Which of the following best describes the term 'disruptive technology'?

The term 'disruptive technology' refers to innovations that significantly alter the way that industries, businesses, or consumers operate. Specifically, it describes a new technology that displaces established market players and can fundamentally change the competitive landscape. These technologies typically allow for new ways of delivering products or services that are often simpler, cheaper, or more convenient compared to existing offerings, which can lead to the decline or obsolescence of established businesses that fail to adapt.

This concept is rooted in the idea that disruptive technologies start at the low end of a market, gaining a foothold by meeting the needs of a niche segment before gradually evolving to serve more mainstream customers. A classic example includes how digital photography disrupted traditional film photography.

Other choices do not capture the essence of what makes a technology 'disruptive'. For example, technologies that merely support existing businesses or improve current market practices do not challenge or replace the players currently in the market. Likewise, while disruptive technologies may sometimes require significant investment, this is not a defining characteristic and can pertain to a variety of technologies which do not disrupt market players.