DISTRUPTIVE TECHNOLOGIES

INTRODUCTION

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. 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.

Clayton Christensen introduced the idea of disruptive technologies in a 1995

Harvard Business Review article. Christensen later expanded on the topic in The
Innovator's Dilemma, published in 1997.It has since become a buzzword in startup
businesses that seek to create a product with mass appeal. Even a startup with
limited resources can aim at technology disruption by inventing an entirely new way
of getting something done. Established companies tend to focus on what they do
best and pursue incremental improvements rather than revolutionary changes.
They cater to their largest and most demanding customers.

DETERMINING TECHNOLOGY TRENDS BY A HISTORICAL REVIEW

A historical review of disruptive technologies can help us identify patterns and trends
that can be used to predict future technological developments. Some of the key
characteristics of disruptive technologies include:They are new and
innovative. Disruptive technologies are not simply incremental improvements to
existing technologies. They offer new capabilities or solve problems in new ways.

 They are initially less expensive and/or more convenient than the existing
technologies they disrupt. This makes them attractive to early adopters, even if they
are not yet as performant or feature-rich as the established solutions.
 They improve over time. As disruptive technologies gain traction and more resources
are invested in their development, they become more performant, reliable, and
affordable. By examining the historical development of disruptive technologies, we
can identify some common trends. For example, disruptive technologies often
emerge from new industries or from startups. They also tend to be initially adopted
by niche markets or early adopters. As they mature and become more affordable,
they eventually gain mainstream adoption.

Here are some ways to use a historical review of disruptive technologies to identify
future technology trends:

 Look for new technologies that are solving old problems in new ways. For
example, the advent of artificial intelligence (AI) is enabling the development of new
solutions to problems in a wide range of industries, from healthcare to transportation.
 Identify industries that are ripe for disruption. Industries that are heavily reliant on
outdated technology or that have high barriers to entry are often vulnerable to
disruption.
 Pay attention to startups and niche players. Startups and niche players are often the
source of disruptive innovations.
 Track the adoption of new technologies by early adopters. Early adopters are the
first to embrace new technologies, and their behavior can be a good indicator of
future trends.

By understanding the trends and patterns associated with disruptive technologies,

we can better position ourselves to capitalize on new opportunities and avoid being
caught off guard by disruption.

Here are some specific examples of emerging technologies that have the potential to
be disruptive:

 Artificial intelligence (AI): AI is already having a major impact on many

industries, and its potential for disruption is only just beginning to be realized. AI
could disrupt industries such as healthcare, transportation, manufacturing, and
customer service.
 Blockchain is a distributed ledger technology that has the potential to revolutionize
many industries, including finance, supply chain management, and voting.
 It is important to note that not all emerging technologies will become disruptive.
However, by understanding the trends and patterns associated with disruptive
technologies, we can better identify the technologies that have the greatest potential
to impact our lives and businesses.

OVERVIEW OF HOW TECHNOLOGICAL DISRUPTION HAPPENS

Technological disruption occurs when a new technology changes the way
consumers, businesses, and industries operate. Disruptive technologies are often
cheaper, simpler, and more convenient than existing technologies, and they can
create entirely new markets. There are four key stages to technological disruption:

1. Emergence: A new technology is developed, but it is initially expensive and difficult

to use. It is often adopted by early adopters, who are willing to pay a premium for the
latest and greatest.
2. Growth: The technology becomes more affordable and easier to use, and it begins to
gain traction in the mainstream market. This stage can be disruptive to existing
businesses, as they are forced to adapt to the new technology or risk being left
behind.
3. Maturity: The technology is now widely adopted, and it has become the standard in
the industry. Existing businesses have either adapted to the new technology or have
been replaced by new entrants.
4. Decline: The technology is eventually superseded by a new, even more disruptive
technology.

Examples of technological disruption:

 The personal computer disrupted the minicomputer industry.

 The internet disrupted the traditional media industry.
 Smartphones disrupted the feature phone industry.
 Ride-sharing apps disrupted the taxi industry.
 E-commerce disrupted the brick-and-mortar retail industry.

How to prepare for technological disruption:

 Monitor the latest trends and technologies. This will help you to identify potential
threats and opportunities.
 Be willing to adapt and change. Don't be afraid to experiment with new technologies
and business models.
 Invest in innovation. This will help you to stay ahead of the curve and develop new
products and services that meet the changing needs of your customers.

Technological disruption can be a challenge, but it is also an opportunity for

businesses to reinvent themselves and create new value for their customers. By
understanding the process of technological disruption and preparing for it,
businesses can thrive in the ever-changing technological landscape.

“DISTRUPTIVE TECHNOLOGIES: UNDERSTAND, EVALUATE, RESPOND”

POSITIVE AND NEGATIVE EFFECTS OF DISTRUPTIVE TECHNOLOGIES

 Improved efficiency and productivity: Disruptive technologies can help businesses to

automate tasks, streamline processes, and make better use of their resources. This
can lead to improved efficiency and productivity, which can lower costs and improve
profits.
 New products and services: Disruptive technologies can enable businesses to
develop new products and services that meet the changing needs of their
customers. For example, the internet has enabled businesses to develop e-
commerce platforms, social media platforms, and streaming services.
 New markets: Disruptive technologies can create new markets for businesses to
enter. For example, the rise of smartphones and social media has created new
markets for mobile apps and digital advertising.
 Improved quality of life: Disruptive technologies can improve the quality of life for
people in a number of ways. For example, advances in medical technology have led
to new treatments and cures for diseases, and advances in communication
technology have made it easier for people to stay connected with friends and family.

