Definition of Disruptive Technology and Sustaining Technology
Disruptive Technology and Sustaining Technology represent two distinct types of innovations with different impacts on the market. Disruptive technology creates a new market and fundamentally changes the way things are done, while sustaining technology improves existing products or services and helps established companies maintain their market position.
Disruptive technology refers to new and innovative products or services that fundamentally change the way an industry operates, often displacing established market leaders. Sustaining technology, on the other hand, refers to incremental improvements to existing products or services that do not fundamentally change the industry.
Importance of understanding Disruptive Technology and Sustaining Technology
Understanding the difference between disruptive and sustaining technology is important for both businesses and consumers as it can impact how they operate and make decisions in their respective markets. For businesses, it can inform strategic decisions on product development and market positioning. For consumers, it can affect purchasing decisions and how they engage with a particular industry.
Disruptive Technology
Definition and characteristics: Disruptive technology refers to new and innovative products or services that fundamentally change the way an industry operates, often displacing established market leaders. It can be characterized by being cheaper, simpler, smaller, and more accessible than existing products or services, which allows it to reach new markets or customers.
Examples: Some examples of disruptive technology include Uber and Airbnb in the transportation and lodging industries, respectively. These companies have fundamentally changed the way people travel and find accommodation, and have disrupted traditional taxi and hotel businesses.
Impact on industries and consumers: Disruptive technology can have a significant impact on industries and consumers. For industries, it can lead to the displacement of established market leaders and the introduction of new competitors. For consumers, it can lead to increased choice and lower prices, as well as new and more convenient ways of accessing products and services.
It’s worth noting that Disruptive innovation is a theory that Clayton Christensen introduced in 1997, in his book “The Innovator’s Dilemma” which is a must read for anyone who wants to understand the concept in depth.
Sustaining Technology
Definition and characteristics: Sustaining technology refers to incremental improvements to existing products or services that do not fundamentally change the industry. It is often developed by established market leaders and is aimed at improving performance, features, or quality of existing products or services. It can be characterized by being more expensive, complex, larger and targeted at the same market as the existing product.
Examples: Some examples of sustaining technology include incremental improvements in a car’s engine, such as the addition of new fuel efficiency features, or the development of new models of smartphones that are faster and have more storage.
Impact on industries and consumers: Sustaining technology can have a limited impact on industries and consumers. For industries, it can lead to increased competition and improved performance of existing products or services. For consumers, it can lead to increased choice and improved performance or features of existing products or services. However, it may not fundamentally change the way they access or use those products or services.
Difference Between Disruptive Technology and Sustaining Technology
How disruptive and sustaining technology Difference: Disruptive technology differs from sustaining technology in that it fundamentally changes the way an industry operates by introducing new products or services that are cheaper, simpler, smaller, and more accessible than existing ones. Sustaining technology, on the other hand, improves upon existing products or services, but does not fundamentally change the industry.
How they may coexist and complement each other: Disruptive and sustaining technology can coexist and complement each other in some cases. For example, a disruptive technology like electric cars may initially be more expensive and have a smaller range than existing gasoline cars, but as the technology improves, it could become a sustaining technology that complements and eventually replaces gasoline cars. Additionally, established market leaders may use sustaining technology to improve their existing products or services, while also investing in disruptive technology to stay ahead of potential disruption in their industry.
It’s worth noting that some companies can adopt both strategies, disruptive and sustaining, at the same time.
Conclusion
Disruptive technology refers to new and innovative products or services that fundamentally change the way an industry operates, often displacing established market leaders. Sustaining technology, on the other hand, refers to incremental improvements to existing products or services that do not fundamentally change the industry. Understanding the difference between these two types of technology is important for both businesses and consumers as it can impact how they operate and make decisions in their respective markets.
Disruptive technology will continue to shape and reshape various industries, creating new opportunities and challenges for businesses and consumers alike. As technology advancements continue to progress, we can expect to see more disruptive innovations that will change the way we live, work and interact with each other. It’s important for businesses to be aware of the potential for disruption in their industry and actively seek out new and innovative technologies that can help them stay ahead of the curve.
