Innovation Article Reviews: Example Problems
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Article 1: Provide a review on any of the following topics. Please include reference/website to article.
1. Failure, risk and measuring in innovation
2. Company culture & architecture
3. Outsourcing
Article 2: Provide a review on any of the following topics. Please include reference/website to article.
1. The innovative organization
2. Discontinuous and disruptive innovation
3. Leadership
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Provides 2 article reviews.
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Article 1:
Outsourcing
The main reason why many companies are considering outsourcing is due to its cheap labor costs. However, these low costs bring with them challenges for our economy and our country as a whole. Kimes (2007) stated that "low cost comes with risks" (para. 4). Not only that cheap labor costs bring challenges, it is also a short-term solution. While the company enjoys its benefits from outsourcing, not every individual enjoys this move. Jenkins (2006) argued that outsourcing is not beneficial to a growing company unless it is used strategically to enhance the company's growth by cutting time.
Outsourcing will cost a lot of people their jobs. The United States economy is losing higher paying jobs at the expense of cheaper performance. U.S. white collar jobs and back office work are all at risk of being outsourced. Budman (2007) stated that 2.5 million manufacturing jobs were lost in the last 3 years due to outsourcing. Moreover, job security is compromised in related fields. Aspiring engineers fear paths such as information technology, research, and development. The interests for many fields will dwindle due to the jobs outsourced, causing us to lose our competitive edge. This is a direct reflection to the decline of the American economy, as American workers lose their jobs due to outsourcing (Lepkowski, 2007). Baily and Farrell (2007) stated that these American workers who lose their jobs have a hard time looking for a new job or end up accepting jobs with lower wages. As jobs lost, it also gives burden for the American employees to seek retraining. In addition, outsourcing is adding more risks to the American workers while they are already experiencing risks due to technology. "Automated voice-response systems are replacing call-center workers, online hotel and airline booking systems are replacing five operators and travel agents . . ." (Baily & Farrell, 2007, p. 157). As a result, there is an increase in the number of Americans at poverty level income leading to lower standard of living as demands decrease.
Even though outsourcing gives benefit to the American company, it also brings cost to the company. When company outsources things like payroll, transcription, etc., those things can be compromised. Extra processes will need to be put into place to ensure that doesn't happen and that can require added expense and training. American companies also have no control over the work processes as the work is not done in their presence. It is important to all companies to monitor work. However, when outsourcing, it is more difficult to manage the work being done. Holman (2007) ...
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