Disruptive technologies are technological innovations which, as their name suggests, disrupt the status quo. They may displace existing technology, or introduce an entirely novel concept to society. The digital camera and the telephone are two examples of disruptive technologies. Developing and marketing such technologies requires skill and some financial backings, as consumers may initially be wary of such technologies before adopting them and generating income for the companies and people who developed them. It is not uncommon for companies to experience a brief fall in fortunes after the initial introduction of a disruptive technology.
The concept of disruptive technology was coined by Clayton M. Christensen in the 1995 book The Innovator's Dilemma. Such technologies surprise the market by generating a substantial improvement over existing technology, and this can be accomplished in a variety of ways. A disruptive technology may be cheaper than an existing technology, for example, or more basic in nature, attracting more potential users. When disruptive technologies expand the market by providing low cost, they are known as low-market disruptive technologies, while new-market technologies are entirely new innovations which replace existing ones.
They may displace existing technology, or introduce an entirely novel concept to society. The digital camera and the telephone are two examples of disruptive technologies. Developing and marketing such technologies requires skill and some financial backings, as consumers may initially be wary of such technologies before adopting them and generating income for the companies and people who developed them.
Sustaining vs. Disruptive Innovation
The central theory of Christensen’s work is the dichotomy of sustaining and disruptive innovation. A sustaining innovation hardly results in the downfall of established companies because it improves the performance of