What Is Disruptive Technology?
A quick definition of Disruptive Technology states that it is new technologies that emerge to displace and overturn traditional technologies that have already been long established within the marketplace.
The Evolution of Disruptive Technologies
Disruptive technologies are secretive and generally arrive unknown to the greater public, frequently with little track record or any proven practical application. Often, performance of the new technologies is hampered and lacks the refinement of established technologies. The products are also expensive, complicated and arrive almost always ahead of customer need. But as consumers gradually adopt the new technologies, support networks for the displaced technologies show resistance; however, eventually they will co-evolve to help in the refinement of the new product.
Fortunately, with these growing technological advancements comes the opportunity to transform the economy, ultimately leading to the creation of new markets.
Up and Coming Disruptive Technologies
Disruptive technologies can also alter lifestyles, from how you date, plan your vacations, what type of car you drive and how you travel to the airport.
The latest disruptive technologies include:
- Self-Driving Cars: Disruptive technologies are quickly impacting automobile manufacturing, the taxi and shuttle marketplace, air travel and insurance industries.
- Apps: Smart phones with Internet access have allowed apps to be created that displace many commonplace functions. Examples include Uber displacing taxi services and Tinder displacing dating websites.
- The Internet of Things (IoT): IoT technology suggests that objects will have an identifiable virtual representation. This concept impacts the smart grid industries, including water supply, traffic control and garbage collection. IoT can also be used in the healthcare marketplace, such as monitoring vital signs of patients with chronic diseases.
- Batteries and Renewable Energy: Most notably, we are seeing the displacement of gasoline-powered vehicles and utility grids.
- Cloud Computing: Cloud computing has been massively disruptive to the business world, because it moves resources typically held on-premises to off-premises, using a pay-for-usage model.
- 3D Printing: This disrupts manufacturers of commercial products, allowing users to easily access 3D printing and customize exactly what they need. It can also aid start-up companies during their prototypes processes, allowing for quicker turnaround times.
As companies continue to invest in research and development, innovation will remain a constant for society. It is important for current market leaders to not only encourage this behavior, but also invest in these advancements, or run the risk of being displaced. Organizations should proactively plan around this concept and align their goals to ensure they are in a position to capture new market growth created from disruptive technology.
Last modified: March 27, 2019