How Apple INC supply issues effect the demand of its products such as Essay

How Apple INC supply issues effect the demand of its products such as Iphone, IPAD - Essay Example There are several types of supply theories abased on the nature of products. Generally we use the supply chain system based on following important components as given below. Factory: The factory is the basic component and the point of origination for any supply chain. If a factory has issues in the production, the whole supply chain will suffer due to lack of the goods or the quality of the supplied products depending upon the problem respectively. Distributor: The distributor has a supporting role for a company in a supply chain. He advises the company about the magnitude of the product to be manufactured. If a distributor is having issues then the supply chain will suffer due to the mismanagement in terms of faulty distribution. Stockist: A stockist acts as a filter between the distributor and the whole sellers as well as show rooms. The basic difference between a distributor and a stockist is that the distributor purchases the items as a bulk directly from the company while the st ockist purchases the items at a relatively smaller scale from the distributor depending upon the local requirements of the market. Whole sale: A whole seller acts as another filter between the retailers and bulk dealers. ... Retailers: They are the source of products for the end users by the help of company support & distributor’s good supply chain. They also play an effective role in satisfying the end user by giving product knowledge and guarantee and warranty as well. End users: End users are the main component of a business. Each and every company designs its marketing and production strategies to attract end users in the form of customers. They do it by facilitating the end users in different ways. CONSEQUENCES OF BREAKING OF SUPPLY CHAIN Companies invest heavily on generating customer demand about their product through advertising. Especially in smart phones, notepad, laptop industry customers have variable choices therefore, once the customer demand have been established the manufacturer has to ensure the continuous supply of the product to maintain the customer loyalty. Companies which fails to do so may loose their customer loyalty. Following are some key issues can be raised if supply li ne break at the time of demand: NEED OF A NEW MARKETING CAMPAIGN: Once the demand developed in the market by the advertising campaigns the supplier is supposed to fulfill the customer demand. Otherwise customer may turned to other vendors. In this competitive era each product has several rivals in the market. Therefore, once the customer would have turned aside towards other product line or manufactures then in such situations the company has to re design the old marketing strategies, because the customer mind may not have any effect from old marketing approaches. This new advertisements and marketing may cause a huge expense over the company sales. Therefore, companies are very careful in maintaining the supply line un-broken. FRANCHISE/DISTRIBUTOR, FIELD FORCE WILL LOOSE TRUST ON

Schizophrenia: A Possible Etiology? Essay -- Mental Illness Health Ess

Schizophrenia: A Possible Etiology? As for me, you must know I shouldn’t precisely have chosen madness if there had been any choice. What consoles me is that I am beginning to consider madness as an illness like any other, and that I accept it as such. -in a letter to his brother Theo According to the National Institute of Mental Health, nearly 20% of the US population may suffer from a diagnosable mental illness in any given six month period (1991). Obviously the issue of mental health warrants close scrutiny, as such illness can translate into lost work days and lost dollars. From a health care perspective, many of those suffering can be relieved of their symptoms and return to normal life, so to speak. Schizophrenia, however represents one of the more disabling illnesses whose prognosis for the patient looks poor. Affecting nearly two million Americans, "schizophrenia" probably represents a grouping of many types of resembling illnesses (NIMH, 1991). Typically, the patient exhibits prodromal signs such as social isolation and withdrawal, role impairment, eccentric behavior, decreased affect, and disregard for personal hygiene. These then generally give way to intermittent psychotic episodes with intervening, sometimes long negative symptom periods. The so called positive symptoms of schizophrenia include disordered thinking and memory; the patient may display incoherent speech and rapid shifting to unrelated ideas. Delusions and false or bizarre beliefs, hallucinations, and perceptual difficulties also comprise the symptomology. Schizophrenic persons usually have an absence of feeling, a sense of remoteness and inappropriate reactions. Even more difficult to treat (Kandel) are the negative signs of poverty ... ...orks Cited: Kandel, Eric R. Disorders of Thought: Schizophrenia. pp. 854-868. Krieckhaus, E. E., Donahoe, John W., Morgan, Maria A. Paranoid Schizophrenia May be Caused by Dopamine Hyperactivity of CA1 Hippocampus. Biological Psychiatry. Vol. 31, 1992: pp. 560--570. Nasralleh, Henry A. Neurodevelopmental Pathogenesis of Schizophrenia. Psychiatric Clinics of North America. Vol. 16, no 2, June, 1993: pp. 271-279. National Institute of Mental Health. Caring for People With Severe Mental Disorders: A National Plan of Research to Improve Services. DHHS Pub. No. (ADM)91-1762. Washington, D.C.: Supt. of Docs., U.S. Govt. Print. Off., 1991. Wright, Padraig, Gill, Michael, Murray, Robin M. Schizophrenia: Genetics and the Maternal Immune Response to Viral Infection. American Journal of Medical Genetics (Neuropsvchiatric Genetics, Vol. 48, 1993: pp. 40-46.

