The Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business

The Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business

by Clayton M. Christensen

Paperback(Reprint)

$15.20 $17.99 Save 16% Current price is $15.2, Original price is $17.99. You Save 16%. View All Available Formats & Editions

Overview

“Absolutely brilliant. Clayton Christensen provides an insightful analysis of changing technology and its importance to a company’s future success.”
—Michael R. Bloomberg

“This book ought to chill any executive who feels bulletproof —and inspire entrepreneurs aiming their guns.”
Forbes

The Innovator’s Dilemma is the revolutionary business book that has forever changed corporate America. Based on a truly radical idea—that great companies can fail precisely because they do everything right—this Wall Street Journal, Business Week and New York Times Business bestseller is one of the most provocative and important business books ever written. Entrepreneurs, managers, and CEOs ignore its wisdom and its warnings at their great peril.

Product Details

ISBN-13: 9780062060242
Publisher: HarperCollins Publishers
Publication date: 10/04/2011
Edition description: Reprint
Pages: 336
Product dimensions: 5.31(w) x 8.00(h) x 0.75(d)

About the Author

CLAYTON M. CHRISTENSEN is the Kim B. Clark Professor at Harvard Business School, the author of nine books, a five-time recipient of the McKinsey Award for Harvard Business Review’s best article, and the cofounder of four companies, including the innovation consulting firm Innosight. In 2011 and 2013 he was named the world’s most influential business thinker in a biennial ranking conducted by Thinkers50.

Reading Group Guide

The summary and questions in this guide are designed to stimulate thinking and discussion about The Innovator's Dilemma, how its findings are manifest in many industries today, and the implications of those findings for the future.

Thesis of the Book
In The Innovator's Dilemma, Professor Clayton Christensen asks the question: Why do well-managed companies fail? He concludes that they often fail because the very management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop the disruptive technologies that ultimately steal away their markets.

Well-managed companies are excellent at developing the sustaining technologies that improve the performance of their products in the ways that matter to their customers.This is because their management practices are biased toward:

Listening to customers,
Investing aggressively in technologies that give those customers what they say they want
Seeking higher margins, and
Targeting larger markets rather than smaller ones.

Disruptive technologies, however, are distinctly different from sustaining technologies. Disruptive technologies change the value proposition in a market. When they first appear, they almost always offer lower performance in terms of the attributes that mainstream customers care about. In computer disk drives, for example, disruptive technologies have always had less capacity than the old technologies. But disruptive technologies have other attributes that a few fringe (generally new) customers value. They are typically cheaper, smaller, simpler and frequently more convenient to use. Therefore, they open new markets.Further, because with experience and sufficient investment, the developers of disruptive technologies will always improve their products' performance, they eventually are able to take over the older markets. This is because they are able to deliver sufficient performance on the old attributers, and they add some new ones.

The Innovator's Dilemma describes both the processes through which disruptive technologies supplant older technologies and the powerful forces within well-managed companies that make them unlikely to develop those technologies themselves. Prof. Christensen offers a framework of four Principles of Disruptive Technology to explain why the management practices that are the most productive for exploiting existing technologies are anti-productive when it comes to developing disruptive ones. And, finally, he suggests ways that managers can harness these principles so that their companies can become more effective at developing for themselves the new technologies that are going to capture their markets in the future.

Principles of Disruptive Technology
#1 Companies Depend on Customers and Investors for Resources
In order to survive, companies must provide customers and investors with the products, services and profits that they require. The highest performing companies, therefore, have well-developed systems for killing ideas that their customers don't want. As a result, these companies find it very difficult to invest adequate resources in disruptive technologies -lower margin opportunities that their customers don't want - until their customers want them. And by then, it is too late.

