Free Essay

Financial Innovation

In: Business and Management

Submitted By smaity
Words 1756
Pages 8
What is Financial Innovation? Financial innovation can be defined as the act of creating and then popularizing new financial instruments as well as new financial technologies, institutions and markets. It includes institutional, product and process innovation.
Why do we need financial Innovation?
Finance is the lifeblood of the world economy that affects every other sector and in turn is affected by every other sector. A Simple Financial Innovation like a debit card can lift millions of people out of poverty and connect them to the global economy. It helps entrepreneurs raise money for the next idea. In the coming few pages I shall attempt to discuss few financial innovation and how they have affected the global economy.
Microfinance

Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. Microfinance is a broad category of services, which includes microcredit. Microcredit is provision of credit services to poor clients. Microcredit has enjoyed spectacular success in poor nations like Grameen Bank in Bangladesh and SKS Microfinance in India.

What is Microcredit?
Much of the current interest in microcredit stems from the Microcredit Summit (2-4 February 1997), and the activities that went into organizing the event. The definition of microcredit that was adopted there was: Microcredit programmers extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families.
Definitions differ, of course, from country to country. Some of the defining criteria used include- size – loans are micro, or very small in size target users – microenterpreneurs and low-income households utilization – the use of funds – for income generation, and enterprise development, but also for community use (health/education) etc. terms and conditions – most terms and conditions for microcredit loans are flexible and easy to understand, and suited to the local conditions of the community.
Source: http://www.grameen-info.org/
Grameen Bank
The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong, launched an action research project to examine the possibility of designing a system to provide banking services targeted at the rural poor. The Grameen Bank Project (Grameen means “rural” or “village” in Bangla language) came into operation with the following objectives:
1. Extend banking facilities to poor men and women;
2. Eliminate the exploitation of the poor by money lenders;
3. Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh;
4. Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves;
5. Reverse the age-old vicious circle of “low income, low saving & low investment”, into virtuous circle of “low income, injection of credit, investment, more income, more savings, more investment, more income”.

The action research demonstrated its strength in Jobra (a village adjacent to Chittagong University) and some of the neighboring villages during 1976-1979. With the sponsorship of the central bank of the country and support of the nationalized commercial banks, the project was extended to Tangail district (a district north of Dhaka, the capital city of Bangladesh) in 1979. With the success in Tangail, the project was extended to several other districts in the country. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. Today Grameen Bank is owned by the rural poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government.
Muhammad Yunus earned a doctorate in economics from Vanderbilt University in the United States. He was inspired during the Bangladesh famine of 1974 to make a small loan of US$27 to a group of 42 families as start-up money so that they could make items for sale, without the burdens of high interest under predatory lending. Yunus believed that making such loans available to a larger population could stimulate businesses and reduce the widespread rural poverty in Bangladesh.

Yunus developed the principles of the Grameen Bank (literally, “Bank of the Villages” in Bengali) from his research and experience. He began to expand microcredit as a research project together with the Rural Economics Project at Bangladesh’s University of Chittagong to test his method for providing credit and banking services to the rural poor. In 1976, the village of Jobra and other villages near the University of Chittagong became the first areas eligible for service from Grameen Bank. Proving successful, the Bank project, with support from Bangladesh Bank, was extended in 1979 to the Tangail District (to the north of the capital, Dhaka). The bank’s success continued and its services were extended to other districts of Bangladesh.

By a Bangladeshi government ordinance on October 2, 1983, the project was authorized and established as an independent bank. Bankers Ron Grzywinski and Mary Houghton of ShoreBank, a community development bank in Chicago, helped Yunus with the official incorporation of the bank under a grant from the Ford Foundation. The bank’s repayment rate suffered from the economic disruption following the 1998 flood in Bangladesh, but it recovered in the subsequent years. By the beginning of 2005, the bank had loaned over USD 4.7 billion and by the end of 2008, USD 7.6 billion to the poor.

The Bank continues to expand across the nation. By 2006, Grameen Bank branches numbered over 2,100. Its success has inspired similar projects in more than 40 countries around the world, including a World Bank initiative to finance Grameen-type schemes.

