The term was coined by Clayton Chistensen, a professor at Harvard University, in the 1990s.
According to its concept, when thinking about disruptive innovation we refer to the technologies or models that bring about resounding changes. Such technologies lead to a radical decline in services or products that are already positioned for the public.
In other words, according to Jeremy Abelson, Founder and Portfolio Manager at Irving Investors, disruptive technologies are those that result in forceful changes, a total transformation to an industrial or business sector. It paves the way for new practices quickly and easily, it is affordable, and it is efficient and accessible.
Examples of Successful Disruptive Innovation
It is known that the Internet drastically revolutionized consumer relations between people and businesses or companies.
Today, most consumers have multiple devices that have internet access, making these devices great examples of disruptive technologies.
Abelson, who invests in disruptive technology, indicates that, smart mobile phones, smart TVs, tablets and laptops are just consequences of revolutionary ideas.
From these devices consumers can access various services or products, their needs can be met at the click of a button.
Customers can access transportation or hosting services such as Uber and Airbnb, Buy also any object of their desire from platforms such as Amazon or E-bay.
Thus we note that business models have also changed, a great example of this is the SaaS (Software as a Service) model where companies use software with a single server to offer an online service.
Abelson also mentions the streaming services - Netflix and Spotify - that offer music and series or movies for entertainment in exchange for a monthly charge.
In this model the company does not charge the songs or the television series but the use of the platform itself.
Success stories are increasingly numerous to such an extent that it is impossible to mention them all.
“People today have the opportunity to develop businesses from their homes thanks to disruptive technologies. Not satisfied with this, they can go even further,” says the investor, Jeremy Abelson.
The success of any business no longer requires a huge investment, nor is it exclusive to monopolies or large companies.
Companies and consumers only need an innovative idea and the right tools to create a Copernican revolution in the market.