Understanding the Value of Creativity in Advertising

Understanding the value of Creativity in Advertising Creativity is thinking new things. Innovation is doing new things. † (Theodore Levitt) In today’s media landscape where it’s very difficult to shape consumers attitude and intentions and move them to next level of buying process, advertisers find it even more difficult and challenging to break through the clutter of competing advertisement. The advertising industry has experienced dynamic changes over the last several decades.The changes have been good in terms of Technology advancement, Medium and more methods to attract consumers and on Creativity. This study represents how creativity impacted advertising and understanding the value of creativity in advertising through the Review of various literatures. The importance of creativity factor in advertising has got wide recognition by many researchers, practitioner, but there is a miss of true & systematic research to define advertising creativity and how it relat es to ad effectiveness.The review study discusses some campaigns that have left their strong impression on consumers. The presented review study tries to come up with some evidence of creativity by reviewing expert views, past literature in advertising and marketing. The study discusses different forum on how creativity works, and what makes an ad to travel good or poorly. It summarized the value of creativity in advertising through Expert interviews, published material and related secondary data to understand the logic. Methodology: This study used a review study method to analyze the secondary data & observations.David Ogilvy once quoted that â€Å"If it doesn't sell, it isn't creative. † In this review study researcher  has analyzed secondary data through the series of interview, expert comments, and live cases of various literatures and through live observations to understand the value of creativity in advertising. The review paper includes a various article, discussion and market insight from the leading marketers, creative director insights about how this promising form of advertising is constantly evolving. INTRODUCTION AND BACKGROUND: Creativity is seeing something new when you look at something old; it is all heart of civilization and is the driving force of revolution†-David Ogilvy It is an accepted fact that there should be an element of creativity in an advertisement. This creativity is something new, unique, extreme attractive and appealing to the consumers. In fact, advertising itself is a creative process. It is the outcome of long term planning and hard work on the part of the copy writer & creative director who prepares & shapes the final copy of advertisement. http://www. baclubindia. com /forum/files/37_37_creativity_in_advertising_project_report. doc In today’s media landscape advertisers find it even more challenging to break through the clutter of competing ads in order to shape consumers attitudes and intentions. A good alternative strategy to greater advertising spending may be more creative advertising. Understanding the fact that creative ideas do not come over night they are required to be developed through systematic thinking. Breakthrough ideas might appear to be instant or impulsive, but they are not.They are based on sound strategy, outstanding visuals and copy, and the correct application of timing and media. The art is in ensuring that all elements of communication work together so that the end result is more powerful and effective. http://crackminds. com/? p=221 There are much bold evidences that significant changes faced by this industry. Some of these changes are good: big ideas, innovative partnerships, & interesting new work, that show what advertising can do for brands.Advertising allows you to communicate a salient message to a large group of consumers faster than any other form of communication. It allows you to truly connect with your consumer; it gives you an opportunity to develop an ongoing relationship between the consumer and a brand. At its best, advertising will create a sense of urgency for the consumer, honest awareness and accurate that there are products, places, styles or sensibilities that cry out for attention or action.To do that there are various styles of advertising, a soft sell or a hard sell, a subtle approach or a blatant approach, an informative style, humor or a modern and edgy one. Style will always change: with the product or service you are selling; with the timing of the message and with the medium you are using. But important aspect is how you can engage your consumers to watch that Creative challenge you took with the blend of style.The important thing is finding the right balance between defining a good creative message and execution. The true craft is in identifying ways to interest consumers in what is being offered at the same time justifiable creativity. A creative strategy can put you on the right course, but in a wor ld filled with distractions and clutter you must develop communications that capture consumer attention and interest. The key is delivering the selling point in an interesting, single-minded, non-contrived manner.Some advertising sells brands. Great advertising also builds them. Advertising might, at times, trod on the fine line between creativity and ethical considerations. Creativity makes advertisement popular among the consumers and motivates them to purchase advertisement specific product. The advertising message is received well by the target