Telecom`s Services Innovation in CHT and Indosat

Abstract

Abstract\r\n\r\n\r\n The impact of technology has been rapidly changing the economy and environment in these past two decades. Both manufacturing and service companies which intend to maintain the viability of their organizations have to adapt in such an environment.\r\nFor a long time, services have been perceived as being technologically backward and to take little initiative with respect to innovate. In general services were presumed to be laggards in adopting new technology, and to be largely passive adopter of major innovations; however, it was recognized that there are some exceptionally dynamic services – such as telecommunications.\r\nService sector firms play important roles in innovation, not the least in the creative use and diffusion of technologies; but also serve as important sources and agents for the transfer of technological and organizational knowledge to all sectors.\r\n\r\n In innovation, knowledge plays a big role in gaining competitive advantage. There is a more fundamental need to understand how organizations create new knowledge in order to produce new products or services. Hence, the need – organizational knowledge – is growing in this turbulent economy of accelerated technological change.\r\nTo create knowledge in an organization usually lies in an individual’s knowledge. This is called as tacit knowledge and is a significant point to innovate. Nonaka and Takeuchi (1995) had pointed out that an individual knowledge gets articulated and amplified into and throughout the organization. Moreover, there is a one way to bring about continuous innovation is to look outside and into the future, anticipating changes in the market, technology, competition, or product.\r\n\r\n The service sectors have been innovating gradually in Indonesia and Taiwan, particular in telecommunications after liberalized. In 2002, the Indonesia’s economy grew 3.66 percent from the previous year which the highest growth occurring in the transportation and communication sectors by 7.83 percent. In addition, the telecoms sector in Taiwan will contribute 63.1 billion new Taiwan dollars (1.9 billion US dollars) to Taiwan’s GDP annually over the next five years when the telecommunication market is fully liberalized.\r\n\r\n In this study will discuss about the innovation of cellular telecommunication services in Indonesia and Taiwan. By analyzing the service innovation process in MMS and Video Streaming from Indosat and Chunghwa, to figure out:\r\n1. Where the new innovation concept comes from;\r\n2. How they define theirs customer interface; and\r\n3. How they develop theirs employees’ skills to deliver service.\r\nWe also examine the linking between the company background and innovation. This could be their establishment time, objectives, macro economy point of view, and so on. It might be crucial points to encourage them to innovate.\r\n\r\n\r\nKey Words: service innovation, telecommunications service, innovation process

The impact of technology has been rapidly changing the economy and environment in these past two decades. Both manufacturing and service companies which intend to maintain the viability of their organizations have to adapt in such an environment.\r\nFor a long time, services have been perceived as being technologically backward and to take little initiative with respect to innovate. In general services were presumed to be laggards in adopting new technology, and to be largely passive adopter of major innovations; however, it was recognized that there are some exceptionally dynamic services – such as telecommunications.\r\nService sector firms play important roles in innovation, not the least in the creative use and diffusion of technologies; but also serve as important sources and agents for the transfer of technological and organizational knowledge to all sectors.\r\n\r\n In innovation, knowledge plays a big role in gaining competitive advantage. There is a more fundamental need to understand how organizations create new knowledge in order to produce new products or services. Hence, the need – organizational knowledge – is growing in this turbulent economy of accelerated technological change.\r\nTo create knowledge in an organization usually lies in an individual’s knowledge. This is called as tacit knowledge and is a significant point to innovate. Nonaka and Takeuchi (1995) had pointed out that an individual knowledge gets articulated and amplified into and throughout the organization. Moreover, there is a one way to bring about continuous innovation is to look outside and into the future, anticipating changes in the market, technology, competition, or product.\r\n\r\n The service sectors have been innovating gradually in Indonesia and Taiwan, particular in telecommunications after liberalized. In 2002, the Indonesia’s economy grew 3.66 percent from the previous year which the highest growth occurring in the transportation and communication sectors by 7.83 percent. In addition, the telecoms sector in Taiwan will contribute 63.1 billion new Taiwan dollars (1.9 billion US dollars) to Taiwan’s GDP annually over the next five years when the telecommunication market is fully liberalized.\r\n\r\n In this study will discuss about the innovation of cellular telecommunication services in Indonesia and Taiwan. By analyzing the service innovation process in MMS and Video Streaming from Indosat and Chunghwa, to figure out:\r\n1. Where the new innovation concept comes from;\r\n2. How they define theirs customer interface; and\r\n3. How they develop theirs employees’ skills to deliver service.\r\nWe also examine the linking between the company background and innovation. This could be their establishment time, objectives, macro economy point of view, and so on. It might be crucial points to encourage them to innovate.\r\n\r\n\r\nKey Words: service innovation, telecommunications service, innovation process