disruptive technology

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disruptive technology

A new technology that has a serious impact on the status quo and changes the way people have been dealing with something, perhaps for decades. Throughout history, there have been many disruptive technologies, including the steam engine, electricity, automobile, telephone, integrated circuit (chip) and the Internet.

More recently in the digital world, music CDs wiped out the phonograph industry within a few years (although audiophiles later created somewhat of a renaissance), and digital cameras demolished the film industry. Smartphones with their built-in cameras practically destroyed the stand-alone camera business. Stay tuned!
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Apple lost a considerable share of the smartphone market by investing in a sustaining technology while Samsung invested in disruptive technology by developing a less expensive and capable product to create a new market.
Sustaining technology refers to the day-to-day expectations of patient and provider--everything from blood sugar monitoring to general anesthesia.
These rights to use sustaining technology are reimbursed at the same rate whether generated by the board-certified physician or the physician assistant.
By aggressively seeking out philanthropic gifts and grants for their schools, administrators can offset to some extent the high cost associated with introducing and sustaining technology in public schools.
The amount of potential revenue, when compared with the firm's total revenue, may be so small that the large firm would prefer to concentrate on success being experienced with sustaining technology. As firms become larger and more successful, they want to add significant amount of revenue in order to maintain the desired rate of growth.
Leadership is more important for coping with disruptive technology than with sustaining technology (Christensen, 1997).
Incumbent technology companies always dominate the market for what Christensen terms "sustaining technology." These established companies have a broad installed customer base, are experienced with mature technology applications and enjoy the cash flows needed to enhance their technologies.
A sustaining technology was, for example, the process and materials used to allow disk-drive makers to increase the memory and speed of computer 5.25-inch hard disk drives.
The sustaining technology overshooting from other established firms is likely to create an opportunity for our disruptive technologies to emerge and invade the established markets from below.

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