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Thanks to Professor Clayton Christensen of Harvard University and his 1997 landmark book, The Innovator’s Dilemma , we have a new way of understanding the life cycle of companies and why some market leaders maintain their dominant position and other one-time market leaders disappear. WHAT IS A DISRUPTIVEINNOVATION?
Disruptiveinnovation is no longer the exception, it’s the rule. If we’re not proactively driving disruption, we’ll eventually need to react to it. And to top it off, most organizations are set-up to reward predictability and control – the exact opposites of what’s required to lead during disruptive times.
Without a disruptive focus you are merely building your business model on a “me too&# platform of mediocrity. Few things are more critical to your efforts in increasing your revenue growth and corporate sustainability than understanding the value of disruptiveinnovation. Is your business focused on disruptiveinnovation?
Technology has clearly paid a huge part in this, but the biggest driver of change in how organizations are run is the ceaseless quest for improvement; to manage more efficiently and effectively to better achieve business results. In The Innovator’s Dilemma , he looked at why companies struggle with radical innovation in their markets.
To Harvard professor Clayton Christensen, coauthor of How Will You Measure Your Life?, Bain & Company Ceramics Process Systems Corporation Clayton Christensen CPS Technologies Corporation Curtis W. a primary task of leadership is asking questions that anticipate great challenges.
The late Clayton Christensen wrote a little book called The Innovator’s Dilemma that many of you I’m sure have read. Many people think of it as a book about disruptiveinnovation, but it can be much more than that if … Continue reading →
Again, keep in mind that innovation and ideas are not one in the same. Disruptiveinnovation is rarely raw genius that bubbles-up, but rather the culmination of several things: a sound idea, vetted through great process, refined by innovative application and brought to market by outstanding leadership.
Paul Nunes and I have known each other for many years, and we’ve both been writing about the subject of disruptiveinnovation from different vantage points and different angles. Our observation was that that’s what he called the innovator’s dilemma; now it’s the innovator’s disaster.
For me and many other physicians, reading " Will DisruptiveInnovations Cure Health Care " by Clayton Christensen, Richard Bohmer, and John Kenagy in the September-October 2000 issue of Harvard Business Review was like having a light turned on. or a doctor's office. or a walk-in clinic in a drug store. or the patient's home.
Instead, longevity is based on entrepreneurial thinking and innovation – in exploring ways to adapt corporate and business strategies in response to market, technological, and social and cultural change. On reflection, though, I find that the evidence does not support competitive advantage as a path to longevity.
Or what if — as is the case today — current chip technology is nearing its theoretical limits , and a completely new architecture needs to be dreamed up? The Explainer: DisruptiveInnovation. Clay Christensen's landmark theory -- in under two minutes. Pathbreaking innovations never arrive fully formed.
Six years into my mid-career move, here are some lessons learned from my personal disruptive trajectory: If it feels scary and lonely, you're probably on the right track. The term "disruptiveinnovation" has become an industry buzzword. Your odds of success will improve when you pursue a disruptive course.
After a long and successful run, the theory of disruptiveinnovation has come under attack of late. In a recent Sloan Management Review article, Dartmouth professor Andrew King asked “ How Useful Is the Theory of DisruptiveInnovation? Fortunately, disruptiveinnovation does not have to. But not all.
The transformational force that has brought affordability and accessibility to other industries is disruptiveinnovation. Today's health-care industry screams for disruption. But disruption solves the more fundamental question: How do we make health care affordable?
Zipcar counts as a disruptiveinnovation. The latter is according to Clayton Christensen, Michael Raynor, and Rory McDonald in their recent HBR article “ What is DisruptiveInnovation?” ” They also write that “disruptiveinnovations originate in low-end or new-market footholds.”
In 1995, a young Harvard Business School Professor co-authored an article in Harvard Business Review , "DisruptiveTechnology: Catching the Wave." The most punishing innovations, they argued, were the ones that were easy to dismiss at first blush — simple, affordable solutions that took root outside the mainstream market.
The work of two of the most important scholars in the field, Clayton Christensen and Richard N. One of the key tipping points in a market occurs when a company, in Christensen's language, overshoots a given market tier by providing them performance that they can't use. Foster , suggests considering five questions: 1. Probably not.
But innovation theory can provide a crystal ball; theory could have predicted iTunes' success and it's currently predicting Spotify's success. To appreciate the truth of this claim, it's vital to understand one of Clayton Christensen's theories on marketing and product development: Jobs-to-be-done. It's business model innovation.
