Disruptive innovation can come in any field or emerge from any scientific discipline, but they share four characteristics:
- The innovation is rapidly advancing or experiencing breakthroughs
Disruptive innovation and technologies typically demonstrate a rapid rate of change in capabilities in terms of price/performance relative to substitutes, or they experience breakthroughs that drive accelerated rates of change. Driverless car technology is developing rapidly with all major auto manufacturers as well as technology companies such as Google and Uber testing and putting on the road self-driving technology. In the field of artificial intelligence, recent breakthroughs have transformed the way IT companies such IBM and Microsoft now develop computer code and software products
- The potential scope of impact is broad
To be economically disruptive, an innovation must have broad reach—touching companies and industries and affecting a wide range of machines, products, or services. The Internet of Things technology, for example, could connect and embed intelligence in billions of objects and devices all around the world, affecting the health, safety, and productivity of billions of people
- Significant economic value could be affected
An economically disruptive innovation must have the potential to create massive economic impact. The value at stake must be large in terms of profit pools that might be disrupted, additions to GDP that might result, and capital investments that might be rendered obsolete. Advanced robotics, for example, has the potential to affect $6.3 trillion in labour costs globally. Cloud technology has the potential to improve productivity across $3 trillion in global IT spending, as well as enabling the creation of new online products and services for billions of consumers and millions of businesses alike
- Economic impact is potentially disruptive
Innovation and technologies that matter have the potential to dramatically change the status quo. They can transform how people live and work, create new opportunities or shift surplus for businesses, and drive growth or change comparative advantage for nations. Next generation genomics has the potential to transform how doctors diagnose and treat cancer and other diseases, potentially extending lives. Energy storage technology could change how, where, and when we use energy.
The following innovative technologies have the potential over the next decade to affect billions of consumers, hundreds of millions of workers, and trillions of dollars of economic activity across industries:
- Autonomous vehicles
- The Internet of Things
- Automation of knowledge work
- Cloud technology
- Mobile Internet
- Energy storage
- Advanced robotics
- Advanced materials
- Next-generation genomics
- 3D printing
- Renewable energy
For more information on the above innovative technologies, please click on the following detailed article.
While meeting future energy demands in a more sustainable way could involve many forms of renewable energy, solar and wind power could have particularly high potential over the coming decade. These sources of energy are finally beginning to be adopted at scale in advanced economies such as the United States and the European Union. Even more importantly, developing giants China and India have ambitious plans for renewable energy that could enable further rapid economic growth while mitigating growing concerns about pollution.
Should you have any questions in regards to the above, please don’t hesitate to contact an Intralink adviser.