Disruptive Technology in Business: A Critical Analysis

Running head: DISRUPTIVE TECHNOLOGY
Disruptive Technology
Name of the Student
Name of the University
Author Note

DISRUPTIVE TECHNOLOGY1
Table of Content
Introduction................................................................................................................................2
Explaining the current use of technology in business................................................................2
Three major arguments supporting the use of such technology.................................................4
Discussing possible shortcomings, limitations or other factors may keep a business from
adopting the new solution..........................................................................................................6
Discussing operational financial as well as other ramification of adopting the technology......8
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
This research report is a critical analysis of disruptive technology, its importance and
its use in business, particularly in supply chain of the business. It has been identified that
disruptive technology significantly changes the way they approach their business for the
apprehension of losing market share or staying irrelevant. Ride-sharing is a greatest example
of disruptive technology in business today. Besides, the technology based definition,
disruption in general is kind of a process whereby a small firm with limited resources, just
like the start-up invents a new market. Quite often, larger established firms pay attention to
their largest as well as the most demanding firms, which further enables disruptive businesses
to target the overlooked customers segment that eventually move upstream as well as
cannibalize more customers segment with time. It has been noticed that while incumbent
firms tend to plan to make incremental improvement to the way they operate the business to
enhance efficiency, they are not likely to be able properly prepare for disruptive technologies
as they could appear suddenly or may not be initially economical to target.
Explaining the current use of technology in business
As put forward by Schlesinger and Rahman (2016), today’s world is changing is a
rapid way and it is apparent that technology keeps itself reinventing in its due course. With
respect to business management, where the focus is on managing, directing, planning and
controlling the business operation, implementation of any new technology is often
challenging and eventually creates colossal impact. In a broader terms, DaSilva et al. (2013)
mentioned that innovation in technology could be two different types such as ‘sustainable’
and ‘disruptive’. It has been identified that when innovation occurs at a regular intervals, it is
known or called a sustainable technology, conversely, disruptive technology often add value
to existing set of technology which eventually led to radical changes. It is particularly noted

DISRUPTIVE TECHNOLOGY3
that the latest concept which offers the most in business is ‘Disruptive Technology’. Amshoff
et al., (2015) mentioned that this technology is more of an innovation that hold the ability to
replace an existing technology to create a brand new market by exploring a new series of
consumers. However, disruptive technology particularly in the field of supply chain of
business, makes a splash in supply chain sector, this means supply chain is most likely to be
riddled with the complexity engaging myriad processes to manufacture products and
distribute to customers. As put forward by Fan and Suh (2014) disruptive technology could
shake up a supply chain as well as holds the potential to completely change how products are
manufactured, distributed and appropriately tracked. Moreover, the inbound logistic survey
revealed a significant set of opinion on disruptive technology and the most disruptive is found
to be ‘Internet of Things at 42% and the next is autonomous vehicle at 41% and drone is at
25% as well as the 3D print comes with 24%.
Internet of Things: Internet of Things is necessarily a network of objects that are
technologically ready with the sensors to collect, gather as well as transmit data. This
gathering of data gives employees significant access to real-time information (Goldsby &
Zinn, 2016). This means presently IoT connects things that were previously impossible and
particularly, in supply chain each technique, individual and product can be monitored from
the beginning of supply chain to the end.
Driverless vehicle: This technology holds the maximum of potential because
driverless vehicles operate 24 hours a day without taking a single break and thereby, the
consumers could receive their order faster. In this context, Piller, Weller and Kleer (2015)
mentioned that such autonomous vehicles can also be used inside the warehouse, yards and
terminals to shift the assets. Likewise, the drones were always the untapped resource due to
several restrictions placed on technology. Drones are often used to deliver small packages.