Negative effects of disruptive technology

 Job displacement: Disruptive technologies can displace workers if they automate

tasks that are currently performed by humans. This can lead to unemployment and
social unrest.
 Privacy and security concerns: Disruptive technologies can raise privacy and
security concerns, especially if they collect and store large amounts of personal data.
 Inequality: Disruptive technologies can exacerbate inequality if they are not
accessible to everyone. For example, people who cannot afford to buy the latest
technology may be left behind.
 Environmental damage: Disruptive technologies can have a negative impact on the
environment if they are not used responsibly. For example, the use of
cryptocurrencies can consume large amounts of energy.

Overall, the effects of disruptive technology are mixed. On the one hand, disruptive
technology can lead to improved efficiency, productivity, and quality of life. On the
other hand, disruptive technology can also lead to job displacement, privacy and
security concerns, inequality, and environmental damage.

It is important to weigh the positive and negative effects of disruptive technology

carefully before adopting it. Businesses and governments need to work together to
ensure that the benefits of disruptive technology are shared widely and that the
negative effects are mitigated.

APPLICATIONS OF VARIOUS DISTRUPTIVE TECHNOLOGIES IN BUSINESS

The application of disruptive technologies in business has become a critical factor for
success and competitiveness in today's rapidly evolving technological landscape. Disruptive
technologies are innovations that significantly alter or revolutionize traditional business
models, products, services, and industries. These technologies often challenge the status
quo and force companies to adapt or risk becoming obsolete. In this comprehensive
exploration, we will delve into various disruptive technologies and their applications in
different business sectors. Disruptive technologies are having a major impact on businesses
of all sizes and across all industries. Here are some examples of how various disruptive
technologies are being applied in business:-

ARTIFICIAL INTELLIGENCE- (AI) is a branch of computer science that deals with

developing machines programmed to exhibit human intelligence. Such computer
systems are capable of performing tasks that require human operation
independently.
AI has an array of business applications. Chatbots, which are a staple feature in most
of today’s websites, are powered by AI. They can attend to questions, give
personalized recommendations, and provide immediate customer service.

Chatbots are a perfect example of how the three fields of AI work together.
Automation, data analytics, and natural language processing grant chatbots the
power to perform multiple functions.

RPA Robotic Process Automation (RPA) is one specific application of AI. It is used for
automating mundane business processes through a software programmed with
machine learning and artificial intelligence. RPA is governed by business logic and
specified rules. Its structure is made to handle high-volume, recurring tasks, making
it the perfect solution to automate accounting, transactional reporting, maintaining
records, and others.

Companies leverage this technology to reduce labor costs and focus manpower on
higher-level functions. This way, employees are more productive and businesses
move more efficiently. RPA also ensures that companies abide by set standards and
regulations, and provides the necessary infrastructure to accommodate an influx of
requests and growth. What’s good about RPA is that it improves upon existing
processes without disrupting other systems used by the company.

BLOCKCHAIN

Blockchain is a digital ledger that records and stores information such that inputs are
difficult or impossible to change. Each block contains transactional information like
the date, time, amount spent, and the parties involved in a transaction. It will then
be assigned with a unique hash (or cryptography signature) before getting linked to
other blocks. Once it’s in the chain, it will also save the hash of the previous block
connected to it.

A copy of the chain is sent to every user in a network, allowing everyone to verify
data and check for anomalies. Blockchain makes it difficult for attackers because the
slightest change in information results in a different hash. To circumvent the system,
someone would have to produce proof of work for every subsequent block as well as
gain control of more than 50% of the peer-to-peer network.

5G CONNECTIVITY

5G is the new global wireless standard for mobile networks. It delivers faster speeds,
lower latency, and is able to connect more devices all at once. Although the number
of 4G users are still greater, business owners have long been preparing for the impact
of 5G on businesses and consumer behavior. Said upgrades are expected to facilitate
companies in integrating other sophisticated technologies into their operations.

Of course, this would also mean that consumers would have higher expectations.
Business owners must be prepared to optimize websites and apps for responsitivity
and produce more interactive and engaging content. Fast-paced technological
advancements are slowly bringing to life what was previously only imagined in
science fiction. To keep your business competitive, you need to be fast in revamping
your strategies to fit the times.

CLOUD STORAGE

Cloud storage gives businesses a centralized location to store data and share it with
concerned stakeholders. Many large and small companies have started investing in
this technology to save money on hardware and storage maintenance costs.

With cloud storage, people can access files and documents without necessarily
dominating the memory capacity of their devices. What’s more, team members can
collaborate in real-time wherever they may be. Depending on your cloud hosting
provider, you can have unlimited storage, backup files automatically, and enable
cross-platform syncing.