Disruptive Technology Explained

Disruptive Technology Explained

Disruptive Technology Explained

Disruptive Technology Explained

What is destructive technology?

Disruptive Technology, Breakthrough technologies are innovations that significantly change the way consumers, industries or businesses work. Subversive technology destroys the system or habit it replaces because it has a very better attribute.

Examples of new disruptive technologies include e-commerce, online news sites, car-sharing programs and GPS.

At one time, cars, electricity and television were blasting technologies.

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Explanation of disruptive technologies

Clayton Christensen presented disturbing technological ideas in a 1995 Harvard Business Review article.1 Christensen later expanded on the Innovator Dilemma , published in 1997.2 Since then, it has become a buzzword in the startup business, which seeks to create products of a mass character.

Even startups with limited resources can deal with technology failures by creating new ways to do things. Sustainable companies tend to focus on what they do best, and strive for gradual improvement rather than revolutionary change. They serve the largest and most demanding customers.

Important sample

  • Subversive technologies are replacing old processes, products or habits.
  • It usually has great attributes that are immediately noticeable, at least to first-time users.
  • New companies, not established companies, are a source of subversive technology.

This opens up opportunities for demolition companies to target neglected customer segments and gain a presence in the industry. Established companies often lack the flexibility to adapt quickly to new threats. This allows attackers to move upstream and uproot more customers over time.

It is difficult to prepare for subversive technologies because they can appear suddenly.

Potentially Destructive Technologies

Risk-taking companies can identify potential subversive technologies in their operations and target new markets that can incorporate them into their business processes. These are the “innovators” of the technology adoption lifecycle. Other companies may take a risk-averse position and embrace innovation only by seeing how it works for others.

Companies that do not take into account the impact of disruptive technologies may lose market share as a result of competitors who have found ways to integrate the technology.

Blockchain as an example of subversive technology

Blockchain, the technology behind bitcoins, is a decentralized distributed accountant that records transactions between two parties. It moves transactions from a centralized server system to a transparent cryptographic network. This technology uses peer consensus to record and verify transactions, eliminating the need for manual verification.

Cars, electrical service and television are the destructive technologies of their time.

Blockchain technology has huge implications for financial institutions such as banks and stockbrokers. For example, brokerage firms can perform peer-to-peer blockchain confirmations, eliminating the need for custodians and clearing houses, which will reduce the commission of financial intermediaries and significantly speed up transaction time.

Investing in blasting technology

Investing in companies that create or adopt disruptive technologies carries significant risks. Many products that are perceived as destructive take many years to be accepted by consumers or businesses, or are not accepted at all. The Segway electric vehicle was once touted as a destructive technology until it no longer exists.

Investors can gain access to disruptive technologies by investing in exchange-traded funds (ETFs), such as the ETF ALPS Disruptive Technologies (DTEC). These funds are invested in various innovative industries such as the Internet of Things, cloud computing, fintech, robotics and artificial intelligence.3

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