digitalization, as it implies a profound, comprehensive reorganization of all operations (Bloomberg, 2018). In other words, digital transformation is a global concept with the potential to change entire industries on a global scale.
Therefore, one may infer that the concept in question extends beyond its general perception and requires more profound changes. Teichert (2019) argues that the proper implementation of digital transformation practices requires a certain degree of digital maturity from an organization. Its inner structure, corporate culture, technical literacy, and innovative capacity are to be on par in order to ensure that all criteria are met. Sousa and Rocha (2019), with the idea, suggesting that nurturing digital literacy should be a matter of utmost priority with innovative organizations. Findings presented by Reis et al. (2018) demonstrate that digitalization is a widely accepted strategy of innovativeness within the business environment. Nevertheless, as discussed above, true digital transformation extends beyond its conventional understanding. Under the described circumstances, innovative organizations are expected to perform a greater leap toward advanced technological solutions, which would enhance the limits of the industry and introduce a new dimension to it.
However, as discussed earlier, the innovativeness and digital transformation capacity are not consistent across industries. In addition, Warner and Wäger (2019) observe another inconsistency, which is reflected in the way managers use the term, which relates back to the ideas presented by Bloomberg (2018). When investigating the existing literature related to the topic of digital transformation, Hausberg et al. (2019) discovered a lack of balance in terms of sectors, which are covered by rigorous research. While the concept is widely used, the majority of studies concern such technologically advanced industries as finance, marketing, and innovation management. At the same time, there appears to be a significant research gap in less digitalized spheres, including tourism, hospitality, accounting, and human resources management (Hausberg et al., 2019). These sectors may serve as the primary point for subsequent studies, which would observe undeveloped enablers and systemic barriers to digital transformation as a key avenue of innovation. The presented data suggests that some industries remain uncovered by active research, forming a considerable research gap. As most studies focus on just a few advanced areas, it appears appropriate to redirect the focus of attention to the industries, such as hospitality, tourism, and human resource management, which remain out of spotlight.
Research Methodology
The proposed research methodology will utilize a mixed approach. This form is chosen specifically to review the issue from both theoretical and practical perspectives. During the first stage, an extended review of literature will yield the theoretical basis for the subsequent parts in the form of a synthesized conceptual framework, reflecting the perceived nexus between innovation and digital transformation. Another critical theme will comprise a categorized list of industries in which digital transformation is underrepresented as compared to other sectors. These categories will enable the selection of relevant industries, in which theoretical and practical research gaps are present.
Based on these findings, the second stage will follow the qualitative approach in the form of interviews with representatives of prominent companies within these sectors. Each interview will be transcribed for the further analysis of the scripts, which will result in the evaluation of the frequency of specific digital transformation related-terms in the speech. Next, the data will be coded and synthesized using appropriate software to determine key notions related to enablers and impediments of digital transformations in respective organizations. Ultimately, this stage will yield a coded list of terms and concepts of digital transformation and innovation as perceived by representatives of specific companies.
Finally, a quantitative statistical analysis will be conducted to determine correlations between the current perception of the digital transformation of critical innovation techniques and the company’s performance. The uses of specific terms and policies will be compared to the general performance of each company. These statistics will be collected from open sources, using the organizations’ financial statements. This way, the research will examine the correlation between digital transformation philosophies and actual performance of the companies. Consequently, the correlations will be observed leading to further recommendations. Data obtained through these phases will enable final conclusions, which will reflect potential effective strategies for continuous digital innovation within underrepresented sectors.
Conclusions
Ultimately, the world has entered the era of the digital economy. Modern technology develops at an increasingly rapid pace, which introduces a new reality in which organizations are to adjust their operations accordingly. Digitalization is not a recent concept, as its prevalence in contemporary companies has been on a steady increase (Loonam et al., 2018). However, experts prompt managers to appraise the distinction between digitalization and digital transformation. The second concept implies more profound changes, which have the potential to redefine the image of an industry. Research suggests that it is the digital transformation that presents vast opportunities for quality innovation and sustainable development when applied precisely.
The proposed research design focuses on the industries in which the nexus between digital transformation and innovation appears underrepresented. The outlined study has the potential to ensure a better understanding of challenges and opportunities, thus bridging the research gap and introducing new avenues for further development. This way, the inter-industrial inconsistencies may be potentially alleviated, which will positively contribute to the global economy.
References
Ali, W. (2020). Online and remote learning in higher education institutes: a necessity in light of COVID-19 pandemic, Higher Education Studies, 10(3), 16-25.
Gimpel, H., Hosseini, S., Huber, R. X. R., Probst, L., Röglinger, M., & Faisst, U. (2018). Structuring digital transformation: A framework of action fields and its application at ZEISS. Journal of Information Technology Theory and Application, 19(1), 31-54.
Grubor, A., & Jakša, O. (2018). Internet marketing as a business necessity. Interdisciplinary Description of Complex Systems: INDECS, 16(2), 265-274.
