Free Custom «Principles of Wikinomics» Essay Paper

1. Principles of Wikinomics

Wikinomics is a word that explains the consequences of extensive collaboration and participation of the users on the market and the world. It talks of how the collaboration of the mass changes everything. According to Tapscott Don and Anthony Williams, there are four concepts, which are essential in wikinomics. One of these concepts is openness, which consists of content add standards that are open transparency as far as finances concern and open thoughts towards resources and ideas from outside. The Talento mobile limited uses the principle of openness in its daily operations. The company allows all the customers, peers and other people to access content more easily, collaboration of intellectual capital and development of new things, maximizing transfer of innovations and ideas.

Currently, corporations, whose boundaries are porous to ideas from outside and capital of human, outperform corporations that depend on their capabilities and resources. Institutions and individuals, which interact with companies, are unprecedentedly advancing in accessing essential information about communal behavior, performances, and operations. Talento Company is transparent with its customers. Mobile phones are a powerful tool for people to communicate, especially with friends and families who do not live in the same place. The executives are aware the assets they produce can be either useful or harmful. Therefore, Talento ensures that it has strong, ethical values and provides exceptional value. If they do so, they are going to business models of performances that are high. This will increase trust and loyalty, hence improve in collaboration.

Peering is the other principle that replaces the models of hierarchy with a forum that is collaborative. From time immemorial, creation of wealth through hierarchies such as, feudal and slave empires, corporation of modern day and industrial capitalism. Hierarchies have not disappeared, but there is a rise of something new: peering. If a transparent market was the best device in determining how people, information, products, and allocating others. Individuals are a contractor who is different at every step of production. This is because there is a question of collaboration or transaction price. This is the price of looking for the right people, all information that is right, and any other right thing required. The price of contracting would be high if each activity in the market were a different contract. The price of collaboration in the market that is open is greater than the price of things done inside the restrictions of a firm. Talento acknowledges this concept and try as much as they can to produce superior quality phones.

Another concept is sharing. Sharing is an approach of that is not proprietary to the knowledge of scientists, bandwidth, products, and intellectual property. Others view this as openness- Collaboration of mass initiatives and business models that are new- challenge the valid right of corporations to make a profit. Putting the dynamics together of the new forces gives a force for development and success. For Talento, having a portfolio of logical property is necessary, some of which they own and some they do not, some shared and some protected. They cannot work well if some of the intellectual secretion of property.

The last criterion is acting globally, which entails taking up globalization and paying no attention to geographical and physical boundaries at both the individual and corporate world level. Global corporations are required since mobile phone is a global market. Talento tries to act globally as an entity. Collaboration causes globalization, changes, and the way companies coordinate ability to initiate and produce goods. For the mobile companies to succeed, they need to look at their markets, people, and technologies. Talento Company and its competitors acknowledge the principals of wikinomics, and follow them in order to will their market.

The various principles of wikinomics are seen to play a critical role in bringing economic transformation and, therefore, most companies are seeking to put them in place.  Peering and collaborative processes have added value to specialization in industries.  The global act has also helped in ensuring that industries learn from the examples already set. Collaboration allows the shift of innovation to users, who will adopt and continue the act of value creation. The world is then described as the wiki work place because of its urge to adopt wikinomics, which add value to their participation in the world. Managers and other players in the industry are urged to adopt the principles of wikinomics in order to succeed.

2. Relevance of innovation in a business

Open innovation refers to use of both in-house and outdoor ideas to generate values that are beneficial to the company. The companies are now using external sources like their competitors and suppliers to develop new ones that will benefit them. The companies combine the internal and external ideas and come up with the best ones that generate more benefits.

In Open innovation, the key aspects considered include network. Networking in any enterprise gives the innovators an opportunity to interact with new ideas, which might generate into new businesses. Network can be used to allocate personal ideas with other innovators and market internal products. Businesses use the internet to connect with other companies. The business can also create an internal website so that the employees in various parts of the globe can communicate and share new ideas. Through collaboration with other innovators, P & & G created a position for an external manager. The director will bear the responsibility of ensuring that the company gets 50% of its ideas from external sources. This project is called connect and develop. Managing the internal Intellectual property and external intellectual property can be beneficial to the enterprise, as they get more research tools to use in their quest for better ideas.

Open innovation has forced companies to look for new ideas. The businesses are putting in large amounts of money on research. The companies are buying patents from all over the world in an effort to keep up with their competitors. This means that the small enterprises have to look for additional resources to meet the demands of the open innovation. P&G is benefactors to small firms so that they get any new ideas first hand.

 

The companies have learnt to share any idea unused in the internal operations, three years after its formulation. This is the policy used in the P&G Company. The businesses have to come up with new ideas on how to promote growth in innovation. Some of the strategies include organization, which focuses on identifying the key solutions to the problems faced by the companies. It stimulated efforts to share ideas with other companies. The creation of Technology Acquisition Group looked for ways to control technologies and licensing to produce high incomes.

Businesses have different motives; others will come up with an idea and use it to achieve a particular goal, and these are the merchants. The explorers come up with new ideas for the sake of creating new things (Chesbrough, 2006, p. 145. The innovation architects come up together and agree to produce different parts of something e.g., an airplane. This way the key players in the industry will play a role in the innovation process.

