1. Disruption is an innovation that improves a product or service in unexpected ways and lowers price or brings value to a different set of consumers. 
2. Sometimes disruption comes directly from technology. In other cases, it comes from strategy and business models (which may or may not have been enabled by technology).
3. Disruption may consist of off-the-shelf components put together in a simple fashion to bring value to a new market, or more commonly, to the lower end of the market (un-served or under-served). If the rate of improvement is significant, the solution then moves up-market. 
4. Disruptive solutions initially have lower gross margins and smaller markets. 
5. Example, Digital music’s disruptive effect on music CDs.

Disruption through technology

1. How can I use technology to disrupt an established industry? 
2. Can I make an opaque part of an industry transparent and cost-effective?
3. Is the industry fragmented?
4. What will the customers need one/three/five years from now?
5. Can disruption be brought through a hybrid of technology and human processes?

Notes:

1. Use a rapid application development tool to quickly launch a solution and see if/how customers use it.
2. Define market segments in terms of “different people”, not in terms of “product usage”.