In the highly nominative industry, to survive a company should focus on the innovation and adaptation said Kiosk and Screech (2006). Turnbuckle et al. (2000) argued that, no company can survive long in this sector without continuous improvement and innovation. The Product Life Cycle (PL) and Industry Life Cycle (LLC) clarifies different stages, each stages has separate characteristics. The industry pattern of PL and LLC in mobile communication sector is different than other industries, i. E. Automobile industry or essential commodity. The study of Handout and Samuels (2001) pointed that, in order to preserve and increase market shares, he mobile phone industry is renowned for bringing up innovations. The study will clarify the pros and cons of innovation in Mobile phone sector, the study will relate theories with practical innovation (focusing on Blackberry mobile). Innovation Particularly, innovation refers to the introduction of something new or different. It would be a new device, methods, or services. However, Smith (2005) clarified different dimensions of innovation.
In addition, he has clarified a very specific difference in between innovation and invention. Invention is the first introduction of a new idea, product or process but innovation is the first attempt to make it practical use. Improvement of an invention may also call innovation. These two issues are inter-linked. For service industry innovation, Kiosk and Screech (2006) said that, introduction of new service is called the service innovation similar to his study, Decal, (1998) stated that, introduction of new service or the improvement or reconfiguration of existing service could be considered as innovation in service. For a product, improvement of new design or the introduction of a new product may call innovation for example; automobile industry. Continuous innovation is required in highly competitive industry. Innovation in mobile phone industry describes a new product, new design, new feature and so on Kiosk and Screech (2006) for example; Phone, Blackberry, Samsung Note II and so on.
Types of Innovation
The terms innovation could be applied in anywhere because anything can be improved. However, there are four major types of innovation, which is also known as APS of innovation (Kettle and Armstrong, 2010). Here a brief clarification is given regarding types of innovation. These APS of innovation are: Product innovation Process Innovation Positioning innovation Paradigm innovation Product (or Service) Innovation: it indicates about the changes of a product that organization offer to its customers. It indicates the differentiation of products or making it new to meet the demand of customers Cones, 2002, Peasant and Francis, 2004).
For example improved features in Mobile could be said as the innovation of Products. Process innovation: this types of innovation refers the, where firms figures a new way and improve the process for high performance Peasant (2005). He also asserted that, process innovation is required to improved efficiency and to reduce costs. For example, changes in the manufacturing recess of mobile phone can be called as process innovation. Source: Peasant (2005) Positioning innovation: Changing the ways through which the products introduced initially.
With the change of products (services) and process innovation, there could be the scope for redefining the positioning of the products or services (Francis and Peasant, 2005). Paradigm innovation: changes in the fundamental mental map of product that cause a good shift in target customers and the market positioning is called paradigm innovation. Rowley et al. (2011) said that, these greater changes in the organization as well as in the current customers. However, Position innovation and Paradigm innovation are two interesting type of innovation. . 0 Types of Innovation Patterns The pattern of innovation could be different for different products, for the case of technological products; the innovation pattern will be different. Any technology products with commercial potentials pass through a life cycle, which is somewhat different from the innovation of non-technological products (Christensen, 1992). In early stages of the centralization process, the product -progress is slow as because the users take time to adopt the technology (Callahan, 2007).
On he other hand, the level of progress increases after the technological issue are resolved. There are different types of innovation including; Radical Innovation: most radical innovation is Newton the world and clearly different from the existing products or Process. Radical innovation is often deal with new knowledge, new products/service, new customers and so on, for example; invention of Camera. (Schilling, 201 2) Architectural innovation: it refers changing the overall design of a system changing the components of a design.
Most architectural innovation comes through a hierarchical process. An innovation that is strictly architectural ay be the reconfiguration of a previous design (Henderson and Clark, 1990). They also said that, in some cases architectural innovations make modification in the system all through its design and its components. As example, Schilling, (2012) said that, the innovation of safety bicycle from the high-wheel bicycle is an architectural innovation. Competence Enhancing Innovation: a competence enhancing innovation helps to increase competency in a relevant field.
