Practical Business Problem Solving Topic

Practical Business Problem Solving Topic

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Abstract
Practical Business Problem Solving Topic

Overview

            Disruptive innovation is a modern aspect of the business world that has been employed in most companies rendering it a topic of concern. Disruptive innovation is any improvement that creates the possibility of a new market and value network leading to an imbalance in the current markets and value networks. Such an innovation tends to displace most of the companies that have developed with the existing markets rendering any alliances and pro ducts void. Innovation is considered gradual as the concepts of technology and modernization are incorporated into different parts of the company performance objectives. Entrepreneurial concepts tend to foster the possibility of disruptive innovation considering the desire created to counter the competitive aspect, governmental regulation, recession and deregulation within the existing market created by dominating companies (Čiutienė & Thattakath, 2014). Leading market companies fail to understand the outcomes that are imminent once they accommodate disruptive innovations as the profits accrued are minimal at first.

History and Relevance

            Clayton Christensen in an article Disruptive Technologies Catching the Waves in 1995 introduced the concept of disruptive innovations owing to the increased effect that modern concepts had on the business aspects (Čiutienė & Thattakath, 2014). Arguably, the idea of disruptive innovation was directed to the managerial position that was involved in most of the decision-making processes for the companies. The concept was developed largely in other publications that Christensen produced exploring more factors such as the connection between financial aspects of funding, purchase and procurement issues within the organization. After identifying that some technologies introduced into the discipline were disruptive intrinsically, Christensen noted that the business models employed by the management shaped the scope of effect created during the disruptive innovation period. Since then, radical changes in the technical aspects of the issue have been expounded with concentration being placed on the locomotive sectors.

            The relevance of disruptive innovation can be seen in a number of concepts evident in the business scene. Evidently, emerging economies are becoming a global trend in the contemporary dispensation as companies desire to dominate the needy market. This has led to the sensitized aspect that globalization is likely to steer companies in the desirable direction. However, companies have encountered a challenge when it comes to determining the profitable expansion and sale of new products for the mass markets of less affluent populations of emerging economies that are currently not supplied by multinational corporations (MNCs) (Čiutienė & Thattakath, 2014). Often, organizations and managers have attributed the success of new products in emerging markets to the probable success of disruptive innovations. The traditional concept of disruptive innovation was concerned with introducing new products in a totally ignored market that is not profitable considering its size. Therefore, the concept considers various facets such as the consumer and the market size.

Similarities with Choosing Your Doctoral Topic

            Disruptive innovations have been integrated with other doctoral disciplines to ensure that businesses understand the operational and technical aspects surrounding the issue. As a topic of concern, disruptive innovation involves two areas that ensure continuity in organizations such as social responsibility and financial economies. Organizational development depends on the ability of the company to expand its profits over time that is drawn from innovative reasoning and decisions. In some cases, the short-term objective of disruptive innovation may be met oblivious of the effects that are imminent in the future. In the organizational perspective, resources are often limited and companies try to fulfill the long-term objectives owing to the possibility of future financial returns. Incremental innovation compared to disruptive innovation involves modest changes to existing products and services (Corsi & Di Minin, 2014). In this case, both issues generate change in the interests, attitudes and behavior of the people. Although there is a desire to develop disruptive innovations by competitive businesses, the cost may be quite strenuous. The issue of quality may be a similarity between innovation and the doctoral topic since it fosters positive outcome in the delivery system.

Business-Related Problems

            Although the concept may have been absorbed into different companies, it is associated with a number of business problems. Such problems render businesses at a disadvantage especially if the innovation is not evaluated distinctively. For businesses that penetrate new and relatively smaller markets, the developmental costs associated with launching a disruptive innovation is considered quite high compared to that of penetrating developed markets (Corsi & Di Minin, 2014). Financial aspects often interfere with the ability of companies to experience growth since it controls most of the business procedures. Therefore, businesses may struggle to ensure that it meets the objectives of the business even in smaller and unreliable markets. Similarly, companies desiring to venture in disruptive innovations are likely to experience increased technology costs as it implies a complete change in systems. Such a challenge creates interest for companies, as they desire global recognition.

Research and Data Collection

            Information on the problem of developmental costs may be acquired in case a business desires to pursue disruptive innovation. However, extensive research needs to be made considering the severity of the issue. In this case, approaching the issue through a qualitative and quantitative aspect proves to be an effective way of carrying out research on the issue. Similarly, data collection through survey needs to be collected concentrating on the financial, demographic and geographic aspects of the market to identify the continuous nature and identify the future prospects. Information on the competitive markets needs to be collected through database evaluation as well as the potential suppliers.

References

Čiutienė, R., & Thattakath, E. W. (2014). Influence of dynamic capabilities in creating disruptive innovation. Economics & Business, 26,15–21.

Corsi, S., & Di Minin, A. (2014). Disruptive innovation … in reverse: Adding a geographical dimension to disruptive innovation theory. Creativity & Innovation Management, 23(1), 76–90.