Nambisan, S., Wright, M., & Feldmann, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8).
Reis., J., Amorim, M., Melão, N., & Matos, P. (2018). Digital transformation: A literature review and guidelines for future research. In A. Rocha et al. (Eds.), Trends and advances in information systems and technologies (pp. 411-421). Springer.
Tekic, Z., & Koroteev, D. (2019). From disruptively digital to proudly analog: A holistic typology of digital transformation strategies. Business Horizons, 62(6), 683-693.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118-144.
Technological innovation is the force that enables progress, moving society forward and ensuring the achievement of a wide variety of goals. Without research, development, and, ultimately, innovation, no society can function. Therefore, it is essential to ensure a constant flow of new technologies, develop existing areas, and create new ones. To implement this process, it is also necessary to collaborate the efforts of different parts of society – both the private sector, consisting of personal businesses, and the public, represented in the form of state structures.
In the context of the study of the influence of the private and public sectors and technological innovations in them, the countries of the Middle East and North Africa (MENA) region are of particular interest. Most of these countries are traditionally highly dependent on oil exports, which account for 76 to 97 percent of their economies (Oukil, 2011). However, as practice shows, many states, including the UAE, are aware of developing other areas. States are striving to advance both the public and private sectors through various funding and business support programs. According to research, the UAE has been actively investing in the development of science, technology, and innovation in recent years, making these factors the main driving force of the economy (Hameed et al., 2016). However, research is needed to assess the success of such events and their impact on technological innovation.
Thus, this paper aims to explore technological innovation in the private and public sectors of the UAE. The study of the features of technological progress, the mutual influence of the two sectors, and a critical assessment and comparison of available methods and their results are the objectives of this paper. In addition, such research can highlight valuable strategies that can be applied in a broader context – in other MENA countries or the development of entrepreneurship in general.
Literature Review
First of all, it is necessary to analyze the relevant literature on this topic, revealing the historical and current features of the interaction between the private and public sectors in the UAE. Traditionally, the private sector is usually much more developed due to competition (West & Lu, 2009). On the other hand, the public sector is a much more stable system.
However, more and more signs have recently been shown that collaborations and joint work of these two sectors can be effectively implemented in practice. A study by Salem and Jarrar (2010) investigates the shift from traditional to competitive government practices influenced by the New Public Management initiative. This paper examines digital technology, which is the key to modern technological innovation, as a link between the public and private sectors. As the analysis of the available securities shows, the transition to a more competitive regime of government work is rather difficult due to the increasing complexity of work and the decrease in trust (Salem & Jarrar, 2010). However, the spread of the Internet and widespread digitalization make it possible to address the constraints directly. For the two sectors to work together, thereby promoting and working on technological innovation, three levels of trust are needed: political, technological, and social (Salem & Jarrar, 2010). As the study shows, at the moment, a sufficient infrastructure has been created that allows the use of existing technological innovations for collaborations and joint work on new projects.
However, despite all the efforts, the UAE faces particular challenges. Despite the apparent shift of the state to an innovation-driven stage, there are areas in which the use of technology and collaboration between sectors is insufficient. First of all, as Ahmed and Alfaki’s (2013) study shows, there is a lack of investment in education. The R&D sector as a whole is underdeveloped, which is demonstrated by the available data and graphs, according to which the UAE’s spending in this area is only 0.7% of GDP (“How much does your country invest in R&D,” n.d.). It is recommended to pay more attention to collaborations with the private sector, bringing scientists and researchers together.
A significant drawback of previous studies is their date of creation. Given the pace of development of technological progress, a massive number of factors could have changed over 8-11 years, and assumptions about possible joint work may no longer be relevant. However, as a newer study from Almarri (2017) shows, public-private partnerships are still attractive. First of all, such interaction allows the transfer of skills and abilities of the private sector into the public sphere. Often, global innovation is driven by private companies that bring together the leading specialists and technologies. Despite the state’s leadership role, the goals of the private sector do not always correspond to the needs of the public sector (Rodrik, 2020). Therefore, such collaborations are necessary from the point of view of society. As Almarri (2017) writes, the number of public-private partnerships (PPPs) in the UAE is rapidly increasing, and prospects are being created to develop this direction in the future.
Finally, as practice shows, such methods and strategies implemented by the UAE government have positive results both for the private sector and society and the country’s state in the world as a whole. In 2018, the UAE ranked first among all Arab countries in the Global Innovation Index, showing significant success in the MENA region, and ranked 38th globally (Mohammed, 2019). This position reflects the technological changes that have taken place in all areas of the UAE. According to the study by Mohammed (2019), the main factors for the development of small and medium-sized enterprises were the positive attitude of the state towards innovation.
