Innovative Disruption in Business

The provided study is about the emerging trend of disruptive innovation in global markets. It outlines various companies such as Apple, Google, Microsoft, Uber, and healthcare industries gaining revenue with innovative disruptions. The report concludes that some drivers require huge costs, and business ventures take time to adapt to new ideas. Real-life examples are given to illustrate the use of innovative disruption in different businesses.

TRENDS IN GLOBAL
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
BODY..............................................................................................................................................3
GENERAL.......................................................................................................................................4
Key Drivers in Disruptive Innovation.........................................................................................4
DISCUSSION..................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment consists of various internal and external factors which affects
operations of a business firm. A company has to operate its business in accordance with change
various factors such as changes in economic factors, legal factors, environmental and
technological factors. Changes in global trends is also a factor which has an impact on
companies overall business operations. These trends include radical workplace arrangements,
change in employees performance due to automation, emergence of disruptive innovation,
increasing importance of group[ performance, execution of successful business strategies and
digital disruption.
Disruptive Innovation refers to innovation of new ideas and technologies with which
industries are able to increase their network and develop new market. In the below assignment a
research is conducted on key drivers of disruptive innovation because disruptive innovation is a
widely emerging global trend and it has a high impact on business and overall economic growth.
Further, this report explains findings of study conducted on the chosen topic (Key drivers of
disruptive innovation). Furthermore, this report elaborate meaning of disruption and its key
drivers.
BODY
According to Gui, Ju and Ye, (2018), an organisation needs to change its production &
distribution techniques in accordance to recent trends in global business environment if it wants
to expand its business in global market. Thus, disruptive innovation plays an essential role in
improvement of products & services provided by business firms.
According to (Coccia, 2018), with drivers of innovative disruption individuals can
enhance their knowledge and creativity with this they are able to start their own business and
develop ideas so that they can can more profits with the introduction of new products & services.
With this study views of various authors are collected and it is find out that every company has
to adapt changes in technology and innovation to win over its competitors. Further, it is figured
out that companies are able to generate more output with the adaption of this trend and that in
turn provide sustainable economic growth and development. Thus, it is also studied that with
Disruptive Innovation organisations are able to promote their products and services through
digital marketing which helps in maximising customer base.

It is also evaluated in this assignment that with disruptive innovation also contributes
towards overall development of countries like India, Indonesia and many more developing
countries. Thus, according to the point of view of Carayannis, Sindakis and Walter, (2015),
government of developing countries are also taking initiative to promote companies to use
disruptive innovation with this production and employment in these countries gets raised and
further expenditure on imports also reduces.
GENERAL
Literature Review
Key Drivers in Disruptive Innovation
Disruptive Innovation
Disruptive innovation is advancement in ideas which benefits business firms in
introducing new product line and it also benefits companies in establishing competitive market
environment. According to Clayton Christensen, Disruptive Innovation is very beneficial for
business organisations as it enhances production efficiency of companies which in turn enhances
profits and market shares. Disruptive Innovation helps in business growth by making
innovations. Now a days, use of innovative ideas are increasing due to increase in start-up and
entrepreneurship business venture because, many owners of start-up businesses are youngsters
and they operating their business by creating innovation which reduces cost and enhance profits.
Emergence of start-up business reduces profitability of existing companies. Further,
disruptive innovation affects business operation of companies as companies are required to
change their business process in accordance with change in innovative ideas. This slow down
production process of business for a while because companies take time to adapt that innovation.
If a business venture is not able to adapt innovation than it cannot survive in market. Thus, it is
more difficult for companies to manage disruptive innovations whereas companies can easily
manage and adapt technological innovation.
According to (Dijk, Wells and Kemp, 2016), Disruption has an impact on many business
organisations and it affects operations of many sectors including agriculture, farming, Health
Care and many more. These sectors are gets affected by various key drivers of Disruptive
Innovation. Currently various innovations are made such as 3D Printing, Artificial Intelligence,
robotics, deep analytics, bitcoin and block chain system. Business firms are using all this

