Impact of Technological Advancements on Businesses

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Trends in the Global Business
Environment

Contents
Introduction.................................................................................................................................................4
Disruptive innovations and its Drivers........................................................................................................5
Main Body...................................................................................................................................................5
According to Pal & Aneja, 2017, there are many innovations and advancement which are big disruptive
innovations such as:.....................................................................................................................................6
Web-based video:....................................................................................................................................6
Ridesharing Services:..............................................................................................................................6
Virtual reality:.........................................................................................................................................7
Augmented Reality:.................................................................................................................................7
Cryptocurrency:.......................................................................................................................................7
The disruptive innovation model:..........................................................................................................11
Is uber a Disruptive Innovation?............................................................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

Introduction
In this particular report, we would be discussing the different drivers of the disruptive
innovation totally dependent on the articles and facts in the innovation. Further, the report would
discuss about Uber and provide evidence about whether it is a disruptive innovation or not.
Different disruptive innovation drivers have been discussed. Further, with their differences and
similarities with each other. Innovation model would be discussed how disruptive innovation is
studied and been analyzed according to the business and advancement in the technology. Some
facts and figures would be discussed about the different drivers of disruptive innovation and how
they can be analyzed and studied accordingly. A further example of Uber would be taken, to
analyses some more facts and conceptual theories regarding the disruptive innovation which can
be done accordingly.

Disruptive innovations and its Drivers
According to Abbah & Maritz (2019), disruptive innovation is the term given when a new
market is been developed which can be more innovative and advanced hence it replaces the old
market or product. This is called disruptive innovation. It can also be explained as the technology
which advances which drastically destroy the old market. A big factor which is currently driving
disruptive innovation is the internet. Internet is developing significantly and the businesses
which are smoothly accepting it.
Clayton Christensen has written in his book" The innovation solution" about the disruptive
innovation. In his book, Christen says that there are two kinds of advancement the businesses are
using nowadays. The sustainable technologies are mainly focused on improving the technology
by predicting some time frame which can be used for that advancement. These sustainable
technologies are mainly used by organizations to enhance their thinking capability and to
improve the competitive edge in the market. it should be noted that according to the book by
Christensen, Sustainable technologies are very helpful in sustaining their old products, and it
helps to boycott disruptive innovation (Shaughnessy, 2016).
These sustainable technologies can be used in those advancements which are less risky. The first
driver which is the major driver of disruptive innovation is the internet. IT is because there are
some new things on the internet which is helpful and businesses are making new money from
them. Yes, it has also been recommended not to invest in some business which is vulnerable to
disruptive innovation. In the book, the Author describes how the internet is decreasing the
popularity of the products and businesses. There are several examples of it also such as People
used to eat food in the restaurant, but now a day's people can order food online, this is done by
internet, there are lots of services which are physically been done are been completed by online
services. This is the disruptive innovation of the internet. There is a number of drivers of
disruptive innovations such as the Internet, wearables, drones, robotics, self-driving cars, etc.
These all are innovation can change the lives of the human being in the next few years but these
all are a disruptive innovation. According to a speech by Ben Benjamin in an interview, he was
told that there will be a large number of people which will be going to come on the internet in the
next few years. The Internet has been used drastically and even increasing. Hence many business
giants are wanting to invest and start a business in this new field of opportunities. Platforms like

social media online shopping etc. are all disruptive innovation and they are destroying their older
existing business drastically. Earlier people use to take taxis, but now they can book a cab and
can get it easily.
According to Pal & Aneja, 2017, there are many innovations and advancement which are big
disruptive innovations such as:
Smartphones are the next big innovation which is currently going and they will replace many
new things which are been used earlier. Smartphones have provided many new services which
have destroyed many old exiting businesses. Newspapers are online anyone can read any
newspaper online any day at any time. Smartphones are providing new gaming zones, people can
easily play games which replaces many old gaming stations such as play stations, gaming zones
as people can easily play games on their smartphones (Colombo, 2015).
Web-based video: There are many online movies watching and tv watching web series and
apps are easily available anywhere. One of them is Netflix which is very popular among these.
These applications allow a user to watch their favorite tv shows on their own time schedule. It is
advancement as earlier people are forced to watch their shows according to their air timings, but
they can watch these shows at any time on repeat. This is destroying the market of television as
people who are going to get a TV usually would not require one as they can watch their shows
any time. These are not only proving them with the TV shows which are on TV but they also
have their own published TV shows which can also be watched by the people.
Ridesharing Services: According to the research in time article, there are a total of 1531 cities
have successfully owning ride-sharing services in their cities. A total of 33 countries currently
owning these sharing services which drastically destroying the Taxi system and public transport
business of that city. Europe is leading in the ride-sharing services with a sharing of 46 % of
these services of the world. there are many car owning services, which can be hired anywhere
and can be taken for intercity rides. Uber, car2go, etc. are some of these services which are very
famous among these services. If we talk about the poster child of these ride-sharing services,
Uber is the main ride-sharing services. They even give some of the new options of payment
which they can use, where they can hand over the amount to them quite easily (West, 2015).

