...Business and Innovation in Networked Economy Course Background and Introduction The dynamic of our society, and particularly our new economy, is increasingly obeying the logic of networks. Understanding how networks work will be the key to understanding how the economy works. We are connecting everything to everything. Businesses and governments that are able to effectively employ information and communication technologies find more sophisticated and efficient ways of managing their external relationships and communications. This growing ICT usage helps form the critical mass of electronic transactions which supports a networked economy, both in terms of the network size and the demand for associated goods, services, labor and policy reform. The critical characteristic of the networked economy is a radical decentralization of physical capital necessary for the production, storage, distribution, and processing of information, knowledge, and culture. This decentralization has caused a radical distribution of the practical capability to act in these areas, creating new levels of efficacy for individuals, who increasingly shift from being consumers to being users and producers. Individuals have now become capable of doing much more for themselves and for others, both alone and in vastly more effective loose collaborations with others. In the industrial economy, hobbyists, no matter how committed, could not come together on the weekend and compete with the General Motors of...
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...It can be said that , innovation step by step has bring the better life to people with convenience and useful . It is hard to define what is innovation ,Bessant and Todd [ p40,2011] has defined innovation as ‘’ a process of translating idea into useful – new products , processes or services ‘’ . With similar idea , Naylor[p212] stressed that , innovation is new idea which is developed to be new product or new process and it is recognized by customers .. If in the past , many business is recognized by their innovation as : Apple with smart phone , Microsoft with software , Henry Ford with car innovation etc. By the time with the staving of new idea , many business might be stuck in challenging market with many strong competitors. There is a debate about organization must innovate to be able survive and thrive , but in fact , many companies is still success without recognized of innovation . This essay will give a clear view about this argument with evidence to prove that any companies could be successful without innovation . Business can survive without innovation . According to Burn- Callander[ 2015 ] , more than a minute , a new companies founded , and in 2015 ,Britain hit record number of startups with more than 600,000 newborn business . Imaging if every new company need an innovation to survive and thrive , so a year , there must be 600,000 new innovation , new product or new management theories .But Innovation is not a force to a company to survive , so many companies...
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...The role of innovation in business Introduction Innovation is defined in Schumpeter's Theory of Economic Development (1912) in the field of economics. In Schumpeter’s view, innovation is the process that introduces new combinations of production factors into the production system to get potential profits (Shelton, 2009). Schumpeter argued that innovation is composed of five aspects: the introduction of new products, generation of new technologies, exploration of new markets, acquirement of new materials, implementation new organizational forms (Shelton, 2009). As the famous statement of Ralph Waldo Emerson goes, “If a man can write a better book, preach a better sermon, or make a better mousetrap than his neighbor, though he build his house in the woods, the world will make a beaten path to his door”. The innovation in business has become more and more important nowadays. Continuous innovation is a significant factor for the success of a company. However, is it true that as long as the company can achieve sustainable innovation, it can become successful? This might not be totally right. This essay analyses the role of innovation in business and critically analyzes how innovative strategies can provide businesses with a competitive advantage in their market sectors through the case of Apple Inc and Coca-cola. Discussion Firstly, it comes to prove the correctness of the statement supported by a situation of real case in business. Schumpeter believed that new...
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...Sciences | January 13, 2014 4.1 Innovative Business Skills Essay on innovation 4.1 Innovative Business Skills Essay on innovation Table of Content Introduction 2 Backgrounds for the topic of Innovation 2 Definition of Innovation 3 Creation and implementation of Innovation 3 Creativity inspires. Creativity empowers. 4 Studytrip London 5 Conclusion 6 Bibliography 7 Introduction The focus of this essay is on the subject of “Innovation” due to the course of Innovative Business Skills in Block 4.1. Of course I was familiar with the meaning of Innovation but dealing with a subject like this in a deeper way can still change the way of how you define something for what it is and get aware of what other facts play an important role behind it. With the information and new knowledge gained as a result of the (guest)-lectures, the reading material and the business trip, I have gained an insight in to the topic of innovation and a better understanding of the innovation management. In this essay I will firstly give an short introduction to the background of Innovation (why it does exist) and provide a common definition linked to what innovation meant to me before the course of ‘Innovation Business Skills’. Afterwards the creation and implementation of innovation will be investigated as I have understood and experienced it in the previous block (4.1). At the end I will round of this essay with a conclusion also describing what Innovation means for me now after I have received...
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...Creativity and Innovation are two different terms and they technically have different meanings. Creativity means originality, imagination and inventiveness that are brought out through resourcefulness. Innovation, on the other hand refers to modernization and improvement over an existing idea. In this way, it is true that creativity and innovation are two different terms and cannot be used interchangeably. Yet, they have been used interchangeably in several areas or walks of life, including business and management as well as technology. In this way the main distinction between creativity and innovation, being the originality has been ignored and as the line between creativity and innovation is thin, it becomes even more difficult to distinguish between these terminologies (Hofstede, 1980). Another important thing required is that there is a managerial transition as well as a cognitive transition. This helps the firm develop and also be open to new ideas. As there is more and more learning in the organization, automatically there would be a chance for a break through innovation (Davila, T., Epstein, M. J., and Shelton, 2006). DIFFERENCES Innovation is an important aspect of growth and development of individuals, organizations, cultures and societies. Innovation and creativity refer to bringing in new ideas to life. Innovation can be achieved strategically through a process of creativity. This helps bring in a lot many new ideas in the firm and also develop a platform...
