In business theory, a disruptive technology is an innovative innovation which creates a large market and new value network and later displaces current market-leading products, firms, and partnerships. It is usually initiated by a series of events, such as a disruptive innovation in the technological sphere, disruptive technology diffusion in the technological sector, or a combination of both. Disruptive technology can come from many different sources, including nanotechnology, cognitive science, and computer science. These new technologies are usually introduced to a market by way of a disruptive business model or disruptive technology approach, which is then adopted and leveraged by other firms. This is often done by starting with one firm, developing a disruptive technology platform, then by scale up and deployment by other firms through a mesh of platforms and co-services.
One such example of a disruptive technology is ride-sharing apps. These are one of the hottest topics around the tech scene because they are highly useful for transportation: they are designed to get people from point A to point B more quickly, reliably, safely, and at a reasonable cost. However, unlike conventional buses or trains, these new apps are semi-automobiles powered by user data. They make use of the collective intelligence of the mobile community to make travel more convenient.
The ride share app has been instrumental in bringing together big names in the business such as Uber, Grab, and Ola, along with several other smaller players. By uniting these players, this app is opening up massive new markets for those who understand how to tap into the massive existing customer pool of late night, early morning commuters. The ability to make money from riders is just one of the ways that disruptive technologies are changing the face of the economy.
Another example of disruptive technologies is the concept of zero turn sales. This is the idea that established companies tend to adopt when trying to increase their profits, but it is a strategy that has worked for decades. In this case, established companies tend to offer discounts to customers who drive for a short amount of time. In the future, this might be followed by a fee-based system similar to Zipcar. The advantage to established companies is that they can charge their customers according to the distance they drive rather than charging them based on how long they drive.
Another area that is ripe for innovation lies in the area of business models. One of the most common forms of disruptive technology is the disruptive business model, which is basically a new way of doing business that was created either by a disruptive innovator or a leader in an already established industry. Just like innovation, the goal is to provide something better than what was already available, offering something more efficient, faster, or more convenient.
Perhaps the most popular form of disruptive innovation occurs within the realm of online marketing. This type of innovation tends to focus on two things: driving quality traffic to a website and converting traffic into leads or sales. Driving quality traffic to a website does not require a lot of technological expertise, since most websites are simply set up to automatically attract users. What is necessary is the ability to deliver a meaningful message to a potential customer, something that is generally not the focus of a web developer. Instead, an online marketing firm will create a value network using social media, email marketing, and other internet-based tools.
Other types of disruptive innovations can come from within companies, as well. Companies are often at an advantage because they already possess some of the basic tools needed for creating new products or technologies. Sometimes, companies will simply choose to create an entirely new product line. However, this is often a risky option for a company, as it usually means the company will be entering an uncharted financial landscape. By outsourcing the creation of the new product line to another company, the company will ensure that it will be launching in an environment where it will be able to gain market traction before having to go through the process of creating that product.
The point of all of this is that it’s difficult to predict what new disruptive technology may emerge in the future. There is always a possibility that new technologies will render existing technologies obsolete or simply become too advanced for the market to handle. When that occurs, however, a successful company will be the one that is able to adapt to these new technologies and use them to their advantage. That makes all of the new inventions and innovations in the world a lot easier to understand.
