INNOC Company in the Telecommunication Services - Report Example

Innovation Strategies Name: Course Title: Tutor: Date: Executive summary It is a prerequisite for acquiring a competitive advantage when launching new products to a market within a shorter period of time. Currently, a good number of product development managers have found hard to come up with world-class products to market in record time. It is due to a number of factors that managers get it hard to attain their goals. One of the factors that has led into the hardship is the fact that technology rate is accelerating at a very high note in terms of development. Other factors may include; mass communication improvement, tightening competition caused by markets maturity and globalization, marketplace fragmentation because of demographic changes, product life cycles are shortening and finally the rise in cost of research and development. Before a new product is introduced into the market, consumer research, media planning and other means of information release outlets planning must be done carefully. In order to attain best outcomes, product launch should be made basing on the existing reputation of the company in conjunction with its products and services by utilizing potential cannibalization for products already in the market. This can be achieved by carrying out a pre-launch research with the aim of outlining specific demographics to where the new product is being tailored. Companies always consider planning for the life of their products from the time it is launched to when it is discontinued. INNOC realized after a thorough research that there was unmet needs in the telecommunication. It was their opportunity to develop a launch of their new product, and that launch strategies was required so that consumers will be fully satisfied. Table of Contents Executive summary 1 Table of Contents 2 Company profile 3 Product Innovation Charter 4 Market and Trend Analysis 6 Market Opportunity Identification 6 Idea Generation 7 Product Concept Development 8 Full Screen 8 Sales Forecast 9 Product Protocol 12 Product Launch planning 12 Bibliography 14 Company profile Generally, Telecommunication industry has experienced a rapid in the past few years due to the legalization of phones to the publics. At first, the market was easily predicted as there were very few subscribers with one or two providers. Currently, Telecommunication industry has been saturated by subscribers and telecommunication providers. Innovations are made out of what other competing firms have ignored in their newly launched products (Geschka & Hubner, 2008). INNOC has been in the industry for over ten years now offering services of all aspects within the telecommunication. The organization is aimed at fully delivering services that fully meets customers’ expectations. Its mission is to offer their services effectively and efficiently by ensuring that planning, testing and support services are critically undertaken. Objectives of INNOC are to meet customer’s needs, secure a reasonable market share globally in the telecommunication services, expand its boundaries to other areas where it has not yet been explored by its competitors or where services are poorly offered. It is also the aim of the organization to move with technology so as to continue surviving in the market. INNOC was established in 2001 so as to take over the opportunities that was about to emerge from the Postal service providers who had been clearly predicted to come to a stop sooner. Technology replaced the paperwork that was the center point of Posta. It was after it died that many firms came so as to secure a market share and compete with INNOC. From then there has been tough competition where firms come up with new products which is nearly a duplication of its competitor. INNOC was recognized as a monopolist at the first instance. This is what has contributed to its existence in the market; many companies are being established but die after awhile mainly because they lack to understand what the market demands of them. Product Innovation Charter Market saturation has meant that products that are being offered to the market are nearly identical mainly because product development is mainly based on what competitors fail to include in their newly launched products. This tendency has created mistrust in the market because they believe that it is a duplication of what competitors are offering (Monthe 2006). Product innovation is mainly according to what the market demands, but because innovation is nearing its limits, firms have decided to add to the existing products what is missing to them. This has enabled many firms to continue to survive in the market while those that never underwent innovation have ceased operating in the market (Snyder & Duarte, 2003). INNOC through its research team researched on what was actually missing in the market for all the years that they have been in the market and what have not yet been realized by its competing firms so that they win more confidence from consumers in the market thus emerging a world-class market. INNOC later realized that there are unmet consumer needs in the market. That was what pushed them deploy its research team to