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Page 1 of 3 Disruptive technologies have a way of sneaking up on mainstream markets, and slowly making their presence felt. These are technologies that established players brushed off as inconsequential, and hence paid no heed to the potential damage they could wreak on their established or potential markets. Eventually though, they worked their way from the fringes to prevail over the majority. Clayton M. Christensen first spoke of disruptive technologies in a 1995 article titled Disruptive Technologies: Catching the Wave, which he co-authored with Joseph Bower. He later described the term in more detail in his 1997 book, The Innovator's Dilemma. However, in a sequel titled The Innovator's Solution, Christensen interestingly replaced the term disruptive technology with disruptive innovation, to highlight that "few technologies are intrinsically disruptive or sustaining in character. It is the strategy or business model that the technology enables that creates the disruptive impact." As for the impact the microprocessor made on him, he says, "It is only when I tried to do it on my own that I realised the real meaning of disruption. The microprocessor has a logic of its own, which to us humans can be classified as illogical and often tiresome. That was my first introduction to the world of IT and programming. Although I am still hooked, I continue to wonder about its logic!" According to Kukreja, "The Internet was (and still is) the technology driving Amazon. While the Internet was the technological backbone, its commercialisation eliminated the need for brick-and-mortar stores, thus causing a disruptive scenario." Why disruptive? He explains, "The Internet provides complete access to information to just about everyone, thereby eliminating the opportunity for organisations to make money by capitalising on consumers' incomplete information. What this means is that consumers can directly compare product or service offerings and opt for the lowest offering, unless the product/service is appropriately differentiated. This leads to greater emphasis on brand-building and re-inventing your value proposition, lest your brand gets commoditised." "In a way, this has changed the fundamental paradigm of competition itself. For instance, travellers are now not solely dependent on travel agents. They can use websites like makemytrip.com, yatra.com, or travelguru.com to plan and book their travel itineraries. However, since all of these websites essentially offer similar services, each needs to entice customers by building its brand in a specific manner. For example, they could offer personalised travel or holiday services to create differentiation, or offer loyalty programmes to frequent users of the website. "Further, the Internet provides an order-fulfilment or delivery mechanism that can create value by compressing the supply chain for consumers. You are no longer forced to go via the stockist, wholesaler, distributor and retailer route. Several firms have eliminated the middleman and passed on benefits directly to consumers, like lower prices or faster turnaround time. New business models have sprouted around this proposition,such as Netflix in the US or Madhouse in India (a DVD rental firm). Finally, the Internet also provides customers an interactive platform to connect with organisations. Companies may avail of online consumer feedback, and some companies go so far as to even get consumers into designing new products for them." As Kukreja emphasises, "It is not the availability of technology that is a key success factor, but its use that distinguishes the men from the boys." He cites WalMart as a company that has used technology, and its application in inventory management, as a core competitive advantage over its competitors.
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