Dynamic Efficiency PDF

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Dynamic Efficiency Defini t i onofDynami cEffici ency Dynamic efficiency occurs over time and is strongly linked to the pace of innovation within a market and improvements in both the range of choice for consumers and also the performance / reliability / quality of products. Dy nami ceffici enc yi sconcer nedwi t ht hepr oduct i veeffici enc yofafir m ov eraper i odoft i me. Afir m whi chi sdynami cal l yeffici entwi l l ber educi ngi t scostcur v esbyi mpl ement i ngnewpr oduct i on pr ocess es.Dy nami ceffici encywi l l enabl ear educt i oni nbot hSRACandLRAC. Diagram showing dynamic efficiency

Ther ef or edy nami ceffici encyi sconcer nedwi t ht heopt i mal r at eofi nnov at i onandi nv est mentt oi mpr ov e pr oduct i onpr ocess eswhi chhel pt or educet hel ongr unaver agecostcur v es. Forex ampl e,i nv est menti nnewmachi nesandt echnol ogymayenabl eani ncr easei nl abourpr oduct i vi t y . Dynami ceffici encymayal soi nv ol v ei mpl ement i ngbet t erwor ki ngpr act i cesandbet t ermanagementof humancapi t al .Forex ampl e,bet t err el at i onshi pswi t huni onst hathel pt oi nt r oducenewwor ki ngpr act i ces. Dynami ceffici encyi nv ol vesat r adeoff.Toi nv esti nbet t ert echnol ogymayi nv ol v ehi ghercost si nt heshor t r un.But ,wi t houtt hi si nv est mentandi nnov at i on,t hefir m maybeunabl et oi mpr ov eovert i me. Factors that affect dynamic efficiency    

I nv est ment–i nv est menti nnewt echnol ogyandi mpr ov edcapi t al canenabl el owercost si nf ut ur e St at eoft echnol ogy .Ther api ddevel opmentoft echnol ogycanenabl efir mst opr oducemor ef or l owercost s . Themot i v at i onofwor k er sandmanager s–domanager shavei ncent i v est ot ak er i sksandi nnovat e ori st hest r uct ur eoft hefir m setupt oencour agest agnantdevel opment ? Accesst ofinance.Afir m wi t houtaccesst ofinancewi l l st r uggl et oi nv esti nnewcapi t al whi chwi l l enabl el owercost s . Examples of Dynamic efficiency I n1923,Henr yFor d’ scarf act or ywasoneoft hemosteffici entfir msi nt hewor l d–maki ngt hemost effect i v euseofassembl yl i nes.Thr oughoutt he1920sand30s,For dwast hemosteffici entcar pr oducer . Howev er ,byt he1950sand60s,i twasst ar t i ngt ol osei t scompet i t i v eadv ant ageasJapanesecarfir ms i nnov at edandi mpr ovedqual i t yofcar bui l di ng. Att hest ar toft hei nt er net ,Yahoowast hedomi nantsear chengi ne,buti tqui ckl yl osti t sposi t i ont oanew ent r ant–Googl e.I nani ndust r yl i ket hei nt er net ,afir m cannotst andst i l l buthast obecont i nual l y i nnov at i ngandi mpr ovi ngt hequal i t yofi t spr oductandl ower i ngcos t s....