The bank has gained its funding from different sources, and the main contributors have shifted over time. In the initial years, donor agencies used to provide the bulk of capital at low rates. By the mid-1990s, the bank started to get most of its funding from the central bank of Bangladesh. More recently, Grameen has started bond sales as a source of finance. The bonds are implicitly subsidised, as they are guaranteed by the Government of Bangladesh, and still they are sold above the bank rate. In 2013, Bangladesh parliament passed ‘Grameen Bank Act’ which replaces the Grameen Bank Ordinance, 1983, authorizing the government to make rules for any aspect of the running of the bank.
The bank is also engaged in social business and entrepreneurship fields. In 2009, the Grameen Creative Lab collaborated with the Yunus Centre to create the Global Social Business Summit. The meeting has become the main platform for social businesses worldwide to foster discussions, actions and collaborations to develop effective solutions to the most pressing problems plaguing the world.

Payments Bank

Reserve Bank of India has granted licenses to 11 Applicants to start payments bank in the near future. A good mix of entities have chosen from commercial , technical and telecommunications industries have been chosen to enhance financial inclusion in India. Integration of telecommunication sector in the payment bank architecture is important because of the wide distribution network they already own.
Payments will function in the same way as normal banks in that they can take deposits from their customers with certain restrictions being placed on the deposit amounts. This innovation is poised to shake up the banking sector in India while also bringing a large percentage of the people with the global economy.

Why do we need Financial Inclusion?
As we have seen in the last years that we have scenario where farmers are committing suicide because they have taken credit with large interest rates from unofficial moneylenders. It has been said that poor receive only a small fraction of the money that is earmarked for them under the various government schemes. Financial Innovation like payments bank will open up new lines of credit for them.

Inadequate, inaccessible financial services is undoubtedly one of the reasons why the poor are trapped in poverty. Without access to finance, the poor people cannot invest in tools to increase productivity, start a microenterprise, invest in education or health, or even take time to search for better opportunities. In addition, monetary exchanges require a physical location and people need transportation to get to the location, both of which can be problematic in infrastructure-constrained countries such as Kenya, particularly in rural areas.

There are plenty of advantages that payment banks can offer in India. According to recent report on The Economic Times, the payments banks are likely to add Rs. 14 trillion in incremental credit for infrastructure sector alone. It is being touted that, the payment banks will help improve last mile connectivity especially in the rural hinterlands.

The second most important thing that analysts are pegging will happen due to the coming of payment banks is that the service standards are likely to go up and transaction costs will come down, due to the competition in the space. Another thing to look forward to with the payment banks are reforms in the social welfare sector and subsidy schemes. The inclusion of Indian Post in this list of payment banks is likely to play a big role in this step.
Vodafone M-Pesa in Kenya
Developed by Vodafone and launched commercially by the company’s Kenyan affiliate Safaricom, M-PESA is a small-value (all transactions are capped at $500) electronic payment and store of value system accessible from ordinary mobile phones. Once customers have an M-PESA account, they can use their phones to transfer funds to both M-PESA users and non-users, pay bills, and purchase mobile airtime credit for a small, flat, per-transaction fee. The affordability of the service has been key in opening the door to formal financial services for Kenya’s poor.
Since its introduction in mid-2007, M-PESA had been adopted by 9 million customers as of late 2009—40 percent of Kenya’s adult population—and is now facilitating an average of $320 million per month in person-to-person transfers (roughly 10 percent of Kenya’s GDP on an annualized basis). Extremely rapid uptake of M-PESA is a strong vote of confidence by local users in a new technology as well as an indication of significant latent demand for remittance services. In recent months, M-PESA has begun allowing institutional payments, enabling companies to pay salaries and collect bill payments.

Source:- http://www.grameen-info.org/ (For Info related to Grameen Bank and Microcredit) http://economictimes.indiatimes.com/ (For Info Related to Payments Bank) http://go.worldbank.org/XSGEPAIMO0 (For Info related to Vodafone M-Pesa in Kenya)…...

Similar Documents

Premium Essay

Innovation

...Introduction When people hear the word innovation they usually think of invention and creativity. While this way of thinking is not incorrect, it is more accurate to look at it from the perspective that innovation is in fact being creative and inventive and taking the outcomes of the creativity process and turning these ideas into useful products or work models. In this essay I will be looking at how innovation is often regarded as the lifeblood of an organisation. 87% of people that were surveyed from the Boston Consulting Group believe that innovation is essential to the success of an organisation. The question now is, ‘how can managers stimulate innovation within an organisation?’ I will be addressing this by looking at three variables within an organisation that a manger can manipulate – Structural, human resource and cultural variables. There are many different definitions of innovation, where Kuczmarski (1996, p.7) states a simple definition of innovation being “A new idea, method or device; a novelty.” However, this simplistic and broad definition does not help managers and employees understand the characteristics of innovation and how they can manipulate the variables to stimulate innovation. If we look at an organisation that is culture orientated, we can define innovation as a social process, as Goffin and Mitchell (2010, p.8) state that innovation in a cultural context is “the intentional introduction and application within a role, group or organisation of......