This concept was recognized as a critical factor, without which no technological, economic, or social development of the state is possible. The state actively participates in developing such enterprises, helping in the commercialization and advancement of their projects and their entry into the market (Mohammed, 2019). Such development has also become possible thanks to the competent use of available resources – talented individuals and a positive attitude towards technology in general, especially among young people (Oukil, 2010). Thus, over ten years, the UAE government has adopted many essential changes towards the collaboration of the public and private sectors, leading to the further development of technological innovations in the country.
Critical Evaluation of Secondary Data
Assessing the development of the UAE in the field of technological innovation and collaborations between the private and public sectors can also be made by quantifying various parameters. Quantitative parameters, first of all, allow the most accurate and qualitative assessment of growth in a particular area. In this context, it is convenient to use various statistical analyzes and data compilations. For example, it was mentioned above that in 2018, the UAE ranked first among all Arab countries and 38th globally in the Global Innovation Index.
As statistics show, there has been a tendency toward an increase in the number of innovations in the UAE in recent years. At the same time, the country systematically takes more and more lines in the ranking every year. In 2019, the state moved up two positions in the world ranking, and in 2020 it took 34th place, finally entering the top 35 most innovative countries in the world (“The United Arab Emirates,” n.d.). Compared to previous years, the values of Innovation Inputs (22) and Innovation Outputs (55) increased, signaling both an improvement in the environment for development in general and an increase in the number of final products. Moreover, the UAE has achieved tremendous success in the following three areas: creative outputs, human capital and research, and business sophistication, and has made significant progress in providing quality tertiary education (“The United Arab Emirates,” n.d.). First of all, these data are consistent with those trends that were announced in the papers reviewed earlier and correlate with areas requiring attention.
The need for enhanced development of the R&D sector was noted by the state, which led to an increase in the number of collaborations and the development of technologies. According to the Global Innovation Index report, the quantity of graduates in the fields of engineering and science, information and communication technologies is glowing in the UAE (“The United Arab Emirates,” n.d.). This trend has been noticeable not only in recent years but also over the past decade.
According to the available statistics, the number of workers in the scientific and technical sphere has increased dramatically. While in 2006, there were only 60,026 people in Dubai, by 2016, this number had risen to 95,974 people (“United Arab Emirates number of employees,” n.d.). This growth, which is almost a 50% increase in the number of employees over ten years, may indicate the successful implementation of government programs, as well as the transition from servicing the oil industry to the development of other areas. This data also correlates with the Global Innovation Index, according to which among the most successful companies in the UAE, in addition to the Abu Dhabi National Oil Company, there are also the communications company Etisalat and the Emirates airline (“The United Arab Emirates,” n.d.). Furthermore, according to the Forbes list, Etisalat is the most profitable company in the UAE, which indicates the development of technology in this country (“Top 50 companies in UAE,” n.d.). Therefore, the presence of such companies on the high lines of the rating indirectly speaks of the development and further development of PPP initiatives.
This conclusion can be confirmed by analyzing federal sites. The public-private partnership guidelines are listed on the official portal of the UAE government, providing all the necessary information regarding this initiative. Moreover, the same page provides examples of companies already cooperating with the government through this program, as well as demonstrates areas in which assistance from the private sector is required (“Public-Private Partnership,” 2019). The very existence of such tenders testifies to the success of this program. In addition, even the presence of some unsuccessful incidents at the start of the program, such as the failure with the Mafraq-Ghuweifat highway in 2011, does not slow down the development of this initiative (Foreman, 2020). Moreover, in Abu Dhabi, PPPs are being actively used to improve infrastructure performance, in particular, to replace streetlights. This area is being managed by the private sector, which is a positive sign for business. Thus, it can be noted that the interaction of the private and public sectors in the UAE is increasing every year, which allows implementing of more innovative projects and paying more attention to the development of new technologies.
Conclusion
Thus, technological innovation, present in both the public and private sectors, is essential to the modern Arab economy. Although the UAE still relies on the oil industry and the export of raw materials, the state is doing everything to change this situation. Technological progress and the introduction of innovations are associated with certain features and difficulties, primarily connected to a strong dependence on the oil industry. A successful outcome in such conditions cannot be achieved only through the efforts of private firms since this requires cooperation and joint efforts.
This approach is reflected in the interaction of the public and private sectors, regulated by the state through specially created committees and PPPs initiatives. As studies and modern statistics show, the UAE actively supports technicians and scientists, increasing the number of innovations and forming a knowledge-based economy. Although 10-15 years ago, there was a noticeable lag in the field of education and R&D, at the moment, the UAE has reached all the available forecasts. All this was achieved only because of the state’s active participation in society’s life and the widespread use of high technologies.
The success demonstrated by the UAE is relevant not only for the MENA region but also for the management in general, as they present an excellent example of cooperation between the public and private sectors. Other governments can use the example of the UAE as a guide to action. In addition, similar methods can be implemented in entrepreneurship as a whole, being implemented on a smaller scale. Thus, the study successfully explored the interaction of the private and public sectors in the UAE as an example of using technological innovation to shape successful collaboration and further research. The discovered strategies and the results obtained are helpful in the context of a particular state and in the context of entrepreneurship in general.
