May 8, 2009

Disruptive Technology Growth Strategies for Incumbent Organizational Leadership - Overview of a Research

I just finished writing a research paper titled ‘Disruptive Technology Growth Strategies for Incumbent Organizational Leadership.’ The purpose of this research was to examine strategies through which incumbent organizational leaders can pursue disruptive technology in their organizations.

Today a new type of infrastructure is evolving one that is built on ever expanding broadband and computing capabilities. In our global economy this means organizations, due to the constantly advancing technology, will confront change of many forms. This trend is only going to continue, possibly more aggressively, since consumers’ dependence on and expectations from technology are growing.

ipod and iphone have redefined how we access media on the move. The concept of ‘Open Innovation’ has started a whole new era of open platform technologies that are used by Apple and companies such as Facebook, Myspace, Linkedin and Salesforce.com, to name just a few, have been able to exploit it very well. More recently, as discussed in the May '09 OMMA magazine, NY times is offering apps programming interface that lets developers use NYT data in other features. And then there is Kaltura, an open source online video platform, that is picking up fast and how quickly technology is evolving, resulting in new business models, one that is fully capable of competing with incumbent firms and technologies.

Increased competition and technological advances result in these new types of technologies, which have the capability to disrupt many existing businesses. Take an other omnipresent technology- the Internet. Since its invention it has evolved significantly and is shaping many industries. Most significant impact of the Internet can be seen on how we shop. Today more and more shoppers are going online, contributing to decreasing in store sales. Internet has also disrupted the newspaper industry, evident from the closing of many newspapers. Introduction of CD and DVD was disruptive to floppy disk and VHS market, practically shutting them down completely. Such is the power of "disruptive technology" - 'a technology that has the capability to destroy the value of existing technology and create new markets through the introduction of new kind of product or service.'

Needles to say, with a changing business landscape, executive leadership around the world is under constant pressure to perform and sustain profitable operations despite disruptive challenges. One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technologies or markets change (Bower & Christensen, 1995). While this changing landscape and supporting shift in digital infrastructure may seem to favor new technologies or entrants over incumbents, established companies can also compete in this market-place. For incumbents to be successful executives will need to change how they approach a business strategy and how they manage and differentiate between their existing products and disruptive projects.

In my paper I discuss various strategies that incumbent organization leadership can follow to not only stay on top of a competitive and a living landscape, but also develop organizational competencies that will help them sustain their businesses. If you are interested in reading the paper or discussing more about it, respond to this post with detailed intentions- thanks.

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