audience for follow-up action. LEARNING FROM PAST: SOME HERITAGE BRANDS AND RECALL VALUE In India there are some brands who have acquired distinct space in consumer mindset.These brands played very important role in initial marketing era, and managed to become an unforgettable brand for Indian households. These brands have endured the test of time. Colgate Toothpaste, Vimal, Pear's soap, Mysore Sandal Soap, Woodward's Gripe Water, Dabur, Amrutanjan balm, Vicco, Pond’s, Surf, Amul and Prestige Pressure Cooker are symbols of heritage brands of India. Some of these brands are represent the Indian culture. Sometimes the brand relies heavily on product and price features, rather than advertising creativity.The recalled values of some of these heritage brands are higher than today’s brands, the Colgate’s Surkasha chakra, Vicco’s jingle â€Å"Vicco turmeric nahi cosmetic† Advice of lalita ji for Surf,† Surf ki khariddari mai hi samjhdari hai†, Bajaj with it all time hit tagline ‘Hamara Bajaj’, or it be Lux with tagline â€Å"filmi sitaron ka saundarya sabun†, & Dalda-vanaspati was a impressive success and ruled the perch during its time, the unforgettable Liril campaign, the ad was all about waterfalls, abundant water and the girl splashing about in total abandon singing â€Å"la la la la laaa†.The ad was major success & very much appreciated, at the same time it became the highest selling premium toilet soap in a period of two years. Basically Most of the Heritage brands appeal to many age groups, probably the product /brands is what used by one generation, had been used by the previous generation and is used presently by the current generation. Understanding the success mantra behind these heritage brands can be tough but there are strong evidence stating towards their advertising appeal.The uniqueness of the campaign leads towards the high recalling. The frequency of television commercial was less and during that era there wasn’t much competition and managed with only National TV channel, â€Å"Doordarshan† these brands made their presence heavily on consumers, whereas Today’s as a competitive market emerged in various categories i. e. soaps, shampoos, TV’s fridge, Air conditioner and computers so did the media options to reach more people. THE CAMPAIGNS: HOW CREATIVITY WORKS?The current scenarios focuses that advertising has altered in many ways, now advertising become more and more creative, and getting real. Creativity increases the brand value. There is enough evidence that value for a brand will be formed through creativity. With Pointing on India’s phenomenal growth, it has become even more important for ad agencies and their clients to gear up together to meet challenges that come with such expansion. Creative ideas have no boundaries, Ideas can strike anytime.A successful & great creative idea can give brands the required thrust to explore new heights. It is very important that with creativity involved in advertising it should not forget its basic agenda –of informing, convincing, and selling. Creative advertising needs to intelligent, sharp, imaginative to the point and extremely catchy. It must motive people to purchase advertisement product. The message and appeal made should be able to make positive impact on the consumers. The creativity develops n ew useful ideas which further fulfill the desired requirement.Creativity should focus the attention of the customer on the product and he must feel the urge to have that product for same benefit. This suggests that creative advertising should be able to create demand for the product when it is introduced for the first time. Some of the distinct creative ads impacted hard. VODAFONE’S Creation â€Å"The Zoozoo†: After successfully rebranding â€Å"Hutch to Vodafone† Vodafone Essar Limited, the India-based subsidiary of the global mobile network operator, Vodafone started expanding its presence in pan India.The new avatar of Vodafone is â€Å"Zoozoo† has created a new dimension of creativity. The Zoozoos advertising campaign highlighted the different value added service (VAS) offered by the company. This creative aspect got huge appreciation from the customer and they say you simply Love them and you just can’t ignore them. The Zoozoos were everywhere . The creative ad series of 30 TVCs, were Created by Ogilvy & Mather for IPL Season 2. The Zoozoos Coffee Mugs and T-shirts became instant hit in the market.Prior to this what Vodafone did to show the transition from Hutch to Vodafone, ad agency O&M launched a rather direct, thematic ad showing the trademark pug in a garden, moving out of a pink colored kennel symbolizing Hutch, and making his way into a red one (the Vodafone color). A more energetic, chirpier version of the ‘You and I’ tune associated with Hutch, plays towards the end, as the super concludes, ‘Change is good. Hutch is now Vodafone’. Public Awareness: A simple public awareness TVC shows a man manipulating a remote control toy car in an office set up.He receives a call and tries to answer it with continuing to manipulate the controls of the car. The car crashes. The message is clear and gets across with no extra layers. Driving while talking on a mobile can cause accidents. ‘IDEAâ€⠄¢ Cellular: The ideas of Idea cellular campaign were worked really well. It has been an interesting and almost ‘off the track’ ride for the brand belonging to the Aditya Birla Group. This cellular service used its brand name â€Å"idea† and real social issues to successfully showcasing its message in the consumer’s mind.The