Disruptive Technology

What is Disruptive Technology?

Disruptive technology refers to an innovation that significantly alters industries or markets by creating new value networks and displacing established technologies. It often starts with lower performance or simpler applications, eventually improving to replace or transform existing solutions. Examples include smartphones replacing traditional cell phones and streaming services overtaking cable television.

Examples of Disruptive Technologies

• Internet of Things (IoT): Connecting everyday devices to the internet to enable smart automation.
• Artificial Intelligence (AI): Automating tasks that traditionally required human intelligence.
• Blockchain: Providing decentralized, secure transaction records, disrupting finance and other industries.

Impact of Disruptive Technology

• Market Shifts: Causes significant changes in industry structure and competitive dynamics.
• New Business Models: Enables businesses to innovate and offer new products or services.
• Challenges for Established Players: Forces traditional companies to adapt or risk obsolescence.

Related Terms and Concepts

Innovation, technological disruption, digital transformation, market shift.