Disruptive Innovation for Teclo Company Case Study- myassignmenthelp

Question: Discuss about theDisruptive Innovation for Teclo Company Case Study. Answer: Introduction There has been an increased recognition of disruptive innovations and their ability to create massive development. However, despite of these recognitions, their high rate of failure demands research on the type of challenges incumbent pursuing disruptive technology encounter and how the challenges can be dealt with. According to Clayton Christensen, disruptive technology refers to the method through which a good or a services takes root at the bottom of the market through the use of simple application, then constantly moves up the market, ultimately displacing the existing competitors (Adams, 2016). This article presents primary analysis of a traditional longitudinal case study of the Swedish-Finnish of Telcos which is the incumbent, in relation to disruptive change. Due to technical change Telcos company has effectively transferred its technology Telecom operator TeliaSonera AB in accordance with technological and business model change. Through, the application of the business model adaptions the company has been active but unsuccessful in the key business model changes, although it has been performing well in insignificant business model changes. The implication is that the idea of business model as such has a low prediction power in elaborating failure and success, hence demanding for an operationalization. Currently, Telecom is amongst the industries that has faced a constant stream of both business model and technical discontinuities (Reza Samavi, 2008). Telecommunication as a communication sector is paradoxical. This industry at a given time can be regarded as mature as well as an emerging industry where new business foundation and new technologies converge. For instance, Apple established an enlacement of handset and content by introducing iPhone in 2007. Skype re-defined video call and long-distance market (Unhelkhar, 2010). Even though, former market leaders have brutally suffered, incumbents multinational operators have witnessed their margins deteriorate despite enormous cost-cutting efforts which has seen Nokia a leading terminal manufacturer nearly being wiped out. Teclo focusses on high end market with an aim of improving its wired voice services through the provision of products with new elements and high performance for its target market. Through the application of Mintzbergs business strategy concept, Telco goes by a positioning strategy and distinguishes itself from its challengers with its skilled management and provision of good quality picture positions (Hannes Kuebel, 2014). Through, the occupation of this market position, Teclo has the benefit of enjoying hogh profits as compared to its competitors in its contemporary business model. Suddenly, Cellco a new entrant in the market, starts providing similar services. Christensen et al. says this invention was a disturbance from a technical perspective (Adams, 2016). The disruptive offered the capability of making calls with added accessibility, although at that particular period the wireless voice quality when contrasted with the wired alternates was quite low and the battery lifespan was inadequate. The disruptive technology targeted the lower market generally overlooked by the incumbents, hence threatening to replace it (Hannes Kuebel, 2014). The wireless services provided by Cellco was disturbing in that it could take over the wired voice services or completely make Teclo lose the market share significantly. Essentially, in positioning approach, any company presume that there is always a position in the economic market place for any particular industry or business. A company that is occupying that particular position always defends itself from the current and future competitors. To respond to the change, the senior managers of Telco are required to comprehend and examine the challenge that has occurred in the marketplace. Business respond to the changes in the market based on their present strategies hence it is of great essence that Teclo reacts to the wireless technical change (Reza Samavi, 2008). Cellco the new entrant, initiated its own business strategy and model. The company aimed at increasing its market share one step at a time. Cellco chose to established its own private network, even though it could have asked Telco to share its infrastructure. Teclo has to respond to the changes rapidly while maintaining its existing business. Therefore, Teclo strategists will have to change the value alignment of their business model from a joint process to a modular process (Matti Kaulio). Unlike the joint process where Teclo has private rights to the entire chain value, segmental process will allow the company to be able to upgrade its product through improving each subsection of the system instead of redesigning the whole system (Matti Kaulio). Today, the disruptive business approaches and models are the ones that deal with e-commerce enterprises. Business Modeling Ontology The methods of modeling are extensively applied in analyzing and designing e-commerce information systems. The ontologies of these models basically comprise of systems like workflows and activities, operations and transformations, relationships and information entities, data flows and value exchanges (Alexander Osterwalder). With an aim of strategic reasoning regarding disruptive change and business models, Teclo requires an ontology that will handle strategic actors. Therefore, the company will have to develop SBMO (strategic business modeling ontology) by applying the i* strategic performers relationship modeling structure as a foundation. The ontology will be supported with a graphical visual illustration. The establishment of an SBMO will create a mutual recognition of the ideas that are required so as to enhance exchange pf information among shareholders. The i* agent-oriented modeling structure offers support through the representation of participants and the various goals and responsibilities in the business, their tactical relationships and the basis behind their strategic selections. The main concept in i* is the strategic player. The strategic player has beliefs and aims, has freedom of action(semi-autonomous), the actors actions are allowed and controlled by the other actors relationship(social). The strategic actor also has boundaries and contingent identity and thinks about its strategic choices rationally in regard to its self-interest. The purpose of strategic modeling is to determine the needs of various actors and how those needs can be achieved (Osterwalder, 2004). SBMO offers i*modelling with added concepts that are required for strategic business reasoning. The additional concepts include state of the business model, strategy layer, business model dynamics and operational layer. Conclusion For any company to obtain distinguished competitive advantage, technical innovation goes hand in hand with BMI, which enhances the establishment of new industries. With the new competitor in the market it is important for Teclo company to launch a business model. Business models are objects of technological innovation, the more fundamental the change in the BM features is, the more revolutionary the resultant BM.Business model innovation changes multiple features of BM, which in turn changes the entire business logic in strategizing on how to counterattack the challenger leading to a vibrant and successful business. References Adams, S. (2016, 103). Clayton Christensen On What He Got Wrong About Disruptive Innovation. Retrieved from forbes.com: https://www.forbes.com/sites/forbestreptalks/2016/10/03/clayton-christensen-on-what-he-got-wrong-about-disruptive-innovation/#6c15136a391b Alexander Osterwalder, C. P. (n.d.). Setting up an ontology of business models . Lausanne: University of Lausanne, Ecole des HEC. Retrieved from https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.93.2305rep=rep1type=pdf Hannes Kuebel, R. Z. (2014). Evaluating Platform Business Models in the Telecommunications Industry via Framework-based Case Studies of Cloud and Smart Home Service Platforms. Berlin: University of Berlin. Matti Kaulio, K. T. (n.d.). Incumbent Response to Disruptive Innovation: The Case of the Swedish-Finnish Telecom Operator Teliasonera Ab. Sweden: KTH Royal Institute of Technology. Osterwalder, A. (2004). The business model ontology a proposition in a design science approach. Retrieved from www.dirkkirchner.com: https://www.dirkkirchner.com/wp-content/uploads/2017/01/Osterwalder_PhD_BM_Ontology.pdf Reza Samavi, E. Y. (2008). Applying Strategic Business Modeling to Understand Disruptive Innovation. University of Toronto , Toronto, USA. Unhelkhar, B. (2010). Handbook of Research on Green ICT: Technology, business and social persepective. Sydeny: University if Western Sydeny and Methodscience.