Disruptive Technology{0}
Disruptive Technology
Advancement in technology has been a long part of the history of humanity. Today more than ever, technology is increasing by leaps and bounds. It has come a long way from the first simple pieces of hunting tools to today’s hot new gadgets and gizmos. Everything from the way companies are doing business to the way everyday people live their lives is dependent upon some form of technology. Although technology can make life easier for society, some types of technology are more welcome than others. A type of unwelcome technology is disruptive technology. Disruptive technology is unwelcomed by business and consumers at first, but they can also revolutionize industries given time. DVDs or Digital Versatile/Video Discs, digital cameras/photography, and video streaming are just a few examples of disruptive technology that have invaded the market within the last two decades.
DVD stands for digital versatile/video disc and was invented in 1995 through a collaboration of several different companies including Sony, Philips, Toshiba, and Warner (Arnold, 2008). It is a disc as big as a compact disc or CD, but has the ability to store more data. At the point in time of its invention and introduction to the market, most households were still utilizing VHS players and tapes and most big name studios were leery of the new technology. “The company regards DVD as ”an excellent technology,” a Disney spokeswoman said, but it has no plans to release movies in the format” (Johnson, 1997). Yet, today, DVDs are a normal part of everyday life. Every new theatrical release now comes out on DVD as it became apparent how convenient they were compared to VHS tapes.
When Circuit City announced it was phasing out VHS movies in its 600 stores, the move was no surprise to some employees.
“Most of our customers are asking about DVD movies, not VHS movies,” says Wade Hunt, a district manager for an Atlanta-area Circuit City.
The format does have its advantages: DVDs never have to be rewound, they can store extra features like outtakes and director commentaries, and it’s easy to access different sections of the disc. Plus, the picture and sound quality are generally superior to videocassettes. (Kellan, 2002)
Another form of disruptive technology is digital photography. Digital photography or more specifically, digital cameras is a camera that uses discrete numbers to store images in digital form on a memory card or disc (PC Mag, 2010). The inventor of the digital camera, Steven Sasson, worked for Kodak. He invented the first digital camera in 1975, which was the size of a toaster and could only record black and white images (Dobbin, 2005). Unfortunately, Kodak did not appreciate what he invented and was slow on the uptake of implementing digital photography into their product line. They fell behind competitors because they were reluctant to act on the new invention. “Not until 2001 did Kodak begin selling mass-market digital cameras…” (Dobbin, 2005). Today, digital cameras are essential to younger generations as it provides instant gratification. One can take a picture and see the results instantaneously and have the ability to pick and choose which pictures to develop into physical form and which to share with friends and family through online social networking sites.
Last but not least, video streaming is another form of disruptive technology that has become very popular in the last few years. Video steaming is “a one-way video transmission over a data network…it is widely used to transmit video clips and movies from the Web to desktop computers or directly to the TV set” (PC Mag, 2010). Some businesses have utilized this technology and have benefited greatly from it while others were slower to implement it and have felt the impact in their wallets.
A company that has embraced this new technology is Netflix. Netflix is a fairly new company by most business standards. It was founded in 1997 and started off as a humble company that offered DVD rental services through its online store Netflix.com (Netflix, 1998). In 2008, it partnered with Roku, a company specializing in digital media technology, in introducing a device that would allow it’s customer the option of steaming videos straight to their TV set (Netflix, 2008). Today, it offers steaming through several means including TVs, gaming consoles, mobile devices and more. It is replacing the traditional brick and mortar video rental stores of the past and no one has felt that impact more than Blockbuster.
Blockbuster has been known as one of the biggest video and DVD rental companies for years. But in 2010, they filed for chapter 11 bankruptcy (Merced, 2010). They were slow to change the way they did business on several different points. When Netflix came onto the scene, Blockbuster was still maintaining its store based services. Netflix started to edge out Blockbuster’s appeal with its convenient home delivery of desired movies versus having to drive to a local blockbuster location to rent one. In 2004, Blockbuster returned fire with the same home delivery concept (Poggi, 2010), but it was a few years too late. When Netflix ventured into the new realm of video streaming in 2008, Blockbuster was still struggling with its home delivery services and did not join in the fray until 2009 (Merced, 2010).
It goes to show that disruptive technology can be just that for businesses, disruptive. Nevertheless, for those lucky first few risk takers who dabble in those types of technology, if it takes off, they will reap the benefits of their risky investment. As the world heads towards the age of heavy technological advancement, who knows what type of new technology will crop up to disrupt societal life, but as past disruptive technology demonstrates, people will gravitate towards them after a time and they will become the norms of everyday life for present and future generations.
Work Cited
Arnold, T. K. (2008). DVD Timeline. Retrieved November 29, 2010, from USA TODAY: http://www.usatoday.com/life/2002-10-17-dvd-timeline_x.htm
Dobbin, B. (2005, September 8). If only Kodak had phased out celluloid sooner … . Retrieved November 24, 2010, from USA Today: http://www.usatoday.com/tech/news/2005-09-08-kodak-digital-camera_x.htm
Johnson, L. B. (1997, September 7). For the DVD, Disney Magic May Be the Key. Retrieved November 24, 2010, from New York Times: http://query.nytimes.com/gst/fullpage.html?res=9407EEDC1730F934A3575AC0A961958260
Kellan, A. (2002, June 25). Is VHS Obsolete? Retrieved November 24, 2010, from CNN Tech: http://articles.cnn.com/2002-06-25/tech/dvd.vhs_1_vcr-sales-bo-andersen-sales-of-dvd-players?_s=PM:TECH
Merced, M. J. (2010, September 23). Blockbuster, Hoping to Reinvent Itself, Files for Bankruptcy. Retrieved November 29, 2010, from NYTimes: http://www.nytimes.com/2010/09/24/business/24blockbuster.html
Netflix. (2008). Press Release. Retrieved November 29, 2010, from Netflix: http://netflix.mediaroom.com/index.php?s=43&item=272
Netflix. (1998). Press Release: First Online DVD Rental Store Opens. Retrieved November 29, 2010, from Netflix: http://netflix.mediaroom.com/index.php?s=43&item=232
PC Mag. (2010). Definition of: Digital Camera. Retrieved November 29, 2010, from http://www.pcmag.com/encyclopedia_term/0,2542,t=digital+camera&i=41298,00.asp
PC Mag. (2010). Definition of: Steaming Video. Retrieved November 29, 2010, from http://www.pcmag.com/encyclopedia_term/0,2542,t=streaming+video&i=52139,00.asp
Poggi, J. (2010, September 23). The Rise and Fall of Blockbuster. Retrieved November 29, 2010, from Newsweek: http://www.newsweek.com/2010/09/23/the-rise-and-fall-of-blockbuster.html