Introduction:

Disruptive technology refers to an innovation that significantly alters the way an existing industry
or market operates. It often has the potential to replace existing technologies and change the way
businesses and consumers operate.
Disruptive technologies completely change and replace solutions because they have better features
that allow new possibilities to open up. The car and the television can be named as two famous
disruptive technologies in history. The car changed completely the way we go from one place to
another, while TV changed the way we entertain ourselves.
Examples of disruptive technologies include the internet, smartphones, and digital streaming
services. These technologies have fundamentally changed the way we communicate, access
information, and consume media.

What Is Technology?
Technology is the application of scientific knowledge for practical purposes, especially in industry.
It includes the use of machines, tools, and processes to make products or provide services.

Innovation, on the other hand, is the application of new ideas and solutions to solve problems or
improve existing products and services. It may involve the development of new technologies, but
it can also be driven by improving existing ones.

What Is Innovation?
We often hear the words technology and innovation used interchangeably, but they are not the
same thing. Technology refers to the application of scientific knowledge for practical purposes,
while innovation is the introduction of something new.

Innovation can be something as small as a new way of doing things or a new product or service. It
doesn’t necessarily have to be high-tech. For example, Uber is an innovative company, but their
product is not particularly high-tech.

Technology, on the other hand, is all about using science to create new products or services. A
good example of this is Elon Musk’s Tesla cars which use cutting-edge technology to create an
innovative product.

Technology can be innovative but not all innovation can b technological.

There Are Several Important Differences Between Technology And Innovation:

Innovation and technology are related but distinct concepts:
Innovation:
- Refers to the process of creating new or improved products, processes, or services through
creative ideas, solutions, or approaches.
- Involves transforming ideas into practical applications that create value or improve existing
ones.
- Can be driven by various factors, including market needs, customer demands, or internal goals.
- Not necessarily dependent on technology; can be driven by social, business, or process
changes.
Technology:
- Refers to the application of scientific knowledge for practical purposes, especially in industry.
- Encompasses the tools, machines, and devices used to solve real-world problems or improve
existing solutions.
- Can be a key enabler of innovation, but not all technology advancements are innovative.
- Often focuses on efficiency, productivity, and performance improvements.
Key differences:
- Innovation is a broader concept that encompasses new ideas, solutions, and approaches, while
technology is a specific aspect of innovation that focuses on scientific applications and tools.
- Innovation can occur without technology, while technology is often a key driver of innovation.
– Technology is about using tools to make our lives easier, while innovation is about coming up
with new ideas to solve problems.
– Technology can be innovative, but not all innovations are technological.
– Technology typically follows a linear path of development, while innovation can happen in any
direction.
– Technology is often driven by research and development, while innovation can come from
anywhere.

In summary, innovation is the creative process of generating new ideas and solutions, while
technology is a specific tool or enabler that can facilitate innovation. Innovation is important for
businesses because it allows them to stand out from the competition, but it’s also important for
society as a whole. Innovation helps us find new ways to do things and make progress.
Definitions:
1. Disruptive technology is that which can be used to create a new market, providing
greater efficiency, quality, and benefits for customers and the organization.
2. Disruptive technologies are innovations that come to replace a process, a
product, or technology that is already well-established, giving rise to a new way to operate,
be it for consumers, organizations, or both.
3. Disruptive technology is an innovation that significantly alters the way that
consumers, industries, or businesses operate. A disruptive technology sweeps away the
systems or habits it replaces because it has attributes that are recognizably superior.
Example: Recent disruptive technology examples include e-commerce, online news sites, ride-
sharing apps, and GPS systems. In their own times, the automobile, electricity service, and
television were disruptive technologies.

Who Coined this idea:

The term disruptive technology was originally coined by Harvard Business School professor
Clayton Christensen in 1995 and further expounded in his book The Innovator's Dilemma in 1997.
In the follow-up work, The Innovator's Solution, he replaced the term with disruptive innovation.

Disruptive innovation is defined as technology that is capable of disrupting an already established

market by following a set of patterns. An innovation that is originally focused on a niche and with
the passing of time achieves a good share of the market, overtaking the previous one.

Disruptive innovation refers to the process of transforming an expensive or highly sophisticated

product, offering, or service into one that is simpler, more affordable, and accessible to a broader
population. It explains the process of how innovation and technology can change markets by
presenting affordable, simple, and accessible solutions and after doing so, disrupts the market
from which its predecessors were born.

Categories of technology:

In The Innovator's Dilemma, Christensen separates new technology into two categories: sustaining
and disruptive. Sustaining technology relies on incremental improvements to an already
established technology and supports existing players in the market.

Most technology is considered sustaining rather than disruptive. Sustaining technology evolves
slowly and steadily over time. Established businesses typically work with sustaining technologies
that allow them to refine their production methods and corner a known market. However, over
time a disruptive technology can become a sustaining technology as it becomes firmly established.

