THE INFLUENCE OF DISRUPTIVE INNOVATIONS ON NEW AND EXISTING BUSINESS MODELS.
Introduction A disruptive innovation can be simply referred to as the application of technological advancement, product, or service that eventually overturns the existing dominant technology or status quo product in the market. Disruptive innovations are innovations that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market. Some examples of disruptive innovations include: telephones replacing telegraphs, cell phones replacing land lines, digital photography replacing films etc In today’s complex, dynamic business world, having a disruptive innovation capability is mandatory, both for growing a business and protecting existing markets. But leading disruptive innovation requires new mindsets and behaviors, for leaders themselves and for the organizations that develop them. Disruptive Innovation is not a break through innovation that makes good products a lot better; it transforms a products that is expensive and complicated as such only few people with a lot of money could afford it. Disruptive Innovation makes such products more accessible and affordable that a larger population and customer base can access. E.g. the first manifestation of the computer was the mainframe computer where larger companies and organization could only afford. But now with the advancement in technology, computers can be easily accessed via desktop, laptops and now smart phone. However, the idea of Disruptive Innovation implies a dilemma, which stems from the fact that disruptive innovation forces company to enter new markets and serve the people who are not its customers, selling simple and very affordable product. Consequently, appears a dilemma: Should we make better product that we can sell for better profits to our best customers or maybe we need to make worse product that none of our customers will not buy and that will ruin our margins? This question will best be answered by the organization

in question putting into consideration its strategic focus and business objectives. Autonomous Vehicle It is now possible to create cars, trucks, aircraft, and boats that are completely or partly autonomous. From drone aircraft on the battlefield to Google’s self driving car, the technologies of machine vision, artificial intelli gence, sensors, and actuators that make these machines possible is rapidly improving. Over the coming decade, low-cost, commercially available drones and submersibles could be used for a range of applications. Autonomous cars and trucks could enable a revolution in ground transportation—regulations and public acceptance permitting. Short of that, there is also substantial value in systems that assist drivers in steering, braking, and collision avoidance (James et al, 2013). An autonomous car also known as a driverless car, self-driving car, or robot car, is an autonomous vehicle capable of fulfilling the human transportation capabilities of a traditional car. As an autonomous vehicle, it is capable of sensing its environment and navigating without human input. An autonomous vehicle is one that can maneuver with reduced or no human intervention. Examples include cars and trucks, crop-spraying drone aircraft, self-guided forklift trucks, and law enforcement drones. Machine vision is a key enabling technology for autonomous vehicles. Using cameras and other sensors, a computer constantly monitors the road and the surrounding environment, acquiring an image and then extracting relevant information (such as stop signs or objects in its path) on which to base actions. Advances in machine vision include 3D cameras that gather additional information regarding distances that two-dimensional cameras cannot provide. Pattern recognition software, including optical character recognition programs, can interpret symbols, numbers, and the edges of objects in an image. LIDAR (laser-imaging detection and ranging), which is similar to radar but uses laser light bounced off of objects rather than radio signals to measure distance, is also being used by autonomous vehicles, along with advanced GPS (global positioning system) technologies and spatial data. When combined with sensor data, this information enables autonomous vehicles to pinpoint their curre nt locations, follow the road, and navigate to their destinations (James et al, 2013).

With these capabilities, a fully autonomous vehicle can navigate to a specified destination, moving safely among other vehicles, obstacles, and pedestrians. These vehicles’ computers can also optimize fuel economy by accelerating and braking smoothly, remaining within the speed limit, and never taking a wrong turn. Around the world, autonomous vehicles have the potential to improve the economics of trucking. Self-driving trucks that transport goods long distances could fit easily into intermodal transportation and logistics systems. Trucks moving in convoys could transport goods on major arteries, then transfer their cargos at regional distribution centers, from which other vehicles could take the cargo to its final destinations. On their long hauls, autonomous trucks would not have to stop for their drivers to sleep or eat. The potential benefits of autonomous cars and trucks include increased safety, reduced emissions, more leisure or work time for motorists (with hands-off driving), and increased productivity in the trucking industry, others according to Litman, 2013 include:    Reduced driver stress. Reduce the stress of driving and allow motorists to rest and work while traveling. Reduced hired driver costs. Reduce costs of paid drivers for taxis and commercial transport. Mobility for non-drivers. Provide indepe ndent mobility for non-drivers, and therefore reduce the need for motorists to chauffeur non-drivers, and to subsidize public transit.