Almarri, K. (2017). Perceptions of the attractive factors for adopting public–private partnerships in the UAE. International Journal of Construction Management, 19(1), 57-64. Web.
Mohammed, A. Q. (2019). Barriers and enablers of innovation in United Arab Emirates (UAE) small and medium enterprises (SMEs) sector. International Journal of Entrepreneurship, 23(3), 1-9.
Disruptive innovations are a group of technological tools that make it possible to easily and quickly obtain the necessary service. The transition to such innovations has allowed us to move away from the usual structure of life and reach a new comfort level. Improving the quality of life has primarily allowed society to conserve human resources and direct them to areas where complete replacement with technology is impossible (Harris, 2019). Emerging technologies only get their development if consumers are willing to use the product or service in their regular lives. Typical examples of disruptive innovations are telephones, computers, steamboat installations, and electronic communication services.
Disruptive Technologies of My Use
Among the relatively recent technologies, digital cameras, which have replaced film cameras, are worth mentioning. I have a Canon Powershot G7 X Mark III camera, which I often use to record video and photos of various moments (Canon Store, 2019a). The camera is a new technology that has replaced the old technology for producing images with film. It is disruptive because it has completely changed the understanding of photography. The switch to digital media has made getting pictures faster, and the need to spend on charging is much lower than buying film. Many users have seen the value of digital photos, defined by the duration and convenience of storage.
Another critical technology is storage media – flash and hard drives. I use the SanDisk Ultra Fit – it is a small 128-gigabyte flash drive; this amount of storage allows me to store study materials and personal files (SanDisk Store, 2018). The flash drives replaced the old Bernoulli disks; they allowed you to record materials in a much larger quantity and convenient format. Disks were inconvenient and required special storage, and over time, irreparable damage could occur. In addition, not all computers could afford disc input devices. This problem disappeared with the advent of flash drives and other drives with a USB cable.
Disruptive technology is the new means of printing – computer printers that connect to a PC or a phone. One college building has a Canon imageCLASS MF455dw laser printer that provides high-quality, high-speed printing (Canon Store, 2019b). Printers have replaced offset printing and have significantly reduced spending on consumables. Printers now require only cartridge refills, which you can do yourself, and a power supply. This is much cheaper than maintaining offset printing devices. Although offset printing still exists and is even popular in publishing houses, computer printing is more convenient and faster for getting documentation.
I find it essential to note the disruptive technology in transportation – automobiles have made getting around much more accessible. Cars first replaced streetcars and trolleybuses, and gradually they began to be used more often than railroads. However, their use is justified by the need to move near and far, which is not available for electric transport and tracked transport. Short-distance motorized transportation has relieved high-speed trains within the city, but trains still gain an advantage over other modes of transportation in some areas. A gradual transition to electric cars is underway as fuel becomes more expensive and is not environmentally friendly (“Benefits of electric cars”). New car models will reduce user costs and reduce the overall carbohydrate footprint.
An essential disruptive step was the switch to plastic products because they are durable and quite sturdy. Ballpoint pens last longer than fountain pens and do not require constant ink refills; plastic containers are more convenient than wood and glass; silicone utensils are better than metal ones. There are negative consequences of using a lot of plastic: it is harmful to dispose of it (Ritchie, & Roser, 2018). However, compared to other materials, plastic is durable and reusable. Cardboard and paper bags do not allow them to be used for products that release moisture, and wooden ones can rot after being washed. Thus, plastic materials belong to disruptive technologies, although they require refinement.
Artificial Intelligence is another unique example of a disruptive technology that has changed how we think about searching and processing electronic services. AI is now integrated into almost every technology: Telegram messaging searches, chatbots, and even language-learning apps. In addition, AI has made it possible to make assumptions that can change lives – particularly in medical technology and virtual assistants (Briganti, & Moine, 2020). For example, unique boards and projectors with AI generate several variants of disease development at once, taking into account various factors. It is perhaps the most significant disruptive technology because it changes how life can evolve.
Conclusion
Thus, disruptive technology is an opportunity to improve life by integrating new ways of perceiving certain events. Technologies in printing and photography, as well as information storage, play an essential role. In addition, innovations in transportation – automobiles and electric cars – significantly increase travel speed over short distances. The use of plastic products avoids unnecessary purchases of storage systems, and AI assists in almost all areas of life. Disruptive innovations will continue to emerge and change human lives for the better while optimizing human and other resources.
With increased technology, individuals and businesses are increasingly using laptops for various personal and business functions. Laptops are electronic gadgets with a microprocessor that depends on power supply to function. Solar energy is freely available and can be tapped for charging laptops. However, this technology has not yet been embraced in Australia and at large the world. There are numerous advantages that can be derived from using solar charged laptops.
