Five ways technology can help the economy
The information system can enhance the growth of any organisations. The US and the European enterprises have been benefitted with the information system. The role of ICT has been elaborated in the report. The ICT has started benefitting the enterprises of Mexico, China, Korea, Brazil and India.
The report will highlight the five ways technological advancement that can assist the economy. The digital dynasties, the economic nationalism and the future of global R&D will be represented in the report. The three phases of value capture will be detailed in the report. The Asian country like China is overcoming the enterprises of the US and the UK in terms of innovation and it will be illustrated in the report.
The technology can assist the growth of the economy in many ways. During the time of slowed growth, the companies all over the world sought for new policies that can enhance the growth of their business and create new job opportunities (Lechman and Marszk 2015). Kvochoko 2013 has states that the Information Communication Technology has the capability to provide them with the edge by which the companies can embellish the productivity of the company. The information system has created new scope and opportunities. It also enhances the competitive edge. The possible impact of information system on the economy is states as-
Direct job creation
The ICT has already been considered as the largest employers in recent times. The information system has enhanced the job opportunities in the country, US. It is expected the job scope will rise by twenty-two percent (Gil-Garcia, Helbig and Ojo 2014). The National Broadband Network also enhanced the job opportunities in Australia and it is hoped that about twenty-five thousand jobs annually.
Contribute GDP growth
According to Narula 2014, a 10% augment in the broadband connectivity has significantly enhanced the 1.4% increase in GDP growth in the emerging market. The broadband penetration in China has resulted in the growth of GDP up to 2.5%. The people nowadays always stay connected to the mobile internet. The mobile data usage has become doubled as a result of internet broadband penetration (Kvochoko 2013). The mobile data usage has furnished the GDP per capita growth rate by almost 0.5%. The internet connectivity boosts about 3.4% of GDP in certain economies.by certain economies.
Emergence of new industries
The ICT facilitates multiple customer services as well as the public services. The business activities have been shifted to the cloud (Crescenzi and Rodríguez?Pose 2017). The Moldova Government is the first to adopt the IT services, they are first to provide the e-services for the citizens and the business. The ICT has facilitated the app industry. The Facebook apps created about 2 lacs job opportunities in the year 2011. The Facebook apps have generated revenues of about $12 billion.
Direct job creation
Workforce transformation
The ICT facilitates the microwork platforms. The microwork platforms developed by Samasource, oDesk assists in dividing the tasks into multiple minute fragments or components and they are outsourced to the contract workers. oDesk has about three million contractors and they have the capability to one and half million tasks (Kvochoko 2013). The ICT is also responsible for the augment of entrepreneurship, marketing and the investment resource.
Business Innovation
The ICT has also the capability to bring innovation in the business premises (Gao, Guo and Guan 2014). The ICT has facilitated the business organisations located in OECD countries to reach out to millions of customers; the information system has improved the market share as well. The tools of ICT help in streamline business activities and it also offers efficiency (Kvochoko 2013). The information services have created new ways for the enterprises to serve the customers well.
The information system paved the way for innovation and is enriching the business operations of all the enterprises all over the world. The information system has the capability to serve customers well.
Silicon Valley of US is famous for innovation and technology for decades, however, it is no more considered as the centre of business innovation. Solis, Buvat and Khadikar 2015 have states that the technology hubs here focus on the connectivity, the customer experience and the big data. The Silicon Valley is widely known as the house of world’s most dominant innovation centres. Besides the US, the other companies based in other countries have significantly emerged in innovation.
Singapore: Singapore in recent times has emerged as the Fintech hub in the Asian subcontinent. In Singapore, recently innovation centre has been launched by UBS and this approach will facilitate the innovative customer propositions.
Australia: The country is relatively new in the market. According to Lin, Huang and Chen 2014, several innovative enterprises including Huawei Technologies have been set up by Telstra and Insurance Australia Group in Melbourne and Sydney.
India: The innovation enterprises here in India have been developed in the city of Bengaluru. This place is also the named as the ‘Silicon Valley of India’. The innovation hubs have been set up by Airbus as well as the Visa in India. Solis, Buvat and Khadikar 2015 have states that the country is emerging as favourite destinations for the innovation hubs. The Bangalore city is known to give rise to several start-up companies like Flipkart, Mu Sigma and InMobi. Airbus’s Bizlab, with thousands of developers, are working here facilitating the development payment solutions.