campaign shows ugly reality in the social and political arena in India, it’s very unique and different combination of creative aspect, â€Å"What an Idea sir ji† campaigns raised issues related to Caste wars, Education for all, Democracy, health Campaign, ‘walk and talk’. The creativity of ideas worked well, while the team is well aware that most of the solutions it propagates in its ads may seem improbable, but at least it makes people think. The job is done if consumer also starts saying â€Å"what an Idea, Sirji!! There are many creative ads which made a direct entry into customer mind.Camlin’s Per manent Marker made a distinct effect on the consumer it leaves Lowe Lintas, devised a cool concept for the brand to advertise the product. This time this is OOH advertising, the simple but eye-catching hoarding, with the three cut-out men having mechanically-backed moving limbs, trying to wipe off the words written in bright red, also displays the product – the permanent marker. The category of permanent markers are a very low involvement, in such scenario also ad agency had done clutter breaking, and at the same time, something that brings out the essage clearly – here the message being ‘permanent'. † WHAT MAKES ADS TRAVEL GOOD OR BAD; A REALITY CHECK There are numerous factors play roles in determining whether advertisement travel well or poorly. Marketers need to test multiple markets to get a full understanding of an ad’s likely effectiveness, but it becomes equally imperative to understand what it takes to beat the odds and create a truly Creati ve Advertising. The combination of creativity and the characteristics of ads that travelled well are, Children, Celebrities, Music, Humor and Emotions.In India presence of Celebrities makes a big difference and this can work across markets. True to the phenomena that the famous celebrity can contribute to an ad travelling well but the ultimately success comes down to the power of good copy. Humor, this word will now be associated with advertising for a long time to come. Humor can work greatly well, probably because it was cracked not long ago by the advertising fraternity, Or probably because the otherwise fretting Indian audience feels largely pepped up with humor in ads, and therefore, there are more chances of an ad acquiring mind space.Whatever be it, it's a formula which now everybody is trying hands on. Some ads are surely worth the effort. Particularly when it comes from visual and music, the examples can be ‘Happydent white’, and the great ‘Amul butterâ⠂¬â„¢ print series with â€Å"Amul girl† , ‘Fevicol’ ads, ‘Mentos’ , Vodafone ad Children in the ads can certainly help to travel well it is not simply the cuteness that adds to creative portability, but rather the child’s unique perspective and reaction to an event within the ads.An excellent example is â€Å"Dirt is Good or ‘Daag Achche Hai'† ad for Surf Excel, in which a brother â€Å"fights† the mud his sister fell into. And the recent on which shows a little boy pretending to be a dog in order to make his teacher, who has just lost her dog, smile. Of course, in the process his white uniform gets mud spattered and totally worthy of a Surf Excel wash. This one from Lowe Lintas tugs the heart strings. This campaign sticks to its ‘Daag Achche Hai' premise.Bank of India showing kid with piggy bank is yet another creative scoop. At the same time advertising that generates an emotional response also has its own benefit, like it can help generate engagement and memorability and it can help the emotions transfer to the brand shaping the brand perception. Dove’s real beauty campaign is perfect example. CREATIVE ADVERTISING: IS THERE A STRONG NEED: Most brands in the same category deliver more or less the same functional benefits and answer the same needs of the consumers.With so many products on the market having the same function, the only way to position a product, service, or company differently from anything else in the same category is through creative development in advertising. Today traditional advertising is losing its sheen. The biggest problem with traditional media is that consumers today have lots of choice for ad avoidance. The fragmentation is very high and there is very less scope of customized message for all. The Indian consumer has changed if we focus on this issue there is a lot more on the menu to choose from.Now the message unlike the past is no longer a one way process. But public opinion is far more mobilized, they have immediate platform for expression. The expert believes that the creativity in advertising could never exist in isolation without a context. The success of final product completely depends on empathy and the relevance of message it intends to deliver. The trigger for ideas and insights must necessarily come from the environment. The new millennium is just decade old, advertising, which is about creating demand, also has undergone a complete transformation.Many things have changed and many things have stayed exactly the same in this industry. The media agencies have witnessed the tremendous growth in skills set. If one critically analyze, â€Å"advertising reflects the mood of the times. The simplistic inform-persuade-sell mode worked beautifully for a long time but once communication became sophisticated, technology entered, there was a paradigm shift. Multi-tasking became the order the day. It is not uncommon to see today’s kids on the mobile while hitting the net, right?So in this age of Youtube, Twitter and Facebook, advertising