What is a Disruptive Technology?

Disruptive technology is a term coined by Harvard Business School professor Clayton M. Christensen to describe a new technology that unexpectedly displaces an established technology. He describes this in great detail in his best-selling book, "The Innovator's Dilemma".

Christensen separates new technology into two categories:

• sustaining, and,
• disruptive.

Sustaining technology relies on incremental improvements to an already established technology.

Disruptive technology is usually a rough product when it is first announced and usually overcomes inadequate performance because it appeals only to a limited audience. These early adopters are willing participants because they want to use the new technology in spite of its faults. In many cases, the practical application of the technology is missed by all until someone with an "Educated Eye” sees opportunity for the new technology. There are numerous examples, with Alexander Graham Bell's "electrical speech machine," being a great example, Christensen notes, which we now call the telephone.

In his book, Christensen points out that large corporations are designed to work with sustaining technologies. They excel at knowing their market, staying close to their customers, and having a mechanism in place to develop existing technology. Conversely, they have trouble capitalizing on the potential efficiencies, cost-savings, or new marketing opportunities created by low-margin disruptive technologies. Using real-world examples to illustrate his point, Christensen demonstrates how it is not unusual for a big corporation to dismiss the value of a disruptive technology because it does not reinforce current company goals, only to be blindsided as the technology matures, gains a larger audience and marketshare, and threatens the status quo. This segment was adapted from a book review of Christensen's book in Whatis.com

Learn more about “Disruptive Technology" by contacting George Sibbald by email at george@goldrush.com or on his phone: 408-528-4058.