Telefonica refers to one of the major Spanish operator in the telecommunication sector all over the world. Its main focus is on providing information, entertainment and communication solutions to consumers. It has a large customer base all over the world of about 300 million people and runs its operations in 25 countries mainly in Latin America and Europe. According to the telecommunication sector worldwide the company is ranked eighth in terms of market capitalization, position fifteen in the Euro stock exchange ranking and finally the first one in terms of the integrated operator in Europe (Telefonica 2010, par 7).

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Innovative Technology Management by Telefonica Company

Due to changes in technology and economic all over the world the company is forced to embrace innovation as the major aspect of management so as to achieve its target goals and minimize on the operational costs. This system of management is to take place in three phases namely: implementation of an innovation platform locally, development of capabilities so as to reduce on the long term business chances and finally providing a global challenge to the competitors and other partners. This will be ensured by allocating more capital to research and development departments with the objective of getting a unique version of products and continue growing the ICT industry (BBC 2005, par 9).

In order to follow up all major innovations within the Company, there will be an open innovation model established to manage the technological innovations. This will focus on applied research that is in line with corporate strategy, offer support to the technological firms through the risk capital fund, luring customers into the innovation programmes, liaise with institutions of higher learning in projects and by taking part in all technological programmes aimed at boosting entrepreneurial development and research at both international and domestic levels (Roffe 2004, p. 42). The end results for the innovation technology management system will be an efficient communication between the employees of the company, the company and its customers as the people's mobility concept will be upheld and nurtured properly. Both the operating and maintenance costs will be reduced hence maximum profits realized by the company.

Future of Telefonica Company in Embracing Technology Roadmap

By embracing the wireless technology, the future communications between individuals will be in a natural manner. This will be supported by the application of the internet technology and Smartphone’s where videos and multimedia services will be encouraged in all communication vessels (Peter 2002, 73).

With the application of the wireless communication by the company advanced solutions will be launched to the prblems emanating in the businesses involving information communication technology (ICT). They include remote health where there is poor surveillance and support platforms to monitor the patients in various healthcares efficiently. Another advantage of the innovation technology will include uniform computing, which will capitalize on the resources available on the website to advertise, print and even distribute the applications (BNET 1999, par 5).

Intelligent space will be created in cities, cars, social places and even homes due to the wireless technology innovation by Telefonica Company. This will be in terms of increased content accessibility and evolution of the internet where more ideas and innovations are realized every moment. The future of the company will be bright in the next five years due to the technological innovations as there will be machine to machine service management. In the long run, people’s mobility will be conceptualized as the management system is pegged on the energy efficiency. Proper analysis of the user profiles will provide opportunities for business and service models which will aim at advertising and personalize the services, which in turn will check on turnover rates (Telefonica 2010, par 8).

A good example of these technological innovations is the Wayra, which was launched by the Company in 2011. This has been helping gifted entrepreneurs to accelerate their projects by using the appropriate mentor network and obtaining some financial assistance through the fund kitty initiated by the company. The program analyzes the proposals submitted by individuals based on innovation, technological originality and opportunity attraction before considering it for funding (BNET 1999,par 4).

In the next five years, Telefonica Company might be the leading telecommunication company in the whole world and more specifically in Spain and Latin America. This will be ensured by the already established rehabitic product in the market. This embraces the use of wearable wireless technology, which senses technology originating from Shimmer research. In regard to the health care sector which is vital to human growth and survival, then there will be a relief (Schmidt & Evan 2000, p. 37). For instance, patients with a knee replacement surgery and in need of further physiotherapy procedures will get the services in their homes comfortably without necessarily visiting the hospital. The clinicians will be able to monitor all the recovery sessions from the hospital as the patients affected knee is attached in front of a touch screen P.C where the instructions are administered with the help of software. The movement of the patient is in real time and always displayed on the screen known as avatar, which eventually gives the feedback to the clinician in charge. Afterwards, the assessment is carried either offline or real time and appropriate measures taken accordingly (Wily 2010, p. 45).

In order for the Company to ensure a cloud-based management system, then the mmachine to machine connection platform should be developed. This kind of innovation will provide customers with visibility of all SIMs connected to any mobile network. In the long run, the customers will be able to view the connectivity of different devices, offer support and even manage events in real time. Through this kind of system, new solutions will be established in the interconnected system where the challenges facing Smart cities can easily be managed. Another sector to be improved will be the eco-system, which is vital to the existence of human beings (ILO 2010, p. 19).

The resurgence of new connected devices both by vendors and other partners across the communication industry will be noted. Eventually, the customers will be fully fed with instant activated devices, detailed bills and real time tools that will guarantee the support of customers. Introduction of a new brand model by the company also will enable easy application of innovation technology. This aims at boosting the integrated system of operation that will involve all products and services (Chavez 2010, p. 57). By inventing some brands that will focus on the experience of customers, then the trademark will emerge strong. Therefore, marketing and communication will be more efficient and thus having an upper hand against the competitors in the industry. The major brands for commercial purposes all over would be Movistar and O2, which will be adopted to bring some difference in the market (Telefonica 2010, par 27).

Challenges Facing the Wireless Approach Management System by Telefonica

The most promiscuous challenge, when establishing this new wireless system, would be retention of customers and orientation to the new system from the old one already adopted by most of the loyal customers. Other rival communication industries will of course capitalize on this upgrading phase to win over more customers, and cite the weaknesses in the new system (Routledge 2009, p. 23).

A lot of capital will be required in launching up this integrated system, hence a decrease in the estimated annual profits of the company. New technologies’ will require very qualified personnel in running the system, which will have a negative effect on the financial status of the company. The efficient and synergized projects will require an extra cost from the conventional fixed and wired networks (BBC 2005, par 6).

The countries regulations on the telecommunication industry will be a hindrance, as there are requirements to be fulfilled before setting up any new communication system. One has to obtain a communication license which comes at a good cost. All these are preventive measures put in place by the government in order to cushion the consumers of these telecommunication services. The taxation is also heavy on this new communication services basing on the inconveniences the consumers will adjust so as to adopt this new technology service.