ABOUT

Disruption has been the talk of the business world lately with the increase in
frequency of business disruptions and its outcomes, the topic has gained public eye
within every industry. Disruption is described as a process where a smaller company
with small amount of resources can challenge an huge established business as most
of the major companies are focused on developing the product or service for the
consumers who demand for it, which is the most profitable customer base and tend
to ignore the requirements of others. These neglected needs and un-catered
segment is targeted by the new entrants capturing a market and giving them an
upper hand with similar or better service or product in lower price range. Business
organizations which seek more profit in high demanding segments do not react to
this strongly. These new entrants grow up the market slowly getting into the
mainstream customer base holding on to the advantages which was the primary
reason of its success. When the customer base of the existing giants is been shifted
to these new comers in large volumes it is said to have caused disruption. This is
caused in every industry and has been accelerating since last few years globally.
(Clayton M. Christensen, 2015)
Disruption and Innovation are the key reason for current technologically advanced
world. There is no reason for one to expect that today technology is the limit and no
future disruption will arise to challenge the companies. Many entrepreneurs hence
focus on the question of If were so aware of disruption, then why do successful
products (or companies) keep getting disrupted? The companies are trying hard to
sustain their position with the help of Research and development as Innovation and
Disruptions are intertwined. In developing countries such as India it had been
affecting the market with quick shifts and new options made available to the same
target market. This makes the consumers open for large number of options and
switch for minor errors. India has displayed an development on the World Banks
most recent ease of doing business report (from 134 in 2015 to 130 in 2016), and
the present government set themself an determined aim of receiving the rank
within the top 50 by 2017. This gives a lot of opportunity for new entrants and
cause disruption in Indian market. (KPMG, 2016)
Author named Rogers has broken down innovation into five stages namely
knowledge, persuasion, decision, Implementation and confirmation. These however
do not stick with the organizations it originated in and disruption becomes a critical
element of the technology of evolution and brings changes in positive and negative
form to act as a catalyst for future technological changes. In India, it is witnessed to
have effect on different sectors such as digitalization making every business change
with the household inclination on media related advertisement. (Sinofsky, 2014) .
The effects of disruption are spreading beyond business such is the example for
sharing Economy where startups like Airbnb and Uber are interfering with the
existing framework and Indian competitors have risen to make competition tougher.
Ventures like stay uncle and ola, Meru are giving tough competition to aldready
established global brands. India with its large market often is trying to tap in the
market of this disruption made internationally before the original company who
caused the disruption entered. An example of this would be Zoomcar who adapted
the framework of blabla car and has established itself in Indian market. This is
leading to innovation from end of blabla car which is forming a cycle for disruption.
There are also few technological innovations who do not cause any disruption upon
their arrival in the corporate business models, nevertheless complete society
realigning income distribution, changing relationship among governments and
citizens, & possibly even calling into demand central features of the human
knowledge. Indeed, one reason that the concept has gained widespread traction
appearing in everything from Bollywood movies to the surge of populist political
movements is that it resonates so well with much of our shared experience. (RAJA,
2016)
Indian business practices are strongly based upon there teachings and Innovation
closely bonded by the cultural teachings since a long time. This is why the new
upcoming designers are seen as mergers or bridges who reduce the gap between
western experimentation and tight delivery, specification driven focused products
and services. This allows an increasing foreign investment in the resource which has
the ability to adapt to any culture and create innovations that can lead to
disruptions. India has already seen disruption in how business is operated by
managing expenses. India now hold the new role of enabler and instigator of
product creation in a globally spread environment. (Robert DeFillippi, 2016). As the
consumer base is also shifting from a conservative society to a more westernization
of the society the disruption have also emerged from western service companies.
