Clayton Christensen, The Innovator’s Dilemma
(1997)
Harvard Business school professor and expert on innovation (pictured right) .
The book was a big influence on Apple's legendary boss, Steve
Jobs (pictured right below).
See also...
Clayton Christensen in the Management Gurus
section.
Book summary
Why isn't business success guarenteed?
Successful companies will eventually fail, even when they adopt strategies associated with organizational
excellence like:
- closeness to the customer.
- total quality management.
What is the “innovator's dilemma”?
This arises from:
a) over-focus on existing customers
(and so inattention to satisfaction of future customer needs).
b) ignoring “disruptive innovation”
(in small, fast growing markets).
This is based on “disruptive technologies” (like the Internet and digital technology).
How to solve the innovator's
dilemma
To solve this dilemma and benefit from disruptive technology, an organization must be:
1. Opportunistic
Being first in a market you know about.
So disruptive technologies are best exploited by independent business units separate from
the mainstream business.
2. Not totally dependent on market research
Existing customers won’t tell you about the potential of new technologies.
3. Flexible
An organization’s values and processes must change and adapt to
new markets.
The innovator’s job is to take advantage of disruptive technology without
sacrificing existing customers.
Key quote on innovation
Managing better, working harder and not making so many dumb mistakes is not the answer to the innovator’s
dilemma.
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