However, the risk associated with this innovation include the following: Increase production costs. Require additional equipment, and possibly additional roadway infrastructure.  Additional risks. May be unsafe under certain conditions such as ice and snow, encourage road users to take additional risks (offsetting behavior), and introduce new risks, such as system failures.  Security and Privacy concerns. May be vulnerable to information abuse (hacking), and features such as GPS tracking and data sharing may raise privacy concerns. Induced vehicle travel and increased external costs. By increasing automobile travel convenience and affordability, autonomous vehicles may induce additional vehicle travel, increasing external costs such as parking subsidies, accidents and pollution emissions. 

3D Printing As 3D Printing is entering the mainstream, more and more companies are keen to get involved. The question on everyone’s mind is how to incorporate 3d printing to already existing businesses, or what kind of new ventures are there to be build around additive manufacturing. Until now, 3D printing has largely been used by product designers and hobbyists and for a few select manufacturing applications. However, the performance of additive manufacturing machinery is improving, the range of materials is expanding, and prices (for both printers and materials) are declining rapidly—bringing 3D printing to a point where it could see rapid adoption by consumers and even for more manufacturing uses. With 3D printing, an idea can go directly from a 3D design file to a finished part or product, potentially skipping many traditional manufacturing steps. Importantly, 3D printing enables on-demand production, which has interesting implications for supply chains and for stocking spare parts—a major cost for manufacturers. 3D printing can also reduce the amount of material wasted in manufacturing and create objects that are difficult or impossible to produce with traditional techniques. There are many economic, legal, and sociological implications of the wide spread dissemination of 3D printers into domestic settings. Technological developments have the potential to influence an entire industry, such as the effect of digital formats within the music industry. Economically, there is a potential for a similar effect as individuals gain the ability to print objects. This change in the market for tangible goods may change the prevalent economic models of consumerism as the focus shifts from the manufacturing of goods towards a more knowledge -based economy with a high value assigned to 3D blueprints.

Some of the benefits associated with the 3D printing include; transferring of an idea directly from a file on a designer’s computer to a finished part or product, potentially skipping many traditional manufacturing steps, including procurement of individual parts, creation of parts using molds, machining to carve parts from blocks of material, welding metal parts together, and assembly. 3D printing can also reduce the amount of material wasted in manufacturing and create objects that are difficult or impossible to produce with traditional techniques, 3D printing can also create objects with an internal honeycomb structure, while bio-printing can create organs with an internal network of blood vessels.

Some of the limitations of 3D printing, which vary by pr inting technique, include relatively slow build speed, limited object size, limited object detail or resolution, high materials cost, and, in some cases, limited object strength. Risks associated with 3D printing, include: Design and intellectual infringements, Quality of the raw materials, copyright infringement, New combinations of raw materials that have not been tested, Product liability risks, Employee liability risks, Multi-jurisdictional risks where products are distributed worldwide.

Conclusion Policy makers and societies need to prepare for future technology, too. To do this well, they will need a clear understanding of how technology might shape the global economy and society over the coming decade. They will need to decide how to invest in new forms of education and infrastructure, and figure out how disruptive economic change will affect comparative advantages. Governments will need to create an environment in which citizens can continue to prosper, even as emerging technologies disrupt their li ves. Lawmakers and regulators will be challenged to learn how to manage new biological capabilities and protect the rights and privacy of citizens.

References Todd Litman (2013): Autonomous Implications for Transport Planning.

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James el al (2013): Disruptive Technologies: Advances that will transform life, business and the global economy. Jessiva Vincent (2013) 3D Printing - Too Good to be True? http://www.perkins-slade.com/insurance -blog/2013/10/29/3d-printing-togood-to-be-true/