In the business world, the main objective of technology innovations is to ensure that there is the generation of new companies, and increment of assets and shareholders returns. This research paper will be focusing on innovation and organizational change, and disruptive technologies.
Innovation and organizational change entail several activities which play a very crucial role in the business world (Brown, 2004). Some of the activities include formulation of new products, changes in the administration, or else introduction of a new service. All these innovations and others which may occur in an organization assist the company in shaping its strategies and structure. There are several factors that are considered by an organization when deciding on how much to be spent on innovations. Structural factors are put in place and the degree of influence that a certain innovation may have on consumer’s tastes and preferences (Brown, 2004). The period of time taken by the product life cycle and the pressure which the organization is receiving from the competition side, also determine the amount of money that the organization will spend on innovations.
However, as the organizations benefit from innovations they also face challenges in implementing and in how the staff will respond to those new initiatives (Gallouj, 2002). For an organization to be able to implement the innovation it requires strong leadership, putting together company resources, and allowing participation of the relevant personnel. At times, some innovations may come to replace the manually skilled workers; the organization in turn reduces the workforce or may decide to offer some more training to the existing employees.
Disruptive technology describes the overall innovations that bring some improvements to a product or a service through ways which the business does not expect. Disruptive innovations are applicable into two wide areas which are low end and the new market (Gallouj, 2002). The later is aimed at addressing the consumers who would not have consumed the products in the market even before the innovations. The low end aims at the consumers who value prices of the product and services more than their qualities. The leaders of the already existing markets feel threatened by any organization adapting to disruptive innovation as it leads to unexpected competition.
A disruptive innovation threatens other markets as in most cases it dominates an existing market by performing a role which the older technology could not have managed to perform (Gallouj, 2002). Disruptive innovations do not always upset the customers, and they take a significant time before they cause any disturbances to the established companies. The strong well established companies tend to ignore the impact of the disruptive innovations.
Disruptive innovation is recognizable in the market but the already existing businesses act reluctantly in the idea of taking advantage of it. Taking advantage of this disruptive innovation will mean that the existing businesses will compete with a more profitably technological approach (Brown, 2004). The small firms are the ones who take advantage of the disruptive innovations as they are in a better position to adopt these innovations.
These small businesses are in their developing stages and adoption of the disruptive innovations can help in pushing technological demands and even achieve beyond the expectations of the disruptive technologies (Brown, 2004). Disruptive innovations come from the problems which are around us and the business world should respond by creating an environment which can favor these technologies to come to the forefront. All the business leaders and the society should be more concerned with the future than today by tolerating the problems and coming up with strategies of how to solve them.
Reference list
Brown, T.E. (2004). Innovation, Entrepreneurship and Culture: The Interaction between Technology, Progress and Economic Growth, ISBN184376346X, 9781843763468. Edward Elgar Publishing.
Gallouj, F. (2002). Innovation in the Service Economy: The New Wealth of Nations, ISBN1840646705, 9781840646702. Edward Elgar Publishing.