For example, the innovation of calculating machine increases the competency in calculating. Each time a new “competence enhancing innovation” comes and sakes the previous one obsolete. Technological Innovation: it refers a situation, when new technologies are developed or improved a previous one and expected to have widespread Uses. With the age of technology performance reach upper limits and gradually decline. Incremental Innovation – this pattern of innovation indicates the new development in the current products or services. Harmoniously et al. (2009) said that, a product that helps to add new feature, benefits and uses of an existing technology could be said as incremental innovation. For example, improvement in the use of processor in the mobile can insider as incremental improvement The amount of resources that are made available for this type of innovation are almost always tied to current business performance; available in the good times and one of the first things to be cut in the bad times (right after the ad budget). Figure: The technology S-curve Adopted from: Callahan, 2007 In the early stage, performance improvement is quiet slow as it is not understood clearly.
The horizontal depicts the amount of effort spent and the amount of expenditure – cumulative amount of expenditures over time. On the other hand, the vertical axis indicates the amount commercial performance of he technology.
Innovative case: Blackberry Here for the study, the researcher will discuss about the innovation of Blackberry. The type of innovation of Blackberry clearly goes with Product innovation as well as Process innovation. In addition, the pattern of the innovation will be the technological innovation. However, the nature of mobile technology goes with incremental innovation too. It is a row of wireless in hand devices, which has been introduced by a Canadian company called “Canadian company Research in Motion (RIM)” in 1999. However, after few years of innovation, in 2002, it was released as “Smartened or BlackBerry”. Gradually, different features have been added with this mobile including e-mail, internet faxing, and web browsing and additional wireless and coddles information services in addition to a multi-touch interface. However, initially Blackberry has a monotonic display but now it has ask color display with great picture quality along a lot of verities.
This indicates the innovation process of Blackberry. Handout and Samuels (2011) pointed that, the mobile phone industry is highly dynamic and innovative. Blackberry has got so popularity that, similar types of products were launched different manufacturers, i. E. ETC. However, here in this study the researcher will evaluate the process of innovation from different perspectives. There are many different innovations from Blackberry in Blackberry Smartened and Blackberry Playbook with numerous colors, designs and features (swashbuckler. Com, 2013) SCAMPER: Blackberry SCAMPER stands for Substitute, Combine, Adapt, Modify, and Put to another use, Eliminate, Reverse. Michaels (2006) figured out that, the technique incorporates a set of questions regarding a current service or products. It is done to figure out new ideas from a existing one. In fact, the is to force yourself to answer such questions which would not normally ask yourself. In addition, the technique is also considered as the problem solving technique, it is a brainstorming technique that directed through some question to figure out new idea or solution.
One can use SCAMPER to sparkle his/her creativeness that help to overcome may be facing in future (Literati, 2009). For the case of blackberry, SCAMPER forces will be analyzed. Substitute: It indicates to ask about to replace or substitute a part of a product or process. However, in looking for substitutes one can come up with new ideas (Literati, 2009). So, what else can be replaced in Blackberry? After a certain period of time Blackberry introduces new products in the market with new features added. Currently, blackberry has introduced Blackberry ZOO.
Blackberry has substituted different features in the different updated models (swashbuckler. Com, 2013). However, now sharing screen has been added in video chatting, time shift mode of camera has been added. Combine: it relates to combine two or more parts to achieve different product/ process and to have different performance. For example, in Blackberry CIO combined with physical keyboard and touch functions (swashbuckler. Com, 2013). Different APS could e combined in the future. APS of text messing and text writing with voice can be combined and make one.
Adapt: it eliminates about what part of product or process could be adapted or how might alter the characteristics of the product or process (Serrate, 2009). Blackberry can change the characteristics of some components. Blackberry can adapt retina lenses with current screen. However, the process asks some questions such as; what else is like this? What other idea does this suggest? Modify: Changing a part or process or distort a feature of products. However, for the case of blackberry, it has been found that, they eave modified different things during the time including keypad, size, screen and so on.
