Capterra Glossary
Disruptive technology is a technological innovation that displaces traditional technology, therefore disrupting the way an industry functions. For instance, ride-sharing apps such as Uber and Lyft disrupted the taxicab industry, allowing average civilians to use their own automobiles as taxi services. In the business world, investment groups are constantly looking for new disruptive technology to invest in, as these innovations often yield high profits.
Small tech startups typically have a better chance of introducing disruptive technology into the market than large corporations, because large corporations often don’t have the time or flexibility needed to adapt to shifts in customer needs. Small tech startups tend to be more willing to take new risks, explore new markets, and seek out the “next big thing” to boost their organization's profitability and gain the attention of investors.