Disruptive innovation is a business term which refers to any landmark technology that “disrupts” or alters both existing market and value networks by creating a new one and displacing established leaders in the industry.
The term certainly doesn’t have any negative connotation as it is crucial in generating business ideas, discouraging complacency, putting inventors and startups in the limelight, and generating healthy competition. A good example of an early disruptive innovation is the mass production of the Ford Model T in 1908, which changed the way businesses look at transportation. This led to widespread access to cheap cars for everyone.
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Most disruptive innovations are not necessarily the brainchildren of industry leaders but entrepreneurs looking to find niche markets. Entrepreneurs often have to study the profitability of the venture; for this reason, most disruptive innovations don’t attract financial support early.
However, with the huge success of now world-renowned groups like Netflix, Uber, Skype, and Google Apps, more startup ventures are being funded as the next revolutionary business venture.
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All in all, the continuous arrival of disruptive innovations will just benefit the typical consumer, as the latter’s needs are prioritized. Disruptive innovations tap segments of the market that have been neglected by established companies. Whether new products and services rise to the level of disruption or not depends on the offering, time, and gained market support. And we can’t complain as, in the end, disruptive innovators only make our lives better.
Secure Channels CEO Richard Blech is a managing member of Imperium Management LLC, actively investing in technologically advanced ventures. A resolute advocate of disruptive technology, Richard has strong interest in cyber defense and digital content. For more on his professional background, visit this website.
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