What is the term for using technology to transform a market or create a new one?

The term for using technology to transform a market or create a new one is disruptive innovation. This concept refers to the process whereby smaller companies with fewer resources are able to successfully challenge established businesses. Disruptive innovations typically start by targeting a segment of the market that may seem unattractive or insignificant to established players. Over time, these innovations improve and begin to attract a broader audience, often leading to the displacement of existing market leaders.

This type of innovation can lead to significant changes in industry dynamics and can create entirely new markets that enhance or redefine consumer experiences. Companies like Uber and Airbnb exemplify disruptive innovation, as they have leveraged technology to fundamentally alter transportation and hospitality industries, respectively.

Other types of innovation mentioned, such as incremental and sustaining innovation, focus more on improving existing products or services rather than fundamentally changing or creating new markets. Incremental innovation involves making small improvements or upgrades; sustaining innovation refers to innovations that make an existing product better, aimed at maintaining a competitive position. Radical innovation might involve more significant changes but does not necessarily denote the market transformation characteristic of disruptive innovation.