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What is considered to be innovative; respectively, what distinguishes an innovative technology from a regular, non-innovative, technology? According to Joseph Schumpe- ter, innovation is based on economic and technological improvement. However, the new combination or alteration of existing production factors or processes can, from a busi- ness perspective, also constitute innovative character for a company. It should also be noticed that there is a great distinction between invention and innovation. Schumpeter states in this regard that an innovation is the successful penetration of a technical or organizational improvement - the invention alone is due to its missing successful achievement not enough.
For example, the invention of the internet became an innovative technology in commer- cial and private life only at that point when people began to use, work and play on it. One must also distinguish between the appearance and origin of an innovation. Copying or taking over technologies for ones own products may look from the outside as innovative; the source origins however from another party. The outcome is called plagiarism. Telecommunication is a broad expression for the exchange of information over a longer distance normally transmitted via electromagnetic waves.
The transformation of our society towards a knowledge- and information-oriented one opened up a great need and a great variety of ways for transmitting information. Therefore, the discussed TTs in chapter three are only a selective, business-relevant, and exemplary assortment for the telecommunication industry of today.
The term logistics chain is not determined in one general accepted definition, but it ra- ther contains several aspects that lead to its meaning. Logistics itself is characterized as the functional aspect of a company dealing with the movement of those materials through the supply chain.
Consequently, the logistics chain is con- cerned with the smooth material flow in an organization, as well as ensuring the flow among other preceding and subsequent organizations, like manufacturers or suppliers, distributers, shipping companies, or retailers.
Thus, the aspect of the logistics chain as a holistic, embedded function in a network of organizations needs to be highlighted in order to confine the logistics chain to the isolated function of transport logistics, for example Vahrenkamp, , p. Nevertheless, the modalities of the transport logistics transportation by the means of vessel, airplane, train, or truck take in a significant role in the logistics chain.
After the underlying terminology has been defined and explained, the connection be- tween these points needs to be brought together. Innovative technologies can serve for leveraging existing logistics chain operations by supplementing and improving them. They may open up new possibilities to ensure and add value beyond the idea of the effi- cient flow of materials. In the following parts, more specific innovative technologies, namely the TTs, are being introduced, and its potential and role in the logistics chain discussed. Based on the understanding of the previous chapter, this part aims to introduce and discuss the various TTs in accordance with a self-developed framework which illustrates where in the logistics industry, or, in a narrower sense, where in the logistics chain these TTs can come into operation.
Exhibit 1 provides this illustration on p.
On the top, the various steps in the logistics chain are displayed. Beneath it, the multiple application areas for the following TTs are shown. The Global Positioning System GPS is a technology based on a satellite system which has the main purpose of offering information about the coordinates longitude and lati- tude of a geographic location to devices that operate on it.
However, the starting point for the GPS development lies in the US American military and therefore only allows the provision of coordinates within a specific tolerance area for civil and commercial use. On the other hand, GPS-based devices have well-established the display of direction readings, calculation of distances, as well as the indication of velocity of the attached object.
For the logistics area, GPS conduce to both, navigation of vehicles and cargo tracking and tracing. The uniqueness of this technology lies in the global reach and coverage. Its purpose is to improve GPS in terms of quality of accessibility number of simultaneously accessible satellites as well as accuracy the radius in which the coordinates of a location is given Moudrak et al. The Universal Mobile Telecommunications System, or UMTS, is a fairly new technolo- gy which belongs to the so-called 3G third generation technologies in the mobile radio industry. It is a mobile radio standard which allows higher data transmission rate com- pared to first and second generation technologies, like GSM.
The uniqueness of UMTS, however, is its potential to provide new possibilities of multimedia communication by allowing higher interaction among other technologies, like Bluetooth, or Infrared. Radio Frequency Identification, or RFID, is probably the most recent and most captivat- ing emerging technology which supplements or substitutes existing conventional bar- code technology for automated identification, tracking and tracing purposes. The idea behind this technology is to minimize the effort and involvement performed by human personnel which is needed in the process of identifying inventory or cargo.
The most significant difference to traditional printed barcodes is the ability of RFID tags to store and retrieve several types of data. Hence this technology goes beyond providing exclu- sively an identification number as it is the case with traditional barcodes.
In general, there are two types of RFID tags - passive and active ones. Passive tags pri- marily serve to simplify the accurate, efficient and freehand retrieval of shipment in- formation in order to improve item visibility United States Government Accountability Office, The main purpose of this undertaking is, however, to get hold of inventory management, while eschewing stock-outs which would result in unnecessary costs for Wal-Mart Tierney, They possess their own internal power source which actively broadcasts signals.
As indicated in the framework, their use exists primarily in in-transit visibility issues. Even though, this technology promises a lot of advantages, as well as the option for reusability, there are also several drawbacks related to it. First of all, and most impor- tantly, the costs are still too high to promise extensive and cost-effective operational adaption. Secondly, there is no global standardization and certification in place, as for example done by the International Organization for Standardization ISO.
Finally, there is the question of the interference in privacy infringements. Even with new generation two RFID tags, sensible personal information that is stored will be unaware of the affected individual vulnerable to external abuse. The corporate intention so far, and in particular the field of application in the logistics chain of RFID technology, is that tags can provide asset visibility.
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