Virtual reality: In recent research by Goldman, in the time article, the Goldman has predicted
that virtual reality can give a good amount of 35$ billions in hardware accessories and 35$
billion in softwares. In a research, it has been found out that the current notebook market is 111$
billion and gaming consoles have reached to a good $ 14 billion in total. Gaming and
entertainment can drive much of growth and VR technology is very famous in gaming zones and
hence this innovation replaces many gaming consoles which do not have VR technology on it.
Augmented Reality: This is basically used in the transportation system and can be used in all
sort of transportation system. This augmented reality is a very useful technique used in the
transportation system, which can help the drivers for safer transportation. Augmented reality is
an advancement in technology which can replace many men working in the transportation
system. Augmented reality is very useful for them in the airports also where planes are been
helped during landing. These technology advancements have drastically decreased many new
jobs which were earlier existed. New technologies or AI have automated many new services, like
check in and check out which decrease the jobs in the public and private sectors. Windowless
ships used in the cruise, used by the augmented reality will help to attract passengers (Dudley,
2017).
Cryptocurrency: there are many new payment modes, such as PayPal, online banking has
drastically decreased the job in the banking sector. Bit gold is an innovative online currency
making and gold transferable, services which can ease the transfer of money from one area to
another.
According to Rasool et. al. 2018, disruptive innovation often has a possibility to bring change
with it inside an organization. This type of change is considered to be beneficial for the
organization as it will provide the organization with a competitive edge in the market. One of the
key drives of disruptive innovation is the needs of the customers or to be more specific the latent
needs of the customers. Most of the times it is seen that new and innovative products fail in the
market because the organization cannot fully comprehend what the needs of the customer are.
The organizations need to then innovate a product based on the needs of the customers are these
needs are the factor that can cause changes in the market. Disruptive innovations do not give that
much attention to their competitors but their main focus is on the needs of the customers as it is
the main key driver of it. Feedback from the customers is another factor that is an important

aspect of disruptive innovation as it will allow the organization to get a better understanding of
what the customer requires from the product (West, 2015).
According to Pal & Aneja, 2017, technology is a major key driver of disruptive innovation. This
can be a hard and stressful job because new technology is being introduced into the market
mostly every day. Technology has a direct effect on the organizations business model. For some
organizations, this may give a competitive edge to them but for others, it becomes and headache.
For a large organization, it is seen that technology can create an issue when managing the
business model. The business model would have to see how new and innovative technology
could affect the various factors that are involved in the organization. The synthetic fiber sectors
have been the ones that are most affected because of technology. New and innovative technology
has caused the market to change the fiber industry in which such organizations in this sector have
changed their business models according to the new technologies. Such an organization that is
affected by technologies in disruptive innovations that have to have proper management of new
and innovative technologies in their business model.
According to Allahar 2017, the internet is considered to be a key driver of disruptive innovation.
This has caused problems in the publishing industry for quite some time. Before the internet, it
was seen that there was more than one organization that would provide a variety of journals to
the public but due to the increased use of the internet and innovative technologies involved in it,
journals are now combined by commercial publishers. These commercial publishers have
become organizations who now dominate this sector. This disruptive innovation caused changes
in the market as well as how organizations would plan out their structure according to the
internet. One innovation that was seen in due to this key driver is that now open access to
journals is provided to the public. This concept made it easier and quicker for the public,
especially for college students, to gain access to journals. The open access to publishings was an
innovative step that was accepted by all of the governments around the world who believe that
this is a beneficial factor for all of the public. The author also mentions that the disruptive
innovation due to internet technologies often start out on a low profitability ratio. But , as the
awareness starts to grow then it becomes beneficial for the organizations. Disruptive innovations
through the internet are not a short-term plan but organizations should set this out in a long-term
plan. The use of internet has also changed the publishing market as it offers a range of different

journals that are available for the money. These websites also include a number of gold or
diamond offers that provide a range of better journals for the customers (West, 2015).
Challenges which are faced by consumers is another key driver of disruptive innovation
according to Abiodun & Sarpong, 2018. Multinational corporations have taken this into account
and have applied it to the poor people of Africa. Most of these organizations choose this market
of disruptive innovation as the products that are provided to the people are easily accepted with
too much disturbance. The products given to the customers need to designed in a specific manner
so that their quality is good and also that the price is not that much high. The international
businesses need to see that a different market would require a different new and innovative way
for the product to be produced. The disruptive innovation would need to have a collaboration
plan set up for new technologies and the existing technologies that are present in the market so
that to face the financial challenges (Park, 2018).
According to ABBAH & MARITZ 2019, competition is another factor that is a key driver of
disruptive innovation. When there is a rise in competition it is seen that the organization in any
sector are responsible for the changes in the market that occur. Such changes are usually due to
the fact that an organization has come up with a new and innovative product which has changed

