“Video killed the radio star”, paper killed parchment and downloadable digital media killed CDs and DVDs. When technology turns an old economic model on its head and creates a new one that changes behaviour of consumers, it is referred to as disruptive.
Popularized by Harvard Business School Professor Clayton Christensen, disruptive technologies are radical, unexpected innovations which force established businesses to rethink their entire existence. This is opposed to sustainable technology, which improves a given technology, but retains the status quo. More recently, the phrase has been changed from “disruptive technologies” to “disruptive innovation”, implying that it needn’t be the technology, but the innovative way in which the company has used the technology that is groundbreaking.
“What does this have to do with me?”
Disruptive innovation is hard to recognize and does not change the business world overnight. Even if a disruptive innovation is recognized, existing businesses are often reluctant to take advantage of it, since it would involve competing with their existing and more profitable technological approach. Therefore, the advice given to established companies is to invest in small business, which do make use of disruptive innovation.
When starting up a new business, it is essential to think outside the box and stop following the herd in order to compete. An awareness of technology that has been coined as disruptive and an innovative eye for what is yet to come is paramount. If you do not have the expertise, consult somebody who does. Social Media and online marketing platforms as well as traditional media are free for all to use. It is up to the entrepreneur to utilize them in a fresh and innovative way.
Right Here, Right Now!
So what are the disruptive technologies of our time? Which innovations will revolutionize business models and consumer behaviour? Some trends are clear and easy to spot. Social Networking and social software as well as Cloud computing and cloud/web platforms have been hot topics and continue to gain in relevance and importance. User interface, web mashups and augmented reality are all of growing significance. What do all of these technologies and ideas have in common? They integrate the user and rely on input, therefore distributing power. Open Source is the way to go. Regardless of what your business may be, do not be afraid of open policies, sharing information and, above all, listening to your customers, colleagues and competitors.
Video Link:
http://www.youtube.com/watch?v=sIFYPQjYhv8