Discussion: What Are Disruptive Technologies And How Do They

Discussion 2what Are Disruptive Technologies And How Do They Enable Or

Identify the core question: what are disruptive technologies and how do they enable organizations to change their business processes radically? Provide a specific example demonstrating this transformation.

Disruptive technologies refer to innovations that significantly alter or replace existing products, services, or processes within an industry, often displacing established market leaders and reshaping competitive landscapes (Christensen, 1997). These technologies typically emerge initially in niche markets before expanding their influence, eventually disrupting the status quo and prompting organizations to adapt or face obsolescence.

Disruptive technologies enable organizations to radically change their business processes by introducing new methods of operation that are more efficient, cost-effective, or accessible compared to traditional practices (Bower & Christensen, 1995). For instance, digital photography disrupted the traditional film industry by providing a new, more convenient means of capturing, storing, and sharing images, radically transforming how companies like Kodak operated. Kodak's initial resistance to digital technology exemplifies how incumbent firms often struggle to adapt to disruptive innovations. However, organizations that embrace such technologies can streamline workflows, reduce costs, and open up new business models, leading to substantial competitive advantages.

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Disruptive technologies are innovations that significantly alter the landscape of industries by reshaping how businesses operate and compete. According to Christensen (1997), disruptive innovations start small, often in overlooked market segments, eventually displacing established products and companies. These technologies differ from sustaining innovations, which improve existing products and services incrementally without fundamentally changing market dynamics. Understanding the nature of disruptive technologies is crucial for organizations aiming to maintain competitive relevance in rapidly evolving markets.

The enabling aspect of disruptive technologies lies in their ability to overhaul business processes radically. They tend to lower entry barriers, reduce operational costs, and make products or services more accessible to a broader audience (Bower & Christensen, 1995). For example, the rise of digital streaming services like Netflix disrupted the traditional video rental and broadcast television industries. Netflix employed digital technology to transform how content is delivered, enabling users to watch movies and TV shows on demand via internet-enabled devices. This technological shift drastically changed the business model of media distribution, causing traditional rental stores and cable TV companies to reevaluate their strategies.

This example illustrates that disruptive technology can lead to a comprehensive transformation of business processes. Organizations leveraging such innovations can shift from conventional models to more flexible and customer-centric approaches. Digital streaming, for instance, eliminated the need for physical rental inventories, reduced distribution costs, and personalized user experiences through algorithms. As a result, companies that adapt early to disruptive technologies can reshape industry standards, gain competitive advantages, and open new revenue streams while incumbents risk becoming obsolete if they resist change.

In addition to the example of digital photography and Netflix, other notable disruptive technologies include blockchain, which has revolutionized financial transactions and data security, and artificial intelligence (AI), which is transforming everything from customer service to supply chain management. Blockchain technology, by providing a decentralized and transparent record-keeping system, enables peer-to-peer transactions that bypass traditional banking and financial institutions. This shift enables organizations to operate more efficiently while offering innovative services that challenge incumbent business models (Tapscott & Tapscott, 2016).

Similarly, AI-driven processes automate complex tasks, reduce human error, and facilitate personalization at scale. In healthcare, AI applications enable early disease diagnosis and personalized treatment plans, radically changing patient care protocols. In the retail sector, AI-powered recommendation engines enhance customer experience and optimize inventory management, leading to higher sales and customer satisfaction (Brock & von Wangenheim, 2019).

It is evident that organizations that recognize the potential of disruptive technologies and integrate them into their business models can achieve radical transformations in their processes. Embracing innovation enables them to capitalize on new opportunities, improve efficiency, and deliver superior value to customers. Conversely, companies that ignore or delay adopting these technologies risk losing their competitive edge or becoming irrelevant in their respective industries.

References

• Bower, J. L., & Christensen, C. M. (1995). Disruptive technologies: Catching the wave. Harvard Business Review, 73(1), 45-53.
• Christensen, C. M. (1997). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business School Press.
• Brock, J. K.-U., & von Wangenheim, F. (2019). Demystifying AI: What managers need to know about artificial intelligence. California Management Review, 61(4), 78-94.
• Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: How the technology behind Bitcoin is changing money, business, and the world. Portfolio.