Here are some examples of sustaining technologies:

 smart phones
 smart TVs
 personal computers

Disruptive technology is a development that allows a new player to service a lower market segment
that incumbent players do not cover due to lower profitability. As the disruptive technology
advances, the quality improves so that it supplants the incumbent in the more profitable high-end
market.
To be considered disruptive, technology must be easily accessed by a majority of the population.
Revolutionary inventions are often not disruptive because they're too expensive for the common
consumer. In many cases, it's not until the technology is refined enough to become affordable that
it's considered disruptive to the market. A disruptive technology is one that enters the mainstream
and changes the way most people think or behave.

An example of disruptive technology would be the personal computer. When it was first introduced
it was too expensive for the typical consumer to afford. However, as technology advanced,
computers became more affordable, more efficient and less expensive to produce, so therefore the
price point dropped and computers became more affordable to a greater percentage of the
population.

Saying of Christensen:

In The Innovator's Solution, Christensen instead uses the term disruptive innovation. He
recognized that a technological advancement is not in and of itself either sustaining or disruptive.
Instead, it is how the technology is applied to a new market or in a new business plan that it
becomes disruptive to the market.

3 criteria’s of disruptive technologies:

To be considered disruptive, a technology must meet certain criteria.
First, it must be significantly different from existing technologies in the market.

Second, it must be able to create a new market or significantly change an existing one.
Third And finally, it must have the potential to displace established technologies or create new
market leaders.

Types of disruptive technologies:

There are several types of disruptive technologies, each with its own unique impact on industries
and markets. Some common types of disruptive technologies include:

1.Digital Technology:
This includes innovations such as the internet, mobile devices, and cloud computing, which have
transformed communication, data storage, and access to information.

2. Renewable Energy:
Technologies like solar power, wind energy, and other renewable sources are disrupting traditional
energy markets and challenging the dominance of fossil fuels.

3. Artificial Intelligence (AI):

AI and machine learning technologies are changing the way businesses operate, from automating
routine tasks to enabling predictive analytics and personalized customer experiences.

4. Biotechnology:
Innovations in genetic engineering, personalized medicine, and biopharmaceuticals are disrupting
the healthcare and pharmaceutical industries.

5. Autonomous Vehicles:
Self-driving cars and drones have the potential to disrupt transportation and logistics industries,
changing the way goods and people are moved from one place to another.

