• Internal Code :
  • Subject Code : MGT812
  • University : International College of Management
  • Subject Name : Strategic Management

Disruptive Technology Analysis


Executive Summary


Disruptive Innovation Theory

Reasons why large-scale officeholders prefer sustained innovation over destructive innovation

Challenges in Disruptive Innovations

Solutions to overcome disruptive technology challenges

Case Studies

Case Study 1

Case Study 2

Role of Business Analysts and Leaders




Executive Summary

Despite growing awareness of the potential for high growth in disruptive innovation, the high failure rate is the need for research on what challenges and how emerging companies are pursuing disruptive innovation and overcome them. The study helps finish high-tech start-up companies understand this area by looking at the instance of a successful new market interruption in an intercorporate framework.In Finland, the main challenges are the identification of potential disruptive innovation in the market, the ability to fund enough in the early stages of business and the promotion of disruptive innovation, as well as the length and risk of the course.The success factors derived from the case study and the expertise of experts in that area provide a way for emerging companies to encounter these challenges.The findings from the inter-company research challenge the destructive innovation theory created in the context of innovation from the company to the consumer.


Destructive technology can play a major role in improving people's quality of life, global economy, and corporate business models.Technology can be accepted if it contributes to the company's price chain.The following sections describe most of the destructive technologies. A case study of several companies, such as SFEG and Amazon, is done to understand the impact of disruptive technology in the business.At the end of the measure taken by business leaders, such as utilizing destructive technologies through big data analysis and acquisitions, if the technology can be abundant by manufacturers, the supply-side economy may become the major economic parameters of the future (Hahn, Jensen & Tanev, 2014).

Disruptive Innovation Theory

Destructive innovation modifies the demand and needs of existing markets, thereby destroying (destroying) the existing technical trajectory, and maintaining innovation, refine and improve it (enhancing capacity) The cause of the disruption is technical discontinuity, commercial discontinuity, or both, which can lead to significant improvements in product performance and cost. As shown in figure, destructive innovation creates a new market by either providing customers with convenience or low prices at the small end of anstanding market (that is, destroying the low end) or by providing new functionality to non-customers (that is, destroying the new market). Low-end confusion is intended for customers who are over-burdened using a low-cost business model (Majumdar, Banerji & Chakrabarti, 2018).

Some technologies which possess risks that have created a major disruption to the business and the world economy -

  • Wireless sensor network

  • 5D Printer

  • Cloud

  • Internet

  • Internet of Things

  • Advanced Robotics

  • Renewable Electricity

  • Automation of Knowledge Work

  • Autonomous or Near-Autonomous Vehicles

  • Neuromorphic technology

In business theory, destructive innovation is an alternative to products, companies, and alliances that create new markets as well as value networks, eventually destroy present markets and value links, and lead the recognized market."

A key concept of destructive innovation theory is the concept of "excessive performance supply" that explains why more sophisticated products are already available while customers are investing in destructive products (Russell, 2012).

Image shows Trend of Disruptive Innovation Theory

Fig 1: Trend of Disruptive Innovation Theory

Source - (Russell, 2012)

Reasons why large-scale officeholders prefer sustained innovation over destructive innovation

1. sincethey focus on existing clients which will give them what they want and "kill" other ideas.

2. Small and microdevelopingmarkets that are initially targeted for destructive technology are not attractive to large enterprises because they have low potential for profit.

3. the rigorous functions of large enterprises can set strategic flight boundaries for destructive innovation.

Challenges in Disruptive Innovations

1. Classifying disruptive inventionswhich holds market potential

a. The problem dealing with disruptive innovation is that there is no immediate market.It is important to consider whether there is a need for innovation and demand.

b. When dealing with an existing market, the numbers and estimates are available, however in the case of destructive innovation, the market survey is supplementaryto quality based on the vision of an industry expert to see if a resolution is possible and if a market exists.Errors occur when estimating the potential of the market.

2. Obtain appropriate funds at the early stages of the business

a. If your business ideas are right and the right individuals are involved, the prime challenge is to discover and maintain funds as well as cash flows.

b. Cash flow for start-ups must be managed prudently.It takes countless hours to fund.

3. Publicizing of the disruptive innovation

a. The marketing of destructive innovation is different from the marketing of sustained innovation.The interview suggested that the market is cheaper to keep innovation, as it makes it easier to communicate the solution when the known pricing principles can reach the existing market.In the circumstance of destructive innovation, it takes a while to get customers.

b. You need to learn more about the solution, and typically you need a few training and trials to understand and accept the customer (Wagner, 2016).

4. Process length and risk

a. Destructive innovation doesn't shoot up as fast as we expected.They don't pay in the short term, they don't follow a straight path.

b. The novel market growth process is long and involves the risk of involvement due to high levels of uncertainty in markets, technology, and their suitability.In many cases, it is surprising and something can eventually break through after some failures.

Solutions to overcome disruptive technology challenges

1. Innovation provided solutions to the problems facing the industry, provided users with significant benefits and savings, and provided the underlying incentives for their customers to engage in their adoption.

2. You need hard work to help you procure negotiations by employing a financial consultant, to help you manage areas where the finder lacks skills, and to overcome financial challenges.