innovation together which maximises their profits and productivity. Further merging of al these
components creates massive increase in innovation and which also help entrepreneurs in
developing more new ideas and techniques.
Key Drivers of Disruption
Robotic & Drones- According to (Davidson and et.al., 2016), many companies or
industries are using robots for manufacturing of their products and for delivering services to
users and with this automation is increases which reduces time require in production &
manufacturing process and which in turn maximises sales volume of companies. Automation
also provide flexibility in business performances.
Many companies are using drones for delivering their products to customers which in
turn attracts customers. For Example- Amazon is offering its products with the help of drone in
many business areas with this it is able to deliver in less time and that also attracts customers and
that further helps company in enhancing its customer base. Thus, this innovation increases
automation and that also affects business of firms who are not able to adapt this type of
technologies and innovations.
On the other hand, According to (Carayannis, Sindakis and Walter, 2015) this many
companies are not able to purchase robots and drones as they are more costly and which slow
down their revenue. Like Flip-kart is not able to introduce drone facility with this demand of
companies products is reduced as compared to Amazon. Further, its is also studied that Amazon
also not able to introduce drone facility in all geographical areas.
3-D Printing Additive, Manufacturing- According to (Palacios Fenech and Tellis,
2016), with the use of 3-D Printing business ventures creates physical objects with the helps of
digital blue print. Further, additive manufacturing helps companies creating new products which
are not developed before. It also helps companies in developing new concepts and ideas which
helps in introducing new product line.
For Example- Additive Manufacturing enable Health & Care Industry in checking
accuracy and effectiveness of medicine and it with this they are able to practice on different
innovative medicines. 3-D printing helps health industries in developing customised products
such as hearing aids fro patients and this industries are now focusing on development of human

tissue which helps in developing human organs. Thus, this disruptive innovation helps health and
pharma sectors in providing new and innovative services with which they are able to save life of
humans in a better way.
Smart Connected Device- As per the view of (Schmiedel and vom Brocke, 2015), use of
internet is increasing day by day and there is also an increase in internet things. This further leads
to increase in wireless devices which helps companies and industries in establishing a wide
network. Emergence of social media and development of various application helps companies in
offering products & services through online platforms that attracts customers as their time is
saved. With this driver business organisations are able to maintaining relationship its customers
which further helps them in retaining customers and developing products & services which
according to demand and preference of consumers.
It is also examined that with the increase in internet things individuals are becoming
capable of generating more & more new ideas and techniques so that they can run their business
in a smooth and flexible manner. Increase in ability of idea creation ability of organisations to
innovate products is also increasing. For Example- Apple is developing new ideas and with that
company is launch new i-phone once in the year which in turn enhances revenue of company.
This factors affects operations of many industries for example google is developing a
application through which blood glucose of a human is measured with the help of a smart contact
lens. With the introduction of this driver health & care companies are able to give treatment to
Diabetes patients on time.
Internet is a key driver with this companies can improve their marketing and branding
techniques. As marketing can be improved with the helps of digital marketing and with this
business ventures are capable to enhance their market share across the globe.
Increasing Use of Software- Every industry are using and offering products and services
are like self driving care are being used in agriculture sector which enhance productivity and
reduces times, manufacturing industries are using remote medical monitoring devices for
providing their products in an effective packaging. Further, every company is using computer
and software's for recording their financial transaction which benefits companies in identifying
their profits in each financial year. Further, company also check their growth rate using
accounting & financial software's.