identify all the needs. The team was to move from one firm to another and from one market to another as they interview consumer so that they will later analyze their findings and come up with clear information of what the market really needs. Basing on the findings of research team, the market requirements has not been met especially by the services that are being offered are of low quality as it is expected by the market. After a combination of all the services that are offered by the entire Telecommunication services, the research team came out with an idea that there was still a chance to further develop its products to an advance level (Morgan & Nauwwelaers, 2003). INNOC through the R&D decided to develop on their service by collaborating with financial institutions so as to work hand in hand is sending money through mobile service. This is an idea that has not yet been realized. As per competing firms such as BOKIA, they designed the sending of airtime from one subscriber to another with the use of mobile phones and were later adopted by other firms. The pioneering firm always enjoy as consumers will trust it other than those that adopt it. This is now the best opportunity for INNOC to enjoy this opportunity. Despite the fact that the idea will take longer period of time before it is fully accepted in the market, INNOC will find out on a convincing strategy to the market. The main problem that will hinder its success is the financial institutions because their work will have been minimized if this idea works as expected. The way it will operate is that one will either deposit or withdraw cash in our agent and a massage will be sent subscriber’s phone after the transaction is done. Advertising is therefore paramount for it to be successful within a short period of time. In addition, financial institutions together with INNOC will reach at agreement on the charges that they will deduct. Market and Trend Analysis INNOC has been in operation in the market for nearly a decade now, this means that it has gained numerous strengths such as it monopolistic in services provision, because it came the first in the market, it secured a good proportion of the market that has not been tampered with by new entrants. Its research team has been always on the front line in innovation processes. The company is also enormous to an extent that it can hardly be faced with financial problems. The idea that has been recently been generated by the research team is one of its strengths because it has not been discovered earlier. However, the idea is faced with some weaknesses. First the company has registered under a single business permit; this may hinder it from engaging in the financial practices in the market. According to the government regulations, it is illegal for a business entity to operate against the Agreement. Being the first to try the idea, the company will be faced with opposition from financial institutions because they fear their extinct. The rapid change in technology is an opportunity for INNOC to fully engage in the idea development. The idea that is yet to be generated is falls under technological innovation; INNOC will capitalize on this part. Market Opportunity Identification The market has been saturated by entrants of other new firms, in spite of this; there has been little that has been achieved so far with innovation. Services offered in the market are almost similar, INNOC to the opportunity of technology and its experienced research personnel to dig into the market and find out what was still bending. INNOC has taken the opportunity of the fact that banks and other financial institutions are very slow in the way they operate due to slow systems and unskilled personnel. The service generated by INNOC will ensure that clients are served within the shortest time possible (Baldwin & Gellatly, 2003). The charges have also been increased by banks due to increased cost of living, in launching the idea, INNOC will maximize on profits even with little charges for the same service. The market also is occupied by firms that are new with the prevailing market conditions. This will enable INNOC undergo its innovation without being hindered with. Currently the market calls for vibrant firms which can maximize every opportunity that come their way. Idea Generation Before the idea is launched into operation, the team will work together so as to select useful information. Unnecessary information will be filtered. In the whole idea generation process where the team will undergo through several stages with the aim of filtering unnecessary information so as to launch a product which will last for a long time unlike other firms that launch products which hardly survive a year. INNOC will employ three techniques of idea generation which include; active search, brainstorming and critique. Product Concept Development The concepts entailing the product development will be analyzed from what designers will have come up with afterwards. The product will be expected to satisfy all classes of markets. The research team will move forward into finding on those areas where the product can perform well (Afuah, 2009). Through brainstorming, researchers will create a list of what is