disruptive technology

Any technology that overturns a traditional business model. For example, the Internet is a "disruptive technology" in the age of paper publishing. Other examples include: artificial intelligence, augmented reality, self-driving car, blockchain, gig economy, machine learning, and the Internet of Things.

Historical perspective: This term was coined by Clayton Christensen of Harvard Business School in 1995.

In 2018, The Wall Street Journal reported that once, Airbnb or Uber could sweep through cities like a wrecking ball, knocking down competitors and setting up shop before regulators knew what hit them. Now those regulators have wised up and are forcing firms to work with them and ultimately, that is turning out just fine for technology companies. Take the humble electric scooter, the latest "disruptive technology" transport to hit the streets. First, the scooter rental company Bird tried to steamroll into Santa Monica without bothering to get a business license. The city quickly impounded scooters and handed out 1,000 tickets for riding on the sidewalk. Now Bird has worked out deals with Santa Monica, Memphis, and other cities. Bird’s competitor, Lime, has gone further, reaching out to city governments for permission before letting their scooters out into the wild. Apple, too, is taking it slow in getting Food and Drug Administration approval for health monitoring on the Apple Watch. Like the scooter industry, big tech is trying hard to get close to regulators early on. Once they’ve established a beachhead, tech firms can use regulations they helped shape to protect their business and keep competitors out. That’s a strategy companies in established industries have long known about, and it offers lucrative rewards.