The Grameen Phone Innovation Policy - Research Paper Example

? APPLYING INNOVATION IDEA OF GRAMEEN PHONE IN A NEW GEOGRAPHICAL LOCATION (KAZAKHSTAN) The Grameen Group is a set-up of approximately 30 organizations associated with the Bangladesh Grameen Bank. This consortium was started in 1983 with the formation of the Grameen Bank1. Social business structure as business innovation model: This business innovation concept is presently drawing much attention from scholars and gives the impression that it is beneficial in offering leadership as how to form social businesses. Nevertheless, despite the ever-increasing works on the business innovation model, there is no compromise as to its characterization. An exhaustive analysis of this business model shows that among the superfluity of explanations, three essentials are generally notable: The product or service anticipated for the clienteles. The manner in which the company is structured so as to provide this product and service to its clients. The profits concept. Social businesses could be viewed as a detachment of social private enterprise, which comprises both profit and non-profit ingenuities, and which could be notable from conservative entrepreneurship. Therefore, a social business is a novel formula of business that could be positioned anywhere between a profit-making and a non-profit-making business enterprise.2 In the year1996, in partnership with other three overseas enterprises, the Grameen Bank formed a mobile phone firm, the Grameen Phone, to spread telephone facilities through Bangladesh. Without any land-line facility in most of the Bangladeshi villages, mobile phone know-how was vital to usher the country into the electronic communication age. By thought-provoking the conventional knowledge and rules of business, Grameen Phone had opened a novel market. In relation to the Grameen Phone innovation policy, its application in Kazakhstan would indeed be a real benefit when considering that the country has some imbalances in terms of poverty levels. It would allow most of the poor or middle class persons to access loans that would enable them change their financial stature. Precedencies for the innovation strategy are all hypothetically. To achieve long-standing strategic policies and innovation methods defies the distinctive focus that deals with developing a suitable environment to let the mechanisms of the Grameen Phone innovation policy. The worldwide practice demonstrates that a country: in this case Kazakhstan, with a market economy can collaborate with the private segment stakeholders in essential alterations in the economy.3 A good example of this case scenario is that of the current China which also follows the innovation policy of teamwork with the private sector in scheming strategic innovation and industrial development ways. 1) Investment co-ordination- Like in most parts of Kazakhstan, the unfledged markets are not in a position to evaluate the demand for new improved quality services and 4products to be manufactured through development of the production channels. This investment innovation co-ordination model policy recommends certain dimensions at both the state and private establishments. 2) Business collaboration development ingenuities. Hands-on state business collaboration strategy could be unswervingly targeted to reinforce business contacts in the following groupings: Particular groups of investors formulate innovative market areas and are an indicator on information on invention criteria. Purveyors of equipment permit production involvement alongside it. Purveyors of inputs add to generation of new innovative ideas and invention approaches while considering challengers as a rich basis for new concepts.5 Countries with unfledged market may require a facilitator to stimulate the snowballing market allowance and business collaboration procedures. Founded on the global experience, the approach implementation ought to put emphasis at initiatives pursuing investments synchronization and expansion of business collaboration. Through growth institutions, the government will take part in ventures targeting formation of all-inclusive production structure producing viable products through unswerving expansion of technological and fiscal value-added plans. This will sustain formation of multi-sectorial innovativeness manufacturing merchandises adequate to all the strictures of competitive goods. Throughout the application of the industrial and innovation approach production measures in most processing activities ought to be brushed up for the purpose of recognizing potentially viable productions as well as export-oriented goods and manufacturing fiscal value added merchandise with deliberation of world market developments alongside the private segment enterprises. In the meantime, Kazakhstan ought to analyse the international and regional markets intensively targeting a chance to locate itself in the innovative sector and business enterprises. Ostensibly there is no requisite to embolden reproduction of the complete value-added processes, but instead direct the energy to essentials with the maximum value.6 With the Grameen Phone framework, Kazakhstan ought to show support expansively to all the major elements of the innovation framework. In relation with the Grameen Group familiarities, it is possible to focus on the modifications required in swapping a traditional for a social business structure. The principal modification is the requirement of targeted investors, and the establishment that the significance proposition and assemblage are not focused exclusively on the client, but are extended to incorporate all investors.7 The anticipated social proceeds through an all-inclusive eco-system opinion, results in a social turnover equation. The fiscal profit equation objects only for a full recapture of price and capital not monetary profit intensification. 8 In Kazakhstan, most studies on the business innovation framework underscore the extremism of this sort of social business innovation framework, which could be well-defined as the aptitude to form new approaches which amend the guidelines of the competitive, social and client serving market, just as Grameen Bank deed in Bangladesh. This signifies a foremost test for companies hoping to toe the new framework guidelines, as it involves inquiring the approaches that have heretofore brought them significant success thus necessitating a revisit of some elementary traditions. The establishment of Grameen Bank gives a perceptive illustration of how conservative knowledge can be tested: indeed, the inquisitorial of the existing rubrics of the industry was at the epicenter of the bank’s establishment.9 Correspondences with conventional business innovation framework 1. Challenging conformist knowledge and rudimentary assumptions 2. Discovering harmonizing partners 3. Commissioning a constant research process 4. Backing social proceed-oriented investors 5. Unmistakably laying down the social turnover objective Another step in structuring social business approaches is to influence knowledge and assets by setting up conglomerates. On a hypothetical level, in disparity to the inexpensive archetype, the supportive archetype places most of its importance on teamwork, which lets establishments to gain admittance to innovative properties they would or else have desired to one or the other improve alone or buy. The biggest gain of cooperative agreements lies in the merging of properties and acquaintances leveraged by the associates who may well in turn give rise to the expansion of a larger portfolio of assets for corporations in the system. 