According to Laurell and Sandström, (2016), With the help of this driver every company
is becoming a software company as they all are using software's in their business operations and
with this all the operations and facilities provided by organisations are changed. Further, this
driver also benefits companies by reducing their production and distribution cost as technological
assets such as computers and other automatic machines required one time cost which in turn
enhances profitability of business organisations.
Services Platforms- As per the view of (Davidson and et.al., 2016), services platforms
includes various social media sites such as Airbnb, Facebook, Twitter, Uber, Deliveroo and
Instagram which helps companies in promoting their products and services with the helps of
digital marketing. With is service platforms business firms can create awareness about its brand
image and products among new customers that further important for companies in enhancing
their market share and customer base. Thus,innovation in service platforms is a key driver in
disruptive innovation as it helps business ventures by enhancing their sales volume and it is
necessary for organisations to use different digital service platforms so that their operations can
run smoothly.
This key driver also benefits companies in developing their network with which
companies can create new market and gain more customers.
Quantified self, Big Analytics- As per the point of view of (Carayannis, Sindakis and
Walter, 2015.), with the help of Bog Data Analytics business firms are able to analyse different
trends in market and products of companies are developed according to the recent trends which
influence individuals. This benefits companies by providing sustainable growth and helps
companies in retaining their customers in long run. With the help of Big Analytics business firms
manufacture products in accordance with changing taste and preference of customers.
Further, Quantified self is a disruptive innovation driver according to which companies
offer products which provides information to individual who are using those products on the
mobile app. Like Nike and Fitbit are offering wearables such as clothes, shoes and fitness belts
with which individuals can easily track their Heart Beat, Calorie Intake, Steps Taken and Sleep
Health. Thus, this innovation benefits individuals in tracking their health and it also benefits
health and care industries.

From the view point of Coccia, (2018), Advanced Driver Assistance System (ADAS) is
also a key driver with which automotive industry can develop better quality vehicles which
provides safety and provides better driving experience to their customers. Vehicles manufactured
by using this technology minimises risk of accidents and it also provides road safety. 5G is a
driver which provides opportunity to developing countries.
Thus, all these drivers in disruptive innovation helps business organisations in developing
their products and services.
Key Drivers of Disruptive Innovation also play a significant role in managing supply
chain of business ventures. Cloud based Software is a driver with which companies are enable to
communicate with different department of organisations. With the drivers of innovation business
firms can make decisions with the help of data collected on software. Drivers like assets tracking
and automatic data collection machines are beneficial for that. Disruptive Innovation also affects
existing business model according to the development in innovations. With
In accordance with Dotsika and Watkins (2017), With the disrupting in innovation
companies can manage waste that minimises their production cost and which in tune maximises
profits and performance of firms. Disruptive innovation also provide technical competency
among the business firms.
Further, drivers of disruptive innovations are used in many areas or sectors such as
health, education, environment, entertainment, automotive, retail, automotive, insurance , finance
and other sectors. Thus, study of this emerging global trend is very important as business of
international companies are not able to operate their services in all countries across the globe.
Examples of Disruptive Innovation
Individuals can develop new ideas and innovations with the help of theory of disruptive
innovation. For Example- with the help of idea creation CEO of THINX develop products like
absorbent underpants so that it can handle taboo around menstruation and this products are
successful according to reviews collected from girls of United Nations. Company also introduce
a product line for transgender man.

Google is also developing ideas so that it can offer products same as Apples iOS and
company is able to do that only with the help of Disruptive Innovation according to the view of
Green, (2019).
DISCUSSION
From the above Literature Review it is interpreted that various emerging trend in
international business environment affects operations of existing businesses. Innovation
Disruption is also an emerging trend in business. The above report discussed about key drivers of
Disruptive Innovation.
From the above study it is summarised that Innovative Disruption helps business
organisations in developing their business model and making strategies in accordance with that
business model so that organisations can achieve long term growth in future. For Example-
Health & Care companies are developed a different business model with the help of disruptive
innovation with this services of this industries are improved. Disruptive Innovation is an
innovation model with which organisations are able to create and expand their product lines and
offerings. Most of the disruptive innovations are made by entrepreneurs and they implemented at
a small scale so that their efficiency can be evaluated. Disruptive Innovation model also helps
managers in their decision making process.
Further, companies take time to adapt the innovations like Netflix started offering its
products & services in 1997 and it is having enough stock of movies and but it takes more time
in offering its videos and movies through internet. With disruptive innovation company is able to
offers its videos in different quality such as high, low and medium quality with which customers
are getting attracted and company's market share and brand image is improved. Apple is also
able to make innovation in its i-phones by developing new ideas and making innovations.
Growth of Apple is a biggest and successful example of innovation.
From the above literature review it is summarised disruptive innovation is very important
for business organisation. Disruptive Innovation target new customers and new market with this
companies are able to offer wide range of products & services in market. Further, it is evaluated
from the above literature review that various key factors are driving innovation in business
environment. These drivers provide automation in business production which in turn helps