The companies can also use the Connect and Develop the project, which focuses on the transfer and exploitation of ideas in an organization. The employees can integrate data from different sources and turn it to create new and practical ideas. Businesses have had to adapt to consulting with the suppliers. The suppliers will give them ideas on what needs to be done. The business, on the other hand, integrates the knowledge and uses it to develop its next course of action. This way the business will increase its sales and the products will reach the customers at the right time. The customers will receive the goods at a fair price. This means that the business will be efficient at the same time increasing the amount of profit it is receiving.

 

Open innovation has led to the creation of new packaging for products in order to maintain the customers. Prototypes are tested using computers. This helps to reduce dissatisfaction by the consumers. The unique packaging of each company leads to branding making the business unique in the market. The marketer designs the product to fit the needs of the user.

3. Why adopt open innovation

Open innovation has many positive effects to any company that adapts it. It leads to the exchange of new ideas, and this leads to production of quality goods and services. A business benefits from open innovation as the experts who create new ideas are many, and they have different views. The experts consult and come up with the best ideas.

People outside an organization have a different view of the company compared to those who are working in the company. They are able to come up with better ideas as they view the company from a different perspective. They also know the tastes and preferences of the customers better as they tend to interact with them better than those in the company do.

Technology has led to rapid change in the way of doing things. Without innovation, it will be difficult to manage the rapid changes in the business world. Therefore, adapting open innovation in any company will help it to manage this change. To emerge as the best among the competitors, a company needs to give open innovation a chance.

The market is the key drive in a business. However, as times goes by, executives forget about the needs of consumers and concentrate on the internal running of the business. This can have diverse effects on the company. To ensure that this does not occur, the company needs to collaborate with external innovators who will keep watch of the dynamic needs of consumers. This way the company will plan on how to direct enough resources towards achieving the customer’s needs.

Open innovation gives the executives new ideas on how to run the company well. This happens during the external meetings with the other executives. They get to exchange new ideas and give them a chance to assess their policies using real examples. The managers will decide whether to change their policies and adapt to new ones. This will ensure that the management of employees is under reasonable terms and are happy with the management. This is because the executives will be using almost similar methods of running their companies.

Open innovation will help in producing goods and services that match with the needs of consumers. This is achieved through the close relationship with them. The consumers are asked what they want to be improved in the goods they consume. However, this should be limited as the consumers might ask for development of the existing product in contrast with coming up with new ways of producing the product. Marketers and sales persons should be involved in the open change as they interact with the consumers often. Coming together to discuss the customer needs leads to the development of good, goods, services, and solutions.

The Open innovation enables the company to manage to employ additional stakeholders who will enable new ways of doing things. Many people whom work together to look for a result is better than just one source trying to figure out the same problem. This will ensure that there is expertise in the running of the business. This can be associated with the task of managerial in a vertical line. The executives should come up with ways of ensuring that everyone is given an opportunity to solve the problem. Everyone should be given the opportunity to present his or her ideas no matter his or her position in the company.

As the executives in different companies, they should be able to understand that the efficient, divisional structure will change over time. These systems will be replaced by new systems that are specific to the company. This will be possible if the company has adopted open innovation, which will help them adjust to new methods, which are effective.

4. Phase v

Steve Jobs, who was the CEO of Apple Corporation, has rolled Apple Company down the four phases of success. Steve started to look into security of various mobile applications with the safari browser strategy. The second phase is that of introducing iphone software.  This phase was also a massive success on the development of Apple Corporation. In the third phase, Steve Jobs responded to various criticisms that they were facing through the introduction OS/SDK3. This feature introduced several remarkable features in the iphone. Further developments were brought about in phase four through the introduction of IPod/iphone strategy.

As the new CEO of Apple company, there are various tasks ahead. It is a trying moment to keep up the work of Steve Jobs and ensure that I take Apple Corporation to greater heights. In planning to set up phase five, I plan to adapt the third party platform. This will help provide vast information essential for the emerging networks. It should be noted that for every company focused on serving the public to be successful, it has to place much emphasis on the manufacture of products and services that will serve its users.

Using external information to design new products will be adapted to facilitate efficient and satisfactory services. The third platform will pave the way to get information about the competitors, resources, and market needs. In every step that Apple has gone through, it has always strived to get its products to higher levels through its marketing strategies. In this phase, the focus is getting broader markets for the company’s daily innovation. Apple has not been able to outdo Hollywood, therefore, have been forced to venture into studios.

 

One of strategies to use is to find out much from the user of Apple products on the use of the company’s products.  This will be through negotiating with the users and reaching a common platform and discuss the changes that need to be made. To get to know this, the staff should mingle with the users of the products, ask questions on the various feature that they would like to be included in the products or those that they would like to be modified.

The company will adapt new ways and channels of receiving and distributing products. This is through the opening of websites and using advertisements to ensure that people are well informed about us. The company will also seek financial assistance from organizations and various other firms, which are already customers and users of Apple products. Availability of enough funds will also enable Apple industry to produce more apps and compete in the market with its competitors.

In conclusion, as a new manager of Apple corporation , a company that has attained world over notice, it is essential to look into various ways of taking the company to higher levels just, as it was done by Steve Jobs. Opening new markets for the company’s product is my focus in phase five. This strategy will go a long way in ensuring that the company moves to enormous heights.  This is possible if I work hand in hand with the staff and various other stakeholders, who have their main focus on improving the company. This will see to it that the Apple Company other remarkable success.