The Impact of Disruptive Technology: Historical & Modern Examples

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Progress often happens in spurts. From the advent of agriculture to the industrial revolution to the digital age, moments of widespread cultural and technological turnover are due to innovations that cause disruption.

Though these momentous change events may have happened only periodically in the past, today rates of technical evolution are at previously unfathomable levels. In fact, in 2023, researchers from AlixPartners found that “85% of executives said technology is changing so fast, they don’t know where to start to keep up.”

This, of course, does not make disruption a negative phenomenon. Rather, organizations must be agile and prepared to embrace disruption as it occurs. For many organizations, it also means fostering internal innovation to produce disruptive technology and a focused approach on technology adoption to drive ROI.

In this article, we’ll explore the concept of disruptive technology and its key characteristics, as well as the impact it can have on businesses that are early adopters. We’ll also showcase historical and modern examples of disruptive technology and the impact it had.

History of Disruptive Technology

Innovation and disruption have been common themes across human history. In fact, it’s one of the characteristics that makes us so unique in the natural world.

While they had no idea they were applying scientific principles, the first humans to strategically breed animals and cultivate their land and for farming were engaging in disruptive technology. At the end of the last ice age, about 12,000 years ago, the onset of agriculture and livestock breeding led humans to shift away from more transient ways of life, relying on hunting and gathering for subsistence.

However, it is important to note that many cultures have continued engaging in these activities up to the present day.  Ultimately, this disruption was foundational to the proliferation of mankind across the world and set the stage for more stable lives and opportunities for future innovation.

Throughout history, we see many more examples of disruption:

  • Characteristically Roman engineering of things like roads and aqueducts allowed the Romans to expand throughout the ancient world.
  • The Industrial Revolution was a centuries-long period of fast-paced economic development brought by technological change, new transportation modes, energy sources, and manufacturing materials, as well as the proliferation of factory-based work. This period disrupted just about every aspect of life, bringing about a more global, manufacturing-based society.
  • The printing press, radio, and television were all innovations that changed the way people communicate and consume information across the world.

In 1995, the term disruptive technology was finally coined by Harvard Business School professors, Clayton Christensen and Joseph L. Bower, in an article they wrote for the Harvard Business Review. Two years later, Christensen published a book called The Innovator’s Dilemma.

In these works, the authors describe disruptive innovation as an innovation that creates a novel value network or market, or one that starts at the bottom of an existing market but comes to displace all parties above it. He uses the rapid growth and change of the disk drive and computer memory industry as a score example.

Today, we live in an increasingly digital world. Just about every corner of our experiences is now augmented by the internet, and GenAI is being incorporated into everything from grocery store prices to digital maps, to home devices.

In the nearly 30 years since the birth of the term, “disruption” has become ubiquitous to the point of being called a buzzword or jargon by some, but the concept itself remains not only valid but vital.  Business leaders have realized that they can use disruption as a strategic goal to steer their organizations toward success.

Why It Matters for Organizations

Understanding and interacting with disruptive technology is important for any company, though smaller businesses and start-ups tend to approach it differently than major corporations. Here are some ways disruptive digital innovation can be critical to businesses of different sizes, even if they themselves, are not the disruptors:

  • Startup: Many now large companies started out by creating or leveraging disruptive technologies as start-ups, like personal computer companies or ride-sharing applications. Startups can lead with innovation in hopes of following suit, or creating an environment agile enough to maximize opportunities for collaboration and growth.
  • Mid-size: Compared to startups, mid-size companies are generally more stable and resilient. Leaders at mid-size organizations should embrace disruptive tech to automate and optimize processes to ensure growth and stay competitive. As they grow, these companies can invest more widely in building disruptive services or goods if they align with business goals.
  • Large businesses: Large enterprises have the bandwidth and resources to actively scan the market for emerging technology and implement digital transformation initiatives. This allows teams to adopt new tech early on to optimize business practices, engage in state-of-the-art security practices, and stay competitive while simultaneously investing in developing disruptive tech.

