What is Disruptive Technology?

Over the last few months, we have looked at different aspects of what are termed “disruptive technologies”, for example, AI, machine learning, cloud computing and virtual reality, but we’ve never really defined the term “disruptive technology”. Sometimes the “technology” part is replaced with “innovation”, but they come down to the same thing, which is a new solution, which disrupts the existing market place and eventually displaces the current market leaders.
 
Hang on, this has always been happening hasn’t it? Well yes, but because technology moves so quickly, the effects can be considerable and very fast. Imagine a software company producing a tool for use in a single industry vertical, with a large market share. They have considerable investment in their development and marketing departments, refining their product range to give high quality results in demanding situations. Now, a small start-up develops new software, with machine learning capabilities, which offers a whole new set of tools to the same marketplace. Suddenly, organisations see the potential of the new tool, and the efficiencies they can make. Take-up is slow at first, but smaller enterprises validate the solution, and sales gather pace. The existing market leaders work fast to catch up, but as soon as they do, the start-up, with increased revenue, has forged further ahead, and soon offers higher quality products, with enhanced capabilities, and displaces the older organisations.
 
This is the modern world, where an organisation’s longevity is determined by its ability to innovate, where adaptability is paramount, and business leaders are unafraid of change and challenge. Disruptive technology is not a thing, it’s a state of being, a philosophy, and it’s pushing the boundaries of what we know, and what we can do at an ever increasing rate. Businesses of the future will be defined by their ability to embrace this concept. Don’t be left behind.