Words: 3052 - Pages: 13

Premium Essay

It Innovation

...application Pg. 4 Three most important, generic innovation rules Pg. 7 Formal pathways for innovation that already exist Pg. 8 Opportunities to make processes and the business more innovation friendly Pg. 8 Systematic ways to track innovations and mesure their success Pg. 9 Processes that will help manage innovation Pg. 10 Conclusion Pg. 10 Works Cited Pg. 12 Executive Summary This report contains a current evaluation and analysis of applying strategic rules to innovate the entire Sea Ray organization. The 10 fundamental strategic rules will be discussed and I have chosen three of these rules as the most critical to Sea Ray’s success. Sea Ray must operate in fundamentally different ways when forming an innovation experiment to avoid organizational memory. The success of the experiments will hinge more on experimentation than the initial strategy used. Sea Ray then must not base success on financial performance, but on the ability to learn and adapt. Formal pathways which are currently being used for innovation will be assessed and characterized. Using this pathway data, new modern opportunities will be discussed in order to make Sea Ray more innovation friendly. Sea Ray will also use human resource data instead of research and development data to track and measure their success. Finally, an innovation committee will be formed to manage innovation across Sea Ray. INTRODUCTION Sea Ray Marine......

Words: 2767 - Pages: 12

Premium Essay

Innovation

...Importance of Innovation has been discussed for decades and continues to be the most talked about management issue these days. Today, knowledge in all its forms plays a crucial role in economic processes. Organizations with more knowledge systematically outperform those with less. Within the knowledge-based economy, innovation is seen to play a central role. It was believed that an enterprise can maintain competitive advantage through quality and price. However, the research at the Ernst Young Centre for Business Innovation (CBI) has revealed that innovation isone of the most valuable differentiator for sustainable competitive advantage. Firms innovate to defend their competitive position as well as to seek competitive advantage. Innovation is at the heart of economic change. In Schumpeter’s words, “radical” innovations shape big changes in the world, whereas “incremental” innovations fill in the process of change continuously. Innovation is the motor of the modern economy, turning ideas and knowledge into products and services. 1 Apple, Google, 3M, Toyota, Microsoft, GE, and P&G were the most innovative companies in the year 2006 as per the annual list of the world’s 25 innovative firms. Innovation has been mostly discussed related to technology, product and processes. It has been argued that product and process innovation are not the main bottleneck to progress. The bottleneck is management innovation. But what is management innovation? Why is it so important? And how...

Words: 711 - Pages: 3

Premium Essay

Innovation

...Pauling who said “the best way to have a good idea is to have lots of ideas”. Generating ‘outside the box’ ideas is often not the problem in an ideation workshop with 10 people or more. No. It is the moment when you go from the divergence into the convergence phase, which is critical for your innovation success. Imagine you have a wall of 500+ ideas in front of you: and now what? How do you pick the right idea? That’s the question. In my innovation practice I have experimented a lot the last 10 years to deal with this essential question. It’s not an easy one to answer. Unfortunately I have not found the ‘holy grail’. But the great advantage of continuous experimenting in converging, selecting and improving ideas is that you learn a lot. And I like to share five of my important learnings on how to pick the right idea. 1. Take you time. One of the most frequent mistakes is spending a lot of timing generating ideas, leaving hardly any time in the ideation workshop to converge, select and improve them. You should spent at least 2/3 of your process on picking the right idea and 1/3 on getting a lot of ideas, instead of the other way around. Promising ideas at the front end of innovation are like rough diamonds, which look like other regular stones but will shine beautifully in the end. You have to take your time to be able to recognise them. And be sure to converge in several steps. Even in several workshops. Don’t expect to recognize rough diamonds among 500 other stones in......

