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Definition: disruptive technology


A new technology that has a serious impact on the status quo and changes the way people have been dealing with everyday things, perhaps for decades. Throughout history, there have been many disruptive technologies, including the steam engine, electricity, automobile, telephone, integrated circuit (chip) and the Internet. We are yet to know the full impact, but cryptocurrencies and blockchains appear to be a major disruption as well (see crypto glossary).

Music CDs wiped out the phonograph industry within a few years (although audiophiles later created a renaissance). Pandora and other online music services have all but eliminated CDs.

Video streaming has made the DVD industry almost irrelevant, and USB drives, external hard drives combined with cloud-based storage, have been the death knell for all optical media used for backup.

Digital cameras demolished the film industry, and smartphones have practically obsoleted the stand-alone consumer camera business. Smartphones eliminate the need for portable navigation units that mount on the dashboard; however, navs built into a vehicle offer advantages (see in-dash navigation).

Perhaps the most disruptive technology in the shortest amount of time is Uber, which wreaked havoc on the taxi industry. Airbnb also had a huge impact on the commercial rental business. Stay tuned! See creative destruction and ethical issues regarding technology.