They are both monetary and efficiency based policies. After coming up with the first products, they will be show cased and samples given to corporate bodies for a trial. Entry strategy in the market will be approached from an executive and corporate point of view. As an entry strategy, the company will use customer-company relation whereby instead of a marketing strategy that targets a large population, it will start from small group, individual corporate bodies, and individuals.
A customer focused approach will be adopted to ensure that the needs of customers are always understood and met. Strengths of the company which include an increased population of enlightened people will be maximized as measures are put in place to mitigate and cope with dangers posed by its weak points. Environmental strengths will also help a great deal.
New Venture Development
Introduction
There is need for a reliable source of energy to power laptops. Laptops are rechargeable gadgets which if photo electronic batteries with charging chips are used, then solar energy can be used to charge them. This report discusses an innovation of solar charged laptops. It will also give an analysis of the strengths and weaknesses that the business is likely to get.
Direct Solar Charged Laptops
Technology is on the increase. Many people today are using laptops in their day to day activities. Laptops are electronic gadget, which must depend with a reliable source of electricity to be recharged. In Australia, there is power distribution in at least 80% of the population; however the power supply is not 100% reliable. On the other hand, there is need to use the garget in areas where electricity has not reached.
At times the need to work in far territories arises; most of these areas are without electricity for instance Africa and Caribbean countries where power supply is limited. Solar energy that is freely available in nature can be tapped and used as a source of power for laptops.
Solar Energy
This energy is gotten direct from the sun by use of solar panels; however a chip should be used when in laptops. This type of energy has been used for many years although some scientists have recently started to research on how it can be put into more use. These scientists discovered that, Solar panels can be used to convert the rays from the sun into electricity.
This can be done in two ways: – one is called solar thermal applications where the sun is used to heat liquid or air. The second is called the photoelectric applications whereby photovoltaic cells are used to generate electricity directly from the solar energy (U.S Energy information Administration (EIA), n.d).
Solar energy is one of the cleanest sources of energy and has no harmful byproducts or threats. The major drawback of this type of energy is that it is very expensive to put up the solar panels and also to maintain them. To add to that the energy that is generated by these solar panels is not sufficient for large scale use.
What the product needs to incorporate is a self charging system, which is a matter of using chips that will assist in charging the laptops battery. When the battery is full, then it automatically switches itself.
The Opportunity
Technology is on the rise, there is a shift from the old office business where employees were required to report in offices to do their jobs, today home based working has taken preference. People are using desk tops, teleconferencing technology, and laptops for this noble task of serving their employer when at home.
Computers consume large amounts of power and with recession on course, any measure that aims at reducing home, office, and business expenditure is highly welcomed. When solar laptops are developed, there will be numerous benefits to the user as well as to the company they include;
Solar power is relatively cheap than electricity; this will reduce power bill budget and ensure productivity. If they are adopted by a company, they will reduce a proportion of electricity bill in trading profit and loss account. This will lead to an increased profits and money for expansion will be availed. Large amounts of revenue from business results in an increased government revenue through taxes. This will lead to developmental projects being implemented for the betterment of the country.
Australia has an all-round–the-year sunlight which can be easily tapped by the laptops charging system and used efficiently. One will not need to stay in direct sunlight to charge the laptop but all will be needed is some sunlight penetrating where the laptop is.
Execution Feasibility
Management Team – Company SWOT / TOWS analysis
Strengths
The strength of this company will undoubtedly be engineered by its internal managerial mechanisms. In order to have a competitive edge in selling its product and services, it will be advisable for the company to take advantage of its ability to compete favorably with equal players in the market. A strategic marketing plan is the only way out.
Through this arrangement, the company will be able to adopt different modalities and outreach programs of reaching out to its consumers. In a market mostly controlled by the efficiency and the affordability of the products as well as quality, it will be an open strength for the company to explore more on innovations. In retrospect, strategic marketing plan should be in a position to explicitly document the various channels that can be used by the company to allocate more resources towards improving quality (Livingston, 2008).
Weaknesses
These refer to stumbling blocks that may deter the company from progressing towards a particular direction. One of the weaknesses is attitude that customers have upon new things introduced in the market. Laptops are expensive commodities which no one would be willing to have a try and test method. When discussing the concept of strategic market planning, we discover that resources are vital for an organization to effect significant changes.
Another area of inevitable weakness is an expansion plan, which entails diversifying the level of the company activities. This may take different forms. A critical look at geographical expansion depicts a glaring possibility of other stringent market uncertainties. Right at the onset, strategic planning will demand strategic resources, both human and financial, to make any significant move.
Besides, implementation of the proposed market research will require mutual consent from all the affected divisions in the company. This will not only consume time as decisions are being made, but a lot of uncertainties abound especially on the verdict of the company.
Opportunities and Threats
Opportunities for the company are dependent on both the internal and external assessment criteria of the company’s profile of operation. Similar to the weaknesses discussed above, the company can still optimize on the various opportunities available to bring about sustainable growth through effective competition.
