As noted Andrea Fumagalli(2009), “Today, innovation is key to creating lasting competitive
advantage. But European telecommunication operators hardly control their innovation processes. Instead, innovation is usually based on technology provided by external partners.” Therefore, it will be no doubt that innovation is the only way to survive in this competitive environment. In the case of USA, telecommunication leaders including AT&T are investing remarkable money on boosting technology. With this trend, few European telecom companies come to know they can guarantee competition when they focus more on R&D part. In this process, European companies are struggling to take advantage of technology by collarborating with other partners. However, sometimes, their trial for providing innovative technology meets some fail because of lack of experience and disharmony with partners. Now this is time to mapping innovation,which can learn from usa companies. Andrea Fumagalli(2009) said again, “Additionally, the application of some vendor management concepts to the R&D function has helped the telecom operator increase their influence on technology suppliers and gain a technology advantage over the competition.
Andrea Fumagalli(2009) , R&D innovation for European telecom operator, http://www.atkearney.com
You have a great point here about how European companies do not want to dive into implementing a new technology. I think this same idea can translate over to many other sectors of the economy. We have seen this with corn-based ethanol in the United States. Gas stations have been slow to offer corn based-ethanol. Their move may turn out to be a wise one as there is growing skepticism about the benefits of corn-based ethanol.
ReplyDeleteto survive in these competitive environment, invest money in developing new technology is essential. Do you know about other cases in USA, transforming industry structure to new ones with development of technology
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