The Scholar of Business

Industrial dynamics and innovation: progress and challenges

                                                            *G.Jayalakshmi., Ph.D Scholar

INTRODUCTION

                                                The growing field of industrial dynamics, the analysis of innovation has witnessed major progress in several areas. Contributions at the empirical and modeling levels have greater advanced our understanding of innovation, industrial dynamics and evolution of industries. A discussion follows on three key challenges that are required for a better understanding of the relationship between innovation and the evolution of industries: the analyses of demand, knowledge, networks and co evolution.

                          Innovation and the Evolution of Industries

                                              The analysis of innovation and the evolution of industries have witnessed major progress in several areas. In the last years, several contributions at the empirical and modeling levels have greatly advanced our understanding of innovation, industrial dynamics and the evolution of industries. This paper reviews these contributions. The main point of the paper is that in order to have a deeper and clearer view of the relationship between industrial dynamics and innovation, research has to progress on three fronts: the analysis of demand knowledge and networks.

  1. Industrial dynamics as a growing research field

                      Since the late 1970s industrial dynamics has emerged as a major area of inquiry in industrial economics. The analysis of birth, growth and decline of firms and industries and the factors affecting them has generated a very rich empirical and theoretical literature and most of these contributions have recognized the central role of innovation for firms and industries.

                      In this Address I will start by recognizing the major recent growth of research in the area of industrial dynamics and then concentrate on the major progresses in the analysis of the relationship between industrial dynamics and innovation and on the challenges that lie ahead

Once tired from your everyday life, you would surely like relax yourself. Movies, TV shows, games are the best options for entertainment these days. You can relax at your home and enjoy watching movies and television shows on the Internet or online gaming as well. But watching movies or television programs also seems to be boring sometimes. New generation want everything in their entertainment to be more interesting and adventurous. Online games today have become very popular and a good source of entertainment for everyone. An online game is a game more than one computer network. Online games can range from a simple text based games to games incorporating complex graphics and virtual worlds populated by many players simultaneously.

World of Warcraft has become one of the best games on the Internet. Better known as WOW is one of the best online games, loved by all game lovers. Like other massively multiplayer online games and role-playing game, players control the game avatar in the world, in the third or first-person perspective, and studied the landscape, fighting various monsters, complete quests, as well as interaction with non-characters and other players. As characters become more developed, acquire different skills and talents.  Moreover, like other massively multiplayer online role-playing game world of warcraft players will have to pay for subscription or purchase prepaid cards to play a selected number of playing time, or with a credit or debit card to pay at regular intervals.

Competing for the attention of the public and bringing in new business is every company’s ultimate challenge, especially on the internet where there is easy access to far more information than offline. Advertising methods are constantly evolving and without staying up to date, your business could struggle to keep a solid presence on the Internet. There is one well kept secret and surefire way to improve your chances of getting seen and making that sale and that is video promotion. Corporate video productions can take your business promotions to the next level.

Video is eye-catching and can easily keep the attention of the visitor. As if that wasn’t enough, putting a video on your website can increase your chances of getting picked up by search engines.  Even Google stated that one of the best methods for ranking high in search or appearing on their much sought after first page is by having a video on your site.

Let’s face it; there is a ton of literature on the internet. Hours could be spent going from one website to another reading, eventually resulting in a large quantity of reading but very little retention. What if your site had a video that allowed the visitor and potential customer to sit back and with one click, have all of the key points of your business described in detail to them with the help of visuals? This automatically makes it easier for customers to absorb information on what you have to offer them.

A well thought out sales pitch put to video can also create more enthusiasm than written word, and that enthusiasm is picked up by the viewer. Think about radio commercials for a moment, and how just the voice and tone of an excited announcer can draw your attention to what they are saying. Have you ever felt compelled to take a detour to their store? Now imagine that verbal encouragement set to video, showcasing YOUR business.

Franchise Disclosure Documents (FDD) under the FTC’s new Franchise Rule continue to be a good concept in theory. Unfortunately, reality plays a more important role and reveals an entirely different picture.