content has to keep pace. It can’t be as direct, naive and simplistic as it once was. The new-age consumer would dismiss it, straightaway. † For hard-core information and details about products and services that are in the hi-ticket category, the internet provides it all; one doesn’t have to completely depend on advertising. So the job of advertising today is to primarily push the brand in an endearing fashion that triggers the recall factor, and examples discussed indicates that ‘creativity’ stored better recall value.Unlike other businesses, advertising is ultimately a people's business. Thus creative advertising that sells is the results of three ingredients: people, information, and environment. If you create the appropriate environment for creative people with right information, they can create great advertising. To make the right enviro nment, Ad people must bond together as a ‘team' not as individual. Therefore, creative advertising that actually sells is the result of ‘team work. ‘ This is one single most important characteristic of creativity in advertising business.Creativity resulting from ‘team work', effectiveness and communication, these are the key factors in successful advertising campaigns. The Ad agencies must strive for balance between them. How many TVCs of toothpastes, soaps, creams, shampoos, of different companies could were differentiated from one another? Examples are many, all toothpastes promises white teeth & fresh breath some shampoos promise Zero Hair Fall, another one promises Zero Dandruff and remaining guarantee strong, shine and strength.With creative ads they can certainly communicate it differently so as to create a distinct brand image in the minds of the consumer,† Consumers often remember and memorize the creative ads than the product; rarely any advert isement makes the product memorable. So understanding the various dimension of advertising creativity is important. To fully understand creativity, one would need to expose what factors are generally held to comprise it. Some dimensions are Novelty, Meaningfulness, Well Craftiness, Positivity, and Humor.

Open Versus Closed Innovation - Free Essay Example

Sample details Pages: 11 Words: 3264 Downloads: 2 Date added: 2017/09/15 Category Advertising Essay Did you like this example? A Critical Look at the Effects of Open Versus Closed Innovation In the Innovative Firms of the Twenty-first Century June 17, 2010 Abstract In today’s fast paced business world, which innovation method should companies adopt, open or closed innovation? In this paper we will explore the methods of closed and open innovation. Then we will explore the pros and cons of both innovation methods and discuss which method works better in the business world of the twenty-first century. After reviewing the results this paper explores the particle implications that innovative firms should be aware of regarding Open and Closed innovation and recommendations will be made for future research in this area. Introduction Background Looking back even a few decades companies viewed innovation strategies very differently then they do today. It was believed that successful innovation needed internal control and secrecy from others in the market. Don’t waste time! Our writers will create an original "Open Versus Closed Innovation" essay for you Create order Large corporations used to dominate the field of innovation because they were the only ones who could afford to invest it large scale RD. Any company that tried to enter the market would have to find large amounts of resources to be able to even attempt to compete with the RD of the large corporations (Chesbrough, 2003; Herzog , 2008; Aylen, 2010; Kodama, 2005; Trott Hartmann, 2009). In the current economy start-up companies have found ways to bypass the large RD investments of the past. Instead of doing their own research these new entrance are getting their knowledge and technology from outside their company by either investing in relevant startup companies, or partnering with other companies up, down or horizontally on the value chain (Chesbrough, 2003). With the expanding options on how to obtain innovative ideas, processes, and products the big question remains should companies used a closed or open approach to innovation? And does the open and closed methods work for all companies? (Almirall Casadesus-Masanell, 2010) In this paper we take a critical look at what closed and open innovation is, what the pros and cons are to both options, and try to determine if one method is better then the other in this current economy. Closed Innovation The main theory behind Closed Innovation is the belief that â€Å"successful innovation requires control† (Chesbrough, 2003). Companies that follow the Closed Innovation (CI) model (see Figure 1) believe in self-reliance and that they should follow these rules to succeed: †¢ â€Å"A firm should hire the best and smartest people Profiting from innovative efforts requires a firm to discover, develop, and market everything itself †¢ Being first to market requires that research discoveries originate within the firm †¢ Being first to market also ensures that the firm will win the competition †¢ Leading the industry in RD investments results in coming up with the best and most ideas and eventually in winning the competition †¢ Restrictiv e IP management must prevent other firms from profiting from the firm’s ideas and technologies† (Herzog, 2008) CI companies attempt to do everything on their own from innovative