What is a key characteristic of disruptive technology?

A key characteristic of disruptive technology is that it introduces innovations that displace established products. Disruptive technologies begin by serving a niche market that is generally overlooked by existing industry players, and they gradually improve to the point where they attract a larger customer base. As these technologies evolve, they often offer new benefits such as lower costs, greater convenience, or enhanced features, which can lead to the obsolescence of established products.

This characteristic fundamentally alters market dynamics, challenging companies to adapt or risk losing market share. Examples can include advancements like digital cameras displacing film cameras, or streaming services overtaking traditional cable television. The nature of disruptive technology is inherently about change and transformation within markets, making the introduction of innovations a central theme.