Disruptive Innovation — Threat or Opportunity

Abstract

One of the problems associated with delivering value from any technology is the environment in which it exists, the speed with which it is deployed and the effect it has on pre-existing technologies. In this latter case, the environment of speed of deployment or innovation, can be, respectively, so sensitive and so quick as to create a shock or disruptive effect. The effect is felt negatively for those firms on the receiving end and (usually) positively for those creating the disruption. This, it has to be said, is a generalization. It is by no means certain that any given disruptor will successfully manage a new technology’s emergence. For every successful social network, there have been many failures. As I said at the very beginning of this book, several marketing and business issues must be present at the same time for a new principle to succeed. Equally, sleeping giants can easily be awoken by the advent of an unforeseen threat and if the threat is not robust enough, the larger firm can be reinvigorated either to kill the technology as was the case in the video tape format wars, or, from greater resources, take over the disruptive technology to its own advantage.