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Lack of information sharing in innovation

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Lack of information sharing in innovation

  1. Lack of information sharing is a hindrance to innovation in the supply chain at Huawei. Huawei is a company whose main activities include the sale of telecommunication equipment and consumer electronics. This implies that the company has a lot of information in the data they collect over time. The information collected by Huawei is personal data. Sharing of this data with another company for the purposes of the supply chain implies that personal data lands in the hands of a third party without the consent of the individuals. Sharing of this data is important for the supply chain collaboration but sharing is prohibited by the possible repercussions of infringement of personal data.
  2. There exists an opportunity for collaborative innovation between Huawei and Aliexpress. Aliexpress is an online shopping platform that is available all over the world. Huawei ranks below other companies in the same field in terms of the market share. This includes Samsung. The market share in developing countries is relatively small fro Huawei. Aliexpress as an online sales platform reaches most parts of the world and has a presence in third world countries. In this collaboration, Huawei would mainly be involved in the production of consumer electronics and telecommunication equipment while Aliexpress would be involved in the distribution and marketing. The use of an online platform with a presence in most parts of the world would serve customers in the majority of places anywhere in the world. The collaboration would help Huawei in the delivery and return stage of the supply chain.
  • Governance is responsible for the implementation of all policies in the industry. Innovation is both risky and has the potential to be highly beneficial if implemented properly. In the industry where Huawei is found different policies such as the governance of market transactions and vertical integration have been adopted. The market transaction governance in the industry allows for the companies to take advantage of the divisions of labor. Divisions of labor increase production levels at the company. Vertical integration in the market implies that all products from the companies have to undergo value addition. Value addition implies that raw materials are processed to manufacture electronics and networking equipment. This implies that companies such as Huawei are able to make items such as phones, routers, network cables, and circuits for these devices hence enabling them to take advantage of the transactions that happen day to day in the supply chain of the smartphone and telecommunications industry.

 

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