Some of the underlying opportunities for this company in regard to the macro environment are the diversification of its activities. The company may opt to not only run on large scale, but also produce variety of products. This concept of variety may be approached from different angles like micro lending’s via collaboration with local banks.
In striking for the right opportunities, the company will have to analyze its main market rival. The strategies being employed by the competitor should be critically assessed and evaluated for necessary counter action. In addition, the general plan of the competitor in a bid to control the market is a vital toolkit which this company can use to estimate the competitive edge of the market.
Sustainable Competitive Advantage
To have a sustainable competitive advantage, there is need to improve the products with time. The company will have a research and development team which will be mandated to survey the market and advice the management on measures to take to ensure that it remains competitive. Another way is the use of appropriate advertising and marketing strategies.
Promotions are done in the effort to either introduce a new product or increase the market segment. To engage in a promotion, the first thing to understand is the availability of the target customers. Where are they likely to be found? Are they free in the mornings, is it in the afternoon? After realizing their availability and the fact that they can give you time to sell your products, and then know the age of the market.
If the promotion is for the introduction of a new product, then a lot should be invested in assuring the client of better quality than that offered by the competitor. The existence of opinion leaders should be evaluated. The customers are likely to follow the opinion leaders in making their decisions. The existence of groups in the society and their matching lifestyles can also be of great use.
The way the consumers react is that they will follow the others. Investment should be made in this. If the promotion is for an already existing product in the market, the approach should be from the angle that we are thanking our customers. If the customer feels appreciated and recognized he will develop loyalty and influence others to follow his way.
Environmental Analysis – What Trends Have Created This Opportunity?
Australian and the world population are on the rise where the numbers of youths who are enlightened is increasingly high. On the other side, office spaces are becoming limited and an existence of briefcase companies on the rise. These people however need to communicate with each other and do business. One of the ways of doing this is the use of laptops.
On its side laptops will need to be charged, the technology of solar changing can be the solution to this. It is cheap to use and efficient clean technology. According to United Nations, (1998) the world is continuously facing an increased population. The numbers of youth and young families, who are continuously adopting modern lifestyle, are on the rise. As a result there is increased demand for laptops.
Diagram 1 population treads in the world.
Australian population is also on the rise, according to Australian bureau of Statistics, (2010) it stands at 22,431,468. The population is mostly concentrated among the young; these are people who are below the age of fifty years. The following population structure portrays this fact;
Diagram 2 population structures in Australia.
Changing world trends- today the world is changing into a global village where more and more companies are trading with each other internationally. Signatures are now made electronically, though advertisement as well as marketing. This calls for managers and executives to be armed with a laptop at any one particular time so as they can conduct their businesses well. The need for laptops thus increases with time.
The world today is “crying” following the effects that global warming has on the economies. So far nothing has been implemented to tap the benefits that can accrue from global warming, use of sunlight for charging is one of the ways that can be derived from global warming. This however does not mean that global warming should be encouraged.
Market Analysis and Feasibility
Identification of Customer
A customer is the backbone of a company; the main decision that a marketing manager should make is on a company’s market segment. A market segment is a homogenous subset of the main market, which share similar characteristics, which make it demand similar goods. A segment is also stimulated by similar innovations. After developing a marketing segment the next step is to develop mechanisms that will enable him sell in the target market.
One of the ways to enter in the target market is marketing mix. In our case the target customers will be executives, managers, and business people for a start but the segment will be extended to general population.
To reach the market the marketing team will employ a customer relation trading where they are likely to approach potential customers and introduce their products. The company appreciates that the success of the products is based on the quality given by the products, thus the aim will be to make the product of as high quality as possible.
Value Proposition and Compelling Need to Buy
The positioning statement with be, “Solar laptops, for all your daily needs”.
Pricing Strategy
The price of a commodity is an element of total cost plus a profit margin. When a target market has been established, there is need to determine the price that the target customer will afford comfortably. A marketer should be aware of the consumer trends and their potential.
The social class that the product is targeted will influence the price of the products. The price parameter can be approached from the actual product price or the possibility that the product can be divided into smaller parts, not necessarily cheap, but the need for this is to enhance affordability. From a broader point of view the market can be divided into three sections; the high class, the middle class, and the lower class. The product target customer will be executives and corporate bodies.
In 1980, Porter developed a structure for analyzing the nature and extent of competition within an industry. His argument was that, in every industry, there are at least five competitive forces which establish the nature of competition within that industry. These five forces are discussed below:
Buyer’s Bargaining Power
Buyers have the ability to determine which products will move first and which will not. It is through buyers that a company realizes its competitive advantage in the market. For a long time, buyers in Australia are using HP and Dell products. This is because of efficiency of these products. Customers are pushing the need for quality efficient goods.