If the writer asks, can blackberry modify shape a little bit or can it be slicker? The answer would be yes. Therefore, modification can be taken place here. Put to another use: it defines how the products can have another use or how might reuse that. However, the Smartened has many different uses. This could be used as a Radio, TV, Tracking device, MPH player, chatting and so many things. One can use this for communication as well as other different uses too. Eliminate: through this question, one may thing what features or part can be laminated from the existing products (Serrate, 2009).
Question arises; what would happen removing a part? So, in case of blackberry, it has been noticed that, in latest blackberry Smartened the physical key board are removed. How can I simplify it? It is also a part of eliminating complex unnecessary/less-important features or part. For the case of blackberry they can eliminate multi-browsing functions rather it can fix one or two. Reverse: this is like thinking of a contingency plan if the products or part of it acts reverse. If may help to figure out the situation if the product or process worked different. Finally, the SCAMPER analysis is done for evaluating current process and to come up with new Ideas.
The Theoretical Perspectives of Innovation
There are different theories of innovation that have clarified different types of innovations (Rogers, 1995). Different authors said different things regarding the innovation theories. Freeman (1988) asserted that, there are lack of unified theories on innovation that narrate innovation to growth and distribution. In addition, there is absence of those theories that, links macro-approaches to the micro level and clarifies the implementation process. In contrary, Von Hippie 1988) asserted different sources innovation theories. However, this section will discuss about the theories of motivation precisely.
Innovation Diffusion Theory
The Diffusion theory explains how and why innovations are accepted or brought to a group of people and why a new idea or process is adopted. It also clarifies how and why an innovation got acceptance and why (Rogers, 2003). He also argued that, there are different aspect can be considered based on the diffusion theory, these are; –The qualities of an innovation that helps to spread it widely, –Understanding the needs of different segment of people.
The diffusion theory also asserts why some innovation is well-accepted and wide spread than other, i. E. Blackberry. If also asserts why a certain innovation is accepted more in certain places, for example; phone and all other sophisticated mobile communication technology is less available/ accepted in developing countries. Schilling (2012) indicated that, in the S-curve of technology, the technological diffusion could be analyzed through analyzing the number of users (adopters) and the times taken. There are different reasons for products to be accepted in a population.
Based on the diffusion of innovation, the adopter disgorges can be made: Innovators: those who adopt products at introduction stage, these people have influencing quality (Kettle and Armstrong, 2010) Early adopters: they also adopt at the early stage of a product or process Early Majority: this group of people accept a product when majority of the people started to adopt this. Late Majority: when majority of people have already been taken this products, then the late majority people adopt that. Laggards: When a product goes in the decline period, the laggard people accept that, these people do not like taking challenges. Analyzing the current consumers of Blackberry, it an be said there is a good number of early adopters among the consumers of Blackberry.
Social Shaping of Innovation Theory
The social shaping of innovation theory mostly goes with the technological products. It is also know that, Social Shaping of Technology (SST). Mackenzie and Washman (1985) argued that, SST innovation theory includes the Political, social, cultural factors compared to the traditional process that figures the consequences or the impact of technological changes. SST has a relation with the technological changes in the society. Most importantly, this theory relates owe the technology changes the social perspective. For example, the innovation of mobile communication technology has radically changed out communication patter. It is now more virtual than physical.
Organizational culture: A Foundation for Innovation McKenna and Beech (2002) have asserted culture as an important factor for the management of an organization. In fact, culture is concerned with the values, principles, approaches, beliefs, actions and process, the summation of these people take up or accept in organizational life’.
Similarly, Lemon and Shoat (2003) pointed that, organizational culture may be influenced y the structure of the organization. However, the organization culture has impact on the innovation. Many executives want their organization to be more innovative. However, there is a good practice of innovation in the each area of Blackberry. Blackberry has invested most in R and employees are part of it. However, there is a good practice of innovation recognition in blackberry (Bloomberg Businesslike, 4th April 2008).
How innovative the organization is and how supportive the management is and so are important to practice the culture of innovation in organization. In a technological firm, the organizational ultra is highly important to ensure the continuous innovation. People et al. (2005) figured out that, to form a continuous and sustainable value creation organization one must ensure the culture of innovation inside. On the other hand, Kenny and Reedy (2007) argued that organizational culture, which supports innovation, will ensure the continuous improvement for the organization.
