"Disruptive innovation" in technology sectors refers to the process where a smaller company with fewer resources successfully challenges established businesses. It usually starts in niche markets, offering products or services that are simpler, more affordable, or more accessible. Over time, these innovations improve and capture the mainstream market, changing the competitive landscape. Examples include streaming services disrupting traditional TV, and ridesharing apps changing transportation. Understanding disruptive innovation is crucial for companies to anticipate market shifts and innovate proactively rather than reactively.