Startup Terminology: Disruptive Technology
Startup Terminology: Disruptive Technology
Each industry has its set of jargon, and if you’ve been in the startup arena for any amount of time, you’ve probably heard the term disruptive technology. It’s one of many entrepreneurial buzzwords - but do we really understand its meaning?
Disruptive technology has been defined as a new technology that unexpectedly displaces an established technology. Sounds simple, right? A similar term is disruptive innovation, which can be defined as an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network, displacing an earlier technology.
Moving from definition to application, how does one become ‘disruptive’? Monique Montagnese of the blog Built In Chicago cites nine compelling elements of disruptive success. Here are the first three:
- Get an idea. To put it bluntly, disruptive ideas come from something that pisses you off or inconveniences you.
- Identify and solve the problem. Remember that success often comes from not building something new, but improving what is already there.
- Be prepared to hear ‘no’. Doing something different than the standard will force you to stick to your guns. Passion will drive you when everyone else is saying no.
There’s a good chance you’ve heard these tips before, and now you may be wondering what the secret sauce is to make this model work. Mark Evans, Marketing Consultation specialist, hints that the secret sauce is not the term disruptive technology itself; simply because it has been turned into an elusive statement – one that falsely empowers entrepreneurs by leaving them without a concrete approach to building a business.
The key to successful disruption is first to understand what disruptive technology means, observe real-world examples, and do some first-hand application.
Lets look at a few startups that have successfully disrupted the market:
Disrupting: Printing and Manufacturing
Instead of printing on paper, Makerbot allows users to print actual 3D things. One day, instead of having to buy your kids toys, you can print them out.
Disrupting: Finance and Retail
Kickstarter opens up startup funding to anyone in the community who wants to invest. This takes away risk and adds ease to startup financing.
Disrupting: Electronics
Charge electronic devices wirelessly through ultrasonic waves. uBeam eliminates the hassle of carrying around multiple chargers or keeping gadgets on a charging pad.
Whether you have a new product/service idea or an innovation on something that already exists, study the market to determine whether it is truly disruptive. With appropriate research and development, you'll find out by pushing your product whether it will disrupt the market. Good luck!