Technological disruption refers to the significant impact that emerging technologies can have on industries, businesses, and society as a whole. It occurs when new technologies or innovative business models disrupt traditional ways of doing things, leading to significant changes in how products and services are created, delivered, and consumed.
Technological disruption can occur across various sectors, including transportation, healthcare, finance, manufacturing, communications, and entertainment. It often involves the introduction of breakthrough technologies or the application of existing technologies in new and transformative ways. Some examples of technological disruptions include:
- Internet and E-commerce: The widespread adoption of the internet and the rise of e-commerce have disrupted traditional brick-and-mortar retail businesses. Online shopping platforms like Amazon have changed the way people shop, leading to the decline of many traditional retail stores.
- Sharing Economy: Companies like Uber and Airbnb have disrupted the transportation and hospitality industries, respectively, by creating platforms that enable peer-to-peer sharing of resources (e.g., rides and accommodations) through mobile apps. This has challenged traditional taxi services and hotels.
- Renewable Energy: The development and decreasing cost of renewable energy technologies, such as solar and wind power, have disrupted the energy sector. They have provided alternatives to fossil fuels and traditional centralized power generation, leading to a shift toward decentralized energy production and a greener energy mix.
- Artificial Intelligence (AI): AI technologies, including machine learning and natural language processing, are disrupting various industries. They are being applied in areas like healthcare (diagnosis and drug discovery), finance (algorithmic trading and fraud detection), and customer service (chatbots and virtual assistants).
- Blockchain and Cryptocurrencies: Blockchain technology, known for its decentralized and transparent nature, has disrupted industries like finance and supply chain management. Cryptocurrencies like Bitcoin have challenged traditional financial systems, offering alternative forms of digital currency and decentralized transactions.
- 3D Printing: Additive manufacturing, or 3D printing, has the potential to disrupt traditional manufacturing processes. It allows for the creation of complex objects on-demand, reducing the need for large-scale manufacturing plants and enabling customization and decentralized production.
Technological disruption can bring both opportunities and challenges. While it can lead to increased efficiency, new business models, and improved products and services, it can also cause job displacement, regulatory concerns, and ethical considerations. Organizations and individuals must adapt and embrace innovation to navigate the disruptions brought about by emerging technologies.
By 2022, the International Data Corporation predicts that digital organizations will account for 60% of global GDP. Big data, powerful analytics, artificial intelligence, and other significant innovations are being utilized by these players to propel growth. Look at the businesses that are bound for mechanical interruption.
You don’t have to look far to hear people say that every company is going to be a tech company in the next 10 years.
It's possible that what is meant is that every company that wants to reach the top of the corporate food chain will need technology.
Technology will be a necessity for any business to survive.
Tech companies make up four of the five most important organizations in the world, and this is a category that everyone wants to get into.
WeWork's 2019 IPO filing clearly demonstrates the technology sector, with 110 uses of the word "tech" to describe the company. It was evident that management was pushing to demonstrate to investors that it is much more than just a real estate company and ought to be considered as a player in the tech industry as well.
Is it true that everyone is a techie?
Technology has had far-reaching effects up until this point, and that trend is unlikely to slow down anytime soon. The difference lies in the fact that conventional businesses are also about to be disrupted right now.
Here are five industries destined for technological disruption.
You probably haven't been to the doctor in a while or looked at your medical bills if you think everything is fine in the healthcare industry.
There are a lot of problems and inefficiencies in the industry. For instance, manual procedures that ought to be automated, such as scheduling and billing, call for the use of an ancient Egyptian invention known as paper when carried out by hand but can be streamlined and improved with technology.
In addition, getting an appointment with your doctor can take months, and when it does, you have to wait for four hours while watching HGTV reruns and flipping through old magazines.
The healthcare system's sheer complexity and the fact that only a few players set its rules are the problems.
Amazon, Apple, and Google are joining the fray to change the narrative that innovation in healthcare has been hindered in the past.
In the years to come, anticipate blockchain medical records, on-demand care, and the development of new drugs all being driven by AI.
The construction industry, worth billions of dollars, hasn't changed much over the past century.
Most of the time, builders still use old tools and materials. However, this may be changing as investment in construction technology startups increased by 324 percent between 2017 and 2018.
Things are being shaken up by potential new technologies.
Solar shingles and AI-powered software that can instantly calculate the most efficient construction schedules, as well as self-healing and energy-generating building materials, will soon become a regular part of operations.
3. Real estate
The largest industry in the United States, real estate, which contributes $3.5 trillion to the GDP and seems to be stuck in the past
For each transaction, it uses pen and paper, title companies, real estate agents, and a variety of service providers.
But that is changing, just like it is in many other industries. Zillow, which uses a feature called 3D Home to allow users to conduct a virtual walkthrough of a house, has emerged to provide prospective homebuyers with a wealth of information.
Additionally, the industry's fancy technological features extend only to viewing homes.
For instance, Built is a business that digitizes a bank's manual loan management procedure. As a result, as consumers become empowered to buy and sell on their own through the use of technology, the position of real estate agent is likely to become less in demand.
4. State and local government
Unbeknownst to many individuals, state and neighborhood legislatures contain the second biggest industry in the U.S.
Government is going to innovation to turn out to be more powerful and proficient. A chatbot known as PAIGE was developed in San Francisco to assist government agencies in easing what was previously a complicated IT procurement procedure.
In order to assist the local police, a security guard robot shaped like an egg patrols a gas station on a dangerous corner. We can anticipate even greater investments from the government in this technology as Internet of Things devices gain traction.
On a local, state, and even national level, technology has the potential to strengthen government processes and operations.
5. Finance and insurance
Insurance and finance businesses are among the oldest in the world, and this often shows.
Prior to the introduction of credit and debit cards, cash was the currency of choice in the financial sector. Mobile payments are on their way to eventually taking over the world. Sweden and China, among others, are already moving toward cashless societies.
Mobile payments that are authorized by facial recognition will most likely replace cash and banks. Major players in the insurance industry are being forced to join the tech game. A brand-new version of State Farm's Drive Safe & Save mobile app was recently announced. That's great; another method of increasing our insurance premiums.
Sensor and Bluetooth data from smartphones with the app installed are analyzed by the app. Rates are already determined by personal data driven by technology, and this data will continue to get more and more accurate over time.
Technology has been changing the way companies create value for a long time.
Changes brought about by technology have not yet reached every sector. Construction, healthcare, and real estate, on the other hand, are headed for disruption. It is comparable to the modernization of hospitality and transportation that Uber and Airbnb brought about.
Investors want to be a part of the next big wave of innovation, and if they don't, organizations that move slowly will be left behind by rapid developments and more innovations.