Disruptive Innovations
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Disruptive innovations
Introduction
It is an established dogma that innovations are a necessity; however, it is seemingly easier to work on improving innovations rather than introducing, creating, disruptive one. Majorities of industries pay little attention at disruptive innovations as they, initially, brings slow profits to organizations operating on the market and outcomes are unknown. It is however possible that when such possibilities are properly pursued new markets are created in which the same organization can thrive as it provides services or products that consumers were unaware of wanting. Shehabuddeen, (2007) points out those innovations alter; modify ‘rules of the game’ involving changes in the ecosystem of the organization as well (p. 38) It is my take that introducing a disrupting innovation does not mean inventing; looking at some examples already studied and discussed in previous classes I contend that companies of the like of Amazon, Charles Schwab stock brokers the financial powerhouse or E‐Bay, redefined preexisting services or products by reformulating how it got distributed to consumers. These examples display new business models in conjunction with the internet possibilities of e‐commerce, entering with force a traditional market of physical shops. What they succeeded in doing was enlarging the market and created new customers (Markides, 2006, p. 20) previously mildly or not interested in such services or products and simultaneously changing consumer habits. Such business practices are considered disruptive because they redefined the way business was done forcing competitors to adapt but not adopt business models or create separate business units (Markides, 2006). An illustration of this we find it in the hospitality/tourism industry where the examples of disruptive innovation of high relevance was the online reservations altering the responsibilities and tasks of travel agents drastically ...
Introduction
It is an established dogma that innovations are a necessity; however, it is seemingly easier to work on improving innovations rather than introducing, creating, disruptive one. Majorities of industries pay little attention at disruptive innovations as they, initially, brings slow profits to organizations operating on the market and outcomes are unknown. It is however possible that when such possibilities are properly pursued new markets are created in which the same organization can thrive as it provides services or products that consumers were unaware of wanting. Shehabuddeen, (2007) points out those innovations alter; modify ‘rules of the game’ involving changes in the ecosystem of the organization as well (p. 38) It is my take that introducing a disrupting innovation does not mean inventing; looking at some examples already studied and discussed in previous classes I contend that companies of the like of Amazon, Charles Schwab stock brokers the financial powerhouse or E‐Bay, redefined preexisting services or products by reformulating how it got distributed to consumers. These examples display new business models in conjunction with the internet possibilities of e‐commerce, entering with force a traditional market of physical shops. What they succeeded in doing was enlarging the market and created new customers (Markides, 2006, p. 20) previously mildly or not interested in such services or products and simultaneously changing consumer habits. Such business practices are considered disruptive because they redefined the way business was done forcing competitors to adapt but not adopt business models or create separate business units (Markides, 2006). An illustration of this we find it in the hospitality/tourism industry where the examples of disruptive innovation of high relevance was the online reservations altering the responsibilities and tasks of travel agents drastically ...