As the term disruption has come into popular use, so too have myths surrounding the idea. Here are some common misconceptions about disruptive technology:

  • All change is disruption: Iterative change is certainly important to business growth, but only innovations that spur industry-wide changes are truly considered disruptive.
  • Large companies are immune to disruption: Larger businesses have the means to build safeguards to help them respond to disruption, but no company is immune.
  • Only tech companies can be disruptive: Technology is often the flashiest, most alluring type of disruption but many companies have disrupted industries by creating new approaches to service, and even business models.
  • Disruption is a buzzword, not a real phenomenon: The over-hyping of business terms is widespread and unfortunate. However, this does not negate the concept of disruption. Take the word at its intended meaning and use the idea to guide your business practices.

Key Characteristics of Disruptive Technology

By definition, disruptive technology is novel and innovative. However, there are specific qualities that unite all disruptive inventions:

1. Breakthrough potential

To displace an entire industry or way of doing things, disruptive technologies start with the potential for wide-scale adoption. This breakthrough potential often comes from a delicate combination of purpose, simplicity, and affordability, that can devour the product’s market if the right conditions are met. This often happens in markets that are overlooked, underserved, or stagnant for a long period.

Harkening back to the days of tech innovators starting projects in their garages, disruptive solutions often blossom from unpolished, small-time players into major disruptors if provided with the right market conditions at the right time. Some key examples of this include Google, Microsoft, and Mattel – some of today’s most successful companies, all started in garages.

2. Market or customer-centric approach

Disruptive tech designers take either of two approaches to designing disruptive products: market-centric or customer-centric.

Market-centric

This approach begins with scanning a market for gaps and needs and tailoring designs to solve those problems. This approach is less risky than the other because it prompts designers to make decisions based on more quantifiable evidence like market trends and risk projections. Market-centric design does not overlook the customer but considers them within the broader market context.

An example of a market-centric disruption is the introduction of personal computers and the subsequent disruption of other industries by bringing work tools and entertainment options into a single, portable object.

Customer-centric

The flipside is to design with customer experience in mind and allow the market to respond.

By catering directly to customers’ needs and solving their problems, this approach relies on customer satisfaction and resulting brand recognition to cause disruption in existing markets or create entirely new ones. Of course, any company can make incremental improvements to solutions for improved customer satisfaction but it is not considered disruptive until the scale and the impact of the change has the potential to completely change the market.

The emergence of ride-sharing apps like Uber and Lyft, or streaming services like Spotify are considered customer-centric and disruptive because they provide consumers with new, affordable, and convenient solutions that outweigh the familiarity of the taxicabs and CD sleeves of the past.

3. Rapid scalability

Potential only gets a product part of the way. Innovative technologies need the capacity to match demand as it starts to grow. Once proven viable, disruptive technologies can boom from just a few users to millions seemingly overnight. Market phenomena like network effects cause the value of tech to increase as more and more users adopt it, leading to exponential growth.

All of this requires innovators to incorporate scaffolding into the early stages of design. For software, in particular, designers can integrate cloud computing and global connectivity solutions to ensure the organization has the infrastructure to support a rapidly growing user base.

4. Large-scale status quo change and broad impact

The ultimate characteristic of disruptive technology is its success in displacing existing markets, products, or services. Whether they involve creating new markets or transforming incumbent ones, disruptive technologies redefine solutions for consumers and change entire market landscapes. In the end, the mode of transformation might vary, but the result of widespread change sits at the core of what it means to be disruptive.

The Impact of Embracing Disruptive Technology

Leaning into the power of disruptive technology can bring companies a competitive business edge. Here are the four most critical impacts embracing disruptive technology can have:

1. Competitive edge

Disruptive technologies possess unique qualities that differentiate tools, and the teams that use them, apart from the competition. Because it is innovative and modern by nature, investing in disruptive technology allows businesses to continually optimize products and services, customer experience initiatives, and even employee experience initiatives. This keeps organizations at the apexes of their markets, helping them outpace rivals with every new adoption.

Today, generative AI is the center of many different spotlights. GenAI takes in user prompts and scours the Internet and data repositories for relevant information, which it analyzes based on patterns to create useful responses. Many software companies have begun incorporating AI into their products to offer personalization, quick issue resolution, and insightful recommendations.

