Over the course of the last two decades, telecommunications organizations have made notable innovations for consumers. While these technologies appear to be quite popular overall, the reality is that innovation in the telecommunication's industry carries with it a considerable risk. To illustrate this point one only needs to consider the overall costs associated with technology development for mobile phone companies. Although investment in new technologies can place the mobile phone company on the cutting edge of technology, it can also mean the downfall of the organization if the new technology is not widely accepted by the general public. In addition, although new technology can promise great theoretical results, in practice, many of these technologies fail to live up to their hype.With the realization that technology development for mobile phone companies represents such a precarious undertaking, there is a clear impetus to examine the overall impact of this process on the mobile phone organization. Utilizing this as a basis for investigation, this research considers the problems that have been incurred by the Motorola organization with its decision to incorporate Bluetooth technology into all of its mobile devices.
[...] As a result of spending almost 10 years developing this technology, Motorola has missed out on the development of Ultra Wideband technologies, which appear to be quickly becoming the industry standard. What this effectively demonstrates is that even the best decisions made with a clear understanding of the data and efforts to mitigate risk do not always provide a positive solution. In the end, there is some degree of chance that will ultimately impact the overall success of a project. [...]
[...] Although Bluetooth technology was successfully developed and implemented into Motorola devices in 2000, the Motorola Media Center goes on to argue that the cost of these devices made them somewhat difficult for the average consumer to purchase. As such, the organization argues that as the technology is perfected, it will become more accessible to the average consumer. What is perhaps most distressing about the predictions made by the Motorola Media Center is that this organization contended that by 2002, Bluetooth technologies would be widely available to the average consumer. [...]
[...] In addition to the financial problems that have developed at Motorola as a result of the organization's inability to bring the Bluetooth technology to fruition, researchers also note that investments made by other mobile phone companies in similar technologies are now available to compete with the Bluetooth enabled cell phones created by Motorola. Defree (2003) notes that although Bluetooth technologies finally permeated the market in 2003, during this time other wireless platforms have been introduced, most notably, Ultra Wideband (UWB) and wireless LAN. [...]
[...] In many respects the decision of the organization to select a new technology is predicated upon a need for the organization to survive, both in terms of competition and customer demand. New technologies ultimately mean more sales. More sales translate into more customers and profits in a highly competitive industry. Thus, if the organization fails to develop new technologies it will not be able to compete in the industry over the long- term. The only question the remains is how do organizations select technologies for organizational expansion? [...]
[...] In an effort to demonstrate the growth that has occurred in this market in recent years, Figure on page 7 provides a review of past sales along with a projection for future mobile phone sales. As the data clearly indicates the size of the market continues to grow at an unprecedented pace. While other technology companies are having difficulty moving their new products, mobile phone companies are guaranteed to have a solid market for years to come. Figure Mobile Phone Sales: Past, Present and Future Data courtesy of http://www.windowsfordevices.com/news/NS5566717572.html Despite the fact that the current market for mobile phones is increasing at a phenomenal pace, researchers note that profit margins for mobile phone companies are decreasing overall (Profit, loss , 2006). [...]
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