Disruptive Technology – The five Principles on which it runs

Disruptive Technolgy

The disruptive technology also has certain principles which explain how it behaves.

Principle 1: Resources are with Customers and Investors and not with the companies.

The established big players in the market embrace even the complex sustaining technology, while regularly faltering with simple disruptive technology. This is because they depend on customers and investors for their resources. Managers how good they may be think otherwise. They think that they control the resources, and this is their bane. So they try to kill the emerging disruptive technologies, because of low margins. They do not invest in these technologies, and instead build a defensive stance. The products based on disruptive technology ultimately win in the end. They have the basics of being popular with customers as they are cheap and user friendly.

So, how do the big companies counter this threat which will eventually lead to their downfall? The answer is setting up independent departments or an organization is the answer. Doing this they protect themselves from future failure and also keep on doing their current business with strength. These independent organizations work on lower margins and their main function is to keep tap on the technology as well as their demand progress. This is the only way the bigger companies can align with the forces which control the resources.

Principle 2: Large companies’ growth needs are larger and not satisfied with small markets

Disruptive technology invariably leads to the emergence of new markets. The companies that enter these markets early have the advantage over those who enter later. These smaller markets might engulf the earlier markets and become the major market in the future. The larger the company the more difficult it become for it to invest in these smaller markets. A company with $20 million turnover needs only $ 2 million increase for 10% growth while a $ 200 million company requires $20 million for the same rate of growth.

New markets are never large enough for the jumbo sized companies. So the larger is the company in terms of revenue the lowest it invests in new markets. This is the reason for the downfall. Hence the solution of Principle 1 stands here too. The big players need to have dedicated smaller companies to take care of the opportunities in the emerging new markets.

Principle 3: Non existing Markets cannot be analyzed

The well managed companies plan and execute their plans very well. When these techniques are applied to sustaining technology they work wonders. The size and growth of the existing markets can be known by market research. Since most of the innovations are sustaining the managers can garner huge profits.

However these techniques do not work with disruptive technology. Market Research, planning or forecast works best with existing markets rather than with markets which are not known. The marketing and planning techniques are tailor made for the sustaining technologies hence do not work with disruptive technology. The approach which works here is taking two courses – One for the forecast and another against it. Taking this approach the company loses money to a small extent but ensures non-failure.

Principle 4: Strength of an Organization becomes its weakness.

A well developed organization has (1) a well established process of doing things. (2) The value system of the organization. These are the strengths of the organization and have taken them to their current position in the market. They work very well with sustaining technology but fail with disruptive ones. Both process and values tend to be less flexible. This turns out as the weak link in case of emerging disruptive technologies.

New capabilities developed for the disruptive technology will help the organization on this front. The organization has to look above its processes and values, and build capabilities specific to the new technology if it seems to be disruptive.

 Principle 5: Supply of Technology is not equal to market demand

The products developed through disruptive technology initially have very small market. But over an undefined period they become established products and competitive. The bigger players work on bigger margins and leave out the small margin market. Here is where the disruptive technology thrives. The low cost and extra features make it a real threat, and by the time the big organizations realize it is too late.

There have been many developments and in the future there will be more. The products which are simple and cheap but not in demand now are bound to become more popular with time. They will encompass all markets and threaten all major companies. The companies which are unable to cope-up with this new challenge are bound to fail. The managers have to recognize these disruptions and act in a manner which will ensure that they harness the advantages rather than let the opportunity go.


The Tablet Revolution

The Tablet Revolution is here and it looks like it is here to stay. When the first gen iPad was launched, a lot of people thought it would be stupid to spend so much money on a gadget that was not as functional as a laptop, was not as mobile as a phone and was just somewhere in the middle. But, what the iPad proved was that there is a huge necessity for a gadget that is more useful than a phone, without being as large and cumbersome as a laptop.

iPad 1st generation

Following the iPad’s success, a number of companies have launched their own version of the popular tablet-some with better features than the iPad as well. These tablets come in a whole variety of sizes- the smaller ones (usually 6 to 7 inches) tend to be more portable, whereas some people opt for the larger ones (between 8.3″ to 10 inches) because they tend to have better visuals and are good replacement for laptops.

Tablets have become popular among school and university students who have to carry their gadgets around everywhere- especially since the increase in the number of educational apps on the tablets. It’s certainly a revolution most people can get behind- as it is like owning a laptop, but as Ferratum UK explains, it is much cheaper to buy- your loans would be much less too!

A Rollback to Basics is Needed

miscrosoft windows

Have you dealt with these new operating systems lately? The newest OS for Windows is so complicated that it requires half of your hardware’s space and memory to even operate properly. Then there are the multiple windows, the desktop screen that’s separate from the item menu, and the complicated search features. And what Mac’s putting out isn’t any better or any less complicated. A move toward social, wherein practically every feature is a pop-up window that becomes as annoying as a real website pop-up. Let’s try to go back to basics!

I can remember Windows XP and how I absolutely loved that OS and resisted change for as long as I could. Vista was a disaster, and 7 was simply an improved version of Vista. And as soon as 7 started becoming the industry standard, Windows mucked things up again with 8. It’s not that creating a new OS is inherently bad. It’s good to try to change. But why must these companies keep trying to push the envelope with user features?

