Although innovation-driven growth is generally welcomed and applauded in the market, several industries face the fatal blow of disruptive technologies. Businesses employ disruptive innovations that start off as small ventures only to grow roots in the market. Since these innovations are typically cost-effective and more accessible for the consumers, they then expand at a rapid pace displacing the established competitors.
Following are the fundamental characteristics of disruptive technologies:
- Begin by providing solutions for the small problem instead of implementing a big idea
- Target latent desires of people
- Start by disrupting consumer mindsets and not the large-scale industries
- Immediately respond to customer behaviour and requirements
- Leverage data to get a consumer base and dig into their needs and wants
Going through the timeline of disruptive technologies spanning over decades shall help deduce their impact on the businesses in the market, whether gradual or unanticipated.
- Hybrid Cloud
Hybrid Cloud is a mainstream technology that came of full-fledged use in the market as early as 1996. The technology enabled improved products and services. Cloud computing has made it possible for the Small and Medium Businesses to develop as rapidly as the more prominent companies. The arrival of this technology has made tasks convenient as it is instant, always accessible and requires no setup. Hybrid Cloud services cater to basic and complex business demands.
- API Platforms
Recent developments and technologies consider the consumer to be the epicenter of growth. API Platforms have revolutionized the user experience in modern businesses to accommodate open innovation and non-linear transactions. The platform brings together two or more interdependent groups through Application Programming Interface and creates a pathway for automated interactions. This accessible platform catalyzes exchange of ideas and fast-tracks transactions enabling growth and optimal connectivity.
- Robotic Process Automation
This game-changing technology became popular in the 2000s with the attempt of assimilating Artificial Intelligence (AI) and incorporating it into Robotic Process Automation (RPA). RPA is a mathematical construction of algorithms, machine learning and language processing that enables automatic business processes emulating the tedious manual work. The emergence of RPA caused a major disruption by rendering automated functions like processing transactions, manipulating data, triggering responses and communicating with other digital systems. As a result, the need for manual registers and inventories was nullified and analyzing and exchanging information became easier and faster.
- Instant Payments
Contextual commerce requires fuss-free and immediate transactions. Customers, merchants, workers and suppliers are often in emergent need for financial transactions. Global trends shifted towards real-time payments which gave rise to virtual currency. The impact of instant payments has unfolded across the globe. Services are provided on demand and therefore the payments are carried about on demand. Obvious disruptions in the business economy are observed. The pace of disruption is not yet consistent.
- Artificial Intelligence (AI)
The attempt to conceive the concept of AI was first carried out in the 1950s. Since then, the innovation has only trudged uphill. AI is a force-driving innovation that has eventually come to replace human tasks. AI identifies the inefficiencies in a particular operating system and provides inputs for the rectification of the underlying issues. Innovation of AI has caused a major disruption in the market. Processing speeds increased, and machine learning algorithms became dynamic and potent. Mainly, industries big on data such as retail financial and transportation were affected by the disruption. Although there are concerns about technology replacing people, skilled workforce will be in demand to interpret and implement the insights of AI.
- Blockchain
Blockchain is a decentralized ledger that maintains transaction records on multiple computers simultaneously for security purposes. Each block is connected to the other mathematically forming a chain of records. Blockchain was constructed to foster trust and financial security during transactions. Cryptology thus replaces the intermediaries like bookkeepers and accountants leaving no room for scope of human error. This ground-breaking disruptive technology is applicable across multiple industries. It can automate processing of property titles, clear interbank settlements and drastically revolutionize other processes.
- Augmented Reality (AR)
Originally conceived in the 1960’s, Augmented Reality displayed images into people’s eyes creating a stimulated virtual environment. Over the years, it was upgraded and made more interactive by fusing the real and virtual. Today, AR systems are used in an array of fields like healthcare, navigation, military and many more. Combines with other technologies like Internet of Things (IoT), there is no limit to how ingenious AR can be!
- Quantum Computing
A quantum system’s fundamental function is to store and manipulate data. These systems manipulate data in bits which are stored as binary in 0 and 1 states. These bits are called qubits. Quantum Computing is capable of having a staggering impact on the society with its implications. It can be efficiently applied in fields like machine learning, medicine, chemistry and material science. This revolutionary disruptive technology has already displaced the old methods.
- Smart Machines
Smart Machines are cognitive technologies that can be a fusion of various innovations such as cloud computing, big data, artificial intelligence and many other. Smart Machines include robots, self-driven cars, drones and other cognitive systems. They can be tagged as major digital disruptors considering the positive and negative impact their functionalities have. Numerous companies from various industries have installed smart machines and depend on them for complex tasks. While smart machines deplete any chance of human error, they also hog jobs profiles. Nevertheless, the technology is an ever-growing bolt of innovation that will bloom through the decade.
From the looks of it, technological vision of 2020 has posthumously been achieved and implemented. We must look forward to upgrading these technologies and derive smart solutions for the shortcomings of the innovations.