#2 Small Markets Don't Solve the Growth Needs of Large Companies
To maintain their share prices and create internal opportunities for their employees, successful companies need to grow. It isn't necessary that they increase their growth rates, but they must maintain them. And as they get larger, they need increasing amounts of new revenue just to maintain the same growth rate. Therefore, it becomes progressively more difficult for them to enter the newer, smaller markets that are destined to become the large markets of the future. To maintain their growth rates, they must focus on large markets.

#3 Markets That Don't Exist Can't Be Analyzed
Sound market research and good planning followed by execution according to plan are the hallmarks of good management. But, companies whose investment processes demand quantification of market size and financial returns before they can enter a market get paralyzed when faced with disruptive technologies because they demand data on markets that don't yet exist.

#4 Technology Supply May Not Equal Market Demand
Although disruptive technologies can initially be used only in small markets, they eventually become competitive in mainstream markets. This is because the pace of technological progress often exceeds the rate of improvement that mainstream customers want or can absorb. As a result, the products that are currently in the mainstream eventually will overshoot the performance that mainstream markets demand, while the disruptive technologies that underperform relative to customer expectations in the mainstream market today, may become directly competitive tomorrow. Once two or more products are offering adequate performance, customers will find other criteria for choosing. These criteria tend to move toward reliability, convenience and price, all of which are areas in which the newer technologies often have advantages.

A big mistake that managers make in dealing with new technologies is that they try to fight or overcome the Principles of Disruptive Technology. Applying the traditional management practices that lead to success with sustaining technologies always leads to failure with disruptive technologies, says Prof. Christensen. The more productive route, which often leads to success, he says, is to understand the natural laws that apply to disruptive technologies and to use them to create new markets and new products. Only by recognizing the dynamics of how disruptive technologies develop, can managers respond effectively to the opportunities that they present. Specifically he advises managers faced with disruptive technologies to:

1 -- Give responsibility for disruptive technologies to organizations whose customers need them so that resources will flow to them.

2 --Set up a separate organization small enough to get excited by small gains.

3 -- Plan for failure. Don't bet all your resources on being right the first time. Think of your initial efforts at commercializing a disruptive technology as learning opportunities. Make revisions as you gather data.

4 -- Don't count on breakthroughs. Move ahead early and find the market for the current attributes of the technology. You will find it outside the current mainstream market. You will also find that the attributes that make disruptive technologies unattractive to mainstream markets are the attributes on which the new markets will be built.

Questions for Discussion
The characteristics of a disruptive technology are:
They are simpler and cheaper and lower performing. They generally promise lower margins, not higher profits. Leading firms' most profitable customers generally can't use and don't want them. They are first commercialized in emerging or insignificant markets.

The Innovators Dilemma discusses disruptive innovations in the disk-drive, excavator, steel and auto industries. Looking back through history, can you identify some disruptive technologies that eventually replaced older products and industries? Can you think of others that are emerging today, maybe even ones that could threaten your business?

2. There is a tendency in all markets for companies to move upmarket toward more complicated products with higher prices. Why is it difficult for companies to enter markets for simpler, cheaper products? Can you think of companies that have upscaled themselves out of business? How might they have avoided that?

3. The same tendency for companies to move upmarket that can be fatal for established companies also accounts for the eventual development of emerging markets into mainstream markets. Besides the examples in the book, can you think of companies that have upscaled themselves to success.

4. In attempting to commercialize a disruptive technology, why is it important to begin investing on the assumption that your expectations will be wrong? Besides the motorcycle, excavator and disk-drive examples in the book, can you think of other examples where a company began marketing a product for one application but the big market turned out to be for another application?

5. One of the hallmarks of disruptive technologies is that initially they underperform the current technology on the attributes that matter most to mainstream customers. The companies that succeed in commercializing them, therefore, must find different customers for whom the new technology's attributes are most valuable. Can you think of any markets that are emerging today based on attributes or qualities that seemed unimportant to the mainstream markets when they were introduced? What older, mainstream products or companies are threatened?