ideas, development, manufacturing, advertising, promotion, distribution, service and even financing. If the innovative ideas or projects are not pursued or are discarded part way they are stored internally and will not be profitable to the company or useful to the rest of the world unless they are used internally at a later date. This creates a great loss of many potentially reat innovative ideas, products, services, and processes. If a company chooses CI it can be expect that many innovations will be lost as companies do not have the ability or resources to turn every idea or technology into a successful innovation the market can use. The main reason a company would choose CI would be because they are scared of having their intellectual investments stolen by their competitors (Herzog , 2008; Chesbrough, 2003). [pic] Open Innovation Companies have reached the understanding that not all innovations have to originate internally and that if they do have an internal innovation and do not have the ability to act upon it they can still profit from it by partnering, joint ventures, licensing or selling the innovation to another company. In Open Innovation (OI) companies must find a balance between keeping important internal secrets and still working with other companies to gain and produce valuable ideas, processes, resources, finances and support (Herzog , 2008). Companies that follow the OI model (see Figure 2) believe in the following principals: â€Å"Not all of the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company †¢ External RD can create significant value; internal RD is needed to claim some portion of that value †¢ We don’t have to originate the research in order to profit from it †¢ Building a better business mode l is better than getting to market first †¢ If we make the best use of internal and external ideas, we will win †¢ We should profit from others’ use of our intellectual property, and we should buy others intellectual property whenever it advances our own business model† (Chesbrough, 2003) OI encourages the joining of resources from firms across all aspects of the value chain. Companies now realize that innovations they can’t use or can be used further by other companies can lead to additional profits that they could have never obtained on their own (Almirall, Casadesus-Masanell, 2010). Kodama, (2005) expands OI even further to talk about creating strategic communities (See Appendix 1), a convenient process of speeding up a firms innovation. To be able to quickly acquire a variety of knowledge of great use, managers from different areas, from inside and outside the firm, can make a strategic community with internal and external members, which could involve customers. A huge benefit is that strategic communities are not bound by the same limitations as the official organization. Now that we have explored what CI and OI is we will now go on to look at why one of the methods might be better then the other for companies competing in the twenty-first century and why companies decide to choose one either CI or OI. Open versus Closed Innovation OI involves risk such as knowledge and sensitive information leakage and the risks must be weighed against the benefits that would be gained from participating in OI. One more trouble with OI is that well some areas open up to help the flow of knowledge it has been found that to keep sensitive information secure there has actually been a reduction in the amount of information being share between internal departments which could effect the companies internal innovation (Trott Hartmann, 2009). It has been found that OI is especially needed in fields such as knowledge-intensive industries where competition is strong and companies need to work together to be able to gain a competitive advantage in the field (Trott Hartmann, 2009). Almirall Casadesus-Masanell, (2010) study showed that OI works better then CI for partnerships that are fixed and have low to medium complexity levels but they also found that when there is high complexity involved that CI is the best method to follow. Another discovery was that the benefits can be greater in flexible partnerships over fixed partnerships. â€Å"The model of flexible partnerships ffectively says, If you c an’t figure out how to put the pieces together internally (configure two subsystems optimally), it is critical to have lots of different pieces (complementary subsystems) to choose from and know how to put them together externally. † (Almirall Casadesus-Masanell, 2010) Chesbrough and Crowther (2006; as sited in Aylen, 2010) said that OI is a useful concept for innovation â€Å"beyond high technology and is appropriate for traditional and mature industries†. A big contrast between OI and CI is how they go through their idea lists. CI managers go through and proceed with the ideas they see as beneficial to their company and discard what they see as bad ideas or ideas they know their firm does not have the resources to accomplish. Whereas a OI manager would go through their idea list and sort them into three categories, innovations their company can pursue internally, ideas they can approach other companies about, and ideas that will not work at all. Therefore the OI model gets to profit from the ideas that the CI model would have otherwise discarded or stored for a later date (Chesbrough, 2003). Even though OI has been adapted by many organizations as the best way to be successfully innovative the theory is not perfect. Trott Hartmann, (2009) point out that OI is very