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Disruptive Technology
> Introduction to Disruptive Technology

 What is disruptive technology and how does it differ from sustaining technology?

Disruptive technology refers to a groundbreaking innovation that fundamentally alters the existing market landscape, often displacing established products, services, or entire industries. It introduces a new approach, product, or business model that disrupts the status quo and creates a new market or value network. Disruptive technologies typically offer improved performance, lower costs, or enhanced convenience compared to existing solutions, thereby appealing to a different set of customers.

In contrast, sustaining technology refers to incremental improvements made to existing products or services within an established market. Sustaining technologies aim to enhance the performance, features, or functionalities of existing offerings, thereby maintaining the current competitive position of established companies. These improvements are typically driven by customer demands and preferences, as well as the need to stay ahead of competitors.

The key distinction between disruptive and sustaining technologies lies in their impact on the market and the response of incumbent firms. Disruptive technologies often emerge in niche markets or at the low end of the existing market, targeting customers who are underserved by established solutions. Initially, disruptive technologies may not meet the performance standards or requirements of mainstream customers, but they possess other attributes that make them attractive to a subset of users.

As disruptive technologies improve over time, they gradually move upmarket and start to compete directly with established solutions. This progression can lead to a significant shift in market dynamics, as disruptive technologies gain broader acceptance and capture market share from incumbents. In some cases, disruptive technologies completely replace existing products or services, rendering them obsolete.

Sustaining technologies, on the other hand, focus on incremental improvements within the existing market framework. They aim to satisfy the demands of current customers and maintain the competitive advantage of established companies. Sustaining technologies are typically driven by continuous innovation and refinement of existing products or services, rather than introducing entirely new approaches.

While sustaining technologies contribute to the evolution and improvement of established industries, they do not fundamentally alter the competitive landscape or disrupt the existing market structure. Incumbent firms are generally well-positioned to adapt to sustaining technologies, as they have the resources, capabilities, and customer relationships required to incorporate these improvements into their offerings.

In summary, disruptive technology represents a radical departure from the existing market landscape, introducing new approaches, products, or business models that disrupt established industries. It appeals to underserved customers and gradually gains market share, often displacing incumbent firms. Sustaining technology, on the other hand, focuses on incremental improvements within established markets, aiming to maintain the competitive advantage of existing companies.

 What are some examples of disruptive technologies that have revolutionized industries?

 How does disruptive technology impact established companies and their business models?

 What are the key characteristics of disruptive technologies that make them game-changers?

 How do disruptive technologies create new market opportunities?

 What are the potential risks and challenges associated with adopting disruptive technologies?

 How can companies identify and evaluate potential disruptive technologies?

 What role does innovation play in the development and adoption of disruptive technologies?

 How do disruptive technologies affect market dynamics and competition?

 What are the implications of disruptive technology for job markets and employment?

 How can companies effectively respond to disruptive technologies to stay competitive?

 What are the ethical considerations surrounding the use of disruptive technologies?

 How do government policies and regulations influence the adoption and diffusion of disruptive technologies?

 What are the key factors that determine the success or failure of disruptive technologies?

 How do disruptive technologies impact consumer behavior and expectations?

 What are the long-term effects of disruptive technologies on industries and economies?

 How do disruptive technologies drive industry convergence and create new ecosystems?

 What are the potential social and environmental impacts of disruptive technologies?

 How do disruptive technologies shape the future of innovation and technological progress?

 What are the implications of disruptive technology for intellectual property rights and patents?

Next:  Understanding Technological Disruption

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