The Innovator's Manifesto: Deliberate Disruption for Transformational Growth

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The Innovator's Manifesto: Deliberate Disruption for Transformational Growth Pub. Date: 8/9/2011 Publisher: Crown Publishing Group

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Overview

In this compelling new book, Michael E. Raynor, coauthor of the national bestseller The Innovator’s Solution, shows that Disruption, Clayton M. Christensen’s landmark theory that explains how fringe ideas come to redefine entire markets, not only explains why new businesses emerge and mature companies fall – it actually helps to predict the future success of new ventures more accurately. Raynor’s groundbreaking research, and deeper understanding of the mechanisms and drivers of Disruption make this approach to innovation more powerful and more useful than ever.

Despite the groaning shelves of books offering advice on innovation, most managers continue to struggle to create the profitable growth their companies need. The reason? The vast majority of management theories base their prescriptions on explanations of the past. When it comes to predicting successful innovation, a willingness to apply the empirical and theoretical rigor of the scientific method to prove what will work in the real world has been notable by its absence.

Until now.

In the Innovator’s Manifesto, Michael E. Raynor, a director at Deloitte Consulting, LLP., coauthor of The Innovator’s Solution, and author of The Strategy Paradox, shows how Disruption theory can help managers more accurately predict which businesses will survive – and which will die. In fact, Raynor argues that Disruption theory is the only theory which has been statistically proven to be an effective predictive tool.

The book draws on the research of the New Business Initiatives (NBI) group at Intel, analyzing forty-eight new ventures that NBI researched, scrutinized, and ultimately funded. The group’s success rate was comparable to venture capitalists throughout the industry – roughly 10 percent. However, when the principles of Disruption theory were applied to these forty-eight funded ventures in controlled experiments, the subjects’ accuracy rates improved significantly – by almost 40 percent. Raynor replicated these experiments with over 300 MBA students at schools in the United States and Canada, including Harvard, with even more impressive results: systematic improvements in predictive accuracy of up to 50 percent. In other words, not only is disruption effective, it can be readily and successfully taught and applied.

The Innovator’s Manifesto is the most significant advance in our understanding of the mechanisms and implications of Disruption theory since Christensen’s seminal 1997 work, The Innovator’s Dilemma. For the first time disruption theory has been shown to give managers and investors effective tools they can use in their efforts to create the success they seek.

Product Details

ISBN-13: 9780385531665
Publisher: Crown Publishing Group
Publication date: 8/9/2011
Pages: 256
Sales rank: 205,172
Product dimensions: 8.32 (w) x 5.90 (h) x 0.98 (d)

Meet the Author

Michael E. Raynor is a director at Deloitte Consulting LLP, where he works with clients in just about every industry, exploring the challenges of corporate strategy, innovation and growth. He has also been one of Deloitte’s most sought-after and requested speakers. Michael is the coauthor, with Clayton Christensen, of the bestselling book The Innovator's Solution, and the author of the critically acclaimed The Strategy Paradox, one of BusinessWeek’s 10 Best Business Books of 2007. His third book, The Innovator's Manifesto, has already garnered much attention from the media, including a review from the Financial Times that calls him "one of the most articulate and interesting of the strategists," and being ranked in Inc.Magazine/800-CEO-Read's September 2011 Top 25 Business Book Bestseller list. He lives with his family in Ontario, Canada.

Foreword: From Art to Science vii

Prologue: The Five-Percentage-Point Solution 1

Part I Prediction

Chapter One A Problem of Prediction 17

Chapter Two Better by Half 32

Part II Explation

Chapter Three How 53

Chapter Four If 88

Chapter Five When and How Long 114

Part III Application

Chapter six Deliberately Disruptive 135

Chapter Seven Investing for Innovation 160

Chapter Eight Organizing for Innovation 180

Epilogue: Creative Creation 199

Acknowledgments 203

Appendix A Delimitations and Limitations of the Experiments 207

Appendix B Image Illusions 210

Appendix c Experimental Method and Statistical Analysis 212

Appendix D Divisional Revenues Generated by Disruption at Johnson & Johnson 220

Notes 227

Index 233

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RolfDobelli

Posted April 24, 2012

more from this reviewer

Most new businesses fail, even when their products seem rich wit

Most new businesses fail, even when their products seem rich with possibilities. You can’t really predict which companies will succeed or explain why the failures die, or at least you couldn’t without this genuinely exciting book. Management consultant Michael E. Raynor offers a theoretical framework – the “Disruption Theory” – that will help you improve your predictions about which businesses will work and which will not. This theory explains how innovative offerings can dislodge leading standards. Raynor previously collaborated with disruption theory’s originator, Clayton M. Christensen, with whom he co-wrote The Innovator’s Solution. Raynor’s approach isn’t flawless, and his writing is a bit clunky, but his content is very useful. He explains why you want to understand the theory of disruption, how you can benefit from applying it, and how empirical evidence – a rare asset for a business theory – supports its ideas. getAbstract recommends this intriguing, illuminating report to investors, to readers who follow Christensen’s work, and to entrepreneurs who want a clearer view of their companies’ potential.
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