The Shift by Manufacturing and Service Firms - Case Study Example

Main Topic> Introduction The article holds the concept of road mapping and shows that this concept originally originates from the concept of networking. In the start the article clearly defines the three major terms that together used to originate the concept of road mapping. Then later in this article the road map development phases are shown, with its benefits and in last holding the criticism on the concept of road maps. Before starting with road maps, let see three terms that together form the concept of road mapping. “Strategy” is simply a plan helps in achieving the long-term goals and objectives. Strategy is a choice and this choice affects the outcomes, it’s the corporate choice of achieving the specific goals. “Comparative Advantage” is the benefits that are gained by the individuals, parties or organizations with different costs of a product or service. “Net Works of Firms” means that different firms are interconnected in order to share their capitals, information’s, and accounting systems. In the concept of road mapping the strategy is used that different resources, information, technologies and activities are shared among different companies working at different region of the world. This strategy is used in order to provide the comparative advantages to the company. As this strategy decreases the over all cost of the companies, enhances their quality, and helps in allocating the best resources in cheap prices and sharing different information and activities. The strategy is not only cost-effective but reduces the time cost, as the companies can allocate cheap resources within minimum time; similarly they are sharing the latest information and technology that also uses the least time of the company. Therefore the strategy holds comparative advantage for the organizations. The strategy together with comparative advantage leads to the concept of networks of firms. The networking of firms is the latest strategy of the companies in order to produce the standard product at global level holding high quality and low price tag. This strategy thus useful in order to acquire the maximum share of the global market. Therefore, different companies are now trying to come up with the strategy of Roadmaps thus opening the door for the companies to work at global market holding world standards in their product. From the last few years the networking of different departments within the organization was very famous and still in use. The reason for this was to share the maximum information within the departments and enhance the communication level in order to become more effective in lowering the cost and increasing the quality. These networking prove to be very useful as it helps in managing the whole organization and the relations within the department. The primary activities always need the help of support activities or department. These networking help in communicating within these activities and thus provide a cooperative advantage or the organization. Similarly the roadmaps work. Actually the roadmaps are the networking of the different companies around the world that share their information and accounting systems. First of all let see how these networks really works. The roadmaps are developed in three phases and these three phases are given as Phase I: the very first phase is known as Preliminary phase which consist of three steps. These steps are, satisfy essential conditions, provide leadership or sponsorship and to define the scope of technological road map. The satisfy essential conditions include satisfying the whole conditions of these organizations before launching the roadmap within these organizations. Different planning horizons and different perspectives are driven among these organizations and these must be satisfied. Provide leadership or sponsorship requires time and effort. This process requires knowing that who will be the leader of this process, who will allocate the resources and found different sponsorships. Next come the Step of Defining the scope or technological roadmap. This requires the clear vision that what is the purpose of this road mapping and what achievements the company wants to fulfill. The scope of the road map or its boundaries are well-stated between eh organizations in order to know the use and limit of this roadmap. The second phase of road mapping consists of seven steps. The very first step is identifying the product or service the companies are trying to provide. The organizations need to know that what are common things that the customers around the world need to see in the product. These organizations will together develop the common components of the product and will try to develop greater information regarding this product. The nest step involves identifying the critical requirements of the system and need to target different aspects regarding the product like its cost and price. The organization in this step shares their specialty of each field. For instance, the company holding latest technological information will share with other organizations; similarly the next organization is if good in financing system will try to share its specialty. Putting all these in front, then the companies will target that what other resources are needed and what cost is required to manufacture this product. The third step is that the companies will share different areas of technologies and specify major technological areas. These might be market assessment or component development or system development. The next step is to specify the technological drivers and the companies will found the different targets that are achieved with these drivers. The each driver is used in this critical system and will help in addressing these technologies. The next step is that the companies will find out different technological alternatives and the timelines they require to get mature. After this step comes the step of time. The required time for e-commerce and software development is noted that should be minimum. The further step of companies requires knowing that what technologies should be recommended that causes the lower cost and needing less time. At this step all the technologies that are taken and their drivers are now examine in detail to know that which technological driver is causing less cost in their road mapping and giving maximum output. Then among all these technologies which were selected and used, few of them causing maximum benefits are selected for long