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The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change Series) Books
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Rating:  -
Professor Clayton Christensen introduced the term "disruptive innovation" as a management buzzword, the whole book spins around this concept and offers very perturbing views on why being a star performer is a major threat to pass the next opportunity.
First, a definition: disruptive innovations are those that offer "less" in the critical performance parameters of current customers. As a consequence disruptive innovators have to look for different customers than the ones that established companies already have.
To make the point a deep analysis of the hard disk drive industry is made. More than 100 innovations are analysed and only 5 are claimed as being disruptive: the progressive reduction of size from 14", to 8", to 5 1/4", etc. All follow the same pattern: the innovation had lower performance on capacity which was the critical parameter for existing customers and innovators had to find new customers, eg for the 8" drive the mini-computer manufacturers instead of mainframe manufacturers. In fact innovations were so disruptive that almost none of the established companies was able to be successful in the new market. Although current players where by and large able to bring forward the other 100 sustaining inovations without major troubles.
The second part of the book recommends how to make disruptive innovations work, with supporting evidence from examples. This are:
-Create a new organization to deal with the innovation
-Match organization and opportunity size
-Allow the organization to fail rapidly and inexpensively and move on
-Leverage some of the existing resources but not the values and processes of the main organization
-Spend time looking for the right customers rather than the right technology.
The surprising learning is that what impedes that good companies cannot profit from disruptive innovations are that they are good at what they do in their main business not that htey are bad. The hot topic is still when a disruptive innovation is comming how can we spot and capitalise on it, and put ourselves in the dilemma of chosing the best option.
A well laid out, thought provoking and seminal work on innovation.
Rating:  -
It was a hassle getting through this book, but overall it was worth it. A lot of good lessons learned, but he says the same things over and over again. Read the first and last chapters and you'll be fine.
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The Innovator's Dilemma by Clayton M. Christensen is a must read book for any person interested in keeping their business moving forward or for any person starting a business. Christensen clearly exposes the traps that cause successful companies to stop innovating and succumb to innovative new firms. The material is presented as a series of fascinating case studies with commentary.
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Just great book for those considering start their own business.
Would be helpful for bean counters in large corporations too.
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I advised my professor to add this book to his reading list and contemplate making this required text. Filled with examples, this book helps open one's eyes. Another tool to avoid marketing myopia. A very enjoyable read.
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