linear and does not suggest any â€Å"feedback or feed-forward mechanisms† unlike the newer innovation models such as the â€Å"Cyclic Innovation Model† (Berkhout, AJ, Patrick van der Duin, Dap Hartmann Roland Ortt, (2007), cited in Trott Hartmann, 2009). This newer model suggest feedback and feed-forward techniques and also that the innovation process is cyclic, meaning new innovations grow from older innovations. CI has been very successful for some companies such as Apple they swept the market with the iPod and this strategy and product put them back into the playing field after have been struggling for years to catch up with the innovations of other major players. Another example of CI is the Wii by Nintendo which was extremely innovative with their new product features (Almirall Casadesus-Masanell, 2010). Some very large companies have tried CI techniques and had some devastating effects as a result, such as IBM and Xerox but both these examples were able to overcome these problems with the help of OI techniques. Procter and Gamble and Philips have successfully adapted OI and have gone so far as to hold conferences on the topic and even published their own reports on the subject. Trott Hartmann, (2009) provide a list of companies and the reasons they choose to become part of a strategic alliance (See Appendix 2). It has been noted by Chesbrough, (2003) that near the end of the 20th century a number of things happened that caused CI to be taken into question by many firms. Firstly, knowledge workers were starting to move easily from company to company as well leaving to start their own firms and this put the original firms innovation secrets in jeopardy and companies realized that if they wanted to profit from their work they had to find ways outside their company to do so and in a timely fashion. Private venture capital companies also had major growth in this period and they were benefiting in large scales from the spill over knowledge of the large corporations that were just trying to store their unused innovative knowledge. So the question still remains what is the best technique for companies to adopt? Form all the literature reviewed it seems that a fully CI company does not exist any more but instead there are different levels that companies can be at between CI and OI (Teresko, 2004). It seems companies must look at their goals and the different ways they can achieve them and then evaluate the pros and cons of the two methods and then decide whether or not they should choose CI, OI and some combination of both (Trott Hartmann, 2009). Practical Implications The following are benefits that Vanhaverbeke, Van de Vrande, Chesbrough, (2008) suggest can come from participating in OI although they stress that companies have to work at obtaining them by acquiring new techniques and skills and learning how to work with other companies so that both parties fairly benefit from the OI method. i) â€Å"Benefits from early involvement in new technologies or business opportunities ii) Delayed financial commitment iii) Early exits reducing the downward losses iv) Delayed exit in case it spins off a venture† If management decides to follow an OI strategy they must realize there are costs to this choice. Firstly, companies lose some measure of control whereas in CI they would have full control. Secondly, profits and credit must be shared but it also must be remembered that with CI losses would have to be fully covered by the sole firm involved (Almirall Casadesus-Masanell, 2010). OI gets rid of many barriers that used to block innovation such as technology limitations, corporate limitations, and geography boundaries. OI allows companies access to innovation that would have otherwise been impossible for them to reach because of the time it would take and the money it would cost to produce. What many people forget is it is not just new products that are the main benefits of OI but a huge benefit is the enhancement to the companies production processes due to knowledge obtained through OI (Teresko, 2004). Many new products only exist today because of OI, as today’s products span many different industries that would have otherwise never connected (Kodama, 2005). Kodama, (2005) covers some important implication for managers to be aware of when using OI in strategic communities (see figure 3). Management will not only have to be able to deal with issues internally but they will now have to have the skills to deal with other companies both locally and internationally. They must have skills to negotiate and understand the implications of partnerships even in industries they may not be familiar with. Future Research It was suggested by Trott Hartmann, (2009) that there tends to be less information sharing between internal departments when participating in OI, o help keep sensitive information from leaking, further research should be done to find out how much this effects the internal innovation of a company and if the internal secrecy is worth while in light of what is being obtaine d from OI practices. Future research is also need on when OI is not good for companies and in which instances would it cause more damage then good (Vanhaverbeke, Van de Vrande, Chesbrough, 2008). Chiaroni, Chiesa, Frattini, (2010) have recommended a study into whether or not OI is as effective in government run businesses as privately run businesses. Other scholars are invited to research further on the management styles that best work with obtaining the full benefits from OI innovation. It