Set HomePage - Favorites
HOT: Investing News
<-- AD960X90 -->0.0
Location: Home > TECH >

What is disruptive technology? & Financial Library

2017-06-05 19:58 [TECH] Source:Netword
Guide:This definition explains the meaning of disruptive technology and how it contrasts with sustaining technologies. We also list examples of disruptive te

A disruptive technology is one that displaces an established technology and shakes up the industry or a ground-breaking product that creates a completely New industry.  

Harvard Business School professor Clayton M. Christensen coined the term disruptive technology. In his 1997 best-selling book, "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. Disruptive technology lacks refinement, often has performance problems because it is New, appeals to a limited audience and may not yet have a proven practical application. (Such was the case with Alexander Graham Bell's "electrical speech machine," which we now call the telephone.)

Here are a few examples of disruptive technologies: 

In his book, Christensen points out that large corporations are designed to work with sustaining technologies. They excel at knowing their market, staying close to their customers, and having a mechanism in place to develop existing technology. Conversely, they have trouble capitalizing on the potential efficiencies, cost-savings, or New marketing opportunities created by low-margin disruptive technologies. Using real-world examples to illustrate his point, Christensen demonstrates how it is not unusual for a big corporation to dismiss the value of a disruptive technology because it does not reinforce current company goals, only to be blindsided as the technology matures, gains a larger audience and market share and threatens the status quo.

See also:  disruptive innovation, digital disruption, IT innovation, business innovation, IT transformation

This was last updated in December 2016

Continue Reading About disruptive technology

Related Terms augmented intelligence   Augmented intelligence is an alternative conceptualization of artificial intelligence that emphasizes AI's assistive role, ... See complete definition   data   In computing, data is information that has been translated into a form that is efficient for movement or processing. See complete definition   phase-change memory (PCM)   Phase-change memory (PCM) is a form of computer RAM (random-access memory) that stores data by altering the state of the matter ... See complete definition  

Professional financial,2017,2017

(EDIT:admin)

<-- AD690X200 -->
Recommend
<-- AD250X250 -->
<-- AD250X250 -->
<-- AD960X78 -->