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...KEY CONCEPT EXERCISE: THE IMPORTANCE OF INNOVATION INTRODUCTION In the current dynamic marketplaces, interests in innovation are escalated by businesses as they understand that in order to maintain their market position, one has to be innovative to keep up with the changing trends in different business sectors (Baregheh, Rowley and Sambrook, 2009, p. 2). The businesses can be primary in that they deal with the extraction of raw materials, such as mining and agriculture or secondary such as being involved in the manufacturing of finished goods like foods and clothes. However, innovation is not restricted to these types of industries and entrepreneurs must also cope up with the tertiary level, which involved various service provisions, for...
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...question and objective. Our first challenge was finding an interrelated theme for family business, that wasn’t too obvious or researched too much already, as we actually want to fill a small knowledge gap with this research. Therefore we choose innovation, because there is a lot of controversy to it about the innovativeness of family businesses. Also, innovation intrigues us very much, as it often determines the succeeding or failing of a company. After brainstorming we came up with the following research question: “How can we explain that family businesses, in comparison to non-family businesses, tend to be more innovative than is often assumed?” This question allows us to investigate the strengths of family businesses and...
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...Technology and Innovation in Business Names Kenya Methodist University Question 1 Technology continues to have a large influence in business today. Businesses are depending on technology that virtually all business activities around the world would shut down in its absence. Industries attribute the use of technology in their economical development. Most industrial operations nowadays depend on technology for progress. Thus it is concluded that firms are leaning towards technology because they need it for sustenance (Oklahoma Small Business Developments Centers, 2013). Technology is the cause of growth of all economical advancements today. Business activities have been ongoing before emergence of computers and other technology. The use of barter trade was the norm before introduction of currency but business process was slow and not reliable. Technology saved the day with introduction of computers that revolutionized commerce. Today computers are used in all aspects of business such as research, production, maintenance and delivery of all commodities of production. All businesses regardless of size rely on computers in undertaking their daily operations ranging from maintenance of client profile, employee systems, sales systems, accounting systems to automation systems for large scale production. In addition to that, technology boosts communication and marketing of end products. Furthermore, transport details involve logistic systems that ensure safety of manufactured goods...
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...Journal of Business Strategy Business model innovation: coffee triumphs for Nespresso Kurt Matzler Franz Bailom Stephan Friedrich von den Eichen Thomas Kohler Article information: To cite this document: Kurt Matzler Franz Bailom Stephan Friedrich von den Eichen Thomas Kohler, (2013),"Business model innovation: coffee triumphs for Nespresso", Journal of Business Strategy, Vol. 34 Iss 2 pp. 30 - 37 Permanent link to this document: http://dx.doi.org/10.1108/02756661311310431 Downloaded on: 16 June 2015, At: 05:07 (PT) References: this document contains references to 19 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 25789 times since 2013* Users who downloaded this article also downloaded: Gabriela Alvarez, Colin Pilbeam, Richard Wilding, (2010),"Nestlé Nespresso AAA sustainable quality program: an investigation into the governance dynamics in a multi-stakeholder supply chain network", Supply Chain Management: An International Journal, Vol. 15 Iss 2 pp. 165-182 http://dx.doi.org/10.1108/13598541011028769 Claudio Vignali, (2001),"McDonald’s: “think global, act local” – the marketing mix", British Food Journal, Vol. 103 Iss 2 pp. 97-111 http:// dx.doi.org/10.1108/00070700110383154 Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003),"Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294-316 http://dx.doi.org/10.1108/07363760310483676 Access...
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...THE PRODUCT AND BUSINESS PROCESS INNOVATION UDC 001.895:658.62 Nebojša Zakić, Ana Jovanović, Milan Stamatović Faculty of Entrepreneurial Business, Union University, Belgrade Abstract. The competitive advantage of a company strongly depends on its possibility to benefit from innovational activities. Understanding the factors that affect product and process innovation and their effects is necessary for deciding on an innovation strategy that is one of the core factors of an innovation success. We research the influence of nine external and internal factors on product and business processes innovation. For the analysis of important relations and conclusions, beside theoretical literature, we use the results of several studies. Key Words: product innovations, business processes innovation, industry maturity, customer needs, demand, technological opportunity, investment attractiveness, company size, export orientation INTRODUCTION Innovations are one of the main sources of a competitive advantage and they are essential for a company growth. Fast technology development, combined with the globalisation and fast changes in customer demand, implies that a competitive advantage of a company can be only temporary. Companies put great effort in beating the competition and improvement in the market game by introducing innovations. On the macro level, innovations have a vital influence on economic development of a country. Thus, it is not a surprise that innovations are more and more...
