Disruption Theory for PMs: Needs Evolve + Tech Gets Cheaper → New Entrants Win
If you’re building in a mature category, disruption isn’t optional knowledge—it’s survival.
Thesis: Disruption happens when the definition of ‘good enough’ shifts and the cheapest way to deliver it changes.
The two forces that create disruption
- User needs evolve (speed, convenience, automation, privacy)
- Tech gets cheaper (compute, models, infra, open-source)
When both move together, incumbents get squeezed.
A PM’s disruption checklist
- What is becoming non-differentiating?
- What is becoming the new ‘table stakes’?
- Which parts of our product are expensive to deliver?
- Where can automation replace humans?
- What distribution channels are emerging?
Your response options
- Reframe the value: sell outcomes, not features.
- Change the unit: usage-based, tiered packaging, bundles.
- Move up the stack: become the system of record/workflow.
- Move down the stack: become the infrastructure layer.
How to communicate disruption internally
Don’t say “we’re disrupted.” Say:
“Our cost to deliver X is falling industry-wide. If we don’t adapt, our margin and differentiation compress.”
Key takeaways
- Disruption requires two forces: needs shift + tech cost drops.
- Ask what becomes table-stakes and what becomes commoditized.
- Respond by reframing value, changing packaging, or shifting stack position.
- Communicate disruption as cost/differentiation compression, not panic.