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Home » Strategy » Disruptive Technology: Definition, Meaning and Examples

Disruptive Technology: Definition, Meaning and Examples

August 23, 2022 | By Hitesh Bhasin | Filed Under: Strategy

Disruptive technology is one that displaces an established technology and shakes up the industry or sector in which it is operating. Disruptive technologies are often disruptive because they are cheaper, faster, or more accessible than the incumbents.

Disruptive technologies can have a profound impact on industries and society. They can create new markets and new opportunities, but they can also disrupt existing businesses and upend established ways of doing things.

Table of Contents

  • What is Disruptive Technology?
  • Meaning of Disruptive Innovation
  • Origin of the idea of Disruptive Technology
    • 1. Low-end disruptive technologies
    • 2. New-market disruptive technologies
    • 3. Sustaining technologies
  • What are the Characteristics of a Disruptive Technology?
  • What are the Benefits of Disruptive Technologies?
  • What are the Risks of Disruptive Technologies?
  • Examples of Disruptive Technologies
    • 1. The Personal Computer
    • 2. Digital Cameras
    • 3. The Internet
    • 4. Smartphones
    • 5. Tablets
    • 6. 3D Printing
    • 7. Electric Cars
    • 8. Solar Energy
    • 9. Wind Energy
    • 10. Nuclear Energy
    • 11. Gene editing
    • 12. CRISPR
    • 13. Robotics
    • 14. Artificial Intelligence
    • 15. Virtual Reality
    • 16. Augmented Reality
    • 17. Blockchain
    • 18. Video Streaming
    • 19. Cloud Computing
    • 20. Online Education
    • 21. Work-From-Home Revolution
  • Investing in Disruptive Technology
  • How Does Disruptive Technology Work?
  • What Industries Are Being Disrupted by Disruptive Technology?
  • How to make Disruptive Technology Business Model Successful?
  • Future Potential of Disruptive Technology:
    • Conclusion!

What is Disruptive Technology?

Definition: Disruptive technology is a technology thfat significantly alters the way that business is conducted. The proliferation of a disruptive technology disrupts the existing systems or routines it replaces because it offers features that are readily recognized to be better. E-commerce, ride-sharing applications, online news sites, and GPS systems are recent examples of disruptive technologies. The electricity supply, automobile, and television were all highly innovative technologies at one time.

When a disruptive technology emerges, it is often initially dismissed by the incumbents in an industry as being unimportant or irrelevant. But disruptive technologies have a way of catching on, and eventually, they can displace the established players. This is what happened with personal computers, which disrupted the mainframe computer industry, and with digital cameras, which disrupted the film photography industry.

Meaning of Disruptive Innovation

Demanding customers and established companies are always looking for the next big thing, the disruptive technology that will change their business model and give them a competitive edge. But what is disruptive technology?

At its most basic, disruptive technology is a new technology that changes the way we do things. It can be an enabling technology, like the internet or mobile phones, that allows us to do new things that weren’t possible before. Or it can be incremental improvements on existing technology, like a new app or a new way of doing business that makes things better or easier.

Harvard business review defines the term disruptive technology as technological innovation, product, or service that eventually overturns the existing established technologies in an existing market, or surprises entirely new markets and market leaders with new technologies.

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Origin of the idea of Disruptive Technology

idea of Disruptive Technology

Clayton Christensen, a professor at Harvard Business School, is credited with popularizing the idea of disruptive technology. In his 1997 book The Innovator’s Dilemma, Christensen argued that successful companies are often unsuccessful when it comes to disruptive technologies because they are too focused on their existing customers and business models.

Christensen’s research showed that disruptive technologies often emerge in low-end or new-market niches before eventually moving upmarket and displacing the incumbents. He identified several different types of disruptive technologies, including:

1. Low-end disruptive technologies

These are technologies that initially target low-end customers who are less demanding in terms of quality and features. They typically offer a lower price point and stripped-down features. personal computers and digital cameras are examples of low-end disruptive technologies.

2. New-market disruptive technologies

These are technologies that create new markets by appealing to customers who previously had no need for the product or service. The personal computer and the Internet are examples of new-market disruptive technologies.

3. Sustaining technologies

These are improvements to existing products or services that make them better, faster, or cheaper. They typically don’t create new markets or disrupt existing ones.