the way that the market was functioning. It is also seen that these challenges between the firms
also have an impact on society as well as the economy of the economy. The aspect of disruptive
innovation has provided differences in the economy that create an imbalance in the financial
status of many firms thus resulting in them to change their structure. Through competition and
innovative change, it is seen that the employees in the organization are not given that much
attention to (Colombo, 2015).
Change in the business environment is also a key driver of disruptive innovation according to
Petzold et. al. 2018. It is seen that the changes that occur in the business environment have made
organizations realize that they have to produce new and innovative products to keep up with the
market demands. There are new technologies in the market that make the operational processes
in an organization change their way, this is done so that the organization can meet the needs of
their customers. Organizations need to change their business structure in order to keep up with
the digital innovations that are being present in the business environment. Due to the changes in
the business environment, the business models of organizations need to be up to date so that they
can survive through disruptive innovation. To counter this learning and developing are two
factors that make sure that the organization can work through disruptive innovation. The change
will be done inside the organization when it introduces new and innovative products, through
learning it can manage its employees and operational process so that they can collaborate with
the innovation. The change would also mean that three will be changes in the market and also in
the needs of the customers. By learning the needs of the customers and analyzing them would
make sure that the organization's innovative product is successful in the market.
Many big giants and entrepreneur have praised disruptive innovation as a good sign of a
successful business. But it has been noted that disruptive business is going to extinct on its own
success. Despite its main concept been explained further, the main concept of innovations is
misunderstood and miscalculated. In its initial formulation, refinement is very important in
disruptive innovation, which is been overshadowed by the people. Many entrepreneur and
researcher described disruptive innovation as the chance to business, to regrow. It is very
important to understand that each and every innovation require different strategies to be adopted.
Researchers also said that if any business is vulnerable to the advancement and their business
might vanish due to the disruptive innovation, they should not panic, as old and existed business

have some ways where they can enhance their focus and system with the help of their new theory
which is explained accordingly. Knowledge is very much required to prevent disruptive
innovation, as evolution and advancement go hand in hand it is very important to outgrow these
advancements. This knowledge will allow us to think which business is going to grow well and
how it can be done.
Disruption can be explained where small business can provide more enhancement for
outgrowing the resources which can help in providing certain challenges which can establish the
business. Business and services have to be developed continuously as innovation would not wait
for anyone. Disruption is giving more advanced and suitable product and services with accuracy.
And try to reconsider the segments which were earlier ignored.
The disruptive innovation model:
This diagram shows the performance of the products and their trajectories. The red line in it
shows how products have been improved over time. The blue line indicates the demand
trajectories which shows how willing is the customer to pay. IT has been discussed in the article
that the good quality companies will provide good quality products and services to the high-end
companies and demand. They basically out show the needs of the weak customers which will
give opportunity of the weak and less profitable products to be sold without neglecting
(Colombo, 2015).

Is Uber a Disruptive Innovation?
If we consider Uber, which is a ride-sharing services provides cabs or taxis to anyone who wants
to reach somewhere. Uber also provide their mobile application to easily reach out to them from
the customer point of view. It was late founded in 2009, and have grown drastically then. Uber
has shown a good amount of success. According to the research, it has grown to a 50$ billion
market. It is clear that uber has clearly transformed the taxi business in the united states. It is not
the case, as NO, uber cannot be considered as disruptive innovation as their financial statements
and their growth will not answer whether they are or not. Disruptive innovation is mainly
focused on low-end footholds, where the products are not much good. Disruptive innovation
basically provides new performance to low-end products. The low-end market where the existed
products are not up to the mark of the requirements (Colombo, 2015).
The second market is the new market footholds, disrupters create a new market, where there is
no such market available in the past. But uber is not of the both of these cases. The taxi services
and the transportation system are very good in the United States, and hence uber does not fall in

both these categories. Uber though, have increased the demand of these cabs. It happens when
anyone offers some less expensive easy way service to any consumer. Uber falls in making non-
consumer to consumes, which is not a disruptive innovation.
Conclusion
This report has concluded that innovation has a major role in the advancement in the
technologies. Disruptive innovation is not always regarded as the destroyer of the old market,
there are some theories discussed in this report which shows how old market can be enhanced to
compete and go hand in hand with the new market or product.
Further, Uber been taken as an example to explain the disruptive innovation, which discusses the
two main major footholds in the market which should be there to be considered as the disruptive
innovation and those two footholds have been discussed. Further this report also concluded that
how different drivers of the disruptive innovations is damaging the old market and jobs in
different sectors.