Supplies’ Bargaining Power
The company needs to employ goods strategies to ensure that customers are aware of the existence of the products; it is by doing this that it can influence and enter the competitive laptop business. When quality products are well known by the customers, they are likely to be more accepted. Sales team should ensure that it makes the best targets and market segmentation.
Competitive Rivalry in the industry
Within an industry, there are businesses which compete with one another for the available market share. These businesses either specialize in the production of similar products or differentiated products. In laptops, there are a number of international companies who specialize in their production; they include Dell, HP, and Toshiba among others. One of the ways of ensuring that the company enters the market is to offer something different from what these competitors are offering this will be solar charged laptops.
Threat of New Entrants
The threat of new entrants to an industry such as the electronic depends on the number of entry barriers available. The higher the entry barriers, the fewer the number of competitors will be in the industry. These barriers include: capital costs of entry, legal constraints; access to distributing channels among others.
Threat of Substitutes
A substitute product is a product that meets the same needs as those met by a product produced by the industry. The extent of the threat from a particular substitute will depend upon two factors; namely, willingness of buyers to switch to substitute products and the degree to which the value and performance of the substitute can compete with the industry’s product (Duening, Hisrich & Lechter, 2009).
Technical Feasibility
Product or Service Design, Production and Distribution
The laptop will not take a particular special shape than others although it is expected to have a chip on the front after opening it that will be the charging system.
Distribution Channels and Logistics
When a company is developing a product, there is a need that the product is supposed to fulfill. The trend that the customers follow at one given point is a change to the product that gives them a higher utility. When the product is developed, the team should always invest in offering something extra to the consumer.
In computers development there is need to give specifications that it has over and above the ones existing in the market. If the target customers are aware of the component, the campaigns should target the customers with a lot of emphasis with the components used. On the other hand, if the customers are not much interested in the components, the focus should be the outcome that the product will give.
The marketing campaigns should explain to the customer what benefit he will derive from using the new developed laptops than the others. What does the target customers expect, what are they likely to be moved by? What is the age of the target customer?
Effort should be made to ensure that the product is portrayed to give the impression of superiority. The language on the product packaging should be targeted at the desired group age. If the prices have reduced and are lower than the market prices, it is important to include them on the package.
In all the marketing of the products whether they are target to the high class, middle class, low class, the old and the youth, the marketer should assure the customers of the availability of the products at all times. Understanding the target market segment cannot be overlooked (Antil, 2008).
Operations plan
Execution Feasibility
Sustainable Competitive Advantage
To have a long lasting competitive advantage, the company will continuously improve the quality of its products. There will be research and development team which will be mandated with the task of advising the company on the developments that require making. All policies developed will be aimed at satisfying the customer and will be responsive to customers need.
Financial Feasibility
Projected Income, Start-Up and Operational Costs
The income of the company is expected to come from the sale of laptops, there will be also repairs section that will offer after sales service and also will offer repairs to external customers with both solar laptops and electric charged laptops;
Starting Capital, is the amount required to put up the facility in operation. When making the initial budget, there is need to consider costs that are incurred before the company breaks even;
The following is the projected incomes and operational cost for the initial year;
Name of translation
Expected Amount (in Us. Dollar)
Capital
300,000,000
Expected sales of first year
120,000,000
Purchases
60,0000,000
Operational costs
60,0000,000
Taxation costs
0.00
Salaries and marketing expenses
10,000,0000
Net profit
(10,000,000)
Operational cost include costs that are incurred in normal operation of the business, they include depreciation, electricity, medical expenses, and transport. This amount includes all expenses except salaries and distribution expenses.
Capital budgeting is ensuring that the finances available for various long term developments are utilized in the most efficient way. In our case we have a budget of $ 300million that should be used to establish a medical facility. This money can be divided into two
Capital good purchase.
Operational expenses.
Break-even, Cash Projections and Return on Investment
Break even, is the point where a business expenses and income gotten from a business is equal; at this point revenue derived from a business is equal to costs incurred in production
At Breakeven point then
Cost = revenue
That is Revenue – Cost =zero
Profits are only realized when revenue exceeds cost.
It is expected that from the second year, the company will surpass its costs. This is the time that profits will be realized. Cash projections for the next five years is as follows.
Expected sales
Expected profit
Year 1
120,000,000
(10,000,000)
Year 2
200,000,000
34,000.000
Year 3
220,000,000
36,000,000
Year 4
253,000,000
40,000,000
Year 5
267,000,000
50,000,000
The projected cash flow is expected to increase with increase in sales as well as efficiency. There will be increased campaigns to ensure that there is awareness and derive a competitive advantage.
Resource Plan and Time Schedules
The finances to start the business will come from a loan facility that will be procured from standard chartered bank. In the loan policy there is a six months grace period and the loan term is three years.
Financial loan
300,000,000
Interest rate
16% inclusive
Repayment period
3 years
Grace period
6 months
Yearly Installments
1,335,708
Financing institution
Standard Chartered Bank
Time Schedules
Starting up a new business is taking a risk; however if the decision is well thought there are numerous benefits that come up with investing in business. Before one set to start there are short and long terms parameters that he should consider to ensure that there will be continuity in the business.