6. When two or more products meet the minimum specifications for the functionality of a product, customers begin to look for other deciding factors. According to a Windermere Associates study cited in the book, the progression usually is from functionality to reliability to convenience to price. What are some current markets that have recently moved one or more steps along this progression?

7. Most people think that senior executives make the important decisions about where a company will go and how it will invest its resources, but the real power lies with the people deeper in the organization who decide which proposals will be presented to senior management. What are the corporate factors that lead mid-level employees to ignore or kill disruptive technologies? Should well-managed companies change these practices and policies?

8. What are the personal career considerations that lead ambitious employees in large corporations to ignore or kill disruptive technologies? Should well-managed companies change the policies that encourage employees to think this way?

9. What do the findings in this book suggest about how companies will be organized in the future? Should large organizations with structures created around functionalities redesign themselves into interconnected teams, as some management theorists currently believe? Or, recognizing that different technologies and different markets have differing needs, should they try to have distinct organizational structures and management practices for different circumstances? Is this realistically possible?

10. The CEO of a disk drive maker is quoted in Chapter 4 as saying that "We got way ahead of the market" in explaining why his company failed to commercialize a 1.8-inch disk drive that it had developed. At the time, however, there was a burgeoning market for 1.8-inch drives among new users that his company hadn't discovered. Prof. Christensen's argues that "disruptive technology should be framed as a marketing challenge, not a technological one" Do you think there is a market somewhere for all technologies? If not, how would you as a manager go about figuring out which technologies to shelve and which ones to pursue aggressively?

11. Similarly, Prof. Christensen argues that companies should not wait for new breakthroughs to improve a technology's performance. Instead, they need to find customers who value the very attributes that others consider to be shortcomings. As a manager, how do you decide when a technology --or idea -- needs more development and when its time to aggressively put it on the market?

12. The primary thesis of The Innovator's Dilemma is that the management practices that allow companies to be leaders in mainstream markets are the same practices that cause them miss the opportunities offered by disruptive technologies. In other words, well-managed companies fail because they are well managed. Do you think that the definition of what constitutes "good management" is changing?. In the future, will listening to customers, investing aggressively in producing what those customers say they want, and carefully analyzing markets become "bad management." What kind of system might combine the best of both worlds?