An example of such would be Tinder application which has recently witnessed
acceptance in Indian market. In July, iCrushiFlush had raised an undisclosed
amount in seed funding from IDG Ventures in July. In November 2014, Noida-
headquartered Vee raised $1 million from Lightspeed Venture Partners. Investors
are willing to experiment with smaller firms with new ideas and a lot of economic
activity is witnessed on smaller level yet on huge numbers. (Shelly Walia, 2015)
There are three main sources that lead to disruption. Amongst these are technology
where we consider disruption in the moderately late setting of IT, advances in
technology have been disturbing plans of action for quite a long time. The Industrial
Revolution, for occasion, killed organizations and made gigantic labor uprooting. In
our lifetime, progressive influxes of the IT revolution (PC, on the web, versatile,
social) have democratized information, enabled consumers and generated scores of
new enterprises. The following waves the Internet of Things (IoT), virtual reality, AI,
robotics guarantee to be significantly more revolutionary. Like technology,
globalization has been overturning the present state of affairs for quite a long time,
going at any rate as far back as the fifteenth century dispatch of the Age of
Discovery and imperialism. Globalization has quickened in late decades, on account
of exchange advancement and developing market development. These patterns
disturb existing plans of action by making new contenders, reordering supply chains
and bringing down price focuses. The following waves including the development of
Africa and a more multipolar world will build many-sided quality and require
adaptable plans of action to react to worldwide movements. All through mankind's
history, demographics have decided fate. In the decades ahead, generally high birth
rates will make Africa and India motors of monetary open door. Maturing populaces
will change everything from medicinal services to land. Millennial-ruled workforces
will rethink the work environment. Urbanization will build urban areas' financial and
open approach clout, even as it strains their capacity to develop in economical
ways. Relocation and migration will impacts affect workforces and monetary
advancement. All these demographic movements will require new methodologies
and plans of action.(uschischreiber, 2016)
Once a blue moon a major disruption or irregularity occurs which has tremendous
outcomes. In 2007, the web and the cell telephone met up in a radical new item
called the smartphone. This cellphone, with its own working framework like iOS or
Android, could bolster OTT (Over The Top) applications. The informing answer for the
smartphone did not originate from the goliath telecom or web organizations. Rather
it originated from WhatsApp, a start-up. WhatsApp does 30 billion messages a day,
though all the telecom organizations set up together do 20 billion SMS messages for
each day. Such is the force of disruption! Such a "WhatsApp" minute is currently
upon us in Indian Banking. This irregularity has been brought about by a few things
meeting up. Smartphones are becoming significantly and are relied upon to achieve
an entrance of 700 million by 2020. Over 1 billion Indian occupants now have
Aadhaar, an online biometric personality. The Government progressing financial
consideration through Jhan Dhan Yojana, has prompted over 200 million new bank
records being opened. With RBI offering licenses to over 20 new banks, including
little banks and payment banks, the competitive power of the segment is set to
increment. One can picture a future where each grown-up Indian has an Aadhaar
number, a smartphone and a bank account. Officially over 280 million Indian
inhabitants have an Aadhaar connected bank account and around 1 billion DBT
(Direct Benefit Transfer) exchanges have happened, whose worth is in the billions of
dollars. The move to "cashless" will be quickened by Aadhaar-empowered biometric
smartphones. So certification checking in banking will move from "restrictive"
methodologies (platinum card + PIN) to "open" methodologies (Smartphone +
Aadhaar authentication). So the blessed chalice of a single tick two element
authentication, now accessible just to mammoths like Apple, will be accessible to
kids in a carport to create inventive arrangements. At last as India goes from being
information poor to information rich in the following 2-3 years, the Electronic
Consent layer of the India Stack will empower purchasers and business to tackle the
influence of their own information to get quick, helpful and moderate credit . Such a
utilization of advanced impressions will bring a large number of shoppers and little
organizations (who are in the casual segment) to join the formal economy to profit
of reasonable and dependable credit. Also, as information turns into the new coin,
money related foundations will forego exchange charges to get rich advanced data
on their clients. The end of these charges will further quicken the move to a
cashless economy as vendor payments will likewise get to be advanced. This will
likewise move the plans of action in banking from low volume, high esteem, high
cost, and high charges, to high volume, low esteem, minimal effort, and no
expenses. This will prompt an emotional upsurge in availability and moderateness,
and the market power of client obtaining and the social motivation behind mass
incorporation will meet. These storm winds of disruption and innovation brought
upon by technology, directions and government activity, will on a very basic level
change the banking industry. Payments, liabilities and resources will all experience
emotional change as exchanging costs lessen and occupants are undermined. As
this shrewd report from Credit - Suisse has so very much clarified, there is a US$
600 billion market capitalization opportunity held up to be made in the following ten
years. This will be shared between existing open and private banks, the new banks
and new age NBFCs. It might even go to non-banking stage players, which utilize
the influence of information to fine-tune credit risk and estimating, and profit from
client proprietorship and risk arbitrage. The Public Sector banks which involve the
directing statures of the economy with a 70% market offer, will be especially tested.