10 Partnerships between companies and non-profit organizations can be exceedingly prolific and low in peril, as it occurs between two indirect actors. Considering their past experiences, Grameen Group emboldens partnerships with well-known and accomplished companies at whatever time possible. Tactical testing is another endorsement from the social business innovation model where it is regarded as a detailed form of acquaintance attainment. In Kazakhstan, a prevailing firm applying this form of innovation is compelled to visualize and acquire innovative ways of doing trade as the vicissitudes requisite to be deep-seated, and will demand the organization’s conservative way of doing business. More and more business managers are ardent to introduce cooperate social responsibility ventures that are intended at helping emerging economies. Nonetheless they encounter the difficulty that, despite chances that such ventures could be minor in terms of the general scale of the corporation, it still necessitates resources. As is frequently the case in businesses, collaboration can expose fights between associates over period. For instance, the Grameen Group’s indication was to enlist Grameen Phone to a whole social business by allowing the poor the bulk of shares in the corporation so as to let them profit from its spiraling proceeds but instead Telenor declined to flog its shares. In order to evade such glitches, the operation of any such venture by Kazakhstan businesses must very well adhere to this principle. When the idea is to form a social business, its business innovation model obligates it to be moved from traditional fiscal proceed production towards a social proceed production. This is achievable when only social proceed-oriented investors are convoluted into the project; nonetheless it makes the strategy of the social business model more challenging, for the reason that it must not only put into application the financial proceeds basis, but proceeds for all shareholders.11 Henceforward, while fiscal proceeds are understood in conservative business innovation approaches, social business prototypes are obliged to establish and outline their purposes clearly. Bibliography 1). Audretsch, David B. 2011. Handbook of research on innovation and entrepreneurship. Cheltenham, UK: Edward Elgar. Definitely this book guides my writing of this essay. It enables me fully understand the expected results and in general what social business innovation model is all about and how I relate with it in its application of Kazakhstan. 2). Carter, Charles Frederick. 1981. Industrial policy and innovation. London: Heinemann Educational Books. The book guides me I understanding the industrial bits of the social business innovation policy and how to go about it. The works described in the book relate very well to Kazakhstan which is still an emerging economy and has multiple disparities. 3). Franz, Hans-Werner, Josef Hochgerner, and Ju?rgen Howaldt. 2012. Challenge social innovation potentials for business, social entrepreneurship, welfare and civil society. Berlin: Springer. http://dx.doi.org/10.1007/978-3-642-32879-4. The book is a prodigious source of information for me in writing this essay. It enables me understand the challenge experienced by the application of the social business innovation model and how it helps me relate it to Kazakhstan. 4). Janasz, Krzysztof. "Innovation Policy of a Country as a Determinant of the Development of Innovation Processes in Poland." Perspectives of Innovations, Economics & Business 6, no. 3 (04, 2010): 27-30. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=61014914&site=bsi-live. A great source that illustrates innovations in developing countries and their influence on each other. The author talks about innovation policies and its influence of different aspect of economy. As an example they mention Poland as a country that was influenced by innovations. 5). Lopez-Claros, Augusto. 2009. The innovation for development report 2009-2010 Strengthening innovation for the prosperity of nations. Basingstoke: Palgrave Macmillan. The book is a very important source to me since it brings out comparative significance of numerous drivers of economic development and affluence has progressed over time and for an increasing number of nations, innovation, in its many magnitudes, is developing as a leading issue. The 'Innovation for Development Report' offers an all-inclusive look at the part of innovation in augmenting the expansion course. 6). Oliveira, Jose? Antonio Puppim de. 2008. Upgrading clusters and small enterprises in developing countries environmental, labor, innovation and social issues. Farnham, England: Ashgate. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=438621. This book illustrates its work based on case scenarios from the nations of Indonesia, India, Brazil and Vietnam. It enables me examine SME collections and contends that except they counter common glitches such as very little wages, reduced working environments, deprived quality merchandises and lack or ecofriendly regulation, they will be hard-pressed out of the market and so develop unsustainable. It puts frontward conceptual outlines which elucidate the way firms can improve: communication among collection members, through Corporate Social Responsibility and additional such unrestricted policy, and through the enhanced application of regulation. 7). Regine A. Spector. 2008. "Bazaar Politics: The Fate of Marketplaces in Kazakhstan". Problems of Post-Communism. 55 (6): 42-53. This book assists me in understanding the areas of bazaar politics in relation to social business innovation approaches. 8). Teece, David J. 1987. The Competitive challenge: strategies for industrial innovation and renewal. Cambridge, Mass: Ballinger Pub. Co. This book guides me in my understanding of the competitive challenges associates face when implementing the mechanisms of the social business innovation model. 9). Wu?stenhagen, Rolf. 2008. Sustainable innovation and entrepreneurship. Cheltenham, UK: Edward Elgar. The book offers me both the theoretical and empirical study, it addresses how we can pool ecological and social sustainability with fiscal sustainability so as to create innovative business models. 10). Yunus, Muhammad, Bertrand Moingeon, and Laurence Lehmann-Ortega. "Building Social Business Models: Lessons from the Grameen Experience." Long Range Planning 43, no. 2–3 (0, 2010): 308-325. It is definitely a very influential primary source in this essay. Authors describe social business and compare it with business aimed to earn profit. It’s a very interesting reading with clear ideas. Other projects of Grameen also introduced here. This reading inspired me to choose my topic. Read More