Contribute GDP growth
Silicon Valley contains the five innovation hubs whereas Western Europe contains about twelve innovation hubs. Zhou, Lazonick and Sun 2016 states that the innovation hubs in the US and the UK are considered as the hotbeds of innovative technology. The innovation hubs have become globalized due to the technical expertise and distribution of project capital around the world.
The financial devices led other industries to open the innovation hubs. In the earlier days, only the manufacturing companies opened the innovation hubs, however, nowadays the financial organisations have started opening innovation hubs as well. In the year 2015, the project capital –backed Fintech companies jumped over 100% (Solis, Buvat and Khadikar 2015). The BNP Paribas, Deutsche Bank and HSC have initiated new innovation hubs recently.
The concept of big data has been replaced by the concept of the Internet of Things. The big data is holding back in terms of priorities (Lee, Park and Lee 2016). The Internet of Things, the Digital Healthcare and the Fintech has rooted out the big data analysis.
The companies are adopting the information system for the benefits of their premises (Gërguri?Rashiti et al. 2017). The companies who do not want to adopt the information system; they must at least join hands and should work with the enterprise who has implemented the information system.
Each and every company all over the world wants to adopt the information system for their premises. The information system has the capability to give more innovations to these enterprises (Solis, Buvat and Khadikar 2015). Thus the benefits associated with the information system can be acquired by each and every company irrespective of size and it is not limited to the US and Europe but to the whole world.
In the 21st century, the emerging companies try to focus on the research and the development work. In the year 2015, Global Innovation 1000 study has revealed that most of the companies are focusing on research and development operations (Wang and Rafiq 2014). The companies in recent times are trying to shift their work abroad in foreign countries. The European and the North America have shifted their R&D operations to India and China. According to Jaruzelski 2017, this shift has benefitted all the countries. The trade policies in countries around the world suggest the global economy is at an inflexion point in the long-term trend toward free trade and the movement of people across borders. This initiative can enhance the movement of people across the borders. From the Global Innovation 1000 study, it can be understood how the latest trends are altering the R&D model worldwide.
Emergence of new industries
There is another factor that is influencing the research and development model and that is the immigration techniques. The engineering students, as well as the computer science students are concerned about the latest policies as the students seek for admission to their preferred institutions (Zeng et al. 2016). The students from the US can get the opportunity to work with the US. The candidates outside the US will not be able to study in the US and will not be able to get a job in the US. However, the UK students will not be able to study abroad and will have to complete their education in the UK (Wang, Kwak and Lee 2014). Jaruzelski 2017 states that after the Brexit they are suffering a lot, this is affecting both the engineering skills and the job opportunities and the research operations in the UK. The immigration techniques can affect the research development and the issues have been highlighted in the article.
This article highlights that the leaders of the enterprises are concerned about the challenges due to the migration. The innovation practices are getting affected due to the migration policies and the enterprise owners are taking initiatives to change their research and development methodologies (Jaruzelski 2017). The research and development operations at the US and the UK companies are getting disrupted due to the migration policies adopted.
Phase 1: Proving the feasibility and value of innovation
In phase one, the adopters as well as the risk-taking innovators analyse and test the innovations and finally give the approval. The applications in this phase one are not focused and are scattered (Germany and Muralidharan 2001). The commercialization methodologies and the industry value chains and the intellectual property law require a lot of times to approach. Tang, Murphree and Breznitz 2016 showcases that in this phase the innovation is not really economically disruptive, however, the policies and the rules help to create a stable environment. Earlier, a hobbyist stole and shared the programming language BASIC computer language. Bill Gates and Paul Allen with the help of the BASIC language write codes for various applications, they established accompany, today it is known as Microsoft (Kumar, Stauvermann and Samitas 2016). The hobbyist got angry, but it should be considered that the duo put a lot of efforts, put lots of innovation to work to build the applications those days, again the Windows operating system requires a lot of innovation to build, the operating system is even popular among the masses. Thus an overall vision is required to detect a business innovative system.