expected of the product so that it is later filtered to remain with a few. Product positioning so as to expand the market Product innovation from the existing ones so that in can serve for long Changing completely from what the company is offering to the market Continue offering the same services but restructuring on the organization management. Full Screen This concept of full screen is always seen by organizations as necessary evil, in the real sense it has much permanent impacts that are also powerful to the newly launch innovation. It is important as it evaluate technical forces as it summarizes what needs to be done. In this part, it entails mathematical models. The purpose of full screen within INNOC will be useful in that it will assist the company reach at decisions on whether technical resources are to be devoted towards the project. In reaching at conclusion, questions such as accomplishment of technical and commercial feasibilities can be weighed if they worth to be introduced. It will also assist in the management of the process as a whole. Some concepts which may appear here may include recycle and rework concepts, rank order concepts, track appraisal of failed concepts. Through full screening, INNOC will be in a better position to promote cross-functional communication. Sales Forecast Technique Time Horizon Cost Comments Simple Regression Short Low Easy to learn Multiple Regression Short-medium Moderate More difficult to learn and interpret Econometric Analysis Short-medium Moderate to high Complex Simple time series Short Very low Easy to learn Advanced time series (e.g., smoothing) Short-medium Low to high, depending on method Can be difficult to learn but results are easy to interpret Jury of executive opinion Medium Low Interpret with caution Scenario writing Medium-long Moderately high Can be complex Delphi probe Long Moderately high Difficult to learn and interpret Forecasted market share = (0.8) (5%) + (0.33) (36%) = 16%. This means that the 16% forecasted is an assumption that 100% are aware and available. This means that if the market of up to 60% is aware of the availability of the product. It can be computed as: Recalculated to (0.6) (16%) = 9.6%. It can be graphically represented through A-T-A-R Model as follows; Bass Model Forecast Model Hurdles rate on return Hurdle Rate Product Strategic Role or Purpose Sales Return on Investment Market Share Increase A Combat competitive entry $3,000,000 10% 0 Points B Establish foothold in new market $2,000,000 17% 15 Points C Capitalize on existing markets $1,000,000 12% 1 Point Product Protocol Within the protocol of INNOC is listed a number of items. It identified the market the company targeted, how the newly developed product could be positioned in the market, benefits accrued from the product, expected competition on how the it will affect the product sale, what is demanded by the market, requirements that range from finances, production, regulation and corporate strategy. During development end user list was established where it included; Warranty of a full one year Easy to use High speed Easy to install Compatible Product Launch planning In the launching the product, INNOC is determined that it will safe more that is expected on the idea. The estimate on the cash flow is the least that INNOC expect at the ling run. In many products that have been launched by other firms, they tend to waste time and their resources, but according to this, the company is optimistic that it will earn them and sustain the company for over decades. When undergoing the process, the company will inform its target market that the product is a unique one as compared to others already in the market. Its functionalities will be shown to the public so that they will be aware on how it operates (Amidon, 2007). Advertising will be made across the media so that potential market will be aware on its operation. The advertising will be clear, consistent and constant in its operations so that it creates awareness. Bibliography Afuah, A. (2009). Strategic Innovation: New Game Strategies for Competitive Advantage. Taylor & Francis. Amidon, D. M. (2007). Innovation strategies for the knowledge economy: the ken awakening. Butterworth-Heinemann. Baldwin, J. R., & Gellatly, G. (2003). Innovation strategies and performance in small firms. Edward Elgar Publishing. Cantwell, J., & Zayas, J. M. (2003). Multinational enterprises,innovative strategies and systems of innovation. Edward Elgar Publishing. Geschka, H., & Hubner, H. (2008). Innovation strategies: theoretical approaches, experiences, improvements : an international perspective : proceedings of ISPIM '91, the Seventh International Conference on Innovation Management, Jerusalem, Israel, 6-9 October, 1991. California: unversity of california. Monthe, J. D. (2006). Innovation strategies in interdependent states: essays on smaller nations, regions, and cities in a globalized world. Edward Elgar Publishing . Morgan, K., & Nauwwelaers, C. (2003). The challange for less favoured regions: Regional innovation strategies:. Routledge. Snyder, N. T., & Duarte, D. L. (2003). Strategic innovation: embedding innovation as a core competency in your organization. John Wiley & Sons. Read More