Understand And Requirements Of Innovation †Myassignmenthelp.Com

Question: Discuss About The Understand And Requirements Of Innovation? Answer: Introduction: An economical system consists of three sectors, primary sector or agricultural sector, secondary sector or industrial sector and tertiary sector or service sector. Primary sector deals with the natural resources present within the country. This sector is associated with fishing, forestry, agriculture and mining majorly and generates raw materials which can be utilized by the other industry, specifically manufacturing sectors. Secondary sector is the industrial sector which is mainly associated with constructions and manufacturing services to produce effective products for the society (Galbraith 2015). This sector develops the economic base of society in any country by producing products for consumers. Finally, tertiary sector is service sector which provides different services to the people of a society like sales, education, tourism, finance and others. Industrial sector uses the resources or raw materials provided by primary sector to produce effective products for consumer purchase or further development. Depending on the production this sector can be divided into two parts, one is heavy industry sector and another is light industry sector (Bigliardi et al. 2012). Depending on the working principles, industrial sector can be again divided into two parts, one is manufacturing and another is construction. Few common industries that can be shown as examples are automobile industry, consumer production industry, textile industry, steel industry and many more. Purpose of the report is to discuss about industrial innovations over the years. Three basic sectors of economy are stabilized throughout ages only because of adaption and innovation. An industry only prospers when it implies innovation within. Different types of industries different types of innovation and through this report, telecommunication industry innovations are discussed. Telecommunication Industry Sector: Now-a-days human life is too much involved with telecommunication industry sector. The working area of the sector is related with the technology of information and communication. In earlier days, most of the revenue of this sector is generated by conventional telephone calls (Belussi, Gottardi and Rullani 2012). With the advancement of technology, calls are being replaced by chats, messages and e-mails. Main component of this industry is high speed internet, which is provided various broadband servers (Yami and Nemeh 2014). Revolution in Broadband Services: The major organisations in broadband services have provided four specific products for the consumers among which television, telephony and internet access are the dominant products those have remained in the market (Murray 2013). Another dominant resource is cell phones as the digital data constantly overtaking the importance of voice in communication. Bandwidth of mobile services is lower than that of residential services but the network speed is low. With the increase of network speed, over-the-top providers are coming into the market of telecommunications (Samad and Kiliccote 2012). These providers uses public internet network as a channel to promote their products competing with the conventional telecommunication products. Examples of this over the top providers are companies like Vonage and Skype. Innovative Focus: Television, telephony and internet access, which are renowned as the term Triple pay, are the major focus areas of innovations in telecommunication industry (Galbraith 2015). Pathway of this focus is the interaction between operational members of system and upstream suppliers, which can be in form of proposals or requests. These interactions are based on the inter-relationship of the interacting parties which are circumstantial and dynamic (Battistella 2014). The innovation planning is deduced from a set of ideas developed from market research and the constantly developing pressures the competitors. The innovations are dependent on the capabilities of the manufacturer. The innovators also try to focus on developing certain tools that can predict market needs or new service providing capabilities. Innovations always can be analysed either inputs or outputs (Murray 2013). Innovation in in-network and over the top services: There are two main kinds of innovations in telecommunication structure. One s in-network technology and other is over-the-network technology (Samad and Kiliccote 2012). Since inventions in internet are mainly based in software development and coding, various organisations, even individual can deliver innovations. This is the reason for which competition arises for internet based service providers in the basis of network operators and manufacturers of equipment. This causes a resistance in the competition in the basis of friction (Narula 2014). Research and Development: Research and development is another sector related with industrial innovations. Telecommunication innovation associated with researches in public sectors. The pipeline for innovation is also constructed with the help of researches in the fields of university and military (Bond and Goldstein 2015). Different public sector innovations can be shown as an example, like invention of erbium doped fibre amplifiers, which is used to amplify optic signals, a new cryptographic algorithm published by MIT in order to strengthen the security and privacy in communication system (Vonortas 2012). These are all the results of successful research and development analysis and its implementation on innovation. Business Model Innovations: Like every other industrial sectors, telecommunication sectors implement various business models to improve the quality of their products and services (De la Mothe and Paquet 2012). The fundamental requirement of innovation in this sector is the idea of next generation services (Drucker 2014). Now-a-days many industry leaders are investing capital in next generation movements regarding internet protocol networks, so the new products and services can be invented (Bigliardi et al. 2012). The traditional method of research and development in business model has been replaced with the use of new equipments and application or service providers (Yami and Nemeh 2014). Internet and entertainment industries are the newest additions to the industrial sectors and competition within the industry has begun very quickly. Innovation has become a very critical factor for them, since without embracing new business models and business partners neither innovators nor information services can progress (L ee, Olson and Trimi 2012). It is generally seen that innovation in any industry depends on reconfiguring and remodelling of the current business model utilized by that sector (Jin et al. 2015). However, innovation in telecom industry on the basis of remodelling business model has been found to be opposite in nature on the basis of several surveys as Global CEO study, surveyed in 2006. In telecom industry the CEOs are generally affected by the positive and negative effects of old and new business models, but the implementation of those business models into the reality is not been observed (Narula 2014). Generally, telecom CEOs are more involved with the invention of new products and services rather than reconfiguring the business model. According