Innovation has always been an important part of human progress. Every time someone comes up with a new idea, product, or method, it has the potential to change how people live and work. Sometimes, these changes are small. Other times, they are so big that they force entire industries to adapt or risk shutting down. This is what we call “disruptive innovation.” It disrupts (or interrupts) how businesses usually function, shakes up existing systems, and often creates brand-new markets. However, many traditional businesses are not happy when such disruptions happen. Let us look at some clear examples:
1. Electric Vehicles (EV) vs. Oil Companies
- What happened? For a long time, petrol and diesel were the main fuels for cars. As technology advanced, electric vehicles (EVs) began to enter the market.
- Why the resistance? Oil companies depend on selling petrol and diesel. If more people buy EVs, demand for fossil fuels will decrease, threatening their profits.
- How does it disrupt? EVs can be charged at home or at special charging stations, reducing reliance on fuel stations and changing the automotive supply chain.
- Future outlook: As battery technology improves and governments push for cleaner energy, EVs are set to become more common, creating a shift away from fossil fuels.
2. OTT Platforms vs. Cinema Halls
- What happened? Earlier, for new movies or shows, people had to go to cinema halls or watch scheduled TV broadcasts. Then Over-The-Top (OTT) platforms like Netflix and Amazon Prime arrived.
- Why the resistance? Traditional cinema halls rely on ticket sales, concessions, and an exclusive release period. OTT platforms let viewers watch content on demand, at home, for a monthly or yearly fee.
- How does it disrupt? OTT offers convenience, a wide content library, and flexible viewing times, challenging the allure of big-screen cinema.
- Future outlook: Cinema halls will remain for major releases and social outings, but OTT will keep growing as internet access becomes faster and cheaper.
3. Blockchain & Cryptocurrencies vs. Traditional Banks
- What happened? Banks have traditionally been the gatekeepers of money transfers and loans. Blockchain technology, which powers cryptocurrencies like Bitcoin, does not need a central authority (like a bank) to verify transactions.
- Why the resistance? If more people use crypto and blockchain-based solutions, banks could lose significant revenue from transaction fees and other services.
- How does it disrupt? Blockchain allows peer-to-peer transactions, cuts out middlemen, and supports new financial models like Decentralized Finance (DeFi).
- Future outlook: Many countries are testing Central Bank Digital Currencies (CBDCs). Some banks are trying to use blockchain within their own operations. In the long run, a hybrid model might emerge.
4. E-Commerce vs. Brick-and-Mortar Retail
- What happened? Buying goods was once limited to local shops and markets. Then e-commerce giants like Amazon and Flipkart changed the shopping experience.
- Why the resistance? Traditional retailers rely on foot traffic, personal customer service, and physical displays. E-commerce offers doorstep delivery, wider product choices, and competitive prices.
- How does it disrupt? Online sellers do not need large showrooms and can reduce overhead costs, making it harder for local shops to compete on price and convenience.
- Future outlook: Many traditional retailers now use a combined approach—both online platforms and physical stores—to stay relevant. This “omni-channel” strategy is likely to continue.
5. Ride-Sharing Apps vs. Traditional Taxis
- What happened? Taxis used to dominate on-demand travel. Then came ride-sharing apps like Uber and Ola.
- Why the resistance? Traditional taxi drivers depend on street pickups and set fares, often regulated by local authorities. Ride-sharing apps offer lower fares, quick bookings, and GPS-based navigation.
- How does it disrupt? Anyone with an acceptable car can become a driver, increasing competition and reducing customer wait times.
- Future outlook: Governments are introducing new policies to regulate the sector. Meanwhile, ride-sharing companies are also expanding into other services like food delivery.
6. Home-Sharing Platforms vs. Traditional Hotels
- What happened? Earlier, travelers mostly booked hotels. Then home-sharing platforms like Airbnb allowed regular people to rent spare rooms or entire homes.
- Why the resistance? Hotels depend on consistent bookings, corporate tie-ups, and brand loyalty. Airbnb disrupts this by offering cheaper or more unique stay options.
