Important product innovation often involves standardization of product traits and mass-manufacturing. This paper examines the market outcome and social-welfare property of product innovation concerning mass-manufacturing. It’s far proven that the percentage of mass-manufacturers has tendency to be larger than the social most efficient. The equilibrium percentage of industrially produced merchandise is determined by the indifference circumstance of the marginal consumer, at the same time as the most excellent percentage is based on the indifference circumstance of the common client. For the reason that marginal customer’s gain of the usage of neighborhood products is lower than the common purchaser’s, clients flow to mass-produced merchandise extra than preferred. But, if there may be tremendous externality amongst customers in the usage of mass-produced merchandise, the market might also have a couple of equilibrium and the realization of immoderate percentage of industrially produced merchandise in marketplace equilibrium may be reversed.
Mass manufacturing depends on utility of the principles of specialization, department of labour, and standardization of components to the manufacturing of goods. Such production strategies obtain excessive prices of output at low unit fee, with decrease expenses expected as extent rises. Mass production methods are based totally on two general standards: (1) the department and specialization of human labour; and (2) using equipment, equipment, and other gadget, typically automated, within the manufacturing of fashionable, interchangeable elements and merchandise. The use of modern methods of mass production has brought such improvements in the cost, quality, quantity, and variety of goods available that the largest global population in history is now sustained at the highest general standard of living.
Technology Driven Innovation:
Technological innovation is a concept this is featured throughout headlines almost each week. Traits in nations around the world are sparking a new generation of business tools that force executives to rethink fundamental strategies and structures. However, there is one offset of generation improvements that most businesses need to remember and target – productiveness. As technology’s overall performance and effect grows, business equipment grow to be smarter and quicker and the entire network of offerings will increase at an inexpensive price. FastTrack CEO, David Page, believes the relationship between productivity and innovation needs to well understood and explains why it is important they work in unison, particularly in the recruitment industry. “This is a period of enormous disruption in the industry driven by new technology. Traditional pricing models are broken with lower margins and competition has never been fiercer. More than ever there is the need for real innovation by our clients to exploit new technology to differentiate and become more productive,” he said. Innovation can be described as new ideas that can be quickly brought to market for growth and profit. As business processes are always changing and evolving, it makes measurement of productivity the indicator of success. Mr. Page said that the industry has come to the point where technology isn’t questioned as being absolutely necessary for success, but businesses now need to be focused on how well it is implemented to ensure that real productivity gains are being achieved.
Mr. Page believes there can initially be some conflict between productivity and innovation as different levels of the business are looking for varied outcomes. “Management is looking for short term wins, but innovation can take some time and some investment,” he explained. “Sometimes you have to be patient for the innovation that you are putting through your business to actually get the returns you are looking for.”