Dallas Business Consultant Elijah ClarkDallas Business Consultant Elijah Clark

Disruptive Technology in Business

Disruptive Technology (DT) is a powerful means of broadening and developing new markets and providing new functionality, which, in turn, may disrupt existing market linkages (Christensen, 1997). DT is when a new technology upsets the way that things have been done. The radio replacing the newspaper, or the television replacing the radio as a source of news is DT. DT is not when a single event occurs that disrupts things. It is when a process plays out over time that causes new technology to either replace or reduce the use of an older method.

I believe that DT is beneficial to businesses and individuals because it offers more opportunity to me as a consumer and it causes product innovation at a better value. By not adopting DT, individuals and businesses could be potentially missing opportunities for a financial gain and powerful tools that could make their life or business more productive. The concern I have with DT is that it oftentimes takes me away from having to think for myself. An example would be a calculator replacing the deep analysis of problem solving, digital navigation systems causing its users to not have to remember directions, or a cell phone contact list that makes it so that I don’t have to remember a phone number. With so much dependent upon these technologies that we rely on to help us in our day-to-day, we can become lost without the benefits that DT has created. The benefit for me and why I appreciate DT is because I enjoy looking for new technologies to make my life easier so that I can spend more time on the things that matter to me most.

DT is not always created to remove or replace an older method; it creates an alternative to the way things are done. It creates typically simpler, more convenient, and less expensive ways of doing things (Christensen, Baumann, Ruggles, and Sadtler, 2006). DT is usually a result of the desire to make things easier, faster and convenient. Hence, landline telephones and traditional mail services now have email and cell phones. Not everyone has or will adapt to DT. Just as cell phones have not fully replaced the landline, DT ultimately could have a major impact on an existing market without totally displacing it (Schmidt and Druehl 2008). Not everyone uses the Internet or mobile device in place of reading a book, looking through a map, or earning a degree. Many people still select to drive a car, take a train, or travel by boat to get to their destination. There are however ways in which DT have caused those unwilling to adopt it, to have to have to make sacrifices. Video streaming services Redbox and Netflix have caused brick and mortar businesses such as Blockbuster to close shop because of Blockbusters inability to create or adapt to DT. Digital photography caused film to practically become obsolete. DT introduces threats to existing ways, but also opportunities for new sources of competitive advantage (Markides, 2006). The benefits of DT go to the risk takers. Without being willing to take risk, the individual or business would never accept DT.  Risk taking however, can have negative impacts if it is not executed properly and with a plan. For small businesses, the possible financial loss could be detrimental to the business. In order for DT to be successful, small businesses and individuals must weigh the benefits. Without proper knowledge and training on why DT is needed or how to use it for success, the transition will likely fail and DT will disrupt business.

Credits

Schmidt, G.M. and Druehl, C.T. (2008). When is a disruptive innovation disruptive? Journal of Product Innovation Management, 25, pp. 347–369.

Christensen, C.M. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA Harvard Business School Press.

Christensen, C. M., Baumann, H., Ruggles, R., & Sadtler, T. M. (2006). Disruptive innovation for social change. Harvard Business Review, 84(12), 94–101.

Markides, C. (2006). Disruptive innovation: In need of a better theory. Product Innovation Management, 23, 19–25.

Social Brand Development

As humans, one of the ways we build relationships is through the stories we tell; why else do we catch up with our friends, right? In business, it’s no different. You want to create moments between your business and your customers. Those willing to share the experiences of their founders, customers, and staff can reap the many benefits that storytelling offers. It shifts the focus a little from what you do and talks about why you do it. The story of your brand is as individual as you are, and it needs to tell your audience who you are and why you’re doing what you do. It is where your manifesto comes to life, giving your audience context for your business and a chance to connect with what is important to you. After all, people buy from people.

Your brand is often your business’s most valuable asset. A strong brand can generate loyal customers and positive sales. The brand should be seen by customers as both positive and valuable. For your brand to be valuable to customers, it needs to simplify the decision-making process and reduce any perceived risk for your customers.

Social Media Branding. The personalized brand for your business should include a presentation of your unique benefits, knowledge, experience, and expertise that help make your business memorable. These unique assets influence customers to make a purchase and professionals to want to work with your brand. To expand brand awareness, start by creating, or cleaning up, your online presence and social media pages. On your social media pages, you should not post or subscribe to anything that does not enhance your brand. This includes both text and images. In addition to social media pages, you should create digital image galleries and a website showcasing the best of your brand.

Qualitative or Quantitative

Determining whether to use a qualitative or quantitative method is really dependent upon how you desire to collect your data and what is important to you. A qualitative examination technique assesses why people behave a certain way. Furthermore, the strategy aides in discovering boundaries that influence thinking by breaking down points of interest and gathering information from in-depth sources (Šalkovska & Ogsta, 2014). A qualitative examination produces findings that are regularly not conclusive and are exploratory in nature. The advantage of this kind of study is that it gives alternative research to further decision making. A quantitative methodology utilizes information in view of raw information and statistics. The research technique frequently uses experiments and segments to gather information (Šalkovska & Ogsta, 2014).  A quantitative methodology is similar to qualitative concerning the examining of individual practices. However, a quantitative methodology uses structured information to shape a hypothesis and conclusion (Šalkovska & Ogsta, 2014). Unlike quantitative, a qualitative examination is non-measurable. Furthermore, a quantitative exploration produces detailed information that contribute to in-depth comprehension, while a quantitative examination produces information based on populace and generalized information.