For example, in 2011, Apple released Siri, the first widely-used digital assistant. This came after a long history of AI agents, going back to Deep Blue, the chess-playing AI developed by IBM in 1997. Siri was the first widely accessible digital personal assistant that catered to consumer needs through voice activation, natural language processing, and practical task performance.

As the success of Siri became apparent, more and more products have incorporated Siri-like AI personal assistants into mobile products and other software. As a result, Siri is updated regularly through IOS updates to continue setting the tone of this now-popular market.

2. Cost reduction and operational efficiency

Using disruptive technology for your organization keeps your workforce operating with the most recent technological advances to streamline and optimize operations and security processes. In this way, implementing new technology helps keep businesses running in tip-top shape. This increased performance helps a business’ bottom lines by improving performance, speeding up issue resolutions, eliminating redundancies, and ultimately reducing operational costs. This impactful return on investment leaves teams with room in their budgets to reinvest in further optimization.

3. Innovation in product or service offerings

Disruptive technologies make it possible for businesses to offer new services and optimize existing ones. Often, the reason a product does not reach its market potential isn’t simply because it’s bad. It can be a combination of factors, or it might be missing a feature, like personalization, that could bring the experience to the next level.

By embracing disruptive tech and incorporating state-of-the-art features into previously non-viable offerings, organizations can take an iterative approach to improvement and give their products new, enhanced lives.

  • AI, IoT (connected devices/smart home integrations, etc). – – personalize services, etc.

This environment of constant improvement and experimentation – leads to a culture of innovation/curiosity/agility. Improves company culture and can lead to proprietary disruption in the future.

4. Enhanced customer experiences

Because so much disruptive tech is customer-centered, incorporating disruptive technology into products or workplace tools can vastly improve user experience.

Technologies like AR, VR, and robust data analytics, are all aimed at providing bespoke, streamlined journeys for an optimal CX experience.

Chatbots and AI-driven recommendations can be incorporated into your website for optimal customer service.

Related Resources

  • The Kübler Ross Change Curve
  • Digital Transformation & Adoption by Sector
  • People, Process, Technology Framework

Examples of Disruptive Technologies

New technologies have disrupted the way of life well before modern business models. Let’s examine both historical examples of disruptive technologies and how they changed the world, as well as how modern technologies our currently changing how we live.

Historical examples of disruptive technologies

Let’s go through some key examples of disruptive technologies throughout history.

1. Printing press

Though writing has been around for roughly five thousand years, the invention of the printing press in the 1400s set off a massive wave of disruption. This invention made the mass production of textual information possible and significantly more affordable, transforming the landscape of knowledge and education across Europe. This shift was so monumental, that the invention was banned in other parts of the world because the concept of a literate public interfered with revered histories of oral tradition.

Ultimately, the printing press led to the democratization of knowledge and spread of information and overtook previous printing technologies like hand-inscription or block printing.

2. The assembly line

An assembly line is a system for manufacturing in which a product being made is moved from station to station, receiving new parts along the way. By the time the product reaches the end of the assembly line, it’s ready for use.

The assembly line made manufacturing all kinds of products more efficient and consistent, and it made products more affordable to consumers. This invention disrupted businesses selling hand-made products across industries, and created new opportunities for factory employees,

forever transforming the manufacturing landscape.

3. The Internet

The Internet we know today started as a US military defense system of just four interconnected computers in the late 1960s. In the following decades, the network expanded and transformed into the “World Wide Web.” In 1992, the first web browser, which eventually became Netscape, provided the public with a user-friendly and accessible way to interact with the Web.

Since then, the Internet has burgeoned into a superhighway of information, through which our personal communications, business activities, and even medical data are routed. This invention disrupted countless industries, fundamentally altering the way consumers interact with businesses through global connectivity and unfettered access to information.

4. Personal computers

Before the introduction of personal computers (PCs), gargantuan and pricey computers called mainframes were relegated to large businesses and universities. In the late 1970s, three different personal computers were mass produced for public consumption for the very first time. This made computing power much more accessible to everyday consumers and created an entirely new market.

As these and the following generations of personal computers became widely available, mainframes became obsolete, and today, PCs are powerful, user-friendly tools  used for business, education, commerce, and entertainment.