In addition to this, they said that, a contradictory relationship might exist between culture and innovation if the organizational cultures impede the innovation. Therefore, it has become clear that, for technological product like Blackberry Smartened, organizational Strictures have influence on innovation of product or process.
Innovation and Mobile Telecommunication Sector
Apple, Samsung, Blackberry, ETC, Monika showed some of the astonishing innovation in mobile telecommunication sector. phone has introduced 5 series and got the wide acceptance from the customers. Samsung is growing with rapid pace and showing how modification can be done in a similar type of product. Samsung Galaxy, Note II, and Samsung SO are some of the finest example of innovation in mobile telecommunication sector. Blackberry has reached over 9 million users around the world. This has become possible because of the innovation in telecommunication industry. Google android has received a wide acceptance in every country of the world it has become the biggest platform for the mobile phone users. Android market has the people’s acceptance due to the newer features and common platform to access.
Android has more popularity than the Apple store. However, the innovation has leaded android to be the largest platform for Smartened users. Regarding this Kiosk and Screech, (2006) said that, innovation in mobile telecommunication industry has become a common phenomenon. Continuous innovation is a major concern for different organization.
PESTLE analysis: external environment PESTLE analysis Kettle and Armstrong (2010) asserted that, analyze the broader environment of the business, managers often analyze PEST analysis. It stands for political, economical, social, technological, environmental and legal (PESTLE) issues. However, many factors in macro-environment that affects the decisions making such as Government policies, trade barriers, taxes, Quota, imposition of new rules and so on. PESTLE analysis is being used to understand macro environment of an organization. Why PESTLE is important Stewart, (2009) argued that, PESTLE analysis can be done for business and strategic development, marketing planning, organizational change, business and product development and research reports. Moreover, Bolton (2001) stated that The PESTLE analysis greatly applied in evaluating market situation including the position, potential and direction of a business.
How PESTLE helps to improve or develop the product The clear understanding on PESTLE helps to make long term-decision. Managers can analyze and categorize these using the PESTLE model. Kettle and Armstrong (2010) argued that, to improve a product or to develop a product the analysis f PESTLE would help through providing information regarding the political, economic, social and other information. For example; before launching a product in the market, organization should know about the economic situation of that area as well as the purchasing power of targeted buyers, this information could be collected from PESTLE analysis.
PESTLE analysis on Blackberry Political Forces: Political situation of an area includes Tax policies by government, export/import conditions, Employment laws, and Trade/Tariff regulations and so on (Jan, 2002). It will affect Blackberry to introduce its product in a new market. While exporting the products they might thing about the Government of that country, trade situation, tax law and so on. Any poetical instability of a country might harm the organizations doing business in that particular area. As example, it can be said that, Blackberry will not be available at North Korea due to their political situation.
As there are global trade restrictions on North Korea, moreover, there are trade restrictions on North Korea by U. N. Security (Perpetual, 2013). A Beer Company failed in North Korea to get final authorization from the authorities in Pyongyang (The New York Times, 12th April, 2013]. So, it would radar for any company to get permission in North Korea due to their political situation. In 2010, AJAX and Saudi Arabia imposed ban on Blackberry due to the security concern, in the same year I-JAW called ban on Blackberry, which hurt the local users as well as the tourists (Webby, 2010).
However, Blackberry again launched ZOO in AAU, AKA (Selfness. Com, 2013). Economic Factors: Grungy and Brown (2002) pointed that, economic factors includes, inflation, per capita income, Disposable income, Unemployment and so on. In case of Blackberry, as the product price is high therefore, there is small market of blackberry outside he developed country. As example; per capita income of some south Asian countries, i. E. Bangladesh has nominal GAP less than 1000 dollar (CIA World Fastback, 2013) might not be a perfect place for Blackberry.
