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Additional resources for Architecting Enterprise: Managing Innovation, Technology, and Global Competitiveness
28 Architecting Enterprise In a global scenario it has been observed during the post-globalization period (1980 onwards) that in most developing countries manufacturing and marketing dynamics shifted toward lucrative sectors in business that offered comparative advantage. Strong comparative advantage exists for many developing countries in transport and travel services. There is substantial room for improvement in financial and business services. Trade liberalization and lack of adequate preparation appears to have resulted in a weakening of their comparative advantage over the years.
The management innovation process generally moves through the following stages (Birkinshaw and Mol, 2006): • In the first stage operational gaps, managerial inefficiency, and consumer dissatisfaction are identified in a firm as a crisis or strategic threat. • In the second stage firms tends to motivate employees to develop insights on management innovation and draw inspiration from external sources. • The third stage comprises drafting management innovation and organizing events to conceptualize innovation and attract approaches to diffusion of innovation.
However, there are also some risks in global sourcing, which might be political, economic, exchange or supplier risks. In globalization, product life cycles are getting shorter as new products penetrate with higher speed in the markets owing to technological development and scale of operations. In this process many products are dropped either at the stage of introduction or growth. There are few products that are sustainable till the mature stage is reached. The growth of technology and its dynamic synchronization with industry is converging, leading toward quick adaptation of global products.