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In today's economics, core competencies have life cycles. Organizations- without pursuing profit and investing in non- profit objectives- cannot expect to survive without innovation. Without innovation, their destiny determined; the only one question is whether the end will happen suddenly because the competitor comes with a major innovation or if it is happen as the y slowly fall behind competitors that are constantly pursuing the envelope. By embracing innovation, companies can redefine their industries, create new ones, and achieve a leadership position that dedicates the rules of the game in their favour.
Background of Industry
The technology industry is comprised of companies that design, manufacture, or distribute electronic devices such as computers, computer-related equipment, computer services and software, scientific instruments, and electronic components and products, excluding consumer electronics. Technology enables consumers to indulge in a digital lifestyle. The composition of this industry is very different that that of most others; due to the brisk pace of innovation, unusually extensive investment in research and development is required. As a result, the workforce employs a much larger proportion of engineers and other highly-skilled technical workers, relative to other industries, since product creation requires creativity, expertise, and precision. The technology industry also employs a relatively large workgroup engaged in sales and promotion, as the success of a new or improved product depends heavily upon consumers being aware of, and interested in, the item. While most of the sales for this industry occur in developed countries, most of the production takes place in less-developed countries where manufacture and assembly costs are lower. (http://globaledge.msu.edu)
The History of Dell
Michael Dell, in 1984 founded Dell in order to directly serve their customers with computers that meet their needs. The company was called PC's Limited and he was still a student at University of Texas at the time. The following year, Dell came out with their very first computer called the Turbo, which had an eight-megahertz processor. The major goal was to produce personal computer systems that were IBM compatible and were produced or entirely stock parts. What set the company apart was not just its consumer-oriented focus but also its allowance for people to customize their computers during the ordering process. Because each computer was individually assembled, this was possible. The company grossed 73 million dollars in the first year. The company went public in 1988 offering shares for $8.50 a piece. The first Dell laptop made its debut in 1991 and by 1993; it became one of the top five computer companies in the world. By 1995, those$8.50 shares were worth $100. The progress of the business was rapid and in1997, Dell had shipped its ten millionth systems. In 1996, Dell began selling their products through their website and three years later they took over Compaq jumping forward a bit, in 2003, Dell introduced their first printers for the public, including those intended for the average consumer and businesses. Dell printers are known for being versatile and easy to use; however a recent development has brought scepticism to the company when Lexmark began working with them whom modified their cartridges so that they don't work with Dell printers. However, Dell has a long track record with customer satisfaction, at the very least in regards to their computer products.
What is Innovation?
'Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business and service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced' Peter Drucker (1985) Innovation and Entrepreneurship, Harper & Row. New York.
To be a Successful organization when they go for innovation the organization need to combine Technology Change and Business Model Change to create innovation. The Business Models describe how a company creates; sell and deliveries value its customers. The three areas where business model change drive innovations are the: (Davila, Epstein, Shelton 2005)
- Value Proposition: What is sold and delivered to the market.
- Supply Chain: How it is created and delivered to the market.
- Target Customer: To whom it is delivered.
In Business Model Change, Dell innovation 'White Space' related to value proposition part. Change in the value proposition of the product and service - essentially, what you sell and deliver to the market place- may be an entirely new product or service or an expanded proposition for the existing offering. (Davila, Epstein, Shelton 2005)
Sometimes new technologies are major part of innovation, and they should out and garner significant attention. Other times, the new technologies are hidden out of sight and can only be seen by the technical people serving them. Either way, technology change can fuel innovations in three different ways; namely in: (Davila, Epstein, Shelton 2005)
- Product and service offerings,
- Process technologies
- Enabling technologies
In Technology Change, Dell innovation 'White Space' related to enabling technologies part. Change the functionality of the product and process, enabling technologies enable a company to execute the strategy much faster and leverage time as a source of competitive advantage. (Davila, Epstein, Shelton 2005)
Types of Innovation:
- Products and Service: Innovation applied to products or services or market related activities.
- Operational: Innovation that improves the effectiveness and efficiency of core processes and functions.
