What is Disruptive Technology and Its Examples?

by Dec 25, 2020Computer and hardware, Technologies0 comments


Disruptive technology is a technology that distresses the usual process of a market or industry. It brings well-established products or technology, creates a fresh industry or market. Harvard Business School professor Clayton M. Christensen coined the term “disruptive technology.”

New technologies can support or disrupt. While the latter technology depends on the ever-increasing development of existing technologies, disruptive technology is completely new. Therefore, the effective use of such technologies may not yet be confirmed.

Disruptive Technology

Also, disruptive technology frequently charms younger viewers and problems with normal functioning. They do not happen very often; however, they are best suited for long-term use.

They may not be able to meet the needs of a much higher market in the beginning, but they exceed market expectations when it appears to be profitable. Disruptive technologies often come from the beginning and companies younger than the leading companies.

Examples of Disruptive Technology

The subsequent are some examples of disruptive technologies that have a profound impact on the future of mankind:

1. Artificial Intelligence (AI)

Artificial intelligence (AI) utilizes in many applications, such as fraud prevention, video games, and spam detection in emails. AI helps to simplify the operation of the company and improve the lives of individuals.

Programs such as web-based chat support, assistants such as Google Home or Apple Siri, and tracking the timing of online food orders help to answer questions, take requests, and make life easier and more efficient.

Artificial intelligence finds personal preferences by collecting data from purchased products, search history, and informal conversations. Google has developed an algorithm that enables AI to learn to drive with experience, just like human beings.

2. Blockchain

Blockchain – established with Bitcoin to disrupt the banking sector, where ledgers heavily integrated. It utilizes distributed ledger technology with its low-level and cryptographic features, the blockchain eliminates the requirement of third parties involved in financial transactions.

Features of territorial power allocation, security, and transparency of the blockchain are intended to increase the security of financial transactions while minimizing major bank charges. What is done is quick and free from the risk of only one point of authority.

Disruptive Technology

Blockchain allows you to switch to a shared economy from existing ownership economies. In a shared economy, people will be able to share resources, such as data storage, solar power, and cars.

3. Internet of Things (IoT)

With its wide network of internet-connected devices, the Internet of Things (IoT) helps to bridge the gap between digital and physical parameters. IoT sees a new relationship that will be built between things and other things, things and people, people, and other people.

While the ability to connect other devices to the Internet nothing new, a greater number of things are now connected to the Internet than ever before. IoT will help make a difference in smart cities. IoT will make cities more expensive, safer places to live, and more efficient.

Creating a Disruptive Technology Success

Conferring to Clayton Christensen, disruptive technology is becoming more effective because of the following:

1. Business models should be innovative

A business model aimed at lower customers or a new section of customers will contribute to the success of disruptive technologies.

2. Value network

When successful, a network of suppliers, customers, and distributors also thrives.

3. Enabling technology

Disruptive technology should be able to make products more available and accessible to more viewers.

Well-established businesses focus on improving efficiency and lack sufficient time to prepare for the appearance of disruptive technology. In contrast, startups or small companies are usually companies that take risks. They identify the potential of disruptive technologies and look for ways to incorporate the same into the business. However, preparing for the disruption is difficult, as they often occur suddenly.

True Disruptive Innovation Examples

1. Steel mini mills

Mini mills have reserved a heavy toll on the steel business, which was once dominated by large, combined steel companies of the 20th century. Traditional metal companies in those days made many types of metal. They make low marks at a cheap bar. But also produce steel and stainless steel used to make cars and machinery, which they sell at a very high price.

Then came the small mill. Small businesses have found a way to dissolve recycled metals in automobiles and waste products, which are 20% cheaper than those used for combined mills. But the metal product was of poor quality, ready for recycling but not cars.

Rebar is at the bottom of the steel market. Since a low-end product, integrated steel companies – happy to cut you below the line of their product and leave smaller mills to compete.

But small mills did not stop there. They found how to make a slightly higher quality metal and came up with the next product type, which included steel mills, and enjoyed leaving smaller mills. After all, this will allow the integrated steel mills to focus on high-quality steel and improve their margins to their maximum advantage.

This pattern continued until all of a sudden, small mills had taken over. No single integrated steel company has built a small mill, and all but one has already gone under it. This example shows that disruptive innovation is not a nightmare. Christenson writes, “It took more than 40 years before the small Nucor mill resembled the income of the combined major steelmakers.” But after finding a place at the bottom of the market and taking one step at a time, they finally reached the top.

2. Video streaming –

Examples of Disruptive Technology

Video streaming on platforms such as Hulu and HBO can be seen as a clear improvement over cable and Blockbuster. But look at it, and it is very clear how big this disturbance was.

Video streaming has completely stunned the entertainment industry. Rising rapidly from the bottom of the market as a low-cost way for people to watch shows and movies and ultimately disrupt the cable industry and drive video rental stores on the ground. Netflix has become the largest video provider in the US, cable, and satellite.

And it’s not just cable and video-distribution video companies that change the way video produces. Nearly two decades after the launch of Netflix, broadcast providers have stepped out to “capture the whole Hollywood Hollywood ecosystem” for new dollars. Tech giants like Amazon, Google, and Apple want to get into the game with their production and distribution platforms.

Like many hackers, Netflix has captured a small, niche market: movie buffs were indifferent to new releases and forgot to wait a few days for DVDs to arrive in the mail. The service was slow and did not provide any new hits immediately. Blockbuster has used a different type of customer that is heavily backed by the beats and prioritizes new releases, so it has ignored Netflix.

3. Radios – Disruptive Technology

Transistor radios first took over the niche market, completely changing the world. In the 1950s, middle-class families enjoyed excellent radio comfort provided by companies such as RCA and Zenith. These models use vacuum tubes and offer excellent sound quality, but they are less efficient, less cluttered, and more expensive.

After that, Sony transistor radios arrived on the scene. They were cheap, small, and portable… but the sound quality was very bad. But for young people, transistor radios meant personal freedom and the ability to hear music wherever they wanted. After all, they were the only radio they could buy. Listeners to youth radio were a non-existent market at the time, and high-end radio companies were not concerned about them.

But over time, the quality of the transistor radio became much better, and their popularity followed. Billions present in the 1960s and 1970s. These radio stations have altered the way the world consumes music and radio, sparked a “change in music and culture” and set the stage for other music players such as Walkman, CD players, and smartphone music apps.


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