{"id":16715,"date":"2020-10-26T23:52:00","date_gmt":"2020-10-27T03:52:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=16715"},"modified":"2020-11-07T14:45:15","modified_gmt":"2020-11-07T18:45:15","slug":"impact-of-disruptive-technology","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/","title":{"rendered":"The Impact of Disruptive Technology on Customers"},"content":{"rendered":"\n<p>What is the impact of disruptive technology? Is there a negative impact of disruptive technology?<\/p>\n\n\n\n<p>The impact of disruptive technology is dependent on who you ask. For customers used to the old products and the established firms providing these products, disruption is unwanted.<\/p>\n\n\n\n<p>Read more about the potentially negative impact of disruptive technology on customers.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Customer Perspective: Impact of Disruptive Technology<\/h2>\n\n\n\n<p>Typically companies succeed by giving customers what they want\u2014if you keep your customers happy, your profits should stay high. But, as we\u2019ll see, disruptive innovations don\u2019t initially appeal to a company\u2019s current customers.&nbsp;There might be a negative impact of disruptive technology.<\/p>\n\n\n\n<p><strong>Customers\u2019 disinterest in disruptive technologies discourages established companies from investing in developing the <a href=\"https:\/\/www.shortform.com\/blog\/disruptive-products\/\">disruptive products<\/a>, which leads to the companies\u2019 eventual downfalls.<\/strong> Those companies that fail to adopt the disruptive technologies get the rug pulled out from under them later, when they discover that the disruptive products are taking over their market because the technologies have improved enough to satisfy their customers.<\/p>\n\n\n\n<p>We\u2019ll look at the effect of customers\u2019 influence in the disk drive industry, which experienced an exceptionally rapid pace of change in technological advancements and market structure.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Technology Mudslide Hypothesis in the Disk Drive Industry<\/strong><\/h3>\n\n\n\n<p>Disk drives are responsible for reading and writing data on computers, using the binary system of 1s and 0s. IBM produced the first disk drive in the early 1950s. The drive was called RAMAC, which stood for Random Access Method for Accounting and Control.&nbsp;<\/p>\n\n\n\n<p>Soon, other companies began producing disk drives. By 1976, there was about $1 billion in disk drive production.&nbsp;<\/p>\n\n\n\n<p>Between 1976 and 1995, 129 startups entered the industry. During those two decades, each crop of entrant companies quickly graduated to become established firms, as new innovations disrupted the industry\u2014and brought new generations of entrants\u2014at an accelerated rate. Ultimately, all but 20 of the companies failed.&nbsp;<\/p>\n\n\n\n<p><strong>Some people blamed the high rate of failure on the rapid pace of <a href=\"https:\/\/www.shortform.com\/blog\/the-advancement-of-technology\/\">technological advancement<\/a>, which far exceeded most other industries.<\/strong> Based on this assumption, the author developed the technology mudslide hypothesis.<\/p>\n\n\n\n<p>The technology mudslide hypothesis stated that keeping up with the breakneck pace of change was like working against a mudslide to climb a hill: It required every ounce of companies\u2019 focus and effort, and pausing even for a minute would mean getting buried.&nbsp;<\/p>\n\n\n\n<p>However, data ultimately debunked this theory. In reality, <strong>neither the complexity nor the pace of technological advancement led to companies\u2019 failures\u2014it was the <\/strong><strong><em>type<\/em><\/strong><strong> of technological change that determined companies\u2019 fates.<\/strong> Specifically, established companies failed when confronted with disruptive innovations.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the impact of disruptive technology? Is there a negative impact of disruptive technology? The impact of disruptive technology is dependent on who you ask. For customers used to the old products and the established firms providing these products, disruption is unwanted. Read more about the potentially negative impact of disruptive technology on customers.<\/p>\n","protected":false},"author":6,"featured_media":13359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[104,103],"tags":[141],"class_list":["post-16715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-sales","tag-the-innovators-dilemma","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Impact of Disruptive Technology on Customers - Shortform Books<\/title>\n<meta name=\"description\" content=\"How do customers feel about change? Innovation isn&#039;t always wanted by customers. Read more about the impact of disruptive technology.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Impact of Disruptive Technology on Customers\" \/>\n<meta property=\"og:description\" content=\"How do customers feel about change? Innovation isn&#039;t always wanted by customers. Read more about the impact of disruptive technology.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-27T03:52:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-07T18:45:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/08\/okrs-measure-what-matters-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1695\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Rina Shah\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rina Shah\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/\"},\"author\":{\"name\":\"Rina Shah\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/d07435826f13a8f422d5d333dceac287\"},\"headline\":\"The Impact of Disruptive Technology on Customers\",\"datePublished\":\"2020-10-27T03:52:00+00:00\",\"dateModified\":\"2020-11-07T18:45:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/\"},\"wordCount\":439,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/08\/okrs-measure-what-matters-scaled.jpg\",\"keywords\":[\"The Innovator's Dilemma\"],\"articleSection\":[\"Marketing\",\"Sales\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/\",\"name\":\"The Impact of Disruptive Technology on Customers - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/impact-of-disruptive-technology\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/08\/okrs-measure-what-matters-scaled.jpg\",\"datePublished\":\"2020-10-27T03:52:00+00:00\",\"dateModified\":\"2020-11-07T18:45:15+00:00\",\"description\":\"How do customers feel about change? 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