Strategic Management: Responding to Technology Disruption in Business

This paper analyzes the importance of technology and innovation and their effects on organizational strategy, emphasizing how organizations should respond to maximize benefits and gain a competitive advantage. It discusses relevant theories and their applications to various organizational structures, highlighting the need for firms, especially multinational enterprises (MNEs), to address technological disruption in heterogeneous markets. The paper examines Ericsson's response to the adoption of Cloud computing across its global operations, revealing the necessity of aligning diverging customer demands with complex innovation processes through experiments, deployment strategies, and ecosystem development. It concludes that successful responses depend on an organization's capability for misalignment, enabling them to manage inconsistencies in strategic direction, structure, and resource configuration associated with complex innovation.

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

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Summary of the paper:
The paper analyses about the importance about the importance of the technology, innovation
and its effect on the organizational strategy. It also describes how organization should respond to it
in order to maximize the benefits of the technological innovation and ensure benefits along with the
competitive advantage in the market. The paper has discussed about the various important theories
in this context and also provided an in-depth analysis of the applications of these theories with
reference to various organizational structure relevant to this analysis.
According to the article, although previous investigation conducted on the incumbents’
responses related to the disruptive technologies recommend the demand homogeneity, many firms,
which also includes multinational enterprises (MNEs), need to look for effective alternative and
they should respond to the technological disruption, especially in the context of the heterogeneous
markets. In order to address the gap existed between the theoretical concept and actual
understanding, the paper study various methods that Ericsson opted for responding to the adoption
of the Cloud computing, which is basically an advanced digital platform technology, across various
countries where its operations are established. Ericsson is present in more than 170 countries. The
paper also reveals the necessity of the incumbents to establish match between the diverging
customer demands and the complex innovation process. It includes various approaches which
includes experiments and trials, deployment strategy, and ecosystem development. The paper also
reveals that in order to achieve the success of incumbents’ responses, organizations should enhance
the capability for misalignment, which assists them in managing the inconsistencies if there is any
in the strategic direction, structure, and resource configuration which is often associated with the
complex innovation process.

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4A "Fit between organizational elements is said to enhance performance because it provides
employees with clear direction bout appropriate actions and behaviours, it aligns different
operational elements so that they reinforce one another and it helps to maintain a coherent
image of the organization both internally and externally (Miller, 1992; Nadier et al 1997;
Porter 1996, et al). After reading the paper, do you still agree with the statement above? How
does the paper contribute to the "fit" idea?
According to the research paper cited in the article by the author, Fit between the
organizational elements is of great importance as it enhances the performance because according to
the authors of the research paper, it helps employees in identifying clear direction which assist them
in deciding appropriate actions and behaviours and when this is achieved it aligns with different
operational elements in such a way that it support one another and it provides the context for
establishing a coherent image not only internally, but externally as well which is extremely
important for the organization.
However the paper seems to contradict this view and the paper present a new view on this
context. This new recommendation of the paper establish the fact the author is not satisfied with the
results of the previous research and hence recommend a new approach along with enhanced
explanation for the research finding. Hence after reading the paper, there seems to be a
contradiction between what is learned from the paper and what is described in the statement in this
context.
The author makes it clear that although previous research suggest to establish fit between the
environment and the organizational strategy if the organization intend to establish excellence in the
performance in the market which is complex and dynamic in terms of the marketing setting, internal
fit within the organization is not only necessary but essential requirement as well, it is not always
applicable. In fact this strategy is not effective in the heterogeneous markets. According to this
paper, when firms require to considers disruption and respond to it, it is important to analyse
whether the organization is fit for the environmental requirements which is often contradictory in

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nature and in this context the value of the internal fit is reduced and misalignment capability seems
to be more important as it manages the market requirements with more efficiency. Along with that
misalignment capability integrates appreciation and also nurture versatility which is an important
characteristic of the complex and dynamic market.
In comparison with the previous research, which considers unified strategic approach as an
important organizational strategy, this paper does not consider it as an effective strategy, in fact this
paper mention that strategic integration might oppose the approach of expanding the available range
of options for the firm and offer an enhanced and improved consumer experience. The paper also
makes it clear that the best fit approach is not as effective as there might be requirement for
different strategy for different resource configurations required for different units in the
organization. The paper hence suggests a combined redeployment strategy instead of the
contingent-fit approach to deal with the complex environments.

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