6. Video streaming;
Video streaming is a clear example of the importance of accounting for disruptive technology.
Nowadays, it’s common to have a video provider to watch movies and series. However, two
decades ago, it wasn’t like this.
Cable TV and Blockbuster used to be the top dogs when it came to video broadcasting. The latter
missed the opportunity to take advantage of the new disruptive technology that would end up
replacing it.
Netflix
Netflix, the largest video streaming company in the world, wanted to do business with Blockbuster
but wasn’t successful. And guess what? You definitely know about the collapse of Blockbuster and
the rise of Netflix, which now has over 200 million subscribers.
7. Digital transport services
Digital transport services were created in 2014 and since then they have become more and more
popular. They began as an alternative to taxis, offering more agility and more competitive rates.
Uber
One of the pioneers of digital transport services, Uber is almost everywhere in the world and has
become one of the greatest examples of disruptive technologies. This new business model connects
drivers to people in need of transport in a practical, economical, and effective way.
8. Virtual reality
Usually related to games and entertainment, virtual reality is a technology that can break new
ground in a vast range of sectors. Interior designers, retailers, and car manufacturers are just a few
examples of those who can boost their growth with this digital disruption.
Samsung
An example is Samsung, which released Gear VR with Oculus technology for their Galaxy phone
line. This technology was a huge success and its affordable price led to it being sold out in just two
days on Amazon during the holiday season.
9. Online lodging
The online lodging market has changed, and it now provides alternatives to travelers who don’t
want to stay at traditional hotels. As a result, platforms are mediators between one person offering
temporary accommodation and another purchasing it.
Airbnb
Airbnb is the leader of this kind of business, allowing anyone to rent out their properties or even
their own homes. And this market isn’t limited to renting low-cost spaces; its reach has spread to
luxury properties all around the world.
10. Music streaming
Similar to how video platforms like Netflix came to dominate the market, music streaming
platforms did too. These companies put at their listeners’ disposal a giant collection of all musical
styles and are increasingly popular with digital music consumers.
Spotify
Spotify is a digital service for music, podcasts, and even videos. The platform grants you access
to millions of songs and recordings from the whole world. It’s also a great platform for boosting
new artists.
11. Cross-platform instant messaging apps
Instant messages are a disruptive technology that came to revolutionize the communication world.
If telephone and email were the most used means of communication in the past, nowadays instant
messaging is the favorite.
WhatsApp
WhatsApp, for example, is an instant messaging cross-platform app that allows people to
communicate as a group or individually through text messages, audio, or even video calls. This
high versatility is reflected in users’ preference to begin using the app to communicate much more
than with any other.
12. Online encyclopedias
Finding content in an online encyclopedia is a lot faster and more efficient. Its search engines
contribute to fast and accurate lookups. What’s more, its capacity is much, much greater than those
of encyclopedias previously available.
Wikipedia
Wikipedia is an online encyclopedia par excellence. Collaboratively maintained, it runs the full
gamut of subjects and has a great deal of content representing more than a million and a half pages.
13. Augmented reality
Augmented reality is another disruptive technology that is very useful to different sectors. This
technology adds virtual elements to an already existing reality.
Pokémon Go
Pokémon Go is an example of a game using augmented reality. The game is based on the user’s
position given by the phone’s GPS and shows different Pokémon to be caught in the environment
the user is.
14. Digital currency
Cryptocurrency took a field as storied as economics in a new direction. There are many
technologies involved in cryptocurrency, including the blockchain, that ensure the effectiveness
and reliability of these currencies.
Bitcoin
Bitcoin is the strongest currency in the market. Its payment system isn’t run by a central bank, nor
it is limited to a single server. In little time, Bitcoin has greatly increased its value, making it a
very sought-after commodity.
15. Collaborative commerce
Collaborative commerce, or c-commerce, is an e-commerce modality that mediates the process
between sellers and buyers so they can do business. This new business model is growing more and
more and pushing boundaries.
Amazon
Amazon expanded its horizons and opened its doors to collaborative commerce. A large portion
of its sales comes from this market, in which independent vendors offer these products and get
them to consumers. As a result, this platform functions as a marketplace, in other words, just like
an intermediary.
16. 3D Printing
3D Printers produce all kinds of products by digitizing objects in a three-dimensional shape.
Icon
Icon is a company that manufactures houses with 3D printing. Houses take only 24 hours to be
prepared, and they cost around ten thousand dollars.
17.Online education
Online education, also known as e-learning, reached a peak during the COVID-19 pandemic.
Millions of students around the world have continued their studies virtually.
Udemy
This platform already existed before the pandemic. However, nowadays, after proving online
education works, it has achieved larger dimensions.
Thanks to online education, we’ll have more complete, up-to-date, and competent professionals.
 These disruptive technologies are reshaping traditional industries, creating new business
models, and challenging existing products and services. They have the potential to
transform the way we live and work in the future.

Advantages of disruptive technology

Disruptive technology offers many distinctive advantages to both consumers and companies
including:

Innovative benefits

One of the key features of disruptive technology is its ability to offer consumers new and notable
benefits. When this type of technology enters the marketplace, it changes the entire industry. The
internet disrupted previous ways of gathering information, such as libraries, newspapers and even
social interactions.
It also revolutionized the way that individuals could perform research. By embracing disruptive
technology, individuals and businesses alike can enjoy the benefits that the technology offers to
their regular activities.

Startup opportunities

Disruptive technology provides opportunities for startup companies to gain a significant foothold
in existing industries. Those who begin offering the new technology early can establish themselves
as thought leaders in a fresh market.

This provides a unique chance for small startups to experience rapid growth and potentially
outperform larger, more well-established companies.

Room for business growth

When an established business willingly embraces disruptive technology, it enjoys prime

opportunities for growth either within its current industry or within a new industry that's been
created by the technology.

Companies that can smoothly incorporate disruptive technology in their existing line of products
and services can help existing customers transition into using the disruptive technology while also
capturing new buyers with their entry into the fresh market.

Disadvantages of disruptive technology

While disruptive technologies are largely beneficial once they're well established, they can create
some challenges in their early stages including:

Unrefined inventions

New technology is typically untested and unrefined during its early stages and development can
continue for years. During this time, businesses offering the technology may struggle to market an
innovative product. The earliest users of disruptive technology may find themselves working with
clunky prototypes that don't yet offer the sleek refinement that's presented in later stages of
development.

Early performance problems

Nearly all innovations go through a period of problem-solving. Modern consumers are accustomed
to experiencing this with a newly developed app or piece of software. Updates and patches are
necessary to overcome the glitches and other challenges that the technology might present. The
same process applies to any disruptive technology and can make early adoption more challenging.
Unproven applications

It can take time for a disruptive technology to find its place in the marketplace. The potential
applications for the innovation are at first unproven. Users may doubt whether they can use the
product to replace its predecessors. For example, when small kitchen appliances were first made
available, cooks may have doubted whether electric mixers could deliver the same quality as their
own skilled hands.

They were also unaware of the countless applications for these products, which have since become
a staple in most homes, eliminating the need for a professional hand and hours to produce quality
homemade meals.