Disruptive technology refers to an innovation that significantly alters or disrupts existing markets, industries, or business models. It introduces a new product, service, or technology that creates a substantial shift in the way things are done, often displacing established companies or practices.
Examples of disruptive technologies include personal computers, which disrupted mainframe computers; digital photography, which disrupted film photography; mobile phones, which disrupted landline phones; online streaming services, which disrupted video rental and broadcast industries; ride-sharing platforms, which disrupted taxis.
Key aspects:
Game-changing Innovation: Disruptive technologies introduce innovations that fundamentally change the game. They offer new capabilities, functionalities, or efficiencies that challenge the status quo.
New Business Models: Disruptive technologies often enable new business models that challenge established industry practices, such asn new ways of delivering value, reaching customers, or monetizing offerings.
Market Disruption: Disruptive technologies disrupt existing markets or industries by providing alternative solutions that are more affordable, convenient, accessible, or efficient.
Performance Improvements: Disruptive technologies may initially offer lower performance compared to established solutions, yet they often improve rapidly over time, to exceed established solutions.