Disruptive technology possesses the ability to build and demolish markets and chains value. It is the arrival of a technology that might be new or already prevailing. Such a technology is used and built in such a manner that it can render an existing business model outdated. It can be probably said to be a business model instead of technology model. However, disruptive technology is actually both business model and technology fused together to make business competitors become obsolete or uncompetitive against your new model and technology. Businesses or industry can only be disrupted by superior business model and superior technology. Thus if any business that wants to disrupt their industry or their competitors, they must possess superior business model and technology to out compete their competitors.
Below are some examples of how disruptive technologies disrupt the industries.
1. E-commerce replaces and disrupted the retail industry. 2. Smartphones disrupted the old games industry, people now buy games and play games on the phones. 3. 3D printers in future will massively disrupt many sectors in the manufacturing industry. 4. Mobile phones almost utterly destroyed the need for home phones. 5. Fintech (Financial Technology). It took DBS bank almost a few decades to have billion dollars of cash deposits in its bank but it took disruptive technology like Alipay founded by Jack Ma to have billions of cash deposits in a few years. The speed of transaction is the key here.
What disruptive technology is able to do for your business? Lower Cost –It is able to reduce the cost of operation significantly. The main goal of using disruptive technology is to undercut your competitors in pricing and take over all of their customers. Disruptive technology is a technology that is run by mobile phones, computers and database.
Extraordinary Scalability –It is able to scale up business with minimum increase in business cost. This is because traditional business requires increase in hiring of sales staff whenever you increase your no. of customers. However, disruptive technology - the automation becomes your core customer service officers or sales officers. Sales are made thru disruptive technology. Thus you can scale up to large no. of transaction as the transactions are mainly handled by automation. Eg. Airbnb and Uber, the mobile apps handle the transactions. They are all automated systems.
Amazing Automation –A Large part of your organization is run by automated computer servers. When you and your team are asleep your disruptive technologies are still taking orders for you. Your clients are using computers or mobile phones to purchase. Your customer service team can be automated. They can be computer web robots. There some many type of business that can rely on disruptive technologies. Restaurants can use apps like food panda to market their food to consumers who prefer to have their food delivered to their house. Retailers and wholesalers can use Amazon app to sell their product to consumers worldwide. We hope more SMEs will use disruptive technologies to enhance and grow their business. This is fast changing world. You either disrupt others or you get disrupted!