Indeed, even as they manage the legacy of their misfortunes, they will need to
adapt to, and ace, huge computerized disruption. This will require their proprietors,
the Government to give them the independence and opportunity to explore and
advance. (Equity Research Asia Pacific Region, n.d.)
The issue with conflating a disruptive innovation with any leap forward that
progressions an industry's competitive examples is that distinctive sorts of
innovation require diverse strategic methodologies. To put it another way, the
lessons we've found out about succeeding as a disruptive innovator (or
safeguarding against a disruptive challenger) won't have any significant bearing to
each organization in a moving market. In the event that we get messy with our
marks or neglect to incorporate bits of knowledge from ensuing examination and
experience into the first theory, then directors may wind up utilizing the wrong
devices for their connection, diminishing their odds of accomplishment. Over time,
the theory's convenience will be undermined. (Clayton M. Christensen, 2015)
There are always two sides of every story one is that how it is beneficial for us and
secondly how it can harm us. So, talking about the positive side of disruption, it help
business in many ways:-
Listen to-and learn from-the market this phrase states that disruption helps in
knowing about the market which is being untouched and this in turn will serve as
the source of innovation for the company and further it will help in expanding
horizons, after knowing about the untouched market we will identify the global and
local trends that has shifted the customer behaviour and will work on it and then
selection of ideas for further evaluation will take place. After knowing the shifts we
can select particular ideas or innovations that can attract people and create value
for our business and at last turning ideas in opportunities After identifying the idea
we have to work on it for both short term and long term perspective so that risks
and uncertainty can be reduced. ( (Applegate, 2007))
Explaining about the negative side of disruption it may meet future needs of people
but it may not add value to the current needs of the customers. Allocation of
resources might create problem and can lead to in-house capabilities to take proper
advantage of their technology. Lack of knowledge may lead to inappropriate
investment decisions which may lead the company to bankruptcy. Lack of assets to
take full advantage of the technology creates a road block to success. Now a days
the technologies are disrupting in such a pace that it do not create much job
opportunities. It may create a scenario that the market on which we are focusing
may not like the technology or they might not need such things. There might be
huge possibilities that whatever the product we are launching that might exist in the
market and competing the existing product is not that easy. (Tarun KhannaKrishna
G. Palepu, 2005)
Since early 1960 the life span of one particular business has been reduced to 20
years which was used to be more than 60 years. But no matter as the new
technologies are been inventing on a regular basis it is becoming difficult for the big
giant companies to sustain and to maintain their average pace of profit. But yes as
every difficult situation can be handled in a proper way so handling technology
disruption is also not a big deal. The giants can handle it first of all remaining
honest to their own products or say their company. Company should be that much
efficient that it should be able to recognise the changes which are needed to be
made they should start making strategies to overcome the difficulties which they
may face in future or should think in the customer perspective that now what
changes they want. Company should be proactive enough that they can work
properly on their vision and mission and instead of getting into the same game
which there competitors are into they should play a new game which should attract
large number of population. Company should be flexible enough to except the
change and work more on it so that they can compete with their other competitors.