Workforce transformation
The phase analyses the requirements to grow the overall industry with the motive to secure their position in it. The company must decide whether they should go for the high volume or they should go for the high price realization (Germany and Muralidharan 2001). The company must be knowledgeable about the product supply as well as the product demand. The cash pressure, the shortsightedness can force companies to give away value. IBM took the challenge that the branded integrator of software as well as the hardware equipment can capture the value of the largest share. Eventually, IBM lost to Microsoft and Microsft eventually became one of the world’s best enterprises by means of market capitalization. According to Zysman et al. 2014, phase two is the stage where the canny players can be able to place themselves in such position so that they can be able to choke points. The choke points consist in the value chain are illustrated by sets of operating principles and the mechanisms. The traditional choke points involve the control of advantaged infrastructure, control of supporting services, control of essential pipeline. The choke points develop five kinds of barriers to the market entry-
Innovation–based: The disk drive industry giants- IBM, Seagate and Connor focus on the innovation (Sharp and Miller 2016). They are working all day and night and are constantly evolving their products. Similarly, Intel is also working on the innovation of their microprocessor.
Value added-based: The enterprises should focus on to deliver the ‘Can’t-do-without’ services. Microsoft Word has been adding value to the Microsoft Office since the beginning and Microsft Word has become the standard word processor, Microsoft Word is popular and is widely used all over the world, that is the distribution power of the Microsoft Word (Wang et al. 2016). The influence the Microsoft Office and Microsoft have delivered over the decades are very hard to deny.
Alignment-based: The enterprises develop innovative products but that is not the end. For marketing the products, they need to sell the products at a cost-effective rate. This can increase the productivity and can give profits in mere future. Southwest Airlines is one such organization that builds a computer system (Germany and Muralidharan 2001). The products, however, must be developed or manufactured in such a way so that it can meet the demands of the consumers.
Infrastructure-based: The infrastructure for the products must be of superior quality, otherwise the products will fail. The product must serve the purpose, otherwise, the product will fail and the innovation will be of no use. Therefore, innovation must be maintained.
Business Innovation
Cost-based: The enterprises all over the world are trying to improvise their own products (Neirotti et al. 2014). The enterprises should set up a base price for the products; otherwise, they can face heavy losses. The enterprise can face loses earning heavy in quick times.
Phase 3 always focused on the acquiring most value for the enterprise. The IBM developed an architecture to root out the Apple Computer Inc. The Compaq Computer Corporation governed by the operating speed to gain the market share from IBM (Adenle, Azadi and Arbiol 2015). Again, the Dell Corporation embellished their market share due to the innovative business strategy, deep knowledge of the customers’ requirements and the delivery of PCs to take over the reigns.
The third phase that is the value maximization phase actually never ends. The enterprises those who become successful continue with the marketing strategies to sell those innovative projects.
Germany and Muralidharan 2001 illustrates that the three phases of value capture thus can assist in finding the competitive advantage of the information system. The enterprises based in Mexico, India, South Korea and China can get the edge over the enterprises based in the United States and Europe.
China among all other Asian countries looks promising and they believe that they will beat the markets of US soon. The US scientists and the National Security Agency believes that China will soon become the leader of supercomputing. China has proceeded with the development of exascale systems and it can be expected that they can be able to produce a prototype model which is capable to beat the US in mere future. Pick and Nishida 2015 states that China builds the first supercomputer at about 125 petaflops built with its own chips. A petaflop system has the capability to carry out one quadrillion mathematical operations every second. An exascale system is a thousand petaflops and it is hoped that China will beat the US and will a produce a system better the US.
China is investing heavily in the R&D operations and they are expecting that they will beat the US in overall spending by the year 2020. The National Science Foundation has praised the China’s growth of the R&D and called it as remarkable. In between the year 2003 and 2013, China has enhanced their R&D investments at about twenty percent annually and have exceeded the US (Pick and Nishida 2015). China wants to bring innovations and wants to lead the world in clean energy. They invested almost one hundred and three billion dollars in renewables in 2015, whereas the US is behind China and they invested about $45 billion. Thus, it can be said that slowly and steadily China is getting better than the US. It is quite clear that China is focusing on innovation and they are investing heavily in Science.
Digital Dynasties: The Rise of Innovation Empires Worldwide
Conclusion
It can be concluded from the above discourse that the information system has enhanced the business, it can help them to manage innovation as well as can bring new technology to the market. It can be seen as the sources for acquiring the competitive advantage. The aspects by which the business organisations from South Korea, India, Mexico, Brazil, China can be capable to challenge the business giants of Europe and the United States have been illustrated in details. The five ways have been explained by which the economy can be enhanced by technology has been elaborated. The digital dynasties, their phases of values capture, economic nationalism as well as the future of Global R&D have been showcased in the report. The report has showcased how the Asian country like China is overcoming the enterprises of the US and the UK in terms of innovation.
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