Additional Readings

Šalkovska, J., & Ogsta, E. (2014). Quantitative and qualitative measurement methods of companies’ marketing efficiency. Management Of Organizations: Systematic Research, (70), 91-105. doi:10.7220/MOSR.1392-1142.2014.70.7

Are you selling too cheap?

If you have great prices, that is awesome, but is that what you want to be known for? Many businesses that I have consulted for, boasted their low prices but hated the fact that customers would only purchase products on discount. Those businesses failed to sell products at a reasonable margin and often could not afford other expenses including employees, marketing, and general operational expenses. It’s great that your customers love your low prices, and you have a significant amount of customers, but if your customers are the only ones winning, then that is not good for your business.

Most customers – the ones you want – look at your product or service as an investment. That’s a very different mindset from that of customers who simply want to buy a product at the lowest cost possible. It is your responsibility to make your OVERALL value the focus of your business and not just your low prices. You may lose customers in the process, but you can help your business and life become sustainable. It’s time that you focus on having high-quality customers rather than a high-quantity of customers.

Professional and advisory support

Having the input of a professional on how to maintain your business and generate profits is critical for the success of your business.

It’s up to you to determine whether a professional or advisor is needed to help with your business’s success.

Suggestions of support may include:

  • College friend
  • Professional family member or friend
  • Board of directors and management advisory board
  • Attorney
  • Accountant
  • Insurance agent
  • Banker
  • Consultants
  • Mentors and key advisors

Transparency in Organizations

Transparency is defined as the availability of group specific information to those outside of the group (Bushman, Piotroski, and Smith, 2003). Organizational transparency is when the organizations information is produced, gathered, validated, or disseminated to outside participants (Bushman, Piotroski, and Smith, 2003). Transparency can allow for businesses and individuals to get speedier feedback on products and services (Bennis, 2013). Stakeholders have a right to information concerning the company, brand, and potentially stocks. Transparent organizations allow for stakeholders to gain proper insight into the workings and issues that are relevant (Dubbink, Graafland, & Liedekerke, 2008). Transparency is beneficial for companies in that it helps them to distinguish themselves from similar companies by enhancing innovation (Dubbink, Graafland, & Liedekerke, 2008). Being transparent and informing consumers and partners of important business aspects can be seen as an ethical approach (Dubbink, Graafland, & Liedekerke, 2008). For a leader, being transparent creates trust, honesty, accountability, and responsibility (Dubbink, Graafland, & Liedekerke, 2008). Morally, transparency is important considering it can affect personal integrity, attitude, and organizational commitment (Dubbink, Graafland, & Liedekerke, 2008).

An example of a transparent organization is the travel agency, which moved from traditional travel agencies to online digital offerings. As an online organization, prices, reservations, itineraries, suppliers, and competitive disadvantages became transparent and disrupted traditional sales and business (Granados, & Gupta, 2013). With technology and the internet, business transparency is crucial and business leaders need to understand the power in which transparency enables loyal followers (Bennis, 2013; Dubbink, Graafland, & Liedekerke, 2008). Using digital networks as a transparent company generates sales for new and potential consumers who desire unbiased information and offerings from all vendors (Granados, & Gupta, 2013).

Complete transparency, however, has its setbacks. Companies could lose freedom, secrets, and privacy because of this. Being transparent could conflict with leaders’ moral principles (Dubbink, Graafland, & Liedekerke, 2008). If companies are transparent, consumers can gain knowledge and shared information about products that are available (Dubbink, Graafland, & Liedekerke, 2008). Digital transparency also effects competition as businesses can view, compare, and match competitor prices to their advantage (Granados, & Gupta, 2013). Full transparency may distract consumers and stakeholders from focusing on more important items and information (Dubbink, Graafland, & Liedekerke, 2008). If a company desires to become transparent, it should respect the freedom of both stakeholders and individuals (Dubbink, Graafland, & Liedekerke, 2008).

 

Credits

Bennis, W. (2013). Leadership in a digital world: embracing transparency and adaptive capacity. MIS Quarterly, 37(2), 635-636. Retrieved from http://misq.org

Bushman, Robert M. and Piotroski, Joseph D. and Smith, Abbie J., What Determines Corporate Transparency? (April 2003). Available at SSRN: http://ssrn.com/abstract=428601 or http://dx.doi.org/10.2139/ssrn.428601

Dubbink, W., Graafland, J., & Liedekerke, L. (2008). CSR, Transparency and the Role of Intermediate Organisations. Journal Of Business Ethics, 82(2), 391-406. doi:10.1007/s10551-008-9893-y

Granados, N., & Gupta, A. (2013). Transparency strategy: competing with information in a digital world. MIS Quarterly, 37(2), 637-641. Retrieved from http://misq.org

1 2 3 7
READY TO START OR GROW YOUR BUSINESS?
Daily Business Motivation
Daily Business Motivation
Daily Business Motivation
Daily Business Motivation
Copyright 2021 Dr. Elijah Clark Business Consulting - Sitemap - Policy