What are the Characteristics of a Disruptive Technology?

There are several characteristics that are often associated with disruptive technologies

  1. They are typically less expensive and more accessible than the existing technologies
  2. They often start out being used for simpler tasks before eventually displacing the established technology
  3. They are usually disruptive because they offer features that are better in some way
  4. They often create new markets and new opportunities

Some disruptive technologies have had a profound impact on society. The automobile and television were both highly disruptive when they first emerged. The internet is another disruptive technology that has had a major impact on society and the economy.

What are the Benefits of Disruptive Technologies?

There are several benefits associated with disruptive technologies

  1. They can create new markets and new opportunities
  2. They can improve efficiency and productivity
  3. They can disrupt existing businesses and upend established ways of doing things
  4. They can have a profound impact on industries and society

What are the Risks of Disruptive Technologies?

While disruptive technologies can have a number of benefits, there are also some risks associated with them:

  1. They can disrupt existing businesses and upend established ways of doing things
  2. They can have a profound impact on industries and society
  3. They can create new markets and new opportunities, but they can also disrupt existing businesses and upend established ways of doing things.

Thus, it is important to weigh the risks and benefits of disruptive technologies before implementing them.

Examples of Disruptive Technologies

Examples of Disruptive Technologies

1. The Personal Computer

The personal computer was a low-end disruptive technology that eventually moved upmarket and disrupted the mainframe computer industry. Personal computers were initially used for simple tasks like word processing and spreadsheets. However, they eventually became powerful enough to replace mainframe computers for many applications.

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2. Digital Cameras

Digital cameras were a low-end disruptive technology that eventually moved upmarket and disrupted the film camera industry. They were initially used for simple tasks like taking snapshots. However, they eventually became powerful enough to replace film cameras for many applications.

3. The Internet

The Internet was a new-market disruptive technology that created a whole new market for online businesses. It was initially used for simple tasks like sending email and browsing the web. However, it eventually became powerful enough to replace traditional businesses in many industries.

4. Smartphones

Smartphones were a new-market disruptive technology that created a whole new market for mobile applications. In the beginning, Smartphones were used for simple tasks like making phone calls and sending text messages. However, they eventually became powerful enough to replace traditional phones and computers.

5. Tablets

Tablets were a new-market disruptive technology that created a whole new market for mobile computing. They were initially used for simple tasks like reading books and browsing the web. However, they eventually became powerful enough to replace traditional laptops for many applications.

6. 3D Printing

3D printing is a disruptive technology that is starting to disrupt the manufacturing industry. It is initially being used for simple tasks like prototyping and small-scale manufacturing. However, it is becoming increasingly capable of replacing traditional manufacturing methods for a variety of products.

7. Electric Cars

Electric cars are a disruptive technology that is starting to disrupt the automotive industry. Electric cars were initially used for simple tasks like commuting and running errands. However, they are becoming increasingly capable of replacing traditional gasoline cars for a variety of applications.

8. Solar Energy

Solar energy is a disruptive technology that has been disruptive to the energy industry. It was initially used for simple tasks like powering small electronics. However, it is becoming increasingly capable of replacing traditional sources of energy like coal and natural gas.

9. Wind Energy

Wind energy is a disruptive technology that has been disruptive to the energy industry. Wind energy was initially used for simple tasks like powering small electronics. However, it is becoming increasingly capable of replacing traditional sources of energy like coal and natural gas.

10. Nuclear Energy

Nuclear energy is a disruptive technology that has been disruptive to the energy industry. Nuclear energy was initially used for simple tasks like powering small electronics. However, it is becoming increasingly capable of replacing traditional sources of energy like coal and natural gas.

11. Gene editing

Gene editing is a disruptive technology that has the potential to disrupt the medical industry. It is initially being used for simple tasks like disease prevention and treatment. However, it has the potential to replace traditional methods of medicine in many areas.

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12. CRISPR

CRISPR is a disruptive technology that has the potential to disrupt the medical industry. It is initially being used for simple tasks like disease prevention and treatment. However, it has the potential to replace traditional methods of medicine in many areas.

13. Robotics

Robotics is a disruptive technology that is starting to disrupt the manufacturing industry. Robotics was initially used for simple tasks like assembly and packaging. However, they are becoming increasingly capable of replacing human workers in a variety of tasks.

