Teclo Response to Disruptive Innovation (Author's Name)

Running head: TECLO RESPONSE TO DISRUPTIVE INNOVATION 1
Teclo Response to Disruptive Innovation
(Author’s name)
(Institutional Affiliation)

TECLO RESPONSE TO DISRUPTIVE INNOVATION 2
Introduction
Disruptive innovations can be likened to missiles when a business encounters them.
Napster, Apple store and Amazon are some of the companies that have encountered disruptive
technology. The aim of the report is to assist a Teclo company overcome a challenger through
the application of strategic business model referred to as SBMO (Matti Kaulio). The research has
prescribed the response to enhance the continuity of the business and ensure that the company is
viable.
Application of Strategic Business Modeling to the Case Study(Teclo)
This segment demonstrates the application of SBMO (Strategic Business Model
Ontology) to the case study through a systematic analysis of disruptive technology. First,
illustrative models of Teclo are developed in accordance with the current business terms of the
business strategy and model (Hannes Kuebel, 2014). The descriptive models of the incumbent
offer insights about the business participants and their relationships and contribution to the
existing approach. Whenever, a non-market input or market setting creates a change, the present
business model is questionable. A trigger can be in form of a new competitor, development of
new innovation new rules and deregulations (Alexander Osterwalder). In this article, the
development of cell phone innovation is the market change (disruptive innovation). Therefore, it
is important for the senior managers to develop a framework that will assist the incumbent, Teclo
to establish the signal change, then examine the formation of the battle between the incumbent
Teclo and the new rival Cellco and lastly establish Teclo’s strategic choices (Alexander
Osterwalder). A prescriptive model will be used in change analysis since it creates an
understanding about the future of Teclo as a business.

TECLO RESPONSE TO DISRUPTIVE INNOVATION 3
State of the Business Model of Telco
The Figure below illustrates the relation between Telco and its clients through the
application of an i* Strategic Dependency (SD) model. The aspect of
Actor
Actor ( ) represents parties involved in a enterprise. Actor modeling is the initial step in
the identification of the participants and the participant’s dependencies network (Unhelkhar,
2010). Various actors perform distinct duties. For instance, the responsibility of Teclo
management of is to provide resources (Osterwalder, 2004). On the other hand, the role of Value
creators is to configure the process of providing and managing relationship with Teclo clients.
The model includes the goals of Telco customers to enhance an understanding why the
customers transact business with Telco.
The customers
depend ( ) on Telco for Voice service provision. The relationship is modified as a
goal ( ) dependency, showing that Teclo clients are not concerned about how Teclo offers the
services. The model is also established as a goal and not a soft goal which makes its achievement
to be judged clearly. With this goal dependency, the existing clients have distinct quality
expectations with even conflicts sometimes. Some of the customers expect that the services
provided by Teclo are the best performing in the market. These clients are usually ready to make
payments for any new service the company creates. They will forever continue to transact with
the company as long as the company is the market leader and is offering leading edge products

TECLO RESPONSE TO DISRUPTIVE INNOVATION 4
and services. These attitudes are shaped with soft goal dependencies, product’s high performance
and mostly can be improved.
The concept of soft goal ( ) is applied to illustrate qualitative goals with no clear-cut
priority standard for judging its success (Reza Samavi, 2008). For instance, services having
reduced prices and products with simple functionality are concerns of a customer which are
represented as soft goals. On the other hand, Teclo relies on its stakeholders for financial
assistance. The reliance is shaped as a resource dependency ( ). As the research proceeds to
illustrate business model for Teclo, there is an examination of the type of relationship involved in
business model of Teclo one after the other. Additionally, the type of dependency between
government and Teclo is known as task dependency ( ). The company is supposed to abide by
specific rules and regulations before deciding to offer wireless voice service (Adams, 2016).
The SD (Strategic Dependency model) offers a significant range of abstraction which
describes Telco’s model with accordance to the business surrounding environment on the basis
of intentional dependencies. This permits the business strategist to recognize and explore the
depender weakness because in every dependency relationship there is a possibility that the
dependee might fail to deliver. Whereas the network of dependencies illustrates outward
relationships between actors, it is important to understand the logic behind the outward
relationships. Therefore, a dashed circle is used to represent actor’s boundary ( ). The
intentional features that constitute the actor’s reasoning framework are inside the boundary,
which is also referred to as the actor’s Strategic Rationale (SR) model (Unhelkhar, 2010). In
Figure 1 the right half illustrates Teclo’s internal goal structure. The structure assists analysts in
constructing and exploring the available alternatives to every actor. In order for Teclo to deal