5. Streaming services

Back in the 90s, streaming technology was in its infancy. In 1995, RealNetworks launched RealAudio Player launched, which became the first widely-popular tool for media streaming, reaching 215 million users by the year 2000. Streaming tools continued to grow into the 2000s, with YouTube launching in 2005 and Netflix’s video-on-demand service launching in 2007.

These services offered consumers a flexible and easy new avenue for interacting with video media. For the first time, people could choose from an extensive library of media and watch on their own terms – all they had to do was purchase a subscription. These streaming services led to the decline of traditional media rental services and paved the way for new business models, niche subscription options, and endless choice when it comes to entertainment.

Modern Examples of Disruptive Technologies

As we move deeper and deeper into the digital age, these technologies stand out as particularly disruptive:

1. AI and machine learning

Artificial intelligence (AI) and machine learning are often incorporated into personal and work software to improve user experience, streamline activities, and create personalized options. In 2024, about 72% of companies integrated AI into at least one business function, and about 65% of global companies are using generative AI. According to a study commissioned by Microsoft, these companies are reporting an average ROI of $3.7 per $1 spent.

The uses for AI and machine learning are various, but one way AI is disrupting the status quo is through AI chatbots. Today, it is common for business websites to offer support through chat windows that feed inquiries to AI-powered digital agents for resolution. These AI chatbots have access to relevant documentation so they can answer more straightforward questions easily and provide links to helpful information in the process. This has improved customer satisfaction and freed up live agents to handle more complicated queries, changing how businesses conduct customer experience activities.

2. Cloud computing and virtualization

Cloud computing, or the practice of storing, managing, and processing data through remote servers and networks instead locally. This shift from on-premise computing solutions has made it possible for companies to handle large volumes of data without needing to build in-house processing centers. Cloud services also enable companies to host remote work activities and build collaborations with other organizations around the globe.

This change has impacted how businesses across industries use data by providing the necessary power to scale operations like data backups, software testing, and eCommerce. Many cloud computing businesses offer their infrastructure as a service, a new, global market that reached a value of $262 billion in 2024.

3. Internet of Things (IoT)

The Internet of Things is a disruptive technology that has springboarded many other disruptive technologies into prominence. IoT, as it sounds, is the connection of physical items to the internet. Some common products that use IoT are smart watches, smart thermostats, and healthcare devices with remote monitoring features.These connected devices gather and analyze data to provide consumers with seamless, often personalized experiences.By connecting everyday items to the internet, IoT enhances their usefulness and usability, disrupting markets traditionally dominated by analog devices.

As IoT-connected products became more popular, it became apparent that they were subject to security vulnerabilities. To combat this issue, many companies have incorporated stronger authentication methods, regular firmware updates, and encryption.

4. Blockchain and decentralized ledgers

One technology that has proven to be disruptive in finance and supply chain industries are Blockchains, or digital public ledgers. This technology creates a permanent digital ledger that is attached to a specific item or product, that serves as a record of ownership history.

This technology has been widely used as a security measure in supply chain tracking, cryptocurrencies, and peer-to-peer transactions. By creating an unchangeable record, companies have been able to use blockchains to promote transparency and verify security. For example, Bitcoin uses a decentralized blockchain to record transactions. Because no one person or entity controls the blockchain, the records are permanent and public, leading to higher levels of consumer trust.

Though its use has grown substantially, many regulators and governments are still catching up when it comes to addressing the impact of blockchain on financial industries and updating laws in response. This requires entities using blockchain to stay on top of any regulatory updates, stay compliant with regulations as they change, and do due diligence to mitigate business risks as environments change.

5. 3D Printing and additive manufacturing

3D printing, or additive manufacturing, is a process through which a three-dimentional object is created from a digital model, one layer at a time. This technology has already disrupted many industries and will likely continue transforming manufacturing processes across industries.

This form of manufacturing transformation is disruptive because it allows users to create complex objects from a single material without requiring them to seek out and purchase parts. This virtually eliminates waste and lessens business’ reliance on supply chains.  This technology is used not only for mockups and rapid prototyping in markets like the aerospace industry, but high-quality products fit for serial production.

The increasing popularity and mass-production of items like 3D printed items like hearing aids, jewelry, and even jet engine parts. The amount of 3D-printed goods on the market is sure to increase as the technology improves, disrupting even more industries.

