The paper “ Disruptive Technology Perspective of Organizational Change” is a cogent example of a literature review on the management. Today’ s organizations are faced with the need to continually make rapid and radical changes due to the social, economic and political environments of their markets. Some of the changes are planned, depending on the goals and objectives of a firm. However, oftentimes, external factors cause organizations to effect changes. Disruptive technology is among the key external factors that change the way firms operate as well as their markets. This paper looks at the organizational change from the disruptive technology perspective.
Levitt’ s model of change diagnosis and a process intervention (automation of the production process) will be used to demonstrate how to manage organizational change from the disruptive technology perspective. Disruptive Change PerspectiveDisruptive technology refers to technological innovations that change organizations and their markets. It is also referred to as disruptive innovation (Yamagata-Lynch et al, 2015). Lui et al (2016) describe disruptive technologies as innovations that have their origin in information technology and impact the development processes and outcomes of firms. Similarly, Nagy et al (2016), say that new technologies create new markets and shift the status quo of existing markets.
Disruptive technologies revolutionize the way operations are carried out in an organization, they provide the latest developments and equip firms to face changes in the market (Lui et al 2016). The disruption theory posits that there are innovations that can undermine dominant products in the market (Nagy et al 2016). According to Catinean and Candea (2013), disruptive technologies bring to the market different value offers than those in the dominant markets. Additionally, the technologies are discontinuous.
Disruptive technology demands change on the basis of competition. Change in response to disruptive technology does not only require disruptive innovations but also sustaining innovations that improve the performance of products already in the market. Disruptive innovations involve putting together components of products and services to make them simpler than those in the market. Technological transformation changes the product from a complicated form, demanding high skill to design, to one that ordinary people with less practical skills can make (Tomofumi & Junichi 2015). Sandstrom et al (2014) describe the process that disruptive technology uses to change the market.
They say that in the beginning, disruptive technology underperforms the dominant technology in regards to what customers value. These technologies are introduced or commercialized in markets deemed insignificant or in emerging markets. The disruptive technology has a feature that new and a few old customers value, though most customers would prefer dominant products. The products that result from the disruptive technology are smaller, simpler, cheaper, and more convenient compared to those from the dominant technology. Initially, the firm’ s most profitable customers, in most cases, do not want to use the products that are based on disruptive technologies.
Most managers are of the view that investing in disruptive technology is not a viable decision for the company. In time, the disruptive technology steadily progresses in performance until it attains the standards of the mainstream market. Later, it displaces the dominant technology in the market (Lui et al 2016).