Business Management and Strategic Management

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

1
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Summary of the paper:
The paper analyses about the importance about the importance of the technology, innovation
and its effect on the organizational strategy. It also describes how organization should respond to it
in order to maximize the benefits of the technological innovation and ensure benefits along with the
competitive advantage in the market. The paper has discussed about the various important theories
in this context and also provided an in-depth analysis of the applications of these theories with
reference to various organizational structure relevant to this analysis.
According to the article, although previous investigation conducted on the incumbents’
responses related to the disruptive technologies recommend the demand homogeneity, many firms,
which also includes multinational enterprises (MNEs), need to look for effective alternative and
they should respond to the technological disruption, especially in the context of the heterogeneous
markets. In order to address the gap existed between the theoretical concept and actual
understanding, the paper study various methods that Ericsson opted for responding to the adoption
of the Cloud computing, which is basically an advanced digital platform technology, across various
countries where its operations are established. Ericsson is present in more than 170 countries. The
paper also reveals the necessity of the incumbents to establish match between the diverging
customer demands and the complex innovation process. It includes various approaches which
includes experiments and trials, deployment strategy, and ecosystem development. The paper also
reveals that in order to achieve the success of incumbents’ responses, organizations should enhance
the capability for misalignment, which assists them in managing the inconsistencies if there is any
in the strategic direction, structure, and resource configuration which is often associated with the
complex innovation process.