Main Answer:
A disruptive technology is a groundbreaking innovation that significantly alters or revolutionizes an industry, displacing established players and transforming traditional business models.
Step-by-step explanation:
Disruptive technologies introduce novel solutions or approaches that challenge the status quo within an industry, often rendering existing products or services obsolete. These innovations typically emerge unexpectedly and have the potential to create a seismic shift in the market landscape. The key characteristic of disruptive technologies is their ability to bring about substantial changes, often at a rapid pace, and redefine the competitive dynamics of an industry.
Unlike incremental innovations that improve upon existing technologies, disruptive technologies fundamentally reshape the way business is conducted. They can lead to the emergence of new market leaders while causing established companies to either adapt or face decline. One example of a disruptive technology is the advent of smartphones, which not only transformed the telecommunications industry but also impacted various sectors such as photography, music, and navigation.
Disruptive technologies often start in niche markets or serve overlooked customer segments before gaining mainstream acceptance. The process of disruption involves the displacement of traditional products or services by more efficient, cost-effective, or convenient alternatives. Companies that fail to recognize and adapt to disruptive technologies risk becoming obsolete.