The future is unpredictable and so even the smallest details about something should be interpolated before starting up. From the above study; it has come clear to me that entrepreneurship is all about how well one can understand the future and plan on it. It involves a process of analyzing risks associated in a certain area and working in full recognition of their presence. All mitigation factors should be put in place before the business is started (Ebbena & Johnson, 2006).
Activities will fall in a chronological way where there will be what to be done first and what follows. The first thing is to seek for location of the factory; we aim to have a different place for the factory and for displaying things. On the other hand, our sales team will be busy distributing the goods to various markets all over the world.
When all infrastructures are set, then the next step is to start operating. Operating will start when all staffs are set aboard. It will be appreciated that a company with properly shaped psychological contracts embraces a system that allows employees to air their views to the higher leadership.
A company requires both physical and human resources for its operations. Human resources are the greatest asset that an organization can have; without it no business transaction can take place. It ensures that the business is run in the right way, and thus determines the current as well as the future state of the business.
Great leaders or managers are those that can combine available strengths and weaknesses for the good of the organization. How well the human resources are sourced, developed, and retained in the organization is the work of management (Avery, 2004).
Key Risks and Mitigation Strategies
This is the uncertainty on to whether the kind of business that the company has engaged in will be of success. This is in both existing business (when they want to extend their business to other areas) and a start up business. When investing in some kind of a business there is the initial and subsequent running expenses.
In a business environment the proceeds from the business should cover all this and there remain a portion that is the profit of the investor. This is not always the case and one may invest and then only losses are accruing from the investment; the risk that the firm will have to undertake is that of possibility that the business leads into a loss. On the other side, this is a normal situation that must be faced in business. The most important thing is to do a good study of the market situation before you invest.
Risk Mitigation Strategies
Risk Transfer
This is the transfer of risk to an insurance body. The contract provides that in consideration of a certain periodically paid premium then the insurance will mitigate the client. It works in a way that the businessman remains at the original position before the loss occurred. The amount of premium paid is proportional to the possibility of a loss and the value of the loss.
However, it is important to realize that the risk holder is the insured but the insurance company only comes in as a litigator of the loss. There are those properties that by law are required to be insured. This includes motor vehicles. There is a risk that can be associated with this method of mitigating loss; this is when the insuring company cannot be relied upon.
There are some insurance companies that assume risks that they cannot handle. To avoid this, a company should ensure that it engages into an insurance contract with a company with good financial strength. Another way that this can be done is by insuring the same risk with more than one insurance company (Borodzicz, 2005).
Exit Strategy (if appropriate)
It is not always the case that a business set up will be successful, there are times that it may fail; when starting a business this should be taken into consideration. Business dynamics cannot be predicted with a 100% certainty. If the trend fails to favor a business, then the business is more likely not to meet its obligation. It may be a failure in the market, change of fashion, calamities or negative goodwill created; they may hinder continuity of a business (Shane, 2003). To cater for this eventuality there is need to have an exit plan. Mitigating any loss that is likely to result from loss of business is one of the common ways to have an exit strategy that will not hurt the entrepreneur.
Concluding Recommendation
Laptops are gadgets whose use is on the rise in the recent changing world of technology. They use electric power to operate; solar energy is freely available energy source which can be tapped to charge laptops. This is a new invention that has not been implemented in the world.
A customer is the backbone of a company; the main decision that a marketing manager should make is on a company’s market segment. One of the ways to enter in the target market is marketing mix. The 4Ps represent Price, product/service, promotion, and place. The aim of the marketing mix is that for effective marketing then products should be available to the target customer at the right price and the right place.
Reference List
Anctil, E. 2008, Marketing and Advertising the Intangible. ASHE Higher Education Report, 34(2), 31-47. Retrieved from Academic Search Complete database.
Australian Bureau of Statistics. 2010, Australia’s Population Web.
Avery, G. C. 2004, Understanding leadership: Paradigms and cases. London: SAGE Publications.
Borodzicz, E. 2005. Risk, Crisis and Security Management. New York: Wiley.
Duening, N., Hisrich, D., Lechter, A. 2009, Technology Entrepreneurship. New York, Academic Press.
Ebbena, J.; Johnson, A. 2006, “Bootstrapping in small firms: An empirical analysis of change over time”, Journal of Business Venturing, Volume 21, Issue 6, Pages 851-865.
Livingston, J. 2008, Founders at work: stories of startups’ early days, Berkeley, CA: Apress; New York.
Shane, S. 2003, A General Theory of Entrepreneurship: the Individual-Opportunity Nexus. New York, Edward Elgar.
U.S. Department of Energy n. d, Energy Sources. Washington, DC 20585. Web.
United Nations 1998, Australian Bureau of Statistics Web.