3. Innovation accompanied the green value of providing customers with other incentives to adopt it. Since this is a B2B product, the commitment to green value has served as a positive PR tool for customers.

4. Using a persistent attitude, hard work, firm belief in products, and external funding consultants, we were able to gradually build a foothold among investors by looking for backingof funds from the right sources who aware with the standards of industry.

5. Support the success of marketing subversive innovation, which focuses on communicating with customers, peace of mind, explanation, the opportunity for customers to examine innovation, making innovation as simple to use as possibleas well as minimizing customer demand for all the equipment and skills required to use the innovation (Wagner, 2016).

Case Studies

Case Study 1

The U.S.based Electric Group leverages innovative technologies in designingand manufacturing good quality power products to provide intelligent power solutions.They used Universal Robot (UR5) to perform a pick-and-place task.It has the speed and precision of a standard industrial robot that can move around and work around people.They got orders for Chinese competitors and recovered jobs that were procured in China to benefit from lower costs as well aspace their production. The benefit of using UR5 generally to automate monotonous and possibly dangerous tasks. UR5 is a pace setter that has reduced SFEG implementation time by up to 50%.

The value of the world market was high to US$10.8 billion. In 2015, robot sales increased 29% to 235,000, making it the highest level in a year. Amid 2010 and 2014, the average robot sales increased by 17% a year (CAGR).The growth of sales of industrial robots was mainly driven by the automobile industry and the electricity/electronic industry. In 2015, the usual density of robots was 86 in Europe, 80 in the United States, and 55 in Asia (Wagner, 2016).

Case Study 2

Amazon being one of the biggest e-commerce giants, and Amazon always been able to use data analysis to work in an advantageous way. Ten years ago, companies were responding to customer demands.Today, companies are using data generated by customers over the Internet to forecast customer demand.The company will try to ship the product even before the customer decides to purchase it based on a predictable big data analysis. Amazon generally uses big data to track and defend billions of retail items around 200 distribution centers worldwide. Amazon stores item list evidence in S3.S3 is a modest web management interface that is used to stock all amounts of data, anytime, anywhere, on the Internet. You can create, read, and delete up to 6 TB of information each.

Amazon has been paying a lot of consideration to big data over the last 24 months, and as a result, Amazon has grown as aoutcome over the past several years.By analyzing Amazon's performance over 18 months through our return on investment, you can see that the ROI rate increases every quarter.While investments can be huge with big data, big data has certainly played a key role in our performance (Wagner, 2016).

Role of Business Analysts and Leaders

1. Business Analysts & leaders should have enough knowledge of future technology which incorporates them to prevent their corporate from the misuse of the technology or to benefit the industry from the same.

2. Leaders mustupgrade themself before technology try to dosame with business. In this era of information technology as well as artificial intelligence, eachgiant industry is a technology organizationnowadays.

3. Analysts and Companies should look forward to build partnerships as well as supplement its strengths. The approaching e-commerce industry are violentlyconnecting themselves in mergers as well asattainments to increase their range of business.

4. Data composedas of the customer shall not to be misused and relatively turned into knowledge by means of big data analytics.

5. Analysts should consider the supply-side economics perspective that could be a parameter to future economics.Producers willingness to create products and services will established the pace of economic growth and substitute demand-side economics. The supplyside economy can occur primarily through destructive technology, can help produce large-scale goods and services, and can meet the growing demand for population.

6. The economics on the demand side may become secondary economics in the future (Wagner, 2016).


This technology is confident in improving business efficiency. Business leaders must continue to upgrade their organization's technology despite the constant development of disruptive technologies. Destructive innovation can change the repurposing of an organization, create completely new products and controls, and move a pool of value between manufacturers or from producers to purchasers.


The arrival of destructive technology must be integrated into the disaster management strategy. For communication between stakeholders, this includes the purpose and the audience's consideration.

The application of technical intervention requires systematization and standardization. Open ideas help reduce costs, ensure interoperability, and improve scaling. Tuning needs to be extended to use big data, but this is often covered with opacity. You must apply a clear, translucent shared protocol, including the application programming interface.


Hahn, F., Jensen, S., & Tanev, S. (2014). Disruptive Innovation vs Disruptive Technology: The Disruptive Potential of the Value Propositions of 3D Printing Technology Startups. Technology Innovation Management Review, 4(12), 27-36. doi: 10.22215/timreview/855

Majumdar, D., Banerji, P., & Chakrabarti, S. (2018). Disruptive technology and disruptive innovation: ignore at your peril!. Technology Analysis & Strategic Management, 30(11), 1247-1255. doi: 10.1080/09537325.2018.1523384

Russell, A. (2012). First Steps on the Path to Defining Disruptive Science and Technology. Disruptive Science And Technology, 1(1), 1-2. doi: 10.1089/dst.2012.1500

Wagner, M. (2016). Managing disruptive innovation with technology acquisitions: the informing case of software-based high-technology industries. Technology Analysis & Strategic Management, 28(8), 979-991. doi: 10.1080/09537325.2016.1181736

Wagner, M. (2016). Managing disruptive innovation with technology acquisitions: the informing case of software-based high-technology industries. Technology Analysis & Strategic Management, 28(8), 979-991. doi: 10.1080/09537325.2016.1181736

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