The Next Big Thing: From Toy to Disruptive Technology

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Aug 10, 2023
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The Next Big Thing: From Toy to Disruptive Technology
In the ever-evolving world of technology, the next big thing is often overlooked at its inception. Clay Christensen's theory of disruptive technology highlights the fact that these game-changing innovations are often dismissed as mere toys. The reason behind this dismissal is that when disruptive technologies are first introduced, they fail to meet the full spectrum of user needs. However, to distinguish between toys that will remain toys and toys that will disrupt industries, it is essential to view products as processes.
One crucial aspect to consider when evaluating the potential of a disruptive technology is the improvement in process speed. Are the advancements in the technology making it faster or slower? The power of these innovations lies not only in their ability to meet user needs but also in their alignment with external forces. Take, for example, the decreasing cost of microchips, the ubiquity of bandwidth, and the increasing intelligence of mobile devices. These external forces create a fertile ground for disruptive technologies to thrive and fulfill user demands.
A prime example of a disruptive technology that functions as a process is Wikipedia. Every day, this online encyclopedia is subjected to edits and contributions from a wide range of individuals, including spammers, vandals, and wackos. However, despite these challenges, the collective efforts of dedicated individuals ensure that Wikipedia gets better at an accelerated rate. The process speed of improvement overshadows the negative influences, allowing Wikipedia to consistently meet and surpass user needs for encyclopedic information.
While startups with sustaining technologies may dominate the market momentarily, they are unlikely to be the ones that emerge as the top players in 2020. The true disruptors are the ones that sneak by because they are initially dismissed as mere toys. If a technology is genuinely groundbreaking and its benefits are evident, it garners attention and invites emulation. Therefore, the truly disruptive technologies are the ones that manage to fly under the radar, catching incumbents off guard.
The Rise of the Creator Economy: A Lucrative Opportunity
Another significant trend that is reshaping industries is the rise of the creator economy. According to analysts, this burgeoning ecosystem could reach a staggering value of $480 billion by 2027, nearly doubling its current worth of $250 billion. The primary drivers of this growth are expected to be spending on influencer marketing and platform payouts facilitated by the monetization of short-form video platforms through advertising.
Goldman Sachs Research predicts that the number of global creators will grow at a compound annual growth rate of 10-20% over the next five years, reaching an estimated 50 million. Creators earn income through various channels, including direct branding deals, revenue sharing with hosting platforms, and direct payments from followers in the form of subscriptions and donations. Surveys indicate that brand deals account for approximately 70% of creators' revenue.
As the creator economy expands, there is a growing expectation for a "flight to quality" among creators. In other words, creators are likely to prioritize platforms that offer stability, scale, and robust monetization capabilities. This shift towards quality platforms stems from the desire to maximize earning potential and establish sustainable income streams. Creators understand that aligning themselves with platforms that have a strong foundation and a proven track record will enhance their chances of success in this rapidly evolving landscape.
Actionable Advice for Innovators and Creators
In light of these insights, here are three actionable pieces of advice for innovators and creators looking to capitalize on disruptive technologies and the creator economy:
- 1. Embrace the "toy" phase: Instead of dismissing a new technology or concept as a mere toy, take the time to explore its potential. Look beyond its current limitations and envision how it could evolve to meet user needs in the future. By embracing the early stages of a disruptive technology, you position yourself to ride the wave of innovation and gain a competitive edge.
- 2. Leverage external forces: Keep a keen eye on the external forces shaping the industry landscape. Whether it's the decreasing cost of components, the increasing accessibility of infrastructure, or the advancements in related technologies, these external factors can pave the way for disruptive innovations. By aligning your efforts with these forces, you can position yourself to create solutions that ride the wave of change.
- 3. Choose quality over quantity: As the creator economy continues to grow, it is crucial to prioritize quality platforms that offer stability, scale, and monetization potential. Building your brand and establishing a loyal following on reputable platforms will not only enhance your earning potential but also provide a secure foundation for long-term success. Focus on platforms that can support your growth and offer opportunities for collaboration and expansion.
In conclusion, the next big thing in technology and the creator economy often begins as a toy, dismissed by incumbents and industry leaders. However, those who can identify the disruptive potential of these innovations and navigate the evolving landscape stand to reap significant rewards. By embracing the "toy" phase, leveraging external forces, and prioritizing quality platforms, innovators and creators can position themselves to thrive in these rapidly changing industries.
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