Agility in Responding to Disruptive Digital Innovation
Added on 2021-06-14
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1AGILITYStudent’s NameClassDate
2Part A: Video Projects1.Forms of AgilityThe video projects focus on different types of agility. The first form is based on disruption. For instance, The Financial Times adopted a new operating model that enabled it to take advantage of the disruptive technology.1 The process entailed the migration from print to digital media because print media was losing it value due to a change in customer preference. This form of agility was also utilized by Tencet, which developed the WeChat application.2 The application was developed with the aim of connecting those who have family ties and has features that are easy to use. Overall, disruptive technology necessitates the need for innovation, which creates agility. The second form of agility is based on adapting to new environments. For example, the Ball Corporation demonstrated agility by moving from the wooden to glass, from glass to aerospace, from aerospace to metal and from metal to plastic industries.3Evidently, its adaptation makes it agile as it establishes new ways to remain in the industry. Secondly, Finance Times also adopted the latest digital technology to revolutionize the newspaper industry.4 After adoption, the newspaper ventured into the online advertising business using the content generated from the subscription. This form of agility allows firms to adapt.The third form of agility is based on meeting the needs of clients. Wong was an oil company that changed its business to a retail company after facing a lot of competition and changing economic conditions.5 After changing its model, the new 1 Group 11. 2018.Achieving Strategic Agility. DVD.2 Group 12. 2018. Tencet. DVD.3 Group 13. 2018. Ball Corporation. DVD.4 Group 11.5 Group 9. 2018. Wog. DVD.
3model was tailored to meet the specifications of the client. Ultimately, meeting the needs of the clients helped the company to stay agile. Another example is the WeChat application that was developed to meet the communication needs of the customers.6 In fact, it was designed to keep families closer since it is highly private. The fourth form of strategic agility is based on acquisition. In the video projects, Unilever acquired Dollar Shave Club to withstand competition from other companies.7After acquiring the company, it allowed it to develop on its own as a separate unit. Additionally, Unilever gained a new way to interact with customers through a new distribution channel.8 Unilever also learned how to implement e-commerce in its current business model, which enabled it to compete with companies like Amazon. Essentially, this way of doing business allowed it to observe the Dollar Shave Club business model while mitigating risks since it did not implement it immediately. This form of agility enables a company to acquire new technology and stay ahead of its competitors. 2.Drivers of Agility One of the drivers of agility is new technology. From the video projects, FinancialTimes used the adoption of digital media to develop agility that enabled it to gain a competitive advantage. In particular, the Financial Times adopted strategies that moved itfrom print to digital technology in the newspaper industry.9 The move was necessitated by the emergence of digital technology, which affected people’s preferences. Another example is the use of technology by the ABInBev. According to the video projects, the company created a unit to explore the modern areas of the beer industry.10 It utilizes 6 Group 12. 2018. Tencet. DVD.7 Group 8. 2018. Unilever. DVD.8 Ibid.9 Group 11.10 Group 14. 2018. ZxVentures. DVD.
4digital technology such as e-commerce and Rate Beer to achieve this objective. Evidently, new technology can be used to drive a firm to develop agile strategies for survival. The second driver of agility is focusing on the needs of the clients. Based on Wog, a company can become agile by focusing on meeting its customers’ preferences that are continuously changing.11 Wog developed a new business model to create differentiation, which included food, gas and coffee selling in gas stations after Ukraine experienced recession and oil prices fell. After competitors began to copy its model, it decided to own the whole value chain in the food production sector and tailored its products to meet the clients’ needs. Eventually, Wog became prosperous through the agility developed after facing these challenges. The third driver of agility is the limits of traditional growth strategies. For example, for ABInBev, the traditional strategies did not guarantee future sales especially when the preference of customers began to change from alcoholic to non-alcoholic drinks.12 Therefore, the company developed an agile strategy that entailed the sale of non-alcoholic drinks and the formation of a unit that would explore the beer industry and discover new areas of the beer industry to exploit.The fourth driver of agility is innovation. Based on video projects, the majority of the companies had to innovate to remain significant players in their industries. For example, Tencet developed WeChat as a response to a threat where another company wanted to gain market share.13 In this case, being innovative made Tencet agiler and it was able to retain control.14 Another example is the Financial Times that had to innovate 11 Group 9.12 Group 14.13 Group 9.14 Group 12.
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