- Business Model: Innovation that fundamentally transforms the way a business works a business works or drives revenue.
Dell innovation is products and services oriented. Dell will add a new wireless option to future laptops by installing radio chips that provide connectivity over the unused television spectrum known as white spaces.
They want improve their laptops and computers quality use the white spaces technology which is more update than the Wi-Fi and Bluetooth. The TV spectrum can carry broadband signals significantly farther than Wi-Fi, and that opening up the spectrum will help expand the market for new smart phone-like devices.
In another way the Dell innovation is sort of partnership innovation as well. Because, Dell has joined the IT and consumer electronics industries- including Google, HP, Microsoft, Motorola, Philips, and others-in supporting the proposal to open up the White Spaces to unlicensed wireless devices. Dell believes that expanding the available wireless bandwidth could trigger a new wave of wireless technology innovation in the U.S. that revolutionizes communications in the U.S. and the rest of the world. Through this innovation the Dell Company will gain the competitive advantage. The sell volume of their laptops and pc will increase. (www.dell.co.uk)
Innovation Approach in DELL:
Since the first Dell PC was introduced in 1986, Dell has continued to shape the industry, breaking new ground and pioneering critical developments in home, small business and enterprise computing. Dell's R&D efforts now span the globe, driven by some of the industry's foremost product designers and engineers. At the core of Dell's innovation approach, however, remains a resolute commitment to delivering new and better solutions that directly deal with customer needs.
We gather requirements directly through tens of thousands of customer interactions daily, organized events, social media venues, and customer panels. Partnerships with a wide variety of key industry software, hardware and component suppliers give us a uniquely broad perspective on the computing landscape.
Many innovations begin in-house, led by a global team of top engineers, product designers and technical experts. Others begin as a team effort with Dell's strategic partners. The mission is to deliver innovative and cost-effective solutions that meet today's real-life customer challenges and work seamlessly in existing environments and with other products.
Dell is uniquely placed to impact industry trends. We maintain strong internal development capabilities. We partner, rather than compete, with top industry technology suppliers and original development manufacturers. We steer enabling industry standards and technologies through industry groups and strategic partners. In this way, Dell spurs innovation and delivers value to customers. (http://content.dell.com/uk)
Innovation in DELL:
Wireless innovation in the white space
The White Spaces are a significantly under-used portion of the broadcast TV radio spectrum. Opening up the White Spaces to unlicensed wireless communications could prompt a renewed wave of innovation similar to opening up the 2.4-GHz wireless spectrum in 1990s, which brought us the game-changing Wi-Fi®and Bluetooth®technologies. The White Spaces are vacant frequency bands between occupied (licensed) broadcast channels. The White Spaces refer to the under-used portion of the radio spectrum from 512-698 MHz assigned to broadcast TV. (http://content.dell.com/uk)
The White Spaces are vacant frequency bands between occupied (licensed) broadcast channels. The White Spaces refer to the under-used portion of the radio spectrum from 512-698 MHz assigned to broadcast TV. (http://content.dell.com/uk)
The White Spaces Benefit Consumers and Businesses:
Wireless radio technology has transformed the lives of millions of Americans over the last two decades. Prior to that, for most Americans in the 1960s and 70s, wireless radio devices at work and in the home were limited to AM/FM radio, broadcast TV, and, for some, Citizen's Band (CB) radios or walkie-talkies. The two most successful technologies were Wi-Fi and Bluetooth®. Wi-Fi has revolutionized lives for consumers and businesses by enabling wireless networks in homes and offices. In addition, Wi-Fi "hot spots" allow customers to access the Internet wirelessly at tens of thousands of locations globally. Similarly, Bluetooth has revolutionized personal wireless communications by allowing wireless links between a cell phone and a wireless microphone, car, or PC, as well as between a headphone and MP3 player. Moving forward using 2.4-GHz spectrum, however, is difficult due to its bandwidth and range limitations.