Modern Disruptive Technologies by Industry

As technology continues evolving more rapidly, the number of disruptive technologies is burgeoning. Here are some of the most disruptive technologies impacting large industries today:

1. Healthcare

The healthcare field is a recipient of ongoing disruption when it comes to technology. Products like wearable health monitors and telemedicine have empowered individuals with new tools to understand their health and communicate with medical professionals. AI-driven diagnostics and operational tools assist in the diagnosis of diseases, facilitate appointment scheduling, and help analyze responses from patient feedback surveys.

These are just a few healthcare transformation examples that have changed the health field in recent years, making healthcare processes more efficient, helping patients and providers save money, and improving medical outcomes for patients through accuracy and expediency.

These technologies are emerging and being put to use quickly, making it absolutely critical for practitioners and patients to consider the ethics behind new health tech as well as associated security and other regulatory requirements.

2. Finance

The digital revolution has greatly impacted financial industries with the introduction of disruptive technologies leading banking transformation efforts, like AI financial advisors, digital payments, automated underwriting, and blockchain-based transactions.

Many financial services organizations use AI for customer experience, insurance underwriting, and even loan automation. The integration of AI and other disruptive technologies into this arena has helped streamline operations for financial companies, deliver accurate and consistent services to consumers, and provided a new level of customer support that has helped the public access and understand financial services like never before.

Technology in this arena is also subject to security vulnerabilities like cyber threats and frauds, making it essential for financial companies and consumers to be aware of risks and incorporate robust security measures into all digital financial activities.

3. Retail and E-Commerce

Since the internet boom, the retail sector has evolved into a high-tech industry. From eCommerce to AI-powered shopping recommendations, augmented reality trials, and automated fulfillment centers, disruptive tech has shaped retail as we know it.

In this highly competitive industry, retail transformation leverage disruptive technology to improve consumer experiences, improve product offering, make production more efficient, ultimately boosting sales. Big data has also become a huge part of retail marketing strategies, empowering businesses to easily target customers that align with their brand and provide customers with experiences that meet their preferences and needs.

4. Education

Both K-12 education transformation and higher education transformation have changed how institutions and schools teach with new learning experiences and streamlined administrative operations. The rise of eLearning, gamification, digital test proctoring, and AI tutoring have made it possible for learners with diverse needs and preferences to access and internalize information like never before. Many of these technologies have been on the market for several years, but the conditions of the COVID-19 pandemic made them ubiquitous.

These tools have made it possible for individuals to access education in non-traditional ways like through remote and asynchronous learning programs. Along the way, many educators came to understand that learners respond well to a blended learning model, in which traditional lecture-based lessons are supplemented with other types of learning activities like games and collaborative learning. This has turned educational technologies into core components of the education space.

5. Manufacturing

Manufacturing across industries has been radically transformed in recent years by disruptive technologies like automation, predictive maintenance tools, and smart factories. These technologies allow manufacturing teams to use digital solutions to analyze production systems and optimize the production process from start to finish.

By relying on technology like AI to monitor and interpret this data rather than on humans, manufacturing businesses increase consistency and QC and improve the quality of the products that end up reaching consumers. The prevalence of automation in manufacturing has transformed many operational processes as well as the workforce.

Manufacturing transformation is shifting the types of employees these companies require, with companies replacing manual laborers with more specialized technicians, engineers, and IT professionals. This, of course, can have detrimental impacts for laborers who may lose their jobs, though in ideal situations, organizations can invest in retraining and upskilling workers to help them build necessary new skills and transition into new roles.

Common Challenges in Implementing Disruptive Technology

While disruptive technologies provide organizations with myriad benefits and a world of opportunities, there are some challenges that are common across different companies as they implement these solutions:

1. User adoption

One of the most common challenges associated with implementing new technology in the workplace is getting employees on board and up to speed after it is launched. Business leaders must help employees understand the change, learn how to use new tools, and overcome resistance to change.

To improve user adoption and help employees feel comfortable with changing technology, leaders should use strong and consistent change management practices and incorporate software like a digital adoption platform (DAP).

With Whatfix DAP, create in-app guided experiences that support employees in the flow of work with contextual assistance to help them complete tasks correctly and follow the right steps of a process.