Words: 900 - Pages: 4

Premium Essay

Innovation

...1- Many innovations today are associated with companies as opposed to individuals. Why is this, and what does it tell us? Many recent innovations are associated with companies as opposed to individuals. While in the last century individuals were credited for innovations and breakthroughs, during the last decades organizations are being credited for innovations to a greater extent rather than individuals. Many innovations such as discs by Sony and Philips, invention of hybrid car concept by Toyota, invention of driverless car by Google, and many other examples can be mentioned to justify this argument. This situation has been caused due to a combined impact of a wide range of factors. First of all, it is becoming difficult for one person to learn all knowledge in any area in order to introduce breakthroughs and innovations due to the abundance of knowledge. The level of knowledge in all areas of science, business and art has increased to such an extent that it is difficult for one person to manage all of the knowledge in order to be able to introduce innovation in this area without collaborating with other people. Another fact is that R&D for innovation requires substantial financial investment, which normally is only provided by a big corporation. Finally, companies have the financial power of acquiring innovations from other individuals at the early stages. Individuals may agree to sell their innovative ideas to companies due to their understanding of financial and......

Words: 916 - Pages: 4

Premium Essay

Innovation

...BACK BAY BATTERY STRATEGIC INNOVATION SIMULATION HARVARD BUSINESS PUBLISHING’S BACK BAY BATTERY SIMULATION PROVIDES AN ENGAGING AND RIGOROUS EXPERIENTIAL LEARNING EVENT USING A LIVE DEBRIEF TO EFFECTIVELY EMBED LEARNING INTO AN ORGANIZATION’S EVERYDAY WORK REALITIES REAL ENVIRONMENTS Immersive settings model real business environments. EXPERIENTIAL LEARNING Organizations looking for the best ways to develop the most effective leaders need more than a concept to guide them. They must provide well-structured experiential learning opportunities that enable leaders to develop and hone the specific identified business skills required for personal and business success. Simulations are one proven structured experiential learning activity. When designed and implemented in alignment with an organization’s business strategy and goals, simulations have the power to deliver: REAL RESULTS Feedback and tools give managers a foundation for making better decisions. WORLD-CLASS CONTENT REAL SITUATIONS Drop managers into common leadership challenges. SIMULATION TIMELINE LEARNER PREWORK 30 MINUTES REAL CONSEQUENCES Managers experience repercussions of their own decisions firsthand.   SIMULATION 90–120 MINUTES LIVE DEBRIEF 90 MINUTES > Retention and application of new skills > Highly engaged learners who are invested in learning and its outcomes > Stronger links between individual learning and business strategy and goals OVERVIEW > Straightforward......

Words: 769 - Pages: 4

Premium Essay

Innovation

...------------------------------------------------- Innovation From Wikipedia, the free encyclopedia For other uses, see Innovation (disambiguation). Innovation is a new idea, device or process.[1] Innovation can be viewed as the application of better solutions that meet new requirements, inarticulated needs, or existing market needs.[2] This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. The term innovation can be defined as something original and, as a consequence, new, that "breaks into" the market or society.[3] While a novel device is often described as an innovation, in economics, management science, and other fields of practice and analysis innovation is generally considered to be a process that brings together various novel ideas in a way that they have an impact on society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. Contents   [hide]  * 1 Inter-disciplinary views * 1.1 Business and economics * 1.2 Organizations * 1.3 Sources of innovation * 1.4 Goals/failures * 1.5 Diffusion of innovation * 2 Measures ......

Words: 5808 - Pages: 24

Premium Essay

Innovation

...VIEW MORE FROM THE August 2002 Issue EXPLORE THE ARCHIVE How much of innovation is inspiration, and how much is hard work? If it’s mainly the former, then management’s role is limited: Hire the right people, and get out of their way. If it’s largely the latter, management must play a more vigorous role: Establish the right roles and processes, set clear goals and relevant measures, and review progress at every step. Peter Drucker, with the masterly subtlety that is his trademark, comes down somewhere in the middle. Yes, he writes in this article, innovation is real work, and it can and should be managed like any other corporate function. But that doesn’t mean it’s the same as other business activities. Indeed, innovation is the work of knowing rather than doing. Drucker argues that most innovative business ideas come from methodically analyzing seven areas of opportunity, some of which lie within particular companies or industries and some of which lie in broader social or demographic trends. Astute managers will ensure that their organizations maintain a clear focus on all seven. But analysis will take you only so far. Once you’ve identified an attractive opportunity, you still need a leap of imagination to arrive at the right response—call it “functional inspiration.” Despite much discussion these days of the “entrepreneurial personality,” few of the entrepreneurs with whom I have worked during the past 30 years had such personalities. But I have known many......

