Executive Summary
In today's economy, businesses must have core competencies and invest in innovation to survive. Without innovation, companies are at risk of being surpassed by competitors who continuously pursue new ideas. However, embracing innovation can help organizations redefine their industries, create new ones, and gain a strategic advantage.
Background of Industry
The technology industry consists of companies involved in designing, manufacturing, or distributing electronic devices like computers, computer-related equipment, software, scientific instruments, and electronic components/products. This industry is unique because it requires significant investment in research and development due to the fast pace of innovation. Additionally, technology enables consumers to adopt a digital lifestyle.
The engineering industry primarily employs applied scientists and other highly skilled workers who need creativity, expertise, and precision for product creation. Sales and
...promotion also play a crucial role since consumer awareness and interest greatly contribute to the success of new products. While most sales occur in developed countries, production takes place in less-developed countries with lower industry and assembly costs.
Dell's history traces back to 1984 when Michael Dell founded the company as Personal Computer's Limited with the objective of directly providing customized computers to customers.Even while studying at the University of Texas, Dell launched their first computer, the Turbo, featuring an eight-megahertz processor. The company stood out not only for its customer-centric approach but also for offering customers the ability to personalize their computers during the ordering process. This unique assembly process allowed Dell to achieve various milestones.
In its inaugural year, the company generated $73 million in revenue and went public in 1988, offering shares at $8.50 each. Dell unveiled its first laptop in 1991 and by 1993 had become one of the
top five computer companies globally. By 1995, share values had risen to $100.
The company continued its rapid progress and reached a significant milestone in 1997 by shipping its ten millionth system. In 1996, Dell commenced selling products through its website and three years later acquired Compaq. In 2003, Dell expanded into printers; however, they faced challenges when Lexmark modified their cartridges.
Despite this setback, Dell is renowned for delivering high levels of customer satisfaction particularly with their computer products.
Dell embarked on its path to success in 1991 with the introduction of their first laptop which propelled them into becoming one of the world's top five computer companies by 1993.Dell's achievement of increasing shareholder value was significant, with shares rising from $8.50 to $100 by 1995The company achieved significant milestones in its rapid progress, including shipping their 10 millionth system in 1997 and launching online sales through their website in 1996. Dell expanded further by acquiring Compaq three years later and introducing printers to their product lineup in 2003. However, concerns arose when Lexmark made changes to their cartridges that rendered them incompatible with Dell printers. Despite this, Dell has a strong history of prioritizing customer satisfaction, particularly with regard to their computer merchandise.
To achieve success through innovation, organizations must combine technological advancements with changes to their business models. Business models encompass how a company creates, sells, and delivers value to its clients. According to Davila, Epstein, and Shelton (2005), the key components of a business model that drive innovation are the value proposition offered and delivered in the market; the supply chain detailing how it is created and distributed; and the target customer who receives
it.
Dell's "White Space" concept in business model change directly relates to enhancing their value proposition. The value proposition of a product or service can be altered by introducing a completely new offering or expanding upon an existing one (Davila, Epstein, Shelton, 2005). Innovation can be driven by new technologies that receive significant attention or are only understood by technical experts.Dell's technological changes can drive innovation in three ways. They incorporate enabling technologies to enhance the functionality of their products and processes, allowing for more efficient execution of strategies and utilizing time as a competitive advantage (Davila, Epstein, & Shelton, 2005). Dell focuses on product and service innovation by planning to introduce a new wireless option for laptops that utilizes white spaces technology. This technology operates over the television spectrum and is expected to improve the quality of Dell's laptops and computers compared to Wi-Fi and Bluetooth. Furthermore, Dell aims to expand the market for smartphone-like devices by utilizing a wider range of the television spectrum. To achieve this goal, they have partnered with companies such as Google, HP, Microsoft, among others, to open up the White Spaces for unaccredited radio devices. By expanding available radio bandwidth through this partnership, Dell believes it could lead to a wave of innovative radio technology inventions that revolutionize global communications. This expansion is anticipated to provide Dell with a competitive advantage and increase sales volume for their laptops and personal computers. Overall, Dell's approach to innovation is driven by customer needs.Dell gathers requirements for cost-effective solutions by directly interacting with customers through organized events, social media platforms, and customer panels. Their partnerships with industry providers give them a broad
perspective in computer science. By collaborating with both in-house teams and strategic partners, Dell can meet customer needs effectively. Due to their unique position in the industry, Dell has the ability to influence trends by maintaining strong internal capabilities, partnering with industry leaders, and steering industry standards and technologies.
One area of focus for Dell's innovation efforts is exploring wireless technology in the white spaces of the broadcast television spectrum. These white spaces refer to empty frequency sets between licensed broadcast channels (specifically from 512-698 MHz assigned to air Television). They have the potential to drive a new wave of invention similar to Wi-Fi and Bluetooth. The less utilized parts of the wireless spectrum have significantly impacted individuals and businesses through wireless technology.