2. Organizational resistance

Resistance to change is not relegated to the workforce, it can also infiltrate the ranks of leadership. Implementing disruptive technology, though beneficial, often requires a sizeable investment, changes to security and compliance procedures, and the development of training programs. Embracing emerging tech can feel like a risky move, especially to business leaders who don’t understand the benefits.

To overcome this resistance, IT teams should lean on transparency and communication to convey the importance of adopting disruptive technologies in the workplace. Once leaders are on board, work together to develop pilot programs and draft transparent communications to inform the workforce about the benefits of the new technology. From there IT teams can develop training initiatives and feedback channels to support all members of the organization through this change and ensure a successful rollout for maximum ROI.

3. Skill gaps and workforce readiness

Because disruptive technologies are unique and advanced, employees may need substantial training to adopt their new work tools. Implementation can leave your workforce feeling bewildered and ill-equipped to perform their job requirements without the proper support.

To resolve this problem, companies can integrate training into continuous learning programs through eLearning platforms and incorporate a DAP like Whatfix into new software as it is rolled out for maximum support. In cases where new technology requires an advanced level of technical training, leaders can enlist external subject matter experts to provide third-party training experiences, as well.

4. Budget and resource constraints

Another common challenge related to implementing disruptive technology is the price tag. New technology is often very expensive, making it a significant investment for any business. If not properly planned for, this can cause budget issues. And if the technology’s benefits are not communicated clearly, leaders may not find such an investment worthwhile.

To alleviate budget restraints, teams seeking to bring in new technology can use data analytics tools to project the potential return that will come from this investment. One metric that works well in this situation is total cost of ownership (TCO) vs. long-term gains. TCO is a projection of the total expenses involved in acquiring, implementing, servicing, and updating a given technology. By understanding this metric and comparing it to projections about long-term return on investment, teams can provide leaders with a quantitative depiction of the benefits new tech will have for the organization.

Establishing trust, communicating clearly, and explaining how new technology aligns with organizational goals are all key to securing buy-in from stakeholders in these situations.

5. Data, Ethics, and Regulatory Considerations

As technology continues to evolve, so too do cybersecurity risks and ethical conundrums. Regulatory bodies are often racing to keep up with technological advancements, making corporate responsibility an imperative for businesses using disruptive tech involving AI and sensitive data. Handling these challenges can be difficult, especially without a dependable roadmap.

When implementing any new technology, teams should understand relevant concerns about data privacy, compliance, and governance, and implement protocols to ensure compliance at every stage. Though this can be difficult, as regulations like GDPR and CCPA continuously evolve to keep up with new threats, it is absolutely essential. Thankfully, there are also many compliance solutions on the market that track regulatory changes to help businesses keep up with the changing landscape.

Disruptive Technology Clicks Better With Whatfix

As we have discussed, the path to embracing disruptive technologies within an organization is constantly changing and rife with challenges like resistance to change, workforce readiness, and evolving regulations.  However, overcoming these challenges and implementing emerging, disruptive technologies can help a company thrive in today’s highly competitive business world.

With the proper planning and support, IT teams and business leaders can extract the maximum benefit from these technologies, leading to greater productivity, cost savings, and overall success over time.

To support users as they acclimate to new software, use a guided support solution like Whatfix. The Whatfix DAP streamlines software adoption with in-app guidance, user onboarding, and continuous training opportunities to keep employees learning within the flow of work and feeling supported the whole way through. This approach accelerates learning, increases ROI, and keeps users feeling comfortable, rather than frustrated, as they interact with new tools. Use practical solutions like the Whatfix Analytics to understand how your workforce interacts with disruptive tech and provide personalized support as they learn to use it.

By helping your workforce adopt and enjoy using disruptive technologies, leaders can rest assured that they are maximizing the use of their new investment. Support tools like Whatfix are also scalable, empowering organizations to integrate disruptive tools quickly and efficiently at every stage of growth.

At the end of the day, embracing disruptive technology is not just beneficial, it is essential for keeping organizations productive, efficient, and competitive in ever-evolving markets. Choose Whatfix as your trusted partner to guide your workforce through the evolution of your organization’s digital journey.

Contact Whatfix for a free demo today!

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