term. This is now the last step in which technological roadmap report is formed based on five phases in which the companies identify the technologies taken in account, their description, critical factors and knowing that which factor or technologies are working very well. This will help in the companies to know after a time interval that either their technological road mapping helping them in producing innovation or not. Significant affect of Road Maps The road mapping helps in different ways and has significant affect on the organizations. First of all, the companies are using the concept of road mapping in order to become more cost-effective. As in this case the different organization shares their resources in order to produce a product that is better in quality but holding the low price tag on the product. The companies used to enhance the concept of road mapping in order to capture the maximum market share by influencing its two marketing mix, the price and the product. On the other hand, the companies chooses the concept of road mapping as it helps in allocating the best and cheap resources that are used in production. These resource allocations are cheap as the entire companies share their resources with them. This not only lowers the cost of resources but also helps in getting the best resource. The other very beneficiary step is that the company needs technological advancement in their organization. The road mapping helps in acquiring the best technology for the company. This technological advancement is one the major key factor for which the concept of road mapping was developed. This technological advancement isn’t used only in producing the product rather at each step and process the technology is used. This technology is cheap as this is shared among the companies. Therefore, it causes the low cost for the organization. Whereas, if a single company itself goes alone for technological advancement then it may need a huge investment and causes a huge cost for the organization but when different companies join together to source a single technology for their use then this causes a small cost sharing these companies together. Similarly, the companies are adapting to concept of road mapping in order to produce a standardize product all over the world. This standardization is very useful as it produces the standard product holding similar qualities o all over the world thus reducing discrimination among the developing and under develop countries. For instance Boeing Company launched a standardized Boeing holding all that properties that are consider to be very qualitative at world level. It holds all that essentials that are required by all the aircrafts companies in their Boeings. The concept of road maps is useful as it helps in removing the competitive environment for the companies. For instance the International technology roadmaps for semiconductors involve the famous companies of the world producing semiconductors. As they launch the concept of Roadmaps the competitive environment in which they were previously working was removed. As all the competitors join together to win the global market. Thus this concept is useful when you diversify your company at global level and helps in dealing at global market with no powerful competitor fore your product. Criticism for Road Maps With advancement in road maps the criticism on it also increases. Let see that these criticism are and to what extent they are right. The very first criticism is that the company image as a single entity diminishes. Usually the companies want to stay as a single entity holding their uniqueness in their product and services. Therefore, roadmaps concept also diminishes the concept of uniqueness. On the other hand, the concept is basically developed on the concept of standardization. It is not usual that your customer want a standardized product, usually the customer wants a unique product that could make him/her different. Therefore, this concept is unable to launch such strategy that could produce the unique product for their customers. This is what an affect of the concept on the external environment, coming towards the internal environment of the organization where the concept has many side effects. The scholars think that if you go for the road maps then the competitor may come to know about all the secrecy of your company that may affect your long term goals and objectives. The companies have to share their expertise that may affect as it will lower the value of your expertise. Secondly this strategy unable you to provide uniqueness that may be a key factor in order to achieve the maximum market share. The consumers always seeking the best and a unique product in order to remain unique among the people. This strategy is specialized for standardized product in which the uniqueness doesn’t matter and doesn’t come to existence. Therefore, only those universal things that need standardization are used under these strategies. This strategy works until any other company didn’t launch a better product, as another company launches better technological advanced product the strategy of roadmaps would fail. Similarly the strategy of road maps can’t be forecast as we can’t calculate that what will happen in future and it doesn’t work on long-term basis. It works only for a short-term period and may enhance the market share for short-term period. But as soon as the other company emerges with new advancement in the same product line then this strategy will may not work for long-term to achieve the market share. Conclusion The strategy of road maps work very well but only in the case where the product need only the strategy of standardization. Where as this strategy doesn’t work where the product and services needs innovation at each step. The strategy will work only at long-term base for standardized product where as this strategy doesn’t work on long-term basis when the products and services are changing after a short period of time and need more uniqueness and enhancement. References/bibliography Larissa Terpeluk Moss, Shaku Atre (2003) “Business Intelligence Map” Garth Saloner, Andrea Shepard (2001) “Strategic Management” Fred R, David (2005) “Strategic Management” Eleventh Edition Henry Mintzberg (2003) “Strategic Planning” Charles W.L. Hill, Gareth R, Jones (2003) “Strategic Management” 6th Edition Gregory G. Dess, G. T. Lumpkin (2003) “Strategic Management” Michael J. Stahl, David W. Grsigby (1997) “Strategic Management” Kenichi Omaha (1892) “The Mind of the Strategists” Read More