international businesses in establishing their business in new countries as this trend target new
market.
It is also discussed that introduction of robots and drones helps companies in operating
their business in flexible manner as they are using all the key drivers in their business.
Companies are merging all the key drivers of disruptive innovations such as robots, drones,
additive manufacturing and internet services with this they are able to develop new machines and
technology which enhances organisations efficiency. It is also analysed that with the helps of
disruptive innovation every company is using software's in collecting data, maintaining records
and it is also beneficial in managing relationship with consumers.
It is also reviewed that drivers of disruptive innovation helps business firms by managing
their supply chain, inventory level, cost and it also develops new production techniques. Further
it is also studied that above stated drivers benefits organisations in providing better products than
their competitors.
CONCLUSION
From the about research it is outlined that various emerging trend in global business
environment are required to follow by the business organisations. Further, from the above study
it is summarised that drivers of disruptive innovation is the most important emerging trend in
global market as all the business organisations using technology in their business and they want
to develop a product which is different for other companies operating with in the same business.
Further this is outlined that various companies such as Apple, Google, Microsoft, Uber
and many health care industries gaining more revenue with the introduction of innovative
disruption. This companies are gaining high profits with the use of key drivers such as robots,
internet, software's, drones and 3-D printing.
In the above report it is also concluded that some drivers are require huge cost and all the
companies are not able to invest much amount in acquisition of all the drivers. Further, business
ventures are also takes much time in adaption of innovative ideas in their business. At last, the
above study outlined various real life examples of different companies using innovative
disruption in their business.

REFERENCES
Books and Journals
Dijk, M., Wells, P. and Kemp, R., 2016. Will the momentum of the electric car last? Testing an
hypothesis on disruptive innovation. Technological Forecasting and Social Change. 105.
pp.77-88.
Davidson, S. and et.al., 2016. Leadership for evidence- based innovation in nursing and
health professions. Jones & Bartlett Publishers.
Schmiedel, T. and vom Brocke, J., 2015. Business process management: Potentials and
challenges of driving innovation. In BPM-Driving Innovation in a Digital World (pp. 3-
15). Springer, Cham.
Palacios Fenech, J. and Tellis, G.J., 2016. The dive and disruption of successful current products:
Measures, global patterns, and predictive model. Journal of Product Innovation
Management. 33(1). pp.53-68.
Carayannis, E.G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer. 40(1). pp.85-104.
Green, D.D., 2019. Disruptive Change in Today’s Innovation: A Case Study Analysis of
OptimalPlus. Management and Economics Research Journal. 5(2019). p.7788.
Dotsika, F. and Watkins, A., 2017. Identifying potentially disruptive trends by means of keyword
network analysis. Technological Forecasting and Social Change. 119. pp.114-127.
Coccia, M., 2018. Disruptive firms and industrial change. Journal of Economic and Social
Thought. 4(4). pp.437-450.
Laurell, C. and Sandström, C., 2016. Analysing Uber in social media—Disruptive technology or
institutional disruption?. International journal of innovation management. 20(05).
p.1640013.
Gui, B., Ju, Y. and Ye, X., 2018. Disruptive Innovation Patterns Driven by Mega- Projects: A
Sustainable Development Pattern Case of China’s High-Speed
Rail. Sustainability. 10(4). p.1154.

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