The end result is an OS that’s muddy, buggy, requires too much processing power, and that requires a tech to actually use it efficiently. If they want something revolutionary, maybe they should rollback to the days of simplicity.

Bits and Bobs for the Years End

HP Sprout Touch Mat changing computer usage dramatically

HP SProut Tocuh Mat

Like many others, (I don’t think I alone in this) I have been writing out my fantasy Christmas list, you know the one where if you had all the money you want what would you buy list. For me near the top after the luxury car would be the HP Sprout Touch Mat, it looks wonderful, practical, and easy to use, the total package, cannot wait to own it as this will be within the realm of feasible to buy quite soon I would think. It is actually listed as the seventh in the top ten list of new technologies for 2014 for me it would be much higher. The other technological step forward that interested me personally is the Google contact lenses that monitor blood sugar. My sister is diabetic and something like this would make managing her diabetes so much easier.

Google samrt contact lens to monitor blood sugar levels

Seeing tech companies like Google using their resources to develop health tools is interesting.  Their other major innovation is the cancer detecting pill, not for the markets yet but Google are looking to change the face of Healthcare.  I wonder how the drug companies feel about techs incursion into their monopoly. The dynamics and economics of this will be very interesting to monitor. Keep an eye on Google X the division making the innovations.

Just one last comment on the tech list; anyone else keen on owning a hoverboard or is that just my thing?? I still remember my old skateboard and watching Marty in Back to the Future and wanting a hoverboard then now it’s a reality

Marty on the hoverboard Back to the Furture 2

Couldn’t resist!

Broadband for Everyone

A more personal note today: Living in a major city, I never question the availability of technology and, crucially, the connectivity of my devices to the internet. Having instant connection is so vital for my daily life, as for most of yours I guess. I am not only thinking about communicating with family and friends and being able to do work-related tasks on the go. But, of course, it is also hugely important for participating in the cultural life — just think about easy access to music and creative text or instant access to information about everything that is going on wherever you are.

Last week, however, I found myself in a rural area in Scotland and, for the first time in years, found myself without any connection. No refreshing or reconfiguration helped, nor any attempts as waving my phone high up in the air. And I must admit, I felt a bit lost.

Mobile connection UK

Where would I get information from about the area I was in? I am trying to make a point of going to cultural events wherever I go, both to broaden my horizon and to support the local cultural life. No access to the internet meant I couldn’t do that. I know that the Scottish government has a grand-scheme plan to get all of Scotland on to broadband but 2020 is still quite a long way away.

This made me wonder once again how strongly intertwined our lives are with technology and failure of the latter really stuffs us up. Even though I lived in times when the internet was not around at all, by now even I am lost without it.

Revolution comes quick

I went out to the dinner with some friends the other night who are both academics, and they started reminiscing about how they use to spend hours on IRC chat rooms, back then a revolutionary way to communicate. Soon after that they were shown this new thing called the world wide web – although they could only talk to CERN and one American university. This was the early 90’s, and I’ve once again thought about how quick we’ve progressed since then and where we might go.

These days most generations are surrounded by the internet, it plays a huge role in how we communicate, how we see the world and how the world sees us. But for most adults it is something they chose to start interacting with at a reasonably educated age, not so younger generations  There is growing debate over the internet legacy children unwittingly create that will stay with them through their lives, it’s not so easy to just grow up and move on anymore, so I believe we need to either change the way we access technolgy, or we change the way we perceive people.

creating online identity starts early

Just think as a parent, the internet legacy you create for your child now, from the very first ultra sound online profiles are being created for good without the permission of the person. Will we get to the point in the future where children grow up and start suing there parents for copyrught infringement. As a society we need to start thinking about this. I for one will consider carefully from now on including anyone else in my online life.

A World Language

Gr8 World Language

Gr8 World Language

How the world and modern society has changed with the invention of the mobile telephone, but really the art of talking or speaking on the telephone was quickly replaced with the use of mobiles, to send text messages or “SMS” short messaging service. Sarkasmus

I believe that cultural barriers, and access to the English language have been opened up, purely by the phenomenon of SMS, and you may not believe it but, it was only twenty years ago that the first text message was sent. A whole new language has evolved and shortened versions of common words have become the language of the world. To the extent today that short messages are one of the biggest communication tools of the modern world and even a giant media tool like in the form of Twitter.

As with all things that are simple to use and cultural barrier free, the simple text message is used by all the people of the world, about seven billion of them. The language barrier has been broken, with abbreviations and slang used by people of all nations and countries. Thanks to simple text messages, we can all communicate together as one big world.

Tech Changes Everwhere

One of the most interesting things I find about modern society is the use of technology and how it either simplifies or makes life more difficult. Cultures of the world have evolved in different ways whilst the west and Europeans have become intellectual sophisticated and modern societies, we still have tribes in Africa living in mud huts and Eskimos living in Igloo’s, although a TV and a I pad are a must have.

But even the tribes living on the African savannah have embraced modern society, to an amazing extent just to simplify their existence in the modern world. Mobile phones have become the irreplaceable and most important item in their lives. The African tribal people have embraced mobile banking like a friend, and if you think about it there are not many ATM’s or banks in the plans of Africa.

How does he have coverage?

How does he have coverage?