to the surveys, only 26 percent of the resources have been used in innovations in business models. Barriers in Industry Sector Innovation: There are certain barriers in industry sector innovation, associated with different sectors of the business. The paradox business model of telecom industry creates some barriers for the innovative implementation (Vonortas 2012). Due to more involvement with development with new products and new services rather than reconfiguring the business model, allows the space for new organisation emerges with more advanced tactics and consumer-friendly business model (De la Mothe and Paquet 2012). Therefore, an enhancement in the business model popularises a organisation developing similar kind of products and services (Drucker 2014). There are five basic factors in the industrial sector that generates barrier for innovation. These factors are insufficient funding, avoiding risks, isolation, lack of time commitments and wrong measures of different situations. An innovation totally depends on the start up fund for its establishment, but major problems arise when the funding becomes insufficient or comes at wrong time. Organisations, whose funding cycle is annual, cannot get a grip easily in the real world structure (Poynter 2012). The funding should follow the short term goals of the innovation, not the long term objective because the construction of any innovation depends on short term functions (Bond and Goldstein 2015). Innovations are always risky, as one cannot get too confident for its success in the initial stage. Introduction of various risk factors often stop the progress of an innovation. Sometimes industries anticipate this barrier and take measures by creating smaller prototypes for innovation and test them before introducing the innovation majorly. Rules and regulations are employed by an industry in order to protect identity information and sustain itself within the environment (Belussi, Gottardi and Rullani 2012). Sometimes these boundaries seem to be more artificial rather than beneficial. Often it has been seen that innovations do not remain within organisational boundaries. Time management is another crucial topic associated with the barrier. Training time, working time and evaluating time, all are the part of this barrier. Sometimes due to less training time or work-implementation time an innovation is affected badly. Sometimes the investment does not come timely; again sometimes the usefulness of the innovation does not get measured timely (Haufler 2013). Finally incorrect measurement hampers an innovation. Sometimes industrial organisations focus majorly in cost-revenue structures, market shares and profits rather than intangible measures like knowledge, efficiency, leade rship skills, reputation and some others. Apart from these basic barriers, there are some more general barriers that can be mentioned in order to understand the resistances in the path of innovation. Lack of leadership skills, industrial infrastructure, similarity in innovative ideas, working principles and working habit of employees associated with the innovation are some other general barriers that come in path of industrial innovation (Yami and Nemeh 2014). Government Involvement in Industrial Sector: Primary objective of economical development is the development of masses. To achieve this objective industrial sector has been used as a key element by a good number of governments. In most of the developed and developing countries private sector of the total market has been targeted for industrialization. The role of government and involvement in the development are very crucial (Jin et al. 2015). Depending on the evaluation of intellectual, financial and industrial assets government can anticipate the success of industrial sector and thus motivates it. Technological advancement is another important process associated with industrialization, where government intervention has been proved to be necessary (Battistella 2014). Subsidization of efforts in technology and registration of patents by different firms are the primary intervention of government in the technological process of industry sector. Information technology centre can be established by government which can be rented to t he private sectors (Poynter 2012). Proper infrastructure should be provided by government like proper construction, effective transport and power system. In case of telecom industry the broadband services are the additional infrastructure that can be provided (Haufler 2013). Involvement in the financial sector of the industries, like telecommunication and other industry is proven beneficial as a single, good investment is more effective than a number of moderate investments. Intervention and regulation of financial market for innovation of an industry is another government involvement that can be mentioned (Lee, Olson and Trimi 2012). Involvement of government reduces market failures of an industrial sector. Government policies like direct investing in the industrial sectors, enhancement of competition between various organisations belonging to a specific sector reduces the risks developed due to rising of monopoly, insufficient or misdirected investment, involvement of externalities and some others. Conclusion: Innovation is the key factor for survival of any economic sector, specifically industrial sector as the baseline of this sector is construction and manufacturing. In order to survive in the market any organisation relating to a specific industry must introduce innovation so that it can get a hold of a great deal of consumers. Telecommunication is an uprising industry in the global market. Use of internet and broadband services are becoming the keys of social life. Therefore, every organisation associated with this industry always looks to bring something new and better in the market. Often it can be seen that innovation in product or services does not involve reconfiguration in business model. Although there are many innovations already have been occurred in this sector, there are still many potential innovations that can be done in this industry. Rise of big data which is the backbone for innovation in this industry can be furnished more. New products can come into the market that c an meet the consumer requirements for personal, commercial and other various activities. Moreover, the speed of human life is elevating proportionally with the speed of internet and broadband services, which develops the field for more innovation of products and services in the industrial sectors. References: Battistella, C., 2014. The organisation of Corporate Foresight: A multiple case study in the telecommunication industry.Technological Forecasting and Social Change,87, pp.60-79. Belussi, F., Gottardi, G. and Rullani, E. eds., 2012.The technological evolution of industrial districts(Vol. 29). Springer Science Business Media. Bigliardi, B., Ivo Dormio, A. and Galati, F., 2012. The adoption of open innovation within the telecommunication industry.European Journal of Innovation Management,15(1), pp.27-54. Bond, P. and Goldstein, I., 2015. Government intervention and information aggregation by prices.The Journal of Finance,70(6), pp.2777-2812. De la Mothe, J. and Paquet, G. eds., 2012.Local and regional systems of innovation(Vol. 14). Springer Science Business Media. 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