Here are some of my observations, based on twenty-eight plus years of experience in the franchise industry as a franchise attorney, franchise expert and former franchise owner. During this time, I’ve drafted, reviewed and negotiated over 500 Franchise Disclosure Documents.

Franchise Disclosure Goals

Franchise Disclosure Documents or FDD (formerly known as Uniform Franchise Offering Circulars) are a document containing twenty-three chapters of information. These disclosures are intended to give prospective franchise buyers enough pre-sale information so an intelligent franchise investment decision can be made before long-term contracts are signed, money changes hands and sizeable financial commitments are made. In most cases, a franchise investment has long-term financial consequences. It means putting everything on the line – savings, retirement accounts, home equity, etc. With all this at stake, it’s easy to see why the disclosures in the FDD are so important.

Aura Of Credibility

Attached as exhibits to the FDD are the franchise company’s audited financial statements, franchise agreement, and a list of operating (and departed) franchise owners. If the company elects to make a franchise “Earnings Claim,” that information will be set forth either in Item 19 or attached as another exhibit. The entire document is quite lengthy and can exceed several hundred pages. In certain states (known as franchise registration states like California, New York, Illinois, etc.) the FDD makes reference to being registered with the state. All these formalities creates an aura of credibility. Many franchise buyers assume a regulatory agency has reviewed and approved the franchise offering. Unscrupulous franchise companies engage in blatant misrepresentation, referring to their franchise registration with a state as that state’s “stamp of approval.” Nothing could be further from the truth.

To buy a franchise you must take some strategic considerations as well as put some planning to action. Through MatchPoint’s services, you can learn all you need to know to make your franchise a success.

Do you see yourself becoming part of the franchise industry? Do you see yourself as a great entrepreneur with a great passion to learn about buying a franchise business in your industry of choice? Do you foresee not only career potential but also financial promise? If you answered yes to those questions, you’ve got franchise vision, and you see the multiple benefits of becoming a successful franchisee.

So, you have determined you want to buy a franchise. The next question is: Where do you go from here?

Purchasing a franchise is not as simple a decision as just signing the franchise agreement. You must think about all the factors involved in the process. In order to be well prepared and ensure that you find the right franchise, you can benefit from the services of a franchise consultant such as MatchPoint.

MatchPoint can provide expert advice in the entire franchise selection process. Its services can help you save time and money as it has the expert knowledge and experience in the franchising field. It will introduce you to the best franchise opportunities, based on your interest, investment level, your entrepreneurial background and your financial goals. While there are many unique aspects of the MatchPoint system, what makes MatchPoint different from all others within the industry is that it can be classified into three categories – the three pillars of MatchPoint success.

Innovation is one of the hottest topics in business these days.  More and more, companies are coming out with new products and services designed to amaze their customers and get them to dig deeper into their pocketbooks.

Only problem is, most of what passes for innovation these days doesn’t stand out as very new, different or compelling.  As a result, most innovation efforts are lucky to pay for themselves, much less actually turn a profit.

To develop new products and services that actually make money, follow these five steps.

1. Aim high.

Strive for disruptive, rather than incremental, innovation.

Incremental innovation focuses on making small improvements to existing products and services.  It adds a few new bells and whistles, but does not significantly alter the product or the perceived value to the customer.

Disruptive innovation creates new products or services that solve customer problems in entirely new and different ways.  It fundamentally alters the customer’s perception of value, and can literally turn markets and entire industries upside down.  Often, disruptive innovation solves problems that customers didn’t know they had or were unable to clearly articulate.

Most companies are set up, both structurally and philosophically, to pursue incremental innovation.  The R&D team strives to extend and improve existing products or services rather than come up with radically new ones.  People get rewarded for doing things a little bit faster, better and cheaper, not for shaking up the status quo.  Managers are trained to protect and defend the existing brand rather than look for ways to make their own products obsolete.