Customer Reviews

Most Helpful Customer Reviews

See All Customer Reviews

Innovator's Dilemma 4.2 out of 5 based on 0 ratings. 34 reviews.
Just_Another_Engineer More than 1 year ago
What it does: Provides insight for business managers that need to deliver continually improved products to their markets. Provides good information about how business have grown and fallen in the face of technical advancement. It does provide case-study backed recommendations on how to manage innovative business ventures. What it does not do: This is not about 'how to innovate,' how to make a better mouse trap, nor even how to find out what your customer wants. Christensen assumes that you have that much together already. The book's emphasis is on business management. Comments: Before reading "The Innovator's Delimma," I thought that I knew what a 'disruptive innovation' was. (After all, I am an experienced engineering manager working in new product development.) But Christensen succeeded in changing my paradigm here and gave me significant insight into the evolution and demise of corporations. Christensen's book takes an academic study of business innovation, drawing extensively on the computer hard drive industry, to divide innovation into two classes: 'sustaining' and 'disruptive.' What many people would be inclined to call 'disruptive innovation' are, in Christensen's view, radical 'sustaining innovations.' The 'disruptive innovations' are initially generally not especially technically innovative, but they fill a market niche and grow to the point of challenging the established. He then digs into details, and pulls out similar supporting case studies of the excavator industry (steam shovels to back hoes), computers and electronics, and lesser detail in discussing changes in retailing. He shares some good insights into why big companies have fallen to upstarts. This is rooted in the natural tendencies of companies to progress from lower-end, lower-margin products to higher-end, higher-margin products. He also shows how companies succeed by innovating and managing to provide what customers' want, and how that focus can cause a company to miss the disruptive technology. His case-study supported recommendations on how companies can address the dilemma seem convincing. A few complaints about the book: 1) the texts and graphs do not agree or match in several cases - this was very annoying, 2) the case studies are largely from manufacturing, so applications to the services industry may not be as straightforward as one would hope, 3) the advice is geared more towards keeping a large corporation alive rather than in assisting small companies grow. He ends with a discussion of how he would manage commercializing an electric car, based on his research findings. (I don't think that GM has been listening.) In my opinion, he didn't follow his own advice well enough in his plan - it relies too much on mainstream market.
Anonymous More than 1 year ago
Great and insightful read.
jontseng on LibraryThing More than 1 year ago
Overhyped. Techno-babble analysis of the hard drive market comes across as something of a procrustean bed.
dvf1976 on LibraryThing More than 1 year ago
Some good ideas.Like alot of the business books I've read, it advocates that a large company should be an 'incubator' for a bunch of small ideas.This may be the first book to advocate such a position, though. (At least it's cited so much that I think it's the first).
DanStratton on LibraryThing More than 1 year ago
Clayton M. Christensen is a professor at the Harvard Business School. In the Innovator's Dilemma, he presents his research into business life cycles and how larger companies find it difficult to innovate. He shows how these larger companies eventually are replaced by innovators who make inroads by taking the bottom markets willing ceded to them by the bigger companies. Little by little, the smaller companies eat away until they have market dominance themselves, leaving the once market leader without a place to go.The concept of how small companies can thrive in a world dominated by large companies is an interesting one, especially for the entrepreneurs facing Goliath. Christensen lays out several test cases where the larger company couldn't innovate, allowing smaller companies to enter at the bottom of the market. He even shows how and why it made sense for the management of these dominant companies to allow this to happen - at the time. Innovation is not an easy prospect for large companies because their large existing customer base often will not allow the innovations to move forward because it doesn't fit their needs. Innovations often bring a different customer and large companies are not always able to choose to service both.Christensen provides a few examples of this phenomena in excruciating detail, studying the rapidly changing industries of disk drives and steel production. He rounds out the book with a discussion of the steam shovel and how it lost out to hydraulics. In a final case study, he examines how the principles could be applied to a potential disruptive technology - the electric car. He lays out a complete game plan for a company to take the innovations available and capture a new market. Sadly, in the years since publication in 1997, it doesn't appear anyone has taken up the challenge, although perhaps Tesla Motors has come the closest.The problem I have with Christensen's book is his writing style. He is definitely a Harvard Business School professor. He delves deeply into his research, explaining every nuance of the industry in such detail as to leave no doubt he has done an extensive study. I grew up in IT, living just miles away from one of the great innovators of the disk drive industry, yet I learned many things