would be helpful for companies to know what type of manager they should put in charge of coordinating OI efforts so benefits are not lost. Research would also be recommended in the area of how OI and CI can work in the same firm and how this would effect the internal culture of the company. This could help managers understand what they will be facing if they implement a combination OI and CI strategy (Broring Herzog, 2008). We have reviewed what CI and OI is, the practical implications and the future research opportunities we will now wrap up the critical review with an overview about whether CI or OI is better for the company of the twenty-first centery. Conclusion Many companies follow OI because it helps with the risk of financial loss as well as creating great opportunities to absorb new knowledge, ideas, skills, techniques, and processes (Vanhaverbeke, Van de Vrande, Chesbrough, 2008). One of the greatest reasons OI seems to work is that different companies have the ability to look at problems and innovative ideas from completely different ways, this creates new innovations that would have otherwise never existed if OI practices had not been in place. This allows companies to profit from innovations that they would have otherwise never pursued either because of resources, knowledge, skill or industry type (Almirall Casadesus-Masanell, 2010). Teresko, (2004) cleared up any confusion about OI very well by saying â€Å" Open innovation does not mean outsourcing RD, nor does it mean closing down internal RD. It is a strategy of finding and bringing in new ideas that are complementary to existing RD projects†. It was stated by Trott Hartmann, (2009) that even companies labelled CI often have some aspects of OI to them and that in this day and age except for a few niche and extremely specialized fields most follow at least to some degree a belief in OI. Companies must remember that they will not succeed if they get comfortable and just remain satisfied with there current products, processes, and customers, the business world is in constant change and companies must keep up or they will soon lose their market share to a company that is more innovative (Broring Herzog, 2008). Broring Herzog, (2008) further go on to mention that firms need to be â€Å"ambidextrous† they need to be able to figure out which areas should be CI and which should be OI. Many innovations these days are so complex and have so many aspects that there is no other way to make them then by using an interdisciplinary approach. So to attempt to answer the question what is the best innovative model for the innovative company of the twenty-first century? Well, most of the research reviewed for this paper seems in common agreement that a fully CI company no longer exists and that most companies do best somewhere in-between the reams of CI and OI and the type of industry their in will help them decide which end of the spectrum they are at. It seems companies must look at their objectives and the variety of ways they can achieve them and then evaluate the pros and cons of the two methods and from there decide whether or not they should choose CI, OI and some combination of both (Trott Hartmann, 2009). Appendix 1 Strategic Communities (Kodama, 2005) Appendix 2 Compilation of reasons for entering a strategic alliance. (Trott Hartmann, 2009) References ALMIRALL , ESTEVE, CASADESUS-MASANELL, RAMON. (2010). Open versus closed innovation: a model of discovery and divergence. Academy of Management Review,  35(1), Retrieved from https://web. ebscohost. com. proxy. ufv. ca:2048/ehost/detail? id=5hid=11sid=af6c67d1-ada3-422e-9c05-8e629026d49b%40sessionmgr13bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buhAN=45577790 Aylen, J. (2010). Open versus closed innovation: development of the wide strip mill for steel in the united states during the 1920s. 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MIT Sloan Management Review,  44(3), Retrieved from https://proxy. ufv. ca:2048/login? url=https://search. ebscohost. com. proxy. ufv. ca:2048/login. aspx? direct=truedb=buhAN=9547972site=ehost-live Chiaroni, D, Chiesa, V, Frattini, F. (2010). Unravelling the process from closed to open innovation: evidence from mature, asset-intensive industries. RD Management,  40(3), Retrieved from https://proxy. ufv. ca:2048/login? url=https://search. ebscohost. com. proxy. ufv. ca:2048/login. aspx? direct=truedb=buhAN=50315551site=ehost-live Herzog , Philipp . (2008). Open and closed innovation . Retrieved from https://books. google. ca/books? id=JgD4Kn8k2BcCprintsec=frontcoversource=gbs_ge_summary_rcad=0#v=onepageqf=false Kodama, M. (2005). How Two japanese high-tech companies achieved rapid innovation via strategic community networks. Strategy Leadership,  33(6), Retrieved from https://www. emeraldinsight. com/Insight/viewContentItem. o;jsessionid=4A4348BE11DE94C824D6C71C26907070? contentType=ArticlecontentId=1524443 Teresko, J. (2004). Open innovation?. Industry Week/IW,253(6), Retrieved from https://proxy. ufv. ca:2048/login? url=https://search. ebscohost. com. proxy. ufv. ca:2048/login. aspx? direct=truedb=buhAN=13637415site =ehost-live TROTT, P, HARTMANN, D. (2009). Why ‘open innovation’ is old wine in new bottles. International Journal of Innovation Management,  13(4), Retrieved from https://www. swetswise. com. proxy. ufv. ca:2048/FullTextProxy/swproxy? url=https://www. worldscinet. com/150/13/preserved-docs/1304/S1363919609002509. pdfts=1275843853701cs=1612915441userName=8900000. ipdirectemCondId=890000