ResearchBuster: Technology and Change

A2 business students need to understand the role that technological change plays in disrupting industry and competitive structures. The concept of a “disruptive technology” is a good one for students to use when describing how innovative based on technological advances/adoption can have profound implications for business strategy (and therefore act as a cause of business change).

Below is a brief revision presentation of technological change and further below are some useful examples of industries / firms which have been subject to disruption technology.

Here are some examples of disruptive technology which have fundamentally changed the nature of the market for many established businesses and brands:

Digital downloads for media (music, films, books)
When consumer media, particularly music, began to be shared freely between users using peer-to-peer file sharing, the market for physical media changed forever. The legitimisation of digital downloading by the likes of iTunes and Amazon further eroded demand for sales of physical media such as CDs and DVDs
Examples of firms damaged by this change: HMV, Woolworths, Zavvi

Digital photography replaces chemical photography
For decades, the name Kodak was synonymous with the concept of taking and developing pictures. Digital technology changed the entire supply chain of photography - from the production of camera film through to the end-processing and storage of images. Now, even the digital camera market is under threat from a process of “convergence”. Smartphones are increasingly the camera of choice for many consumers, substituting demand for standalone digital cameras (image and video) which appear to suffer from their role as single-function devices
Examples of firms / brands damaged by this change: Kodachrome, Boots, Flip video cameras

Advertising & digital broadcasting
The traditional consumption of news, entertainment and other media has changed significantly as online and mobile computing has become mainstream. Advertisers used to have very limited choice about when to place TV and radio campaigns. The proliferation of channels as digital broadcasting has replaced analogue, together with rapidly-changing media consumption habits, has created new advertising revenue streams, but also reduced the attractiveness of others.
Examples of firms/brands damaged by this change: newspapers, ITV, magazines