- How does it disrupt? Anyone with extra space can list it online, reaching travelers directly without a hotel’s big overhead costs.
- Future outlook: Many cities are introducing regulations to ensure quality and safety. However, as more people travel, home-sharing platforms remain popular for their variety and local experience.
7. EdTech Platforms vs. Traditional Educational Institutions
- What happened? Education was once limited to physical classrooms and textbooks. EdTech startups now provide online courses, digital tests, and interactive tools.
- Why the resistance? Schools and colleges depend on established curriculums, campus infrastructure, and in-person teaching. Online learning can be cheaper, more flexible, and easier to update.
- How does it disrupt? Students can learn at their own pace, often from global experts. This challenges the old model of rigid schedules and high tuition fees.
- Future outlook: Many institutions are blending classroom teaching with online content (a hybrid model). EdTech is likely to continue growing as people look for convenient, modern learning solutions.
8. Food Delivery Apps vs. Traditional Restaurants
- What happened? People used to dine out or order directly from restaurants over the phone. Then app-based delivery services made it even simpler to get food at home.
- Why the resistance? Traditional restaurants rely on walk-in customers and phone orders. With delivery apps, they pay commissions and must compete for visibility on app platforms.
- How does it disrupt? Customers can browse multiple menus, compare prices, and read reviews quickly, forcing restaurants to fight for online attention.
- Future outlook: Many restaurants now operate “cloud kitchens”—no dine-in, only delivery. Food apps will likely continue to grow as more people want convenience and variety.
9. Blockchain-Backed DPP Handloom Products vs. Fake Handloom & Powerloom Vendors
- What happened? Handloom products are traditionally valued for their authenticity and craftsmanship. Today, a blockchain-backed Digital Product Passport (DPP) can track and verify each step of making genuine handloom items, from raw materials to final output.
- Why the resistance? Many sellers pass off powerloom or fake handloom products as real handloom, charging higher prices without delivering real craftsmanship. These vendors fear that a DPP system will expose their false claims and reduce their profits.
- How does it disrupt? Blockchain-based tracking ensures transparency—customers can verify exactly where the fabric came from, how it was made, and by whom. This eliminates fakes and forces dishonest vendors to change their practices or lose business.
- Future outlook: With growing demand for ethical and genuine products, more buyers will likely insist on verifiable authenticity. This push for accountability may become standard, helping true artisans get fair value for their work and weeding out counterfeit goods.
The Bigger Picture: Why Traditional Businesses Resist
- Loss of Control: Established companies and middlemen have developed a certain way of operating. They fear losing control over pricing, processes, and customer relationships if new models take hold.
- Infrastructure Investments: Traditional players have sunk huge amounts of money into physical stores, machinery, or supply chains. A new approach that cuts costs can make old investments useless.
- Fear of the Unknown: Adopting new technology or business models comes with risks. Many businesses are unsure if it will pay off or if consumers will accept it quickly.
- Regulations and Lobbying: Sometimes, established industries push for laws and regulations that delay new entrants or make it costly to adopt disruptive innovations.
What the Future Holds
- Continuous Disruption: Technology will keep advancing. From Artificial Intelligence (AI) and robotics to newer blockchain solutions, new disruptions are around the corner.
- Adapt or Close Down: Traditional businesses must evolve or partner with emerging players. Companies that fail to adapt may be forced to shut shop.
- Customer-Centric Approach: As competition grows, businesses—both new and old—must focus on meeting customer needs, whether that is convenience, pricing, or transparency.
- Collaborations and Mergers: Some big companies will buy or team up with innovative startups to survive. Startups can also benefit from the expertise and customer base of larger firms.
Conclusion
Disruptive innovations are a constant in human history—from the printing press centuries ago to blockchain and AI today. They shake up the status quo, and those who do not adapt often find themselves left behind. While traditional businesses may resist these changes to protect profits and maintain control, the ultimate driver is customer benefit. If a new product or service is more convenient, affordable, or transparent, people will eventually choose it. Whether it is oil companies facing electric mobility or fake handloom vendors confronting blockchain-based authenticity checks, the future belongs to those who embrace innovation and offer genuine value to consumers.