about disk drives. I hadn't imagined I could get a technical education from a book on business management.Christensen's writing style was the biggest barrier to the material. His explanations were too deeply steeped with details that didn't move the story forward. While the datum was valid and important, it didn't necessarily have to be presented in long, exhaustive detail. Today's readers do not have a lot of time or desire to spend long stretches of deep explanation. I found it necessary to spend at least 45 minutes reading before getting "into" the book. I couldn't help comparing the style to that of Jim Collins in Great By Choice. Yes, Collins is also a researcher who loves detail. The difference is that Collins moves all his detailed explanations to the appendix where those who desire it can find it. The book itself is organized into fast moving, short chapters laying out the salient points distilled from the exhaustive research. I would really have appreciated this approach in this book by Christensen. Collins is a storyteller where Christensen is a Harvard professor.Christensen's insight is worth the slog through the knee deep data. Just be ready with a canteen for dry stretches of endless detail as far as the eye can see.
ldmarquet on LibraryThing More than 1 year ago
We are all familiar with the story of the innovative and nimble startup surpassing the corporate leader with a disruptive technology that the larger corporation was blind to. Why this happens is the subject of Clayton Christensen¿s thoughtful Innovator¿s Dilemma. Although originally published in 1997, it¿s a highly relevant and useful read today.Christensen was interested in how the market leaders missed the disruptive innovations. At the time, most thought the corporate leaders were just too arrogant or too bureaucratic to see the disruption coming. Could there be more structural forces at play? Turns out, there are.The first half of the book follows the development of the disk drive and the hydraulic excavator to understand and make clear these forces. First, the author distinguishes between sustaining technologies and disruptive technologies. Market leaders, it turns out, are capable of innovation but those innovations typically occur as incremental evolutionary changes to existing products ¿ sustaining innovations. Where they get tripped up is the development of disruptive technologies which fundamentally transform the existing product. In many cases the market leader also developed early forms of the disruptive technology or were at least aware of the development of the technology. Christensen, a professor at the Harvard Business School, makes the case that in ignoring the disruptive technology, the market leader was acting quite rationally. They were following their customers¿ and corporation¿s best interests.Christensen discovered that the disruptive technology yields a product that is inferior as measured by the traditional metrics for product quality. In the case of the disk drive it was price/unit storage. For the excavators, it was reach. For the disk drives, the disruption was the introduction of smaller and smaller drives. At each step of the way, these products were costlier than the existing larger drives in terms of price/unit storage. However, their advantages, in terms of other characteristics such as size, weight, and power consumption outweighed nominal improvement in the price/unit storage ratio provided by sustaining technologies. Eventually, price catches up and the disruptive products are better in both sets of characteristics.For the excavator (a big digger), the existing machines used cables to extend and control the basket. The overriding measure of performance was reach and capacity ¿ how far out could the basket reach and grab a bucket of dirt. When hydraulic excavators appeared, their reach was very limited because of the physics of the hydraulic cylinders needed to control the baskets. Even today, a cable excavator will give you a longer reach. However, the hydraulic excavators had advantages of safety (no cable breaks) and had significantly lower maintenance costs. Eventually, as manufacturing of hydraulic excavators grew in practice, reach extended and for many uses such as building foundation excavation and utility pipe laying, as soon as the reach was sufficient for the task, the improvement in safety and the reduced maintenance costs made the hydraulic excavators superior.This book will change the way you think about innovation and the structures needed not only to spark the ideas, but get them built into new product lines. My name is David Marquet, from Practicum, Inc and we help our customers get everyone be a leader and avoid casting employees into follower roles. To continue the dialogue respond to david.marquet@practicuminc.com or follow our blog or follow us on twitter. @totheleadernyou.
xtien on LibraryThing More than 1 year ago
This book is a must read for high tech entrepreneurs and investors. Christensen explains what innovation is, why it succeeds, and why often it does not succeed. He gives clear cut examples from which you can learn for your own company.
Anonymous More than 1 year ago
