The Faculty of Economics and Business Faculty (FEB) University of Muhammadiyah Yogyakarta (UMY) successfully organized the 4th International Conference of Management Sciences (ICOMS 2018) on Wednesday (28/3) at AR Fachrudin B. Meeting Room which raised the disruptive issue innovation in the modern business world is organized in collaboration with Tamkang University, Taiwan, Universiti Sains Malaysia, and Khon Khaen University, Thailand.
Prof. Shu Hsien Liao from Tamkang University mentioned that in general innovation is a way to get better and newest results. “Innovation is usually seen as a way to apply a better solution to get more optimal results than ever before. In general, innovation can be divided into 3; incremental innovation is improving the existing way; radical innovation, by presenting a product, process, or service that replaces the old product; and disruptive innovation is a low-cost alternative that can affect other industries, “said Shu as one of the keynote speakers.
Shu explained that although disruptive innovation has the potential to disrupt existing markets and networks, it does not necessarily disadvantage. “Disruptive Innovation itself is a delineation of the process that led to a new product or service that then can disrupt or change the status of the market which then has the potential to shift the position of an established player. In the business world and management of this innovation generally involves technology and is done by parties who are outside the market or entrepreneurs who are trying to find solutions that are considered better than those that already exist today. For example in cases in Indonesia is the high prestige of ride-hailing service applications such as Uber or Gojek, “he explained.
The potential for turning disruptive innovation into a new opportunity is also approved by other speakers, Dr. Syadiyah Abdul Shukor from Universiti Sains Malaysia. “In many disruptive innovations it is seen as a threat, but it can be exploited by actors in the market to find opportunities to grow,” he said.
“This can be done for example identifying such innovations through various perspectives; internally, by adopting the right business model to adapt; external, taking into consideration the context and environment of the market; marketing, by analyzing customer orientation to the changes that arise; and implement appropriate technology strategies to accommodate such disruptive innovation, “explained Syadiyah. (raditia)