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...retaining people, maintaining the business ethos and controlling growth in what remains an incredibly competitive industry. Through recession and as we exit, a strategic approach to business management is key to longevity and sustainability of an organisation. In the context of Read Construction Holdings Ltd (the writer’s organisation), there are significant changes currently underway – a new business plan targeting significant growth over 3 years, new directors and ownership and a marketing strategy targeting increasingly large complex projects of a Design and Build nature. To achieve this, some form of change is required and much of this change may come through innovation. This assignment will distinguish between product, process and organisational innovation and discuss which is likely to be the most important for the growth of Read Construction Holdings over the next three years. In order to distinguish between the different types of innovation, the essay will begin by setting out a clear definition of innovation. The main discussion will go on to discuss limitations, barriers and enablers of innovation and how that might impact on the organisation, summarising which type is likely to be the most important for the business in support of its goals, the essay will also evaluate the potential for consecutive innovative approaches and what limitations and barriers / enablers may be encountered. What is Innovation? In defining innovation, it is important to clearly differentiate...
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...Privacy and security at the digital age: The innovation of Business in the online world Over the past decade the world has solely relied upon technology and its transformation throughout the years allowing for the revolution of social media to completely change how everyone communicates especially for businesses, allowing them to extend out and provide large opportunities for themselves. According to ISACA (2010), through the use of social media, it allows businesses to gain serious advantages through research and evaluation of their competition, their consumers, and the market. This enables them to not only help develop them to be on top of their issues, but using it as a tool for enhancing a better relational experience with employees and customers. For businesses to be successful with their organisations or products, social media is the key to their communication with their stakeholders through privacy and security, where it strongly impacts business to improve, but can be considered also to be a big risk where that barrier can be invaded, which can cause legal and ethical issues. Privacy and security are known to be the most important issues surrounding social media and the innovation of businesses today. Although it may be argued that users voluntarily sign away their privacy by using these social media when creating accounts and putting their personal data online, it is not clear how consent actually works in these situations (Custers et al. 2014). But overall privacy...
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...Douglas Abrams – Business plan outline Page 1 Business plan outline Cover page and table of contents Company name Product name Confidentiality statement Disclaimer Do not include a non-disclosure agreement (NDA) as most investors will not sign an NDA at this stage. Executive summary Summarize all key points in your business plan. This may be all the investor will ever read. It should be 1-3 pages long. Your executive summary should include: Value proposition and innovation Market identification and analysis Marketing and sales strategy Sustainable competitive advantage Company products and services Team Operational plan Expansion plan Financials Value proposition and innovation Value proposition - What problem are you solving for customers? Quantify benefit if possible Innovation - What is new about your product? Market identification and analysis Establish that there is a fast growing market for your product. Show that you understand your competition. Include in this section: Market and industry Define the market or industry. How large is it and how fast is it growing? - Total market size in dollar volume / Market growth rate. What trends are important in the industry or marketplace? How is market and industry segmented (e.g. product/ buyer/ channel/ geographic)? Targeting segment Define and describe the target segment. Calculate total market size / total addressable market/ target segment/ market share Competition Direct competitors ...
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...Management Information System ASSIGNMENT | TOPIC | | HOMEWORK | Discuss the interrelationship between Information Technology Innovation and business performance improvement. As we have known, the society is more and more developed, with which technology comes along. There is no doubt that humans’ living has changed since the introduction of information technology (IT). The impact of technology over daily life is ever increasing and expanding. One of important factors affected is business world. It helps in terms of marketing, management, manufacturing,... Nowadays, either small or big companies still have IT department for the advance in business, such as changing interaction with suppliers, changing customer relationships and transforming the firm. Innovation on information technology (IT) has increased the business performance by changing the interaction between firms and suppliers. The change in information system such as electronic data interchange and purchasing system based on Internet has reduced the cost, time and other difficulties when the company exchange with suppliers. Ordering goods with supplier through electronic data system helps companies avoid paperwork which mistimes and arises some errors that can delay the production chain. A new method of working with suppliers has integrated with interorganizational system to create a greater benefit for the company. For example, the ASAP system, which is used in the hospital, lets it orders supplies automatically...
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...In the business world, there are a number of interlinking factors to achieve certain goals such as the most important goal, attaining industry success which directly relate to the economic development of a country as well as the global economy. In such a relationship, entrepreneurship with innovation is the major driving force behind the sustainable economic development and thus, entrepreneurs play the key role in manipulating the factors of production that include land, labour, capital and also the natural resources (Econlowdown, n.d.) to cause economic growth. In short, entrepreneurship contributes to the economic performances by introducing innovations, effectively allocating resources and creating changes. Hence, the aim of this essay is to discuss the nexus of entrepreneurship, innovation and economic development as well as the role that creativity and problem solving play in this relationship. From the business point of view, entrepreneurship is referred to the capacity and willingness to develop, organise and manage a business venture along with any of its risks in order to make profit by using the factors of production (BusinessDictionary.com, n.d.). Clearly, entrepreneurs are the people with particular characteristics and traits of behaviours whereas entrepreneurship is the result of what entrepreneurs do and refers to events and their economic impact (Lumsdaine and Binks, 2006). Innovation on the other hand is one of the key tools that could assist entrepreneurs...
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