Blockchain and Innovation Strategy
Disruptive innovation underachieves in typical markets as compared to the recognized product. Nevertheless, it possesses other attributes which are appreciated by both new and low-end customers. Disruptive innovation has turned out to be an extremely prevalent idea regarding competition and change in an organization.
The blockchain network is already led by conventional corporations, financial organizations and startups which are trying to influence the technology to decrease operating costs, gain profits and develop novel anticompetitive corporations. Organizations are tracking private blockchains as they can manage the data and uphold closed source. For some time, this strategy will surely support them, but eventually information wants to be unrestricted. Without doubt, the network consequences of an unclosed and public blockchain based procedure will outperform any private systems.
Thus, an inclusive innovation strategy should be considered to adopt blockchain technology. An inclusive strategy is presented in this report which encompasses four core steps namely, Evaluate, Plan, Adopt and Elevate. Moreover, it has also been scrutinized that novelty and intricacy are the two scopes that influence the way a foundational technology and its business use cases move ahead. It is significant to develop a structure that plots innovations in contrast to these two scopes.
Moreover, there are certain obstacles which should be considered. Issue of interoperability, Scaling, and issue of data privacy can never be overlooked.
Novel strategies are required by the disruptive change. It has been analyzed that organizations realize their previous strategies which have brought about success once upon a time, are no longer effective; and it happens when circumstances change in a rapid manner. It cannot be easy to give up or discard such strategies which have been a basis of competitive advantage. This causes several executives to think that effective responses to disruptive change are a matter of good fortune (CIMA, 2009). Nevertheless, it has been examined that shaping strategies to make the most of opportunities ahead of the competition is achievable. The term disruptive technology was initially thought up by Clay Christensen, a Harvard professor. Soon after, he referred it as ‘disruptive innovation’. Besides, he recognized that it was not just the technology itself which was disruptive, but its influence on corporate model or strategy.
At present, blockchain technology is well-liked not only by corporate executives but also by an outdated or socially inept person, revolutionaries and bettors. They all have a great range of enthusiasms and visions for upcoming use cases. Many big corporations are considering blockchain technology but it is important that an innovative strategy should be followed for its adoption as devoid of an innovation strategy, innovation enhancement endeavors can turn out to be a container of much-touted preeminent procedures without any difficulty – to name just a few: allotting Research and Development (R&D) into decentralized self-sufficient groups, generating internal business ventures, creating a type of private equity for the corporate, cooperating with customers, engaging in external coalitions, incorporating open innovation, encompassing crowdsourcing, and carrying out prompt prototyping (Pisano, 2015).
In this report, a comprehensive innovative strategy is presented with the aim of adopting blockchain technology within an organization. Corporate attitude towards disruptive innovation, role and current status of blockchain technology in the corporate world are also presented. Market and society impact has also been analyzed and will be discussed in this report. In addition to this, potential organizational challenges, threats and opportunities will also be enlightened.
Corporate Attitude towards Disruptive Innovation
Characteristically, disruptive innovation underachieves in typical markets as compared to the recognized product. However, it possesses other attributes which are appreciated by both new and low-end customers. According to Christensen and Raynor (2003), after developing a niche market gradually, the typical market of executives is displaced by the disruptive innovation via affecting up-market by means of an essentially different performance route. On the other hand, as stated by Markides (2006) and Chesbrough (2010), disruptive innovation is not just a technology issue, but a business model problem. This description has broadened the strength of the theory to elucidate diverse kinds of disruptive innovations across an assortment of businesses (Walsh, 2002; Schmidt & Druehl, 2008).
The theory of disruptive innovation is considered as an influential approach to think about innovation-driven progression (Christensen, Raynor & McDonald, 2015). A number of executives, either of not big entrepreneurial firms or of giant well-established firms, admire it as their guiding star. The issue with combining a disruptive innovation with any development into a composite whole that modifies the competitive patterns of the business is that diverse strategic attitudes are required by diverse kinds of innovation.
Disruptive innovation has turned out to be an extremely prevalent idea regarding competition and change in an organization. After the publication of ‘The Innovator’s Dilemma’ in the year 1997 whose author was Clayton Christensen, business executives have been making an attempt to look forward to disruptive innovation in their businesses and boost it in their corporations (Gill, 2014).
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