What do the Honda Supercub, Intel’s 8088 processor, and hydraulic excavators have in common? They are all examples of disruptive technologies that helped to redefine the competitive landscape of their respective markets. These products did not come about as the result of successful companies carrying out sound business practices in established markets. In The Innovator’s Dilemma, author Clayton M. Christensen shows how these and other products cut into the low end of the marketplace and eventually evolved to displace high-end competitors and their reigning technologies.
At the heart of The Innovator’s Dilemma is how a successful company with established products keeps from being pushed aside by newer, cheaper products that will, over time, get better and become a serious threat. Christensen writes that even the best-managed companies, in spite of their attention to customers and continual investment in new technology, are susceptible to failure no matter what the industry, be it hard drives or consumer retailing. Succinct and clearly written, The Innovator’s Dilemma is an important book that belongs on every manager’s bookshelf. Highly recommended. –Harry C. Edwards
Customer Reviews
unconvincing:
This book analyzes why established successful companies repeatedly miss “less sensible” (to their own value network) innovations in the low-end “emerging” market and how products in the low end market eventually displace existing products in the entire market. The book does a comprehensive analysis of the phenomena.
However, I am not convinced with the analysis. People make wrong forecasts of trends and miss emerging markets for many reasons. New entrants fail in trial and error with this extremely high risk game. Does it make sense for an established company to maintain an independent unit for playing this high risk game at a considerable expense? Or should they be the follower and let small companies bear the initial high cost ? I don’t think there is a clear answer like what the author has suggested.
There are some uncommon and incorrect use of technology terms (e.g. Java “protocol”,computer “automated “design), which let you doubt the credibility and seriousness of the author. The writing is in fairly academic style with great clarity. But it can be repetitive in many places, revisiting the same materials.
Disrupt your competitors, not your customers!:
With the Innovator’s Dilemma, Clayton Christensen delivers a very powerful analysis of the role of innovation in gaining market leadership. The question raised is whether market leadership can be sustained through innovation alone. Indeed, the core of the Innovator’s Dilemma illustrates how successful companies with established solutions, marquee customers and a valued brand keep being threatened and at time vanquished by start-ups. A recent example would be how established enterprise software vendors have been shaken up by disruptive startups: Remember Salesforce.com vs. Siebel Systems? Christensen addresses a difficult problem that most successful customer focused companies face. Precisely, because it is a formidable challenge for an established company to bring disrupting technology to its own installed base of customers.
Solves the Dilemma:
This book is highly engaging and actionable and helps companies understand how innovation is powerful and long-lasting. I also recommend “Something Really New” which was just released as another powerful resource on innovation in companies. Something Really New: Three Simple Steps to Creating Truly Innovative Products
No Dilemma Here:
It is the typical manager’s nightmare. A startup with a powerful idea wipes out all the dominance your large ogranisation had. It can happen overnite and without warning.
How do you stop this nightmare from happening? Well, the answer could lie in The Innovator’s Dilemma.
Kishore Dharmarajan
Author of Eightstorm: 8-Step Brainstorming for Innovative Managers
A disruptive view on innovation:
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.
