Disruptive Technologies and Innovation in Business

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IS strategy, MANAGEMENT and acquisition

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1) Innovation is the process of developing and executing a new idea and convert it into
useful products, services and methods of operations. Innovation possesses importance
for both established and new enterprises in extent with dynamic and changing
environment (Teece, 2010). It is easier for an established to pursue innovation as they
have adequate capital to invest into Research and Development department, however,
considering start-ups, they are required to come up with new and creative idea in the
market to ensure their growth in the future. In respect to significance of innovation, it
is vital in workplace as it offers a company an edge to penetrate the market faster and
also provides a better connection to the developing markets especially into developed
countries (Dahlander and Gann, 2010).
When it comes to innovation, Starbucks is well-known brand doing constant
operations in both emerging and developed markets. However, for Starbucks,
innovation is only a temporary advantage through as innovation is not rare in the
contemporary day coffee industry. Many of the rivals of Starbucks are innovative
such as Dunkin Donuts has started offering lunch pockets so that new market
segments can be captured. Starbucks Card presents a great gift as well as giving
customer convenience. Starbucks keeps up with the technology-driven world and thus
offering free music and app downloads every week.
Starbucks product innovation also includes their commitments to sustainability that
focuses forward to reduce the impact on the environment in extent with leadership
efforts and sustainable sourcing (Foster, 2018).
It can be said that Starbucks innovation benefits the company in several ways such as
grabbing more customers and market share, helping to stand out from the competitors,
meeting customer needs before realization and attracting the best talent.
2) The way to conduct the business is changed with the combination of business and
technological innovation and such combination is referred as disruptive technologies.
Mostly, disruptive technologies are considered as substitute products which habitually
replaces an existing process or technology. In addition, disruptive technologies can
expand the market considering a product having less cost and functionality (Latzer,
2009). One of the best examples could be birth of personal computer market.
For any organisation, disruptive technology can help to stay on edge of the market
and developing new products and market which match the demand of future
customers. Hence, if a business firm is cannot effectively offer what an upcoming

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consumer will demand, they will surely fall in the competitive market landscape. The
changes in technology in extent with disruptive technologies possess two
characteristics. At first, these changes bring out different set of performance attributes
that are not presently of any value to the consumers. Secondly, these changes arise so
rapidly that the organisation in the same industry found it difficult to match their
management practices according to contemporary trends (Heger and Rohrbeck, 2012).
The pace of innovation is incredibly fast and some of the most disruptive technology
includes Artificial intelligence, Internet of Things (IoT), 3D printing, Blockchain
technology and advanced virtual reality.
When talking about disruptive innovation, Tesla comes first as a powerful new form
of energy. The company takes the quest for next level technology and sustainability to
another level (Mangram, 2012). Other than manufacturing electric cars in the world,
the company are pushing boundaries to a next level of what vehicles can do by
literally, sending them into space. Another company includes Smarter, which is the
first renowned organisation that brings the industry innovation of “IoT” to the
customer marketplace. With their disruptive innovation, the business has grown with
a simple idea without any sources of outside funding. Another disruptive brand
example can be taken out with Airbnb that offers an opportunity for various
homeowners to rent out their apartments and homes to the travellers at low prices.
The company have done this innovation back in 2008, where the brand acted as a
marketplace for universal adventure.
The brand having disruptive innovation and technology has never looked to be fit in
industry-current space rather than they found ways to stand out, instead.
3) The disruptive technologies are being used by various contemporary organisations in
extent with improving the quality of life of people, economy and business models of
organisations (Williams et al, 2009). Using the case study of Amazon, one of the
biggest e-commerce giant, it will be explained how the organisation is using
disruptive technology to raise customer expectations of the market. Earlier, Amazon
was only reactive to the demands of the customers but nowadays, the company is
trying to predict the customer demand by using the data generated over the internet
(Marr, 2018). Sometimes, they try to ship goods even before the customer come to a
final decision to buy the product and all it is related to predictive big data analytics.