HomeGroupsTalkZeitgeist
This site uses cookies to deliver our services, improve performance, for analytics, and (if not signed in) for advertising. By using LibraryThing you acknowledge that you have read and understand our Terms of Service and Privacy Policy. Your use of the site and services is subject to these policies and terms.
Hide this

Results from Google Books

Click on a thumbnail to go to Google Books.

The Innovator's Dilemma: The…
Loading...

The Innovator's Dilemma: The Revolutionary Book That Will Change the… (original 1997; edition 2011)

by Clayton M. Christensen

MembersReviewsPopularityAverage ratingMentions
1,884245,275 (3.93)4
Member:pheffernanvt
Title:The Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business
Authors:Clayton M. Christensen
Info:HarperBusiness (2011), Edition: Reprint, Paperback, 336 pages
Collections:Your library
Rating:
Tags:change, innovation

Work details

The Innovator's Dilemma : The Revolutionary Book That Will Change the Way You Do Business by Clayton M. Christensen (1997)

None.

None
Loading...

Sign up for LibraryThing to find out whether you'll like this book.

No current Talk conversations about this book.

» See also 4 mentions

English (21)  Dutch (2)  German (1)  All languages (24)
Showing 1-5 of 21 (next | show all)
Core concept is that businesses develop a core concept or product that allows them to scale. Once they become big and bureaucratic, they often lose the perspective, flexibility and innovativeness to maintain that position.

As the entrenched player they often feel safe in their position and are out-competed by smaller up and coming enterprises.

Author suggests creating 'intrapreneurs' or doing strategic acquisitions of young up and comers to prevent from this big mistake. ( )
  shakazul | Jul 3, 2017 |
4 ( )
  ronchan | Nov 14, 2016 |
One of the most quoted business books of the last few decades. It describes the real-world challenges for companies that need to deal with a changing and innovating environment.
It is one of the business books, everyone in industry needs to be familiar with ( )
  M_Clark | Apr 25, 2016 |
A pretty convincing argument for why large, established companies struggle to keep up with disruptive innovations. It turns out that the very things that make those companies dominant in an existing market work against them when considering new markets. As the pace of disruption accelerates, the lessons in this book become more and more important.

Less convincing are the solutions the book proposes and, at an even more basic level, how to distinguish between what the book calls "sustaining innovations" and "disruptive innovations". It seems that the definitions rely on hindsight (ie, a disruptive innovation is one that turns out to, uh, disrupt the leaders) and are not particularly predictive. And since the solutions the book proposes only work for the disruptive ones, this is a rather big weakness.

Still, the book is worth reading for building your awareness and vocabulary around these issues. The writing is a bit dry and academic-sounding, but there are plenty of good examples that, if you've ever worked at a large company, will feel all-too-familiar.



Some good quotes from the book:


First, disruptive products are simpler and cheaper; they generally promise lower margins, not greater profits. Second, disruptive technologies typically are first commercialized in emerging or insignificant markets. And third, leading firms’ most profitable customers generally don’t want, and indeed initially can’t use, products based on disruptive technologies. By and large, a disruptive technology is initially embraced by the least profitable customers in a market. Hence, most companies with a practiced discipline of listening to their best customers and identifying new products that promise greater profitability and growth are rarely able to build a case for investing in disruptive technologies until it is too late.

While managers may think they control the flow of resources in their firms, in the end it is really customers and investors who dictate how money will be spent because companies with investment patterns that don’t satisfy their customers and investors don’t survive. The highest-performing companies, in fact, are those that are the best at this, that is, they 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.

With few exceptions, the only instances in which mainstream firms have successfully established a timely position in a disruptive technology were those in which the firms’ managers set up an autonomous organization charged with building a new and independent business around the disruptive technology. Such organizations, free of the power of the customers of the mainstream company, ensconce themselves among a different set of customers—those who want the products of the disruptive technology.

In dealing with disruptive technologies leading to new markets, however, market researchers and business planners have consistently dismal records. In fact, based upon the evidence from the disk drive, motorcycle, and microprocessor industries, reviewed in chapter 7, the only thing we may know for sure when we read experts’ forecasts about how large emerging markets will become is that they are wrong.

Simply put, when the best firms succeeded, they did so because they listened responsively to their customers and invested aggressively in the technology, products, and manufacturing capabilities that satisfied their customers’ next-generation needs. But, paradoxically, when the best firms subsequently failed, it was for the same reasons—they listened responsively to their customers and invested aggressively in the technology, products, and manufacturing capabilities that satisfied their customers’ next-generation needs. 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.