Words: 4030 - Pages: 17

Premium Essay

Innovation

...Introduction to Innovation Management Prof. Paul Collins UWB Learning Objectives • Understand the Language of Innovation • Distinguish between innovation as artifact and process • Be able to explain the three innovation imperatives • Be versed in how innovation affects firm growth and performance • Articulate why managing innovation matters Prof. Collins UWB 2 I. The Competitive Challenge Techno-economic Revolution •We are in the middle of an estimated 50 year technoeconomic revolution that creates new growth opportunities and disrupts the basis of competition in many established industries (Hiemtra,2000) •Global markets mean increased competitiveness in terms of cost, quality, and innovation •Affects consumer demand by providing more options that offer multiple performance advantages simultaneously. Prof. Collins UWB UWB 3 Moore’s Law – Powering the Techno-economic Revolution •According to Moore’s Law, the number of transistors on a chip roughly doubles every two years (at less cost per unit of performance). •As transistor counts climb so does the ability to increase device complexity and integrate many capabilities onto a chip. • How does this affect your industry? Company? Prof. Collins UWB 4 Evidence (Forbes Study) Drivers of Value Creation Drivers of Value Creation What Forbes' Research Established (rank order) 1. INNOVATION 2. ABILITY TO ATTRACT TALENTED EMPLOYEES 3. ALLIANCES What Forbes' Readers Said......

Words: 1217 - Pages: 5

Premium Essay

Financial Innovation

...process. This is a selfish way of operating and a greatly disagree with it. Companies should invest more into its employees, the planet, and the economy and less in maximizing profits. Question #1: What is financial innovation? Illustrate with two examples how financial innovation has led to the growth of credit and expansion of economic activity. Financial Innovation can be defined as the creation of new technological instruments and payment systems that have increased the availability of credit providing banks and borrowers with easier, less risky ways of generating, lending and borrowing equity. An example of this is Microcredit - A way for borrowers to receive small loans without having to put up much collateral. Its overall growth is key to decreasing poverty domestically, and internationally in developing countries. Another very important Financial Innovation that has brought overall growth and Economic expansion has been Mortgage Loans. Mortgage has allowed many families who were unable to purchase homes before, do so now. This created a huge boom in the U.S. economy and the housing market in the early 2000’s. Sources Wal-Mart Stores Inc. (2015, January 23). Retrieved January 24, 2015, from http://www.marketwatch.com/investing/stock/wmt/financials/balance-sheet Blodget, H. (2012, December 8). We Need To Stop Maximizing Profit And Start Maximizing Value. Retrieved January 24, 2015, from......

Words: 403 - Pages: 2

Premium Essay

Innovation

...Table of Contents Summary 2 Section 1 - Sector/Sub-Sector Profile 3 Sector: Home-Entertainment 3 Sub-Sector: Portable Audio Equipment 6 Sub-Sector: Headphones 7 Marketing Activities of Competition 10 Section 2 - Innovation and Entrepreneurship theory 13 Innovation 13 Entrepreneurship 16 Section 3 - Innovation and Change 22 Section 4 - Entrepreneurship and Opportunity 28 Conclusion 30 Appendix 1 - Dimensions of Innovation 33 Appendix 2 - Audio Advertising Expenditure 34 Appendix 3 - NTBF Cash Flow Profiles 35 Appendix 4 - Bone Conducting Patent 36 Appendix 5 - The Case for India 46 Appendix 6 - The Case for Northern Ireland 49 Appendix 7 - The Case for China 55 References 72 Websites 75 Summary This assignment will examine how an innovative development in headphone technology will move from design concept to retail examining the role that innovation and entrepreneurship play in this. We will examine the sectors that the new headphones will be placed in from a retail point of view taking an overview of the sector and then looking at some of the major companies that dominate the headphone market currently. We will examine three possible market locations both from a retail perspective and a development perspective to establish the best possible location for the development of this innovative product. We will then examine the role of the customer and how their role has shaped the development of this......

