Technology And Its Impact On The Film Renting Industry And The Management Of An Organization's Technological Assets

Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a

Disruptive technology is a new way of doing something that initially does not meet the needs of existing customers. This type of technology tends to open new markets and destroy old ones. While, a sustaining technology produces an improved product that customers are eager to buy. This technology provides better, faster and cheaper products on established markets.

According to Baregheh et al, innovation is a multi-layered tool where ideas are converted into improved processes, or commodities, or results or services (2009). In a hyper- competitive environment, organisations rely on innovation as a vehicle to further advance, thrive, challenge, and maintain a comparative advantage over other organisations in the same field.

Clayton Christensen is responsible for the term, disruptive innovation in which the smaller, unassuming store comes out of no where and takes the lead, which in this case the disruptor is the off-price retailer, T.J. Maxx and the disruptee is the full-service department store in this case is Macy’s (Christensen, 2017).

The word ‘innovation’ is derived from Latin word ‘innovare’, which means “to change something to new”. In other words, we may say that ‘innovation’ means changing the regular way of doing things and involves doing the regular things in a novel way.

Disruptive technology brings about many opportunities for both innovation and productivity outputs, however it can also be a risk. It includes developments that create substantial change across the economy for most people and businesses, the impact of which causes significant costs to adjust to due to capital being made obsolete and workers becoming underutilised. Clayton Christensen is considered to be the world’s top expert on the concepts of disruption innovation and technology and according to him the ‘introduction of digital disruption offers a better alternative to the present approach for solving customer problems’. Digital disruption is redefining the norm, changing both markets and competitors around the world. Whilst it can be a positive change for

In Clayton Christensen’s Disruptive Innovation for Social Change he changes the term “social change disruption” into a catalytic innovation. Disruptive innovations challenge most industries by offering them simpler alternatives to their low-end customers. Catalytic innovation, however, can outdo the status quo by offering an acceptable solution to inadequately addressed social problems. Catalytic innovations are differentiated by its primary focus on social change on a national scale. For example, in the article mentions how Minneapolis health clinic, MinuteClinic is a catalytic innovation.

Other companies have used Disruptive Innovation to come in at the bottom of a market and focus on a lower cost and change the way consumers purchase goods and services, changing the market forever. One of the best examples of this type of Disruptive Innovation was Toyota. Toyota came into the American market and offered inexpensive cars that offered very view features and small 4 cylinder engines. At first many consumers turned their nose up to the Toyota products. But some consumers bought the Toyota because they were a cheaper option for automobile transportation. When more customers started to purchase Toyotas and the company was able to establish a solid footing in the American Business market and they started to change the model of their business. Toyota started to offer higher end cars and eventually moved into the luxury automobile industry with the Lexus line of cars. Disruptive innovation is a continual process and happens in business all the time. You can also see it in the car market right now with Hyundai and Kia.

According to the Innovation Policy Platform, a radical or disruptive innovation is an “innovation that has a significant impact on a market and on the economic activity of firms in that market.” (Radical and incremental innovation, 2013, p. 1). From this definition, IBM is a prime example of a radical innovation. The Watson super computer has performed activities no other invention has before. IBM has gone through at least five radical changes in its environment such as

A working definition is “Innovation is the entire process by which an organization generates creative new ideas and converts them into novel, useful and viable commercial products, services, and business practices.” (Garud et al., 2011).

Radical innovations are technologies that allow firm to differentiate themselves from competition and become leaders in newly developed markets. As radical innovations are speculative in nature, it is essential for firms to constantly conduct numerous research and development projects to increase the likelihood a commercially viable one is discovered.

If innovation is a the successful implementation of a new process that brings about positive change for an organization, disruptive innovation is a new process, service or technology that brings about a positive change within an entire market or industry. Thomond, Herzberg and Lettice, (2003) attempt to clarify disruptive innovation as:

Disruptive innovation was a term coined by Professor Clayton Christensen (A US Scholar and Teacher) of the Harvard Business School in his 1997 book, ‘The Innovator’s Dilemma’. Professor Christensen said, in order for a business to be disruptive, it must gain a foothold in a low-end market (Christensen Institute, 2017). Disruptive innovation can be described as a specific way that smaller companies can outcompete, and probably even destroy bigger rivals in the same industry. Sometimes this could even be a corporate strategy to gain a foothold in industrial domination or a greater market share.

It is found, perhaps more commonly, in new ways to create value and operate rather than a new line of products. (Rigby, Christenson, & Johnson, 2002) The true definition of innovation lies in the cooperation and association of technology and business. The areas of overlap between the two show business leaders the most economizing actions and help them learn. Innovation can take many forms, from a new technology to a new product line to applying new concepts in the business model to maximize efficiency. (Teece, 2010)

A disruptive innovation at the start offers a lower performance accordingly to what the market demands at a lower prices. Usually, the phenomenon of disruptive innovation is refer to the entrance of a new established firm that enters the market with a new product targeting non-consuming customers with a low quality product at a lower price. However, for established firm, disrupting the market can be challenging. In order to do that established firms need to relay on new emerging trends driven by the demand of the sector and incorporated new technologies to reinvent the way business is done in the industry.