The Innovator’s Dilemma is an interesting work written by Clayton M. Christensen in 1997. The book seeks to explain why certain businesses are successful in their ventures and why other firms fail in response to new technologies. Christensen tries to explain throughout the book why some firms, when new technologies enter the market, fail either because they adapt the new technology or not. The author initially believes that new technologies are constantly emerging and all businesses must continually adapt to stay relevant. However, this proves to be false as in his studies not all firms that ignored the new technology failed while not all firms that adapted the new technology succeeded. This is the fundamental dilemma in the book, and Christensen’s main purpose is to figure out a recipe for managers to follow to stay successful when disruptive technologies enter the market. Most of the book revolves around the study of the disk drive market since they were first developed in the 1950’s. The disk drive industry was important because technology was rapidly advancing and smaller drives were being released within a few years of each other. Many of the established firms often chose not to invest in the next smaller disk drive because they did not have enough memory to meet their standards. However, emerging firms would find new markets for the use of smaller drives and also find ways to make them more powerful, eventually drive the existing firms out of business. Christensen eventually concludes that successful businesses often collapse, despite having good managers, because they fail to find the new markets for disruptive technologies while instead supplying current customers with what they currently need. The goal of the book is to educate people in the business world about how new technologies affect firms and to provide a new way of thinking about disruptive technologies. The end of the piece brings the conclusion that leading firms almost always have set technologies that work well for their current customers, choosing not to invest in new technologies because what they are currently doing is working, current customers do not want change. That is, until new technologies grow to be superior than their predecessors. Christensen does a fantastic job in making his point clear as he provides a plethora of studies across different markets to support his claims. The first half of the book is essentially a detailed history of the disk drive industry that has multiple examples of different firms both choosing to invest in smaller drives and continuing to use their already established, larger drives. He uses this information to create hypothesis’ about why these firms made their decisions and whether it lead them to success or not. Essentially, the author’s process in writing the book is to look at different industries that had disruptive technologies and discover what trends lead to success and what trends lead to failure. He spends a lot of time focusing on a single industry, the disk drive. However, he does bring up several other markets including the mechanical excavator, steel, computer, and discount retailer industries. This variety of different scopes enhances his argument, especially since he sees similar trends across all of these different markets. Many of his examples include established firms choosing not to adopt new technologies because it does not fit their current business motives, but then later being replaced by firms that dar
Anonymous More than 1 year ago
Clayton M. Christensen’s work in his book The Innovators Dilemma is both equal parts frightening and entertaining. To the professional world of high-ranking executives and aspiring business owners this book is like a dangerous warning. The book outlines the problems successful companies have in adapting to new emerging markets that utilize disrupting technologies. He backs up his claims by using in depth analysis of real world examples to help frame his perspective and opinion. Christensen creates what he calls the ”failure framework”(Christensen 7), and using the frantic changing of the guard in the disk drive industry elaborates on three main reasons why leading firms tend to stumble repeatedly with stagnation and disruptive technology. Upon finding comparisons in industries unlike the ones previously mentioned, Christensen goes onto promote what he has dubbed the, “principles of disruptive innovation”(Christensen 14). The Innovators Dilemma culminates with an explanation of how to spot threats and opportunities of disruptive technology and their markets as well as where in today’s world disruptions are currently happening. I enjoyed reading The Innovators Dilemma because I believe what he writes about is seen constantly in society. Technology is continually advancing and changing. The same advances in technology have a massive impact on various industries across the world, from hotel enterprises to various outlets of social media. Examining recent technological advances such as Airbnb, Uber and other recent startups we see how disruptive advances in technology can truly be. As Christensen argues, traditional powerhouse companies in their respective markets were unable to capitalize on the evolving technology because they had a responsibility to their customers and their investors to provide great quality and create growth. He provides tremendous examples such as Sears and IBM as leading firms that fell victim to what is described as the “Failure of Success Bias”(Silk 52)in What Is Marketing by Alvin J. Silk. Failure of success bias is a term used to describe firms that lose touch with customers and markets because they fail to understand evolving culture, emerging technologies and repeat past strategies. The book uses Sears as a prime example, a company that once accounted for over 2% of all retail sales in the United States was considered to be in the upper echelon of successful firms in the late twentieth century. As Christensen points out in his failure framework, Sears like other successful firms don’t have the luxury of spending valuable resources on possible disruptive technologies because improving their sustained technologies is more profitable in the short run. Firms can’t spend cash on long-term investments because shareholders voice their opinions for what Christensen calls ‘‘Rational Investments’’(Christensen 71). By using companies like Sears and IBM, Chistensen is able to solidify his argument and delicate elaboration of the failure of success bias. Ultimately showcasing to aspiring business owners and the professional world the importance of recognizing disruptive technologies and the dangers of being successful. What struck me the most was how Christensen’s principles remain relevant in today’s market. It has been almost two decades since the book was first published and yet Christensen’s principles remain at the forefront of emerging technologies. He highlights five fundamental principals that harness the princ
