The Innovator's Solution: Creating and Sustaining Successful Growth
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The Innovator's Solution: Creating and Sustaining Successful Growth

4.5 11
by Clayton M. Christensen, Michael E. Raynor
     
 

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ISBN-10: 1578518520

ISBN-13: 9781578518524

Pub. Date: 10/28/2003

Publisher: Harvard Business Review Press

In his worldwide bestseller The Innovator's Dilemma, Clayton M. Christensen exposed this crushing paradox behind the failure of many industry leaders: by placing too much focus on pleasing their most profitable customers, these firms actually paved the way for their own demise by ignoring the disruptive technologies that aggressively evolved to displace

Overview

In his worldwide bestseller The Innovator's Dilemma, Clayton M. Christensen exposed this crushing paradox behind the failure of many industry leaders: by placing too much focus on pleasing their most profitable customers, these firms actually paved the way for their own demise by ignoring the disruptive technologies that aggressively evolved to displace them. In The Innovator’s Solution, Christensen and coauthor Michael E. Raynor help all companies understand how to become disruptors themselves.

Christensen (author of the award-winning Harvard Business Review article, “How Will You Measure Your Life?”) and Raynor not only reveal that innovation is more predictable than most managers have come to believe, they also provide helpful advice on the business decisions crucial to truly disruptive growth. Citing in-depth research and theories tested in hundreds of companies across many industries, the authors identify the processes that create successful innovations—and they show managers how to tailor their strategies to the changing circumstances of a dynamic world. The Innovator’s Solution is an important addition to any innovation library.

Product Details

ISBN-13:
9781578518524
Publisher:
Harvard Business Review Press
Publication date:
10/28/2003
Pages:
320
Product dimensions:
6.53(w) x 9.30(h) x 1.15(d)

Table of Contents

In Gratitudevii
1.The Growth Imperative1
2.How Can We Beat Our Most Powerful Competitors?31
3.What Products Will Customers Want to Buy?73
4.Who Are the Best Customers for Our Products?101
5.Getting the Scope of the Business Right125
6.How to Avoid Commoditization149
7.Is Your Organization Capable of Disruptive Growth?177
8.Managing the Strategy Development Process213
9.There Is Good Money and There Is Bad Money235
10.The Role of Senior Executives in Leading New Growth267
Epilogue: Passing the Baton285
Index293
About the Authors303

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Innovators Solution 4.5 out of 5 based on 0 ratings. 11 reviews.
Guest More than 1 year ago
The dilemma for top-ranking companies is that by doing all of the things that lead to success, they may doom themselves to failure. Disruptive innovations typically debut at the low end of the market or among nonusers, as unprofitable, unpromising and crude products, in comparison to the mainstream standards. Then, established companies make the understandable mistake of ignoring them, only to be overtaken from below. Author Clayton M. Christensen¿s previous classic, `The Innovator¿s Dilemma¿, identified this problem. This subsequent book offers a solution by helping managers identify potentially disruptive innovations, correctly read the market and the competitive environment, and develop a response. This book is not quite as innovative or provocative as its predecessor, but it is a valuable extension of Christensen¿s theory. If you want to know what your company can do about this serious competitive problem, we recommend this solid follow-up.
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gabekal More than 1 year ago
One of the best on strategy in large corporations
Guest More than 1 year ago
Clayton Christensen and Michael Raynor set the tone immediately by showing that most companies cannot sustain growth and by explaining to readers how stock markets factor in growth in the price of any publicly-traded stock. Growing faster than what stock markets see now and expect in the future is essential to move up a stock price. The resource allocation process is the key culprit in humbling many market leaders when dealing with disruptive innovations. That process typically invites up-market flight rather than head-to-head fight with new market entrants. That flight mechanism is applicable not only to product/service makers, but also to their distributors and retailers. Unlike a sustaining innovation, a disruptive innovation is not compatible with the business model of market leaders. Christensen and Raynor call this behavioral pattern asymmetric motivation. The way out of asymmetric motivation is for the leadership of an established player 1. to frame the disruptive innovation as a threat during the resource allocation process and 2. to shift responsibility for the project to an autonomous organization that has the relevant experience to frame it as an opportunity. The leadership needs to have a clear understanding of the respective impact of resources, processes, and values on what an organization can or cannot accomplish. Resources and processes are often enablers while values often represent constraints. Unlike deliberate processes, emergent processes should dominate when the future is hard to predict and the right strategy is not yet clear. That is especially true at the beginning of a company¿s existence. Once the winning strategy becomes clear, deliberate processes become a must to maximize the changes of success. Christensen and Raynor continue their analysis by sub-dividing disruptive innovations into two categories: new-market disruptions competing with ¿non-consumption¿ and low-end disruptions that go after the proverbial ¿low-hanging fruit.¿ Charting the upward path for a new-market disruption is more daunting because nobody has ever walked the walk. In practice, the distinction between the two types of disruptive innovations is not always clear-cut due to the existence of hybrid disruptions that combine new-market and low-end approaches. Christensen and Raynor also point out that an innovation that passes the new-market or low-end test must be disruptive to all of the significant established players to deserve the label of disruptive innovation. Christensen and Raynor clearly show that new entrants in turn do not escape from the up-market urge. After driving out the last established market player competing in a certain market segment, cut-throat competition forces new entrants to also move up market for greener pastures. Christensen and Raynor also reflect on why an overwhelming majority of new products fail miserably in the market-place. Attribute-based segmentation for which data are often available is the lead explanation for these failures. That type of market segmentation too often ignores the jobs that people and companies need to get done and how a product or service can be ¿hired¿ for that purpose. Targeting a product or service at the circumstances in which the target audience finds itself, rather than at the target itself is the key to success. Christensen and Raynor drive that point home very well with their story about the milkshake doing a different job for a bored commuter and his/her child at different times of the day. Christensen and Raynor blame the counterproductive attribute-based segmentation to 1. fear of focus, 2. senior executives¿ demand for quantification of opportunities, 3. the structure of channels, and 4. advertising economics and brand strategies. Christensen and Raynor pursue their analysis by looking at the traditional distinction between core and non-core competences. Unlike competitiveness that is focused on what a customer values,
Guest More than 1 year ago
Clearly written, the book integrates good theory with examples and case analysis from the past, present, and future. This book will revolutionize how strategy is formulated. But I recommend reading the Innovator's Dilemma first. If you want to read just a few good business books that actually help, read this one, along with the Innovator's Dilemma and 'All the Right Moves' from London Business School profesor Constantinos Markides.
Guest More than 1 year ago
I ordered this for my boss. He read it Tgiving weekend and had one of the assistants buy him 5 more on the following Monday. We're now buying 25 more for senior management, plus another 10 for our board of directors! Gift giving will be easy this year!
Guest More than 1 year ago
Christensen and Raynor explain how innovation can be a predictable process that delivers sustainable and profitable growth. They identify the forces that cause managers to make bad decisions and present their ideas and a new framework to help product developers to create the right conditions, at the right time, for a disrupting-technology to succeed in the company and the market. They provide real-life examples from many different companies that sustain their claims. This is a book that you would really enjoy and the most important thing are the strategies that you can apply in your own project.
Guest More than 1 year ago
Clayton Christensen has created another essential read for understanding the central issues facing the survival of corporations today. It should take its place on your bookshelf along side Christensen's first book ('Innovator's Dilemma'), Foster's 'Creative Destruction', and Watts' 'Slingshot Syndrome: Why America's Leading Technology Firms Fail at Innovation'. All highly recommended.