My findings consistently showed that established firms confronted with disruptive technology change did not have trouble developing the requisite technology [...] Rather, disruptive projects stalled when it came to allocating scarce resources among competing product and technology development proposals [...] Sustaining projects addressing the needs of the firms’ most powerful customers [...] almost always preempted resources from disruptive technologies with small markets and poorly defined customer needs.

Successful companies want their resources to be focused on activities that address customers’ needs, that promise higher profits, that are technologically feasible, and that help them play in substantial markets. Yet, to expect the processes that accomplish these things also to do something like nurturing disruptive technologies—to focus resources on proposals that customers reject, that offer lower profit, that underperform existing technologies and can only be sold in insignificant markets—is akin to flapping one’s arms with wings strapped to them in an attempt to fly. Such expectations involve fighting some fundamental tendencies about the way successful organizations work and about how their performance is evaluated.

One of the dilemmas of management is that, by their very nature, processes are established so that employees perform recurrent tasks in a consistent way, time after time. To ensure consistency, they are meant not to change—or if they must change, to change through tightly controlled procedures. This means that the very mechanisms through which organizations create value are intrinsically inimical to change.

In order for a $40 million company to grow 25 percent, it needs to find $10 million in new business the next year. For a $40 billion company to grow 25 percent, it needs to find $10 billion in new business the next year. The size of market opportunity that will solve each of these companies’ needs for growth is very different. As noted in chapter 6, an opportunity that excites a small organization isn’t big enough to be interesting to a very large one. One of the bittersweet rewards of success is, in fact, that as companies become large, they literally lose the capability to enter small emerging markets.

Disruptive technology should be framed as a marketing challenge, not a technological one. ( )
  brikis98 | Nov 11, 2015 |
In this revolutionary bestseller, Harvard professor Clayton M. Christensen says outstanding companies can do everything right and still lose their market leadership -- or worse, disappear completely. And he not only proves what he says, he tells others how to avoid a similar fate.
  OHIOCLDC | Jul 1, 2015 |
Showing 1-5 of 21 (next | show all)
no reviews | add a review
You must log in to edit Common Knowledge data.
For more help see the Common Knowledge help page.
Series (with order)
Canonical title
Original title
Alternative titles
Original publication date
People/Characters
Important places
Important events
Related movies
Awards and honors
Epigraph
Dedication
First words
Quotations
Last words
Disambiguation notice
Publisher's editors
Blurbers
Publisher series
Original language
Canonical DDC/MDS

References to this work on external resources.

Wikipedia in English (5)

Book description
Haiku summary

Amazon.com Product Description (ISBN 0060521996, Paperback)

In this revolutionary bestseller, Harvard professor Clayton M. Christensen says outstanding companies can do everything right and still lose their market leadership -- or worse, disappear completely. And he not only proves what he says, he tells others how to avoid a similar fate. Focusing on "disruptive technology" -- the Honda Super Cub, Intel's 8088 processor, or the hydraulic excavator, for example -- Christensen shows why most companies miss "the next great wave." Whether in electronics or retailing, a successful company with established products will get pushed aside unless managers know when to abandon traditional business practices. 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. Find out: ?When it is right not to listen to customers. ?When to invest in developing lower-performance products that promise lower margins. ?When to pursue small markets at the expense of seemingly ?larger and more lucrative ones. Sharp, cogent, and provocative, The Innovator's Dilemma is one of the most talked-about books of our time -- and one no savvy manager or entrepreneur should be without.

(retrieved from Amazon Thu, 12 Mar 2015 18:14:25 -0400)

(see all 5 descriptions)

An analysis of the new business paradigm shows how firms that do "everything right" can nevertheless fail because of new technologies and disruptions in the market structure.

(summary from another edition)

Quick Links

Popular covers

Rating

Average: (3.93)
0.5 1
1 4
1.5
2 9
2.5 4
3 47
3.5 7
4 107
4.5 9
5 68

HighBridge Audio

An edition of this book was published by HighBridge Audio.

» Publisher information page

HighBridge

An edition of this book was published by HighBridge.

» Publisher information page

Is this you?

Become a LibraryThing Author.

 

About | Contact | Privacy/Terms | Help/FAQs | Blog | Store | APIs | TinyCat | Legacy Libraries | Early Reviewers | Common Knowledge | 129,527,366 books! | Top bar: Always visible