In the past, wireless devices were limited to options like AM/FM radio, broadcast Television, CB radios, or walky-talkies. However, advancements in Wi-Fi and Bluetooth have revolutionized people's lives. With Wi-Fi networks established in homes and offices along with "hot spots" offering global internet accessMoreover, Bluetooth has revolutionized personal radio communication by enabling connections between cell phones and various devices such as car radios, computers, headphones with MP3 players, and more. In order to overcome challenges in utilizing the 2.4-GHz spectrum for future advancements, accessing the White Spaces proves advantageous due to its wider bandwidth range and reduced limitations caused by buildings or objects. Operating within a frequency spectrum of 512-698 MHz, the White Spaces allow signals to travel further without obstruction. As a result, White Spaces access points can expand their coverage area up to 200% when compared to devices operating in the 2.4-GHz spectrum. Moreover, these White Spaces offer sufficient bandwidth for handling
complex data transmission tasks like wirelessly streaming multiple video and audio channels within a home or business setting (Source: http://content.dell.com/uk). The potential uses for the White Spaces are unpredictable similar to the 2.4-GHz spectrum; however, it is certain that new devices and applications will emerge undoubtedly. By opening up the White Spaces, connectivity among computing and consumer electronics devices in homes and businesses will greatly expand. An illustration depicts an access point or radio router that combines Wi-Fi and White Spaces wireless capabilities (source: http://content.dell.com/uk).This device has the capability to connect with both existing Wi-Fi devices and new White Spaces devices such as notebook computers, TVs, MP3 players, cars, and video cameras. The ample bandwidth provided by the White Spaces allows these devices to transmit large amounts of data quickly. This access point supports both Wi-Fi and new White Space devices/applications. It is also important to improve communication during emergencies as the current web infrastructure is often unavailable in such situations. Therefore, first responders need to establish ad hoc radio networks rapidly for communication between different agencies involved in life-saving efforts. In the past, emergency workers created a radio Wi-Fi network for communication purposes during Hurricane Katrina. In the future, first-responder networks in the US can utilize White Spaces for their communication requirements. Recent advancements in wireless technologies can also be implemented in White Spaces devices, making wireless communications and networking simpler. The industry has an opportunity to enhance setup procedures by automatically detecting and connecting to nearby White Spaces devices without human intervention. This will result in faster and wider wireless networking that is less complex compared to current methods. Another advantage of having
greater coverage with White Spaces is that each access point can serve a larger area, which is especially beneficial for vast geographic regions where Wi-Fi technology may not be effective enough.Improved coverage from White Spaces devices allows for the creation of large geographic hotspots at a lower cost compared to Wi-Fi networks. These devices are expected to be priced similarly to Wi-Fi access points, making them more accessible for widespread use. The implementation of White Spaces technology will greatly increase the number and size of hotspots available to travelers. Other countries are also exploring the potential of utilizing White Spaces for new applications and devices. In the U.K., Ofcom, similar to the FCC, recognizes the benefits of studying different technological approaches for coexistence and is conducting tests and studies. The industry is working with Ofcom to suggest that the U.K. adopts engineering approaches chosen by the U.S. On the other hand, Europe plans to address DTV transition in future research conducted by the European Commission in order to make optimal use of opportunities presented by White Spaces.According to report analysis, Dell Company can gain a competitive edge by utilizing White Spaces technology. The DTV transition in the U.S. has freed up valuable spectrum from underused broadcast Television channels that can be utilized for expanding radio communication bandwidth. Dell, along with other IT and consumer electronics industries, is partnering with the FCC to develop and test coexistence technologies for market release once they mature. As a result, consumers in the U.S.can expect new types of radio devices, applications,and services.
The text "Making innovation work" is a reference from Davila, Epstein,and Shelton's publication in 2005. The book "Managing
Innovation" by Tidd and Bessant, published in 2009 by John Wiley & Sons Ltd., is another source for managing innovation.Online sources that can be referenced include several websites and pages:
- The website http://globaledge.msu.edu/industries/Technology/background/ (12 Dec 2009)
- The website http://printerinkcartridges.printcountry.com/printer-company-histories-press-releases/the-history-of-dell/ (12 Dec 2009)
- The Wikipedia page http://en.wikipedia.org/wiki/Dell (14 Dec 2009)
- The Dell website http://www.dell.com/content/topics/global.aspx/corp/background/en/facts?c=us&l=en&s=corp&~section=004 (14 Dec 2009)
- The website http://www.printcountry.com/dell_printer_toner_ink_cartridges_main.asp (01 Dec 2009)
- The Dell corporate website pages http://content.dell.com/uk/en/corp/d/corp-comm/cto-customer-driven-innovation.aspx (09 Dec 2009) and http://content.dell.com/uk/en/corp/d/corp-comm/cto-whitespaces.aspx (09,10 Dec 2009)
Bibliography: Fitzsimmons, J.A & Fitzsimmouns, M. J. (2006) Service Management: Operations Strategy, Information Technology (5th edition) Singapore: McGraw Hill International.Ellitie, J (2006) Managing Innovation (2nd Edition) Butterworth-Heinemann Elsevier.
- hypertext transfer protocol: //www.pcworld.com/businesscenter/article/153388/dell_to_offer_white_space_connectivity_in_laptops.html (10 Dec 2009)
- hypertext transfer protocol: //www.engadget.com/2008/11/06/dell-affirms-plans-to-integrate-white-space-radios-into-future/ (10 Dec 2009)
- hypertext transfer protocol: //content.dell.com/uk/en/corp/about-dell-company-info.aspx#facets=2009&A;p=1 (10 Dec 2009)
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