Words: 13595 - Pages: 55

Premium Essay

Innovation

... Schumpeter argued that it was the entrepreneur’s introduction of radical innovation into the capitalist system that was the real force that sustained long-term economic growth, even as it destroyed the economic value of established enterprises who may have previously enjoyed a degree of monopolistic power. For Schumpeter, the net economic benefit from the radical innovation, in spite of the destruction of existing economic value, was greater than if the radical innovation had never been introduced. So, the term ‘creative destruction’ describes a process of creating net economic growth in the capitalist system where entrepreneurs create more economic value from their radical innovations than is destroyed as their innovation replaces and supplants the established way of doing things. Schumpeter believed that capitalism would ultimately be destroyed by its successes and that this ‘creative destruction’ was just part of the prognosis of capitalism’s future. His great defence of capitalism however, was built on the grounds that capitalism sparks entrepreneurship. He was one of the first economists to truly provide us with a clear concept of this term. His theory described the more expanded role of entrepreneurs as innovators not just inventors. He saw that entrepreneurs did far more than just invent as they introduced new means of production, new products, and new forms of organization. These innovations, he argued, take just as much skill and daring as did the process of......

Words: 754 - Pages: 4

Premium Essay

Innovation

...Accelerated Innovation: The New Challenge From China Magazine: Summer 2014Research Feature April 23, 2014  Reading Time: 23 min  Peter J. Williamson and Eden Yin Rather than focusing on technological breakthroughs, Chinese companies are finding new ways to innovate that reduce lead times and speed up problem solving. Companies elsewhere should take notice. Chinese companies are reengineering new product development in ways that reduce lead times. Chinese companies are opening up a new front in global competition. It centers on what we call accelerated innovation — that is, reengineering research and development and innovation processes to make new product development dramatically faster and less costly. The new emphasis is unlikely to generate stunning technological breakthroughs, but it allows Chinese competitors to reduce the time it takes to bring innovative products and services to mainstream markets. It also represents a different way of deploying Chinese cost and volume advantages in global competition. Silicon Valley and other technology hotbeds may be able to match the speed of Chinese innovation in particular sectors such as electronics and Internet-based services. However, what’s distinctive about the strongest Chinese competitors is their capability to combine accelerated innovation with rapid scale-up to high volume at low cost, and to apply these techniques across a wide variety of traditional industries. We saw accelerated innovation being deployed...

Words: 4843 - Pages: 20

Premium Essay

Innovation

...The Innovation Pandemic: Society quest for real time solutions Parish M. Kaleiwahea Wayland Baptist University Abstract The Innovation Pandemic: Society quest for real time solutions When one thinks of a business with information technology (IT) flair, Wal-Mart is probably not on the top of anyone’s list of companies leading the way of innovation transformation. However, for 45 years this retail giant has reinvented IT retail model for an evolving digital economy. Today in order to survive a global economy companies must embrace and invest in latest information systems infrastructure in order to maintain a competitive advantage. Wal-Mart’s commitment to enhance their technology by integrating traditional and e-commerce retail innovation by using the most advanced technology to enhance the retail empire. As profits continued to reap into Wal-Mart, its commitment to improve data communication systems for their company remained a priority. While other companies contemplate spending money on new innovative technology, Wal-Mart continues to dedicate itself to implement many computerized solutions such as instituting a uniform product code (UPC) system as its electronic scanning barcode tool (Wang, 2006). Innovation is a tough concept for people to wholeheartedly to embrace because it comes with all types of unknowns. Companies like Wal-Mart took a huge financial risk, but eventually stuck to their strategic vision to embrace and forge ahead in the technology era.......

Words: 5598 - Pages: 23

Premium Essay

Innovation

...Futures and Innovation | April 1 2011 | Shivani Patel, BAMA 3.3 | Gemma McGrath | Table of Contents Introduction3 Technological Issues3 Globalisation4 Current Environmental and Ethical Solution4 Objectives5 Design of Programme5 Innovative Solution6 Demographic6 Innovation Funnel7 Innovation Space7 Disruptive Theory8 Diffusion Theory9 Limitations to Future Success9 Appendices and Figures11 References15 Futures and Innovation Introduction Children are often made to aid their families and friends at all ages, however these small jobs are not harmful to the children and they are not exploited in any way to do this work, for example daily chores. This is ethically and morally wrong, but nevertheless a continuing problem. United Nations International Children’s Emergency Fund (UNICEF) has found that one in six children is involved harmful and exploitative work; this is defined as child labour. These children are ‘engaged in economic activity or in household chores for more than 28 hours in a week’ (UNICEF. 2011). Child labour is a major global issue, with ‘an estimated 158 million children aged 5-14 engaging in child labour’ (UNICEF. 2011). Organisations employ children to work in unfit environments and hazardous conditions, for example working in mines and many children are employed to work in agriculture where they are surrounded by dangerous chemicals used in pesticides and forced to operate the dangerous agricultural machinery. One of......

Words: 3718 - Pages: 15