What is Disruptive Technology and Why is it Important to Your Business?
What is disruptive technology and why should you care about the impact of disruptive technology on your business? That’s exactly what we’re talking about today and whether you’re a business owner or a technology innovator, you’ll want to pay attention…
What is Disruptive Technology?
Firstly, what is disruptive technology?
Disruptive technology is a technology that comes into the market and disrupts the established technology that is currently in play.
If you’ve worked in a business setting for a while then you may be familiar with the idea of legacy systems. Legacy systems are systems that have been around for a long while yet continue to stick around because they still fulfill a need. Often legacy systems pose problems for businesses because they are a crucial component of the infrastructure of a business, yet they are usually so dated that they don’t “play well” with newer technology. This presents a conundrum for businesses because both of these elements are necessary for the business to function.
Enter disruptive technology.
Disruptive technology is one that – in the example above – would replace the legacy system that the company is utilizing. While the concept of overhauling any element of a business is…well, disruptive…the long-term benefits are simply too much to ignore. The increase in efficiency and productivity earned by implementing disruptive technology is too beneficial to ignore because efficiency plus productivity equal profit and success.
Disruptive Technology: It’s Not Only About Replacing Legacy Systems
While our example above focuses on the legacy systems that many businesses depend on regularly, there and many more applications in the world of business and beyond.
· Disruptive technology may also refer to a specific new product that overhauls an existing industry or renders an older product obsolete – think of the typewriter and the PC!
· Disruptive technology may also be a technology that creates an entirely new industry – take cryptocurrency, for example.
Benefits and Concerns Over Disruptive Technology
There are, of course, pros and cons to disruptive technology no matter whether you are a business owner or not.
Benefits of disruptive technology may include:
· Replacing outdated technology allows you to streamline business processes and increase efficiency.
· As an investor, investing in disruptive technology holds the potential for incredible growth as well as “getting in on the ground floor”.
· Disruptive technology allows for the expansion of existing businesses.
· Disruptive technology is a great tool for revealing areas of business that are lacking or that could benefit from improvement.
· Embracing disruptive innovation also allows for growth to develop from that innovation, opening doors to a possibility that did not previously exist.
Concerns over disruptive technology may include:
· Adapting to any change and taking a risk with new technology can be worrisome.
· Disruptive technology can sometimes lack the refinement that we expect from technology solutions which can lead to “hiccups” along the way.
The few concerns around disruptive technology are legitimate concerns, particularly for the business owner or investor. The fact is, however, that the risk of not taking a chance on more advanced disruptive technology poses much more of a concern. Traditional business models are being shifted and a failure to embrace the technology that is driving that change threatens almost certain disaster.
Using Disruptive Technology to Create Change
With the advent of what is being referred to as the “fourth industrial revolution” based on a “fusion of technologies that is blurring the lines between the physical, digital, and biological spheres”, investors are more eager than ever to invest their capital in disruptive technology. This willingness to invest in unique innovation reflects an increasing emergence of impact investors.
What is an impact investor?
An impact investor is someone who invests their investment capital into technologies or companies that are expected to generate a beneficial financial return as well as make a significant environmental or social impact. These investors understand the need to take risks with new technology and unique ventures in an economy that is driven by rapid technological change.
When we talk about change and making an impact, it’s easy to think of the grand scheme single solution scenario – investing in a new agricultural technology that will solve world hunger overnight. It’s easy enough to think that way because solving direct problems is an easier concept to grasp, but it’s also feasible to implement global change by addressing a single “cog” in the machine. With one well-placed investment, it’s possible to change the entire landscape of an industry and that – in large part – is what impact investing is about.
How You Can Make Disruptive Technology Work For You
How you can make disruptive technology work for you depends upon you! CLC Global Advisors Carole Crist uses her experience as a global business mogul to match her network of strategic partners with businesses seeking to make a difference and have a social impact. Matching impact investors with companies that are making waves on the technology front has allowed Carole to not only curate a range of healthy business relationships but to influence the community through social development and healthcare innovation.
Interested in Finding Out How You Can Make Disruptive Technology Work for You
If you’re a business owner wondering how you can make disruptive technology work for you, CLC Global Advisors can help. Carole Crist offers a personalized approach to effective marking through the facilitation of innovation. To see how Carole and CLC Global Advisors can help your company to grow to its full potential reach out via telephone +1.917.226.3961 or directly through the CLC Global Advisors contact page.