- Limited bandwidth
- Limited Range
- Expanded Connectivity in Homes and Businesses
- Improved Communication During Emergencies:
- Reduced Wireless Networking Complexity:
- Greater Wireless "Hot Spot" Coverage:
Access to the White Spaces can help solve these challenges. Because the White Spaces are a lower frequency spectrum (512-698 MHz), its signals can travel much further without being obstructed by buildings and objects. As a result, the coverage area of a White Spaces access point could increase by as much as 200% over that of a device operating in the 2.4-GHz spectrum. The White Spaces also adds enough bandwidth to do complex data transmission tasks such as streaming multiple video and audio channels wirelessly within a home. Because of its greater range (i.e., coverage) and additional bandwidth, the White Spaces present compelling opportunities to advance wireless communications applications. Like 2.4-GHz before it, it is impossible to predict all the ways that the White Spaces will be used, but it is safe to say there will be new devices and applications that have not been dreamed of yet. (http://content.dell.com/uk)
Opening up the White Spaces will almost certainly greatly expand connectivity among computing and consumer electronics devices. Figure shows an access point or wireless router with a built-in Wi-Fi and White Spaces combination radio. Such a device could connect to existing Wi-Fi devices, as well as new White Spaces devices such as notebook computers, TVs, MP3 players, cars, and video cameras. The White Spaces add sufficient bandwidth to allow these devices to move large amounts of data quickly. (http://content.dell.com/uk)
Combination Wi-Fi / White Spaces Access Point Supports Wi-Fi and New White Spaces Devices and Applications.
Effective communication is indispensable during an emergency. Because existing network infrastructure is often out of commission, first responders must quickly set up ad hoc wireless networks to enable communication between different agencies and organizations involved in the life-saving efforts. For example, during the Hurricane Katrina rescue efforts, existing network infrastructure was not available, so emergency workers set up a wireless Wi-Fi network for communication purposes. In the future, emergency services throughout the U.S. can use the White Spaces for these first-responder networks. (http://content.dell.com/uk)
In addition, new radio technologies developed in the past few years can be applied to White Spaces devices to reduce the complexity of wireless communications and networking. The industry has an opportunity to build devices and applications that simplify set up by automatically discovering and linking to nearby White Spaces devices without human intervention. This can make wireless networking faster, broader reaching, and fewer complexes to set up and operate than it is today. (http://content.dell.com/uk)
A disadvantage of using Wi-Fi is that is not designed to provide coverage over a large geographic area. Many access points, spaced closely together, are required, which increases the cost and complexity of the network. With radically better range and coverage, the White Spaces enable each access point to service a larger area. White Spaces and Wi-Fi access points are expected to be comparably priced because they both use similar radio technology. As result, building large geographic hot spots using White Spaces devices could potentially allow networks to be built for as little as one-fourth the cost of an equivalent Wi-Fi network. This should dramatically increase the number and size of hot spots available to consumers as they travel for work and entertainment. (http://content.dell.com/uk)
Worldwide uses of White Space:
Other countries are also looking into the possibility of opening up the White Spaces to new applications and devices. In the U.K., the FCC-equivalent organization known as Ofcom has determined that there are significant public benefits. Ofcom has decided to move forward and is studying technology approaches to coexistence. The agency will perform engineering studies and testing, like those done by the FCC. The industry is working with Ofcom, and proposing that the U.K. use the technology approaches chosen for the U.S. The rest of Europe is on a later time table for the DTV transition. The European Commission plans future study to understand how the European Union can best take advantage of the opportunities posed by the White Spaces. (http://content.dell.com/uk)
In above analysis of the report, we can see that the Dell Company can get the competitive advantage to introduce that White space technology. Valuable White Spaces spectrum in the underused broadcast TV channels is freed up by the DTV transition in the U.S. This spectrum can be used to expand the bandwidth available for wireless communications. The IT and consumer electronics industries, including Dell, are working with the FCC to develop and test these coexistence technologies and bring them to market when they are proven and mature. In the U.S., consumers can look forward to new types of wireless devices, applications, and services that keep the U.S. at the forefront of the wireless communications revolution.
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