The companies should collect information timely and it should be real world
information in real time because data mind-set plays an important role in disruption
one wrong data and it can damage the whole business. The company should have
good networks in the economy as it can improve the organisation agility. Training
best people to face the problems encouraging people to work on all the functional
positions might help the organisations to cope up with disruption. ( (Satell, 2014))
The famous e-commerce sites such as Amazon & Ebay, it was not that easy to
sustain in Indian market after seeing such growth of Amazon the two ecommerce
sites which came in Indian market was Flipkart and Snapdeal but seeing disruption
from two new entrants Amazon did not changed it vision and mission and continued
to struggle and have planned to invest $3 billion in India. And if we talk about that
which e-commerce brand that still India recalls is been topped by Amazon with 25%
and later on Flipkart and Snapdeal with 21% and 20% respectively. (Punit, 2016)
When it comes to adoption of some revolutionary thing in India we can see wide
variations in accepting those thing. It is not that easy to say that whether Indian
market will get benefited or not but yes in some sectors we can say that it may be
beneficial or it is benefiting. Such as talking about Unified Payment Interface (UPI),
for the new generation it is acceptable by them because these day the new
generations want to complete their work in just one click so this UPI will provide the
platform of transaction of paperless payments. Despite being the second largest
smartphone using country 70% of the population is not aware about the
digitalisation which is going on in this era and out of the remaining 30% who are
aware about digitalisation only 10 million people have accepted it. Right now nearly
145 million Indian households are knowing about such things or they hardly have
any access to financial services. So, it will bring a great revolution by making Indian
economy a truly cashless, digitally led business ecosystem but it has to face some
challenges. (Ghule, 2016)
 Now coming to the cosmetic products it is creating a huge demand in the Indian
market and this demand is being created through digital platform. Being highly
crowded and competitive sector, it is difficult to stand out and show your presence
and this has been possible just because of digitization. As per Euromonitor
International Data the market is expected to double itself from Rs.748 billion in
2015 to Rs.1440 billion by 2020. Just being available physically for personal
interaction is not enough to sustain in market it is necessary to go online and create
your presence in each and every means of possibilities and by going online and
creating varieties of cosmetic products for each skin type has boosted their sales as
it is necessary to reach customer at as many touch points as possible. Indian
customers are more focused on quality but with brand and many global brands have
made their way to India through internet or say digitization. Traditional marketing
will always play an important role but the real shift in preferences and brand growth
have improved the Indian market and is encouraging a new revolution in this sector.
(Verma, 2016)
So, we can say that there are likely great advantage of disruption in Indian market
but it all depends on the Indian population that how positively or negatively they
take it. As we are aware that main cause of disruption is advancement in technology
and this technology advancement is being put forward by the new start-ups. If we
goes on numbers it shows that 3,100 start-ups in 2014 were projected and it is said
to be increase up-to 11,500 by 2020 and it will change whole of Indian market and
will help in boosting the Indian economy. These kind of star-ups are bringing huge
foreign investment and escalating M&A activity. There are various things which are
been introducing and bringing new advancement like paytm, redbus, above
mentioned UPI etc. these kind of start-ups are bringing huge change in the Indian
market. Talking about foreign investments, one of the New York based company
Tiger Global Management (TGM) had invested around $422 million in 2014 and his
massive fund was given to Flipkart which raised almost $2 billion in 2014. Russian
investor Yuri Milner invested $352 million. Japanese telecom giant Softbank invested
$282 million in Indian start-ups in 2014. Despite investing such a huge amount
many companies are there who goes M&A and invest more money by improving
technology and bring more advancement, to expand their geographical reach and
enter into a new line of business, and some of international M&A are Twitter
acquired ZipDial, Facebook have acquired Little Eye Labs, Yahoo bought Bookpad
etc. (SIKKA, 2015)
These kind of disruption helps to develop economically and will help the country to
become the worlds fifth-largest consumer market by 2025. Such kind of activities
will help over 291 million Indian people to move upward from poverty line to a
sustainable life and it will help in improving the incomes of all the people whether
be lower class, upper class or middle class. (Jonathan Ablett, 2007). In past few
years many new companies and few of the existing players have contributed a lot in
creating disruption in Indian market. Some of the changes are Earlier people use
to read books and novels by physically buying books, there were no e-retail
platform, for booking hotels people need to call or visit there physically to book
room, earlier people used to either call or send letters to other to talk and express
their views, to buy clothes or any other items people had to visit stores but now a
days advancement in technology have changed the whole scenario ebooks have
taken place of books , amazon have taken place of earlier brick & mortar retail,
AirBnB can be used now days to book hotels in advance and payment can be done
online, Skype, whatsapp have taken place of letters and by using internet calls have
become free of cost, various e-commerce sites like ebay flipkart have taken place of
stores now people who do not want to visit to stores can order online and buy it.
These were some of the disruptions that had taken place and some of the
disruptions are on their way to capture the market. Some of them are Social
Robotics, Virtual Reality, Smart Appliances, 3D Printers etc. So we can say that
future of disruption in business in Indian market will be high and the companies
have to make themselves flexible enough to accept these changes and work on it to
make their presence available in the market. (DART Consulting, 2016)
Conclusion (For or against business disruptions) ..200
Recommendation (For or against business disruptions)250
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