However, there is little market of Blackberry in India as their purchasing power is growing. Another example; it can be said that, the economic condition of African region is not perfectly suitable for Blackberry on the other hand; Middle East region could be a better place as they have high per capita income. Business cycle and products life cycles might have the impact on Blackberry that is why; they re focusing on continuous innovation of Products and process. Social Forces: Haberdasher and Ripple (2001) argued that, social issues have to be analyzed before introducing a new product in a market.
Population, lifestyle, standard of living, consumerism, level of education has to be taken into account. Blackberry indicates a lifestyle too. There are impacts of community people who use the products; the market of the Blackberry still reflects the developed society due to its features and acceptability in the community. Behavior, cultures and the delightfulness of current users also motivate the potential customers, which is rue for the case of Blackberry. There are some celebrity addictions on people; some people try to follow those brands that their favorite celebrities use.
That is why; often companies initiate celebrity endorsements, Crucified (2010) still celebrity endorsement push the sales of products. Shims (2003) and Belch & Belch, (2001), there are also some disadvantages of celebrity endorsement, if the positive image of celebrity changes that may harm the brand or any scandal of endorsed Celebrity may negatively affect the brand. Therefore, blackberry can consider this issue in their next promotional activities. There is another common, behavior noticed among the people; they change their old model devices while a new one arrives.
This issue may have a good impact on the selling and promotional strategy. Technological forces: Grungy and Brown (2002) asserted that, each issue might have influence on a product. Technological issues will influence more in the business of Blackberry as it is technological products. The amazing features and benefits of blackberry made it popular in LISA. However, the improvement of miniature microprocessors shaped good quality Blackberry products. Processing speed, Memory, High-speed data transfer and so have heaped the product in a lucrative.
Innovation in technological products always creates competitive advantages. GO single-chip LSI device can be adopted in the mobile phone, which may increase some features and benefits in the mobile technology. The adoption of any new technology by the rival companies may influence the markets of Blackberry. As there are, some consumers those always want to use latest innovation. Legal Forces: Legal factors include law, including advertising law, employment law, competition law, product promotion law and so on. To advertise a product in Middle East country, blackberry must compel he rules of that place.
Although Blackberry has the patent of their products but there some practices available in some countries (i. E China) to make copy with little differentiation. Therefore, Blackberry has to ensure global patent and legal rights of their products. At the same time, Blackberry has to be careful regarding the patent of others. For example; A Virginia based group, NTP, Inc. (NTP), a patent holding firm, sued Research in Motion, Ltd. (RIM), Blackberry for breaching five of their patents. The issue has been settled but RIM had to pay fines to the NTP, INC. (Wright, 2013). This deputes also known as NTP vsRMI.
Environmental Forces: Environmental factors such as energy consumption, waste disposal, and environmental impact of the product may have influence a particular innovation. For example, consuming less charge is also an environmental factor has to be considered in mobile phone manufacturing. Blackberry has the recognition of Greener electronics (degrading, 2011 Some consumers prefer environment friendly products From the analysis above, it can be asserted that, the components of PESTLE analysis have to be considered while launching a product in a new market or while innovating a new product. Most importantly, Economic,
Technological, political issues have to consider. To cope up with this changing environment PESTLE analysis should be taken on a regular basis. 10. 0 Porter’s Five Forces Model: Industry Structure Analysis Porter’s Five Forces: Michael E. Porter has introduced this analytical model as a tool of strategic management. He has clarified these forces broadly in 1980, in his book Competitive Strategy: Techniques for Analyzing Industries and Competitors. Porter’s is a tool of industry level analysis. To make decision regarding the industry level one can analyze these forces (Porter, 1985). The five forces are:
- Threats of new entrants in industry
- Degree of Intra industry rivalry
- Threats of substitutes
- Power of suppliers
- Power of buyers
Why it is important? There are a lot analytical models for industry wide level analysis but still porter’s five forces are widely acceptable globally. Hopkins (2008) argued that, five forces model provides a structural determinant associated with industry level forces that could be used to decide the strengths and market position of the organization in the industry. Davenport and Prussia (2003) emphasized that porter’s analytical model has huge influence on industry level decision making.