Anonymous More than 1 year ago
Clayton’s Christensen’s book, “The Innovator’s Dilemma”, is a well-known read amongst business experts, offering a unique look at the constant and repeating reason that businesses fail. Originally published in 1997, Professor Christensen of Harvard Business School writes about what he finds is the key factor is business failure: disruptive technology. Typically technologies seek to improve existing products or markets, which Christensen calls “sustaining technologies”. Sustaining technologies are what businesses handle best, since they address the current needs and wants of customers. However, disruptive technologies quickly change the market, leaving businesses that did not see the change coming in the dust. Sometimes the changes are easy to see, while some are nearly impossibly to spot. Throughout the book, Christensen meticulously breaks down his findings and what led him to his theories, offering countless examples that although now dated, still prove his point as technology evolves exponentially today. By the end, he seeks to provide successful solutions and tips for businesses that face the “innovators dilemma”: making a decision to embrace a disruptive technology, regardless of whether or not it is counter-productive to current business operations.  For a large section of the read Christensen describes his theories, using the hard disk industry as a primary example. Seagate was a large manufacturer of 5.25 inch hard drives, and in 1985 developed the first 3.5 inch design. After testing with customers, the initial response was that 3.5 inch drives were not growing in popularity, and were more expensive, causing their development to be shelved. As a result, Seagate continued to develop the 5.25 inch drives, making them perform better and more efficiently, until new and competing companies developed the 3.5 inch drive. Quickly the 3.5 inch drives grew in performance and reliability, becoming more popular as the main components of personal computers and laptops. As a result, Seagate quickly lost its 5.25 inch drive market, not anticipating the rise of the 3.5 inch drives. This example explains Christensen’s theories rather well, demonstrating the need to embrace technologies still in their infancy. Although 5.25 inch drives were the sustaining technology, which drove Seagate’s success for quite some time, the disruptive technology was the smaller and higher performance 3.5 drives, which have made 5.25 drives obsolete.  Of course, identifying disruptive technologies is not an easy task, and it is especially more difficult to invest money and resources into a product that will not succeed for an indefinite period of time. In the second half of the book, Christensen offers many ideas for combating this, such as creating strategies to embrace disruptive technologies with research and development plans as opposed to immediately jumping to serving the current market. Another strategy he offers his for a company to take a stake in a disruptive company, typically a startup, to provide necessary resources and share the benefits of the emerging innovation. For example, Johnson & Johnson in the past has acquired small startup companies focused on disruptive technologies at the time, such as disposable contact lenses and blood glucose meters, and provided them research for further development, which today have evolved into billion dollar markets. This seems to be a highly valued solution offered by Christensen, since there are numerous instances in which he dismisses the idea of creating a division within a large company for research on a disruptive technology. Christensen says that typically these divisions are given minimal resources and support, due to the present day sustaining operations that hold back advancement on emerging technology.  Overall I felt that Professor Christensen’s theories are very valid in a world where technology continues to grow faster than businesses can keep up. He supports his claims with real examples from the industry, which demonstrate how well managed businesses constantly fail due to their myopic look at the market. The book itself, although slightly dry, provides indispensible information to semi-mature audiences, especially business owners looking towards the future in our techno-centric world. Despite examples that are now semi-dated, Christensen’s findings can still be applied to today’s biggest market changes, as companies such as how Uber, Skype, Amazon, and Google continue to replace traditional markets that were once wildly successful. I recommend this book to any rising entrepreneur, as it offers insight to how startup companies can use disruptive innovation to their advantage, and also to veteran business owners that seek to stay ahead of the technological revolution. 
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Even if it does get a bit clunky at times, the ideas are important considerations for managers today.
Anonymous More than 1 year ago
HIGHLY recomended do read this book it is amazing!!!!!!!!!
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Anonymous More than 1 year ago