Companies And Their Production Of Disruptive Innovations
As technology continues to advance, companies develop, create, and implement the use of their popular products. Although the products made are utilized by millions of people, they are considered products which invade the consumer market. Innovation abounds are a common component of disruptive companies.
Defining Disruptive Innovations
What constitutes a disruptive company and why are their innovations considered disruptive? Innovations which tend to invade the consumer market are usually released by disruptive companies. These companies force change. Upon releasing their newest innovation, disruptive companies can affect various industries including technology, the web, telecommunications, gaming, manufacturing, music, as well as entertainment and retail.
Delving into the various industries which are affected helps consumers see why they are considered disruptive innovations. Let’s take a look at the iPad. The iPad is interfering with the consumers use of computers and laptops as consumers focus on smaller more portable computer-based devices. IPads are among the most popular tablets available which is challenging and replacing the use of laptops, e-readers, and entertainment devices. The iPad is therefore considered a technology disruptor.
Google apps are considered web-based disruptors that are challenging the conventional word processing and spreadsheet programs. Google apps enable users to utilize online integrated document sharing free of charge. The web industry is moving from a rather conventional industry to one focused on Cloud-based sharing of office information.
Disruptive companies and their innovations are taking over. As more and more people learn about the products offered by such companies the number of users increases astronomically.
The telecommunication disruptor, Skype, is a threat to many wireless operators. They are slowly pushing the envelope by offering low to no cost for voice and text as compared to the high costs plans offered by cellular phone companies such as Sprint, Verizon, and T-Mobile. Since the development of Skype, this telecommunication disruption has consistently grown and has approximately 663 million registered users as of 2010. Due to these results many other companies are attempting to mirror the technology which Skype offers at lower rates. No company has been more successful than Skype at this form of telecommunication at a fraction of the traditional cost of such services.
Let’s take a look at the entertainment and retail disruptor Netflix. Netflix has brought streaming movies and television shows to an entirely new level. Netflix disrupted in store DVD rentals so much that it pushed Blockbuster out of business after filing for bankruptcy in the fall of 2010. Netflix is a major disruptor because its services are extremely convenient. Netflix can be accessed from any device with internet capability at any given time. You can’t get any better than that.
As millions of people become savvier with technology, the conventional way of doing things is becoming more obsolete. Companies have been developing disruptive innovations for years; however, now those innovations are becoming more mainstream which places a lot of older traditional companies out of business.