A Review of the Impact of Disruptive Innovations on Markets and Business Performance of Players
Disruptive innovation refers to an idea, product or service that either disrupts or produces an entirely new market segment. Disruption occurs when conventional value drivers are dramatically modified in an existing industry. A new competitor usually enters an existing market with new technologies or business models (or a combination of both offers a new form of value that varies from that of the current player. Disruptive innovation is more accessible, yet affordable solution to a more extensive customer base and opens it up to an entirely new sector, with huge potential. Disruptive technologies are advancements that dramatically affect the way customers, markets and companies work significantly. As it has significantly superior characteristics, disruptive technologies transform substantially the processes and customer behaviours and often disrupt the established market-segments and overthrow traditional leaders in the industry. It generally takes place at the bottom of the market, addressing the same demands in a simple and comparatively cheap way as high-market solutions. Large and established market leaders' ecosystems prevent them from pursuing disruptive innovation due to their stakes in continuing the status quo.
In contrast, new start-up entrepreneurs are more agile and can create transformative innovations as industry.
Corporates, which can take risks, often identify and target emerging market opportunities that can involve the potential of disruptive technologies within their business processes. They are the "innovators" in the lifecycle of technological adoption. Firms that fail to account for disruptive technology's effectsmay lose substantial potential market opportunities not to the other known competitors but to the emerging players. They innovatehow technology can be integrated. Disruptive technology in today's economy is far more than innovation. This is an avenue not merely to exceed existing markets but to craft a sustainable future by creating a new market. In the coming years, unsettling disruption will be the game-changer. Domains like Finance, Marketing and HR have started using disruptive technologies like RPA (Robotics Process Automation), Artificial Intelligence, Cloud Computing, Chatbots to name a few. RPAs have helped several corporates in reducing expenses by way of a reallocation of human resources. The RPA technology is exceptionally cost-effective, and it also has non-financial advantages such as better and stable processes that are less vulnerable to mistakes. This review paper strives to analyze published literature on disruptive technologies in diverse sectors and how they impacted the markets and major market players with focus on the satisfaction of the customers and the generation of higher revenue from the innovative solutions.