14. Artificial Intelligence

Artificial intelligence is a disruptive technology that is starting to disrupt many industries. AI was initially used for simple tasks like playing games and solving simple problems. However, it is becoming increasingly capable of more complex tasks like driving cars and making financial decisions.

15. Virtual Reality

Virtual reality is a disruptive technology that has the potential to disrupt many industries. VR was initially used for simple tasks like gaming and entertainment. However, it is becoming increasingly capable of more complex applications like training and education.

16. Augmented Reality

Augmented reality is a disruptive technology that has the potential to disrupt many industries. AR was initially used for simple tasks like gaming and entertainment. However, it is becoming increasingly capable of more complex applications like training and education.

17. Blockchain

Blockchain is a disruptive technology that has the potential to disrupt many industries. Blockchain was initially used for simple tasks like tracking transactions. However, it is becoming increasingly capable of more complex applications like identity verification and smart contracts.

18. Video Streaming

Video streaming is a disruptive technology that has disrupted the entertainment industry. It was initially used for simple tasks like watching movies and TV shows. However, it is becoming increasingly capable of more complex applications like live broadcasting and interactive gaming.

19. Cloud Computing

Cloud computing is a disruptive technology that has disrupted many industries. It was originally designed to handle simple activities such as file storage and sharing. It is, however, increasingly able to perform more complex tasks like operating business software and hosting websites.

20. Online Education

Online education is a disruptive technology that has disrupted the education industry. Online learning was the first application for it. It’s been used for little things like taking classes online, but it’s becoming more capable of more complicated tasks like delivering entire bachelor’s degrees online.

21. Work-From-Home Revolution

The work-from-home revolution is a disruptive technology that has disrupted the workplace. The term “remote work” was originally used to describe tasks like telecommuting. It is, however, becoming increasingly competent at more advanced applications like running enterprises and supervising teams remotely.

Investing in Disruptive Technology

Disruptive technology can be a great investment opportunity. To take advantage of disruptive technology, you need to understand what it is and how it works. You also need to be aware of the industries that are being disrupted by it.

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Once you have a good understanding of disruptive technology, you can start investing in companies that are developing it or using it to their advantage.

How Does Disruptive Technology Work?

Disruptive technology typically enters the market in one of two ways. The first is when a new technology is created that is significantly better than the existing one.

The second way is when an existing technology is made much cheaper, thus making it accessible to a wider market.

Once a disruptive technology gains a foothold in the market, it typically displaces the existing technology. This process can take years or even decades to play out.

Here is a video by Marketing91 on Disruptive Technology.

What Industries Are Being Disrupted by Disruptive Technology?

Disruptive technology is disruptive because it has the potential to upend entire industries. Some of the industries that have been disrupted by disruptive technology include:

  1. The entertainment industry
  2. The education industry
  3. The workplace
  4. The retail industry
  5. The transportation industry
  6. The healthcare industry, etc

How to make Disruptive Technology Business Model Successful?

There is no surefire recipe for success when it comes to disruptive technology. However, there are a few things that you can do to increase your chances of success:

  1. Develop a deep understanding of the technology and how it works.
  2. Understand the industries that are being disrupted by technology.
  3. Invest in companies that are developing or using the technology.
  4. Be patient and wait for the disruptive technology to gain a foothold in the market.

Future Potential of Disruptive Technology:

The future potential of disruptive technology is vast.

It has the potential to upend entire industries and change the way we live and work. Disruptive technology is an exciting area to watch and invest in. So, keep your eyes peeled for the next big thing.

Some of such future innovations are self-driving cars, Elon Musk’s Hyperloop, 3D printing technology in construction, and many more.

All in all, disruptive innovation is something that you should definitely keep an eye on. It has the potential to change the world as we know it.

Conclusion!

Disruptive technology is a force to be reckoned with. It has the potential to upend entire industries and change the way we live and work.

If you want to take advantage of disruptive technology, you need to understand what it is and how it works. You also need to be aware of the industries that are being disrupted by it.

Once you have a good understanding of disruptive technology, you can start investing in companies that are developing it or using it to their advantage.

So, what are you waiting for? Start researching disruptive technology today and invest in the future!

Liked this post? Check out the complete series on Strategy

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About Hitesh Bhasin

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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