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  Vecta on Disruptive Technology
  Disruptive technologies possess a significant new combination of cost, functionality and performance, that allows them to displace an existing technology. The disruptive term arises because they are often developed by industry innovators outside of the firm that was exploiting the displaced technology.
 
  Examples include successive generations of:
 
  • hard disk memory, where new technologies have enabled dramatic size reductions progressively from 8" diameters down to around 1" today;
  • computer technology, where we have moved from mainframes, via minicomputers and desktop workstations, to laptop and palmtop devices, each with more power than their forebears;
  • processor and printing technology, where we have moved from the typewriter, via word processors and Desk Top Publishing systems, to today's multimedia PC;
  • telephone technology, where we have escaped the limitations of fixed line devices, via cumbersome, power-hungry, analogue mobile devices to today's sleek, fashionable GSM phones.
 
  Although initially feeble, if the technology can be developed to meet the needs of the least demanding consumers and has the potential for further evolution, it soon meets the needs of the mainstream customer, when it begins to displace established technology.

They can emerge in areas where existing technology is approaching the limits of physics yet consumer demand is not fully satisfied. Thus laptop and handheld computers with display and battery restrictions are fertile ground as are mobile phones with keyboard and display issues.

 
  Disruptive technologies have the potential to create enormous value for their exploiters by better meeting the needs of their customers. However they usually require substantial capital investment before their potential is realised and they are difficult to spot, although areas where they might emerge are easier to locate.
 
 

Our Technology Experts Network is dedicated to exploring developments in technology. This involves projecting the likely evolution of technologies, identifying potential markets and understanding revenue models and valuations.

 
 

Our extended network ensures we have the expertise to help you solve just about any business or technology problem.

 
  More info from: Terry.Moore@vecta5.com
 

Vecta Consulting Limited, Mulberry House, 2 The Spinney,
Cottenham, CAMBRIDGE, CB24 8RN

Tel: +44 (0) 1954 250222, Fax: +44 (0) 1954 252333

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