Foxconn inside

Describing innovation as either product or process innovation is overly simplistic, especially in the case of services. It also fails to take into account the sub-components or systems within a product offering. The key questions here for established products are, "Which part of this product is not yet good enough in terms of technological performance?" and "In which part of the product is the technological performance too good?"

In addition to the many other "types" of innovation (i.e. service, process, business model, market etc.) we really need to distinguish between product innovation and sub-component innovation. There is an excellent paper on this topic if you can get your hands on it:

Gatignon H., Tushman, M.L., Smith W., and Anderson P.C.(2002) “A structural approach to assessing innovation: construct development of innovation locus, type, and characteristics,” Management Science; 48 (9), 1103-1122.

Taiwan News:

Remember "Intel Inside"? Branding sub components is still relatively rare, but Hon Hai, the Taiwan-based company at the center of a recent "Apple factories in China" scandle, must think it's a good idea. They have been using their Foxconn brand for quite a while now on many of their components.

Hon Hai (Foxconn) have also decided to get close to the action on automation and robotics technology in Japan. The company has decided to set up an R&D center over there, Digitimes reports, citing the Chinese-language Economic Daily News.

Japan is eager to counter the effects of its rapidly shrinking population on its economy; however, it's not so keen on immigration as a solution. Big problem. The government there thinks that robots will provide the answer.


innovation management in Asia