That’s what IBM did when the computer industry evolved from mainframe computers to personal computers. Although he mentions that incumbents can face the disruptive innovation thread by setting up an independent subsidiary, Clayton Christensen does that go into the details as to how to build disruptive innovations. His lessons are still relevant, especially, in this age of near-constant innovation and rapid technological advancement. The Harvard innovation management professor begins by distinguishing two different types of technologies: sustaining technologies and disruptive technologies. Love to watch movies and football on the weekends. © Guillaume Villon de Benveniste and The Innovation and Strategy Blog, 2012 - 2017. The phrase disruptive innovation has been bastardized. Unlike their bigger counterparts, the prospects of lower margins don’t deter them. A top 6 business book in its class according to The Economist, The Innovator’s Dilemma is it profound analysis of why leading companies fail to innovate and ultimately go bankrupt in the wake of disruptive innovation. Their subsidiary in charge of developing PCs succeeded quite beautifully. In the recent years, the theory of The Innovator’s Dilemma has also come in for criticism from a few authors and journalists. It may appear to the reader that there is a biased argument against large organizations in the book. These ideas could help them succeed as they venture into building a disruptive product. The problems arise when a disruptive innovation emerges on the scene. Sorry, your blog cannot share posts by email. This is one of the innovator's dilemmas: Blindly following the maxim that good managers should keep close to their customers can sometimes be a fatal mistake. The Innovator’s Dilemma also explains how innovators with “disruptive” technologies on the fringes of the mainstream cannot follow the same rules as existing firms. “Sound managerial decisions are at the very root of their impending fall from industry leadership.”. Total’s Account Managing Director at Fujitsu, The ultimate Networking blog, by Hervé Bommelaer, Yann Gourvennec's Marketing and Innovation Blog. It is used in ways no way closer to the original theory of Prof Christensen. The Innovator’s Dilemma consists of several case-studies from these industreis – all of which point towards the validity of Prof Christensen’s thesis. Think of Google sheets enabling people to work on the same document seamlessly around the world without having to go through the tedious tasks of versioning. If you scan the Internet for the best business books, you’d invariably find late Prof Clayton Christensen’s The Innovator’s Dilemma on almost every list. Clayton Christensen also talks about how disruptive innovation works. He instructs: It’s been more than two decades when the first edition of The Innovator’s Dilemma was published and close to a decade, since the last updated edition came out. It’s a fascinating read on why successful companies struggle with disruption. Book Review#3: The Innovator’s Dilemma by Clayton Christensen Reviewed by Joyce Lo Introduction Many companies, whether they are in manufacturing or service, fast or slow paced, all face the same questions to stay on top of innovation and be the market leader. Dreamer. Last week saw one of the most interesting business debates for a long time - did Clayton Christensen get the innovator's dilemma right or wrong? Did You Ever Feel A Book Was So Good That You Couldn’t Read Other Books After That? Christensen himself asserts, most people claiming to understand disruptive innovation simply don’t get it: “In our experience, too many people who speak of ‘disruption’ have not read a serious book or article on the subject … Many researchers, writers, and consultants use disruptive innovation to describe any situation in which an industry is shaken up and previously successful incumbents stumble.”. New entrants overtake industry Titans by targeting low margin niche markets, a space that incumbents are happy to flee. Using the lessons of successes and failures from leading companies, “The Innovator’s Dilemma” presents a set of rules for capitalizing on the phenomenon of disruptive innovation. Doesn’t make business sense, does it? Access a free review of The Innovator’s Dilemma, by Clayton M. Christensen and 20,000 other business, leadership and nonfiction books on getAbstract. Post was not sent - check your email addresses! In his Introduction, Christensen makes his objective crystal clear: “This book is about the failure of companies to remain competitive when they confront certain types of market and … WhoisClaytonChristensen ! on Book Review | The Innovator’s Dilemma. Christensen shows that successful innovation is not unpredictable. Incumbents should set up a subsidiary independent from the mother organization operating on values, process and resources that are fit to developing disruptive innovations in a low margin market niche. Little did I know then that I would have a 2nd tryst with the book some 16 years later. A business classic in its own right, this book is a required reading across many business schools even today. Clayton Christensen offers a profound analysis of dynamics in leading companies. The Innovator's Dilemma by Harvard Business School professor Clayton Christensen. You can expect to finish the book with greater knowledge of the business world. Failure is inherent to disruptive innovation. Today any innovation that is doing the rounds is a disruptive innnovation in local parlance. You may not get it right the first time. Offering both successes and failures from leading companies as a guide, "The Innovator's Dilemma" gives you a set of rules for capitalizing on the phenomenon of disruptive innovation. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. The moot question and the one that Prof Christensen answers in this book is why established firms fail when confronted with a disruptive technology. The Innovator’s Dilemma Summary. The Innovator’s Dilemma His work is cited by the world’s best known thought leaders, from Steve Jobs to Malcolm Gladwell. After all, it was no longer an entrant operating from the playbook of a startup. I recently finished reading Clayton Christensen’s book, The Innovator’s Dilemma. Say hello @bookjelly. No market research can tell how big the market for a disruptive product can be. A business classic in its own right, this book is a required reading across many business schools even today. Those firms don’t exist because they became a victim of their own success. When competition comes along, these firms up the ante by offering better products or services to their customer base. Indeed, these modestly sized markets fail to deliver the kind of revenue that big corporations need to secure if they want to meet the ambitious financial targets that shareholders expect from them. Bookworm. The Innovator’s Dilemma. Despite the fact that Newton sold 140000 units within a year of its launch, it was widely considered a failure. It’s central thesis of searching new markets for disruptive innovations (as opposed to shoehorning them to current customers) is a … The key characteristic of a disruptive tech is its ability to change the basis of competition given the fast speed of technological improvement it possesses. Thus. This further deters managers. The Innovator’s Dilemma: A book review by Bob Morris. It does so in a fashion that is both insightful and easy to read. Book Review: The Innovator’s Dilemma. 9 Top Copywriting Books That Can Make You an Advertising Rockstar, Book Review | Cashvertising by Drew Eric Whitman. As a result, most incumbent firms either fail to pay it the attention it deserves or deal with it in an ineffectual manner. Learn how your comment data is processed. If you are the CEO of a firm whose existing cost structure is adjusted to higher margins from a profitable customer base, why would you climb down to the other end to tap an undefined market? “The Innovator’s Dilemma achieves a rare feat: It is at once a satisfying intellectual solution to a long-standing business puzzle and a practical guide for executives and investors.” Wired Required reading in Silicon Valley, where it has been championed by the likes of …

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