What is a disruptive technology, and how does it differ from a sustaining technology?

A disruptive technology is a new innovation that significantly alters the way a market or industry operates by introducing a new way of doing things that disrupts the status quo. Disruptive technologies often create new markets or significantly change existing ones by offering a simpler, more convenient, or more cost-effective solution.

On the other hand, a sustaining technology is an innovation that improves upon existing technologies or products within a market or industry. Sustaining technologies typically focus on incremental improvements to existing products or services, rather than completely changing the way things are done.

The key difference between disruptive and sustaining technologies is the impact they have on the market. Disruptive technologies fundamentally change the way things are done and can lead to the obsolescence of existing products or services, while sustaining technologies simply improve upon what already exists.

Disruptive Technology

- Definition: A technology that introduces a new set of features or capabilities that dramatically alter the market for established products or services.
- Characteristics:
- Typically cheaper, simpler, and more accessible than existing technologies.
- Targets new or underserved customer segments.
- Creates a new market rather than replacing an existing one.
- Examples:
- Personal computers (displaced mainframes)
- Mobile phones (displaced landlines)
- Streaming video (displaced DVDs)

Sustaining Technology

- Definition: A technology that improves upon an existing product or service, making it better, faster, or cheaper.
- Characteristics:
- Incrementally enhances existing products.
- Targets existing customers.
- Improves the performance or functionality of current technologies.
- Examples:
- Faster computer processors
- Higher-quality cameras
- More efficient engines

Key Differences

| Feature | Disruptive Technology | Sustaining Technology |
|---|---|---|
| Market Impact | Creates new markets | Improves existing markets |
| Customer Target | New or underserved segments | Existing customers |
| Focus | Introduces innovative features | Enhances performance |
| Price | Typically cheaper | Typically more expensive |
| Innovation | Radical | Incremental |
| Competition | Displaces incumbents | Competes with existing products |
| Example | Personal computers | Faster computer processors |