MR, IMT Ghz
1. “In the innovation economy, the network will be the value innovation engine”. Provide an insightful review of the meaning of the statement along with at least two examples.
The fifth generation of the innovation process model, that developed post the start of 21st century, is largely characterized by systems integration and extensive networking, flexible and customized responses, and continuous experimentation and testing. What this directly leads to is are constantly evolving business processes and models that drive innovation. These 21st century business model revolves around two basic types of businesses- one, the type that owns the core business and the brand, and two, the allied companies that network with the core one, to provide the support services for its functioning. Eventually, this model facilitates the synergies between the two groups of companies to develop and add value to the product or service development, through extensive networking during different stages of conception, development, and the entire supply chain.
This extends to both ends of the business processes- the producer & the consumer, leading to the development of the concepts of prosumerism and crowd-sourcing for co-creative processes. In this entire process of creating innovation via networking, environments are required to facilitate experimentation for a continuous flow of services to provide end value to the large consumer base, which was involved in the business process right from the start. So, scalability of these innovations and speed of experimentation have become the most important and competitive factors in the network induced innovation model.
In this endeavor to reduce costs, the producers tend to leverage their networking capacities to outsource a major part of their work and meanwhile maintain the least possible amount to inventories,
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