Much fanfare has been paid to the term “disruptiveinnovation” over the past few years. Christensen has even re-entered the fold clarifying what he means when he uses the term. Disruptiveinnovations are: Cheaper (from a customer perspective). Professor Clayton M.
Clayton Christensen's theories of innovation provide us a great lens through which we can understand this seeming paradox. When trying to build new growth businesses, Christensen observes that organizations need to employ an emergent strategy-making process. However, it will not succeed here.
Both articles espoused slightly new definitions of disruption, expanding the categorization of the world that Clay Christensen introduced us to more than 20 years ago. One of the articles reached millions of readers through one of the internet's most respected technology blogs. But the path of disruption is not.
How do you define innovation? What are different types of innovation? Innovation is more than whiz-bang technology; consider different strategic intents (e.g., create a new category, extend current business) or innovation mechanisms (e.g., What is disruptiveinnovation? Why is innovation so hard?
".most often the very skills that propel an organization to succeed in sustaining circumstances systematically bungle the best ideas for disruptive growth. An organization's capabilities become its disabilities when disruption is afoot." – Clayton Christensen, The Innovator's Solution. He was right.
Venture capitalist Chris Dixons declaration , after plunking $50 million down on Buzzfeed, that he was investing in a technology company has been causing a bit of head-scratching and gentle mockery in media circles. When Buzzfeed editors do it, its technology. Which you could, with some justification, call a technology.
Tesla clearly doesn’t qualify under the traditional definition of a disruptiveinnovation. In the model described by Clayton Christensen, a new entrant offers substitute products using technology that is cheaper but initially inferior to products offered by mature incumbents.
There are three founding partners : Clayton Christensen, Matt Christensen, and me. He's not only the controlling shareholder of Rose Park Advisors; our investment approach is based on his theory of disruptiveinnovation. When we meet with prospective investors, I don't speak much, and for good reason. But here's the rub.
As we grew, I knew it would be very difficult to continue to create the breakthrough innovations that had led to Medtronic's high growth rate, which had exceeded 18% per annum for a decade. Then I read Clay Christensen and Joe Bower's 1995 article "DisruptiveTechnologies: Catching the Wave" in HBR.
The wisdom of such a strategy has been discussed in business circles for years, most notably in the work of Harvard's Clayton Christensen ( The Innovator's Dilemma ). I interviewed Xerox's CEO Ursula Burns for my last book, Green Recovery , and asked her about this strategy. Maybe, but someone else doing it is much worse. ".
Loyalty programs are ripe for some kind of disruptiveinnovation that would make them easier to use. How Blockchain Works Here are five basic principles underlying the technology. Best known as the technology behind bitcoin, blockchain enables a ledger of transactions to be shared across a network of participants.
It was only a few years ago that Governor Deval Patrick poured some $58 million into the company and their much-lauded breakthrough solar technology (String Ribbon). By focusing on a straightforward insight: truly transformative industrial changes aren't driven by technologies replacing technologies , but by systems replacing systems.
Then again, maybe the real key to strategic success in the fast-moving fields Apple is playing in is to keep coming up with disruptiveinnovations — and be willing to bring them to market even when they disrupt its own products. Of course, modern technology businesses have some other unique strategic characteristics.
In his seminal work, The Innovator's Dilemma , Clayton Christensen made the point that for disruptiveinnovations to be pursued effectively, they require autonomous business units. Boston Mayor Thomas Menino has been quite successful using lean operations in his efforts to innovate. He was completely right.
Clayton Christensen first documented this phenomenon in his study of the disk drive industry , and found that new companies targeting existing customers succeeded 6% of the time, while new companies that targeted non-consumers succeeded 37% of the time. Disruptiveinnovation Entrepreneurship'
Four years ago, Craig Hatkoff, co-founder of the Tribeca Film Festival, approached me about a brainstorm: an event recognizing and celebrating breakthrough innovators. When I suggested to Clayton Christensen that we partner with Hatkoff to create the Tribeca DisruptiveInnovation Awards , Clay’s response was : I trust you Whitney.
Technologies like 3-D printing, robotics, advanced motion controls, and new methods for continuous manufacturing hold great potential for improving how companies design and build products to better serve customers. Why are older incumbent firms slow to adopt new technologies even when the economic or strategic benefits are clear?
In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. The idea was to transform his theory of disruptiveinnovation into an investment thesis. Disruptiveinnovation can take several forms, and the market understands some types better than others.
Through the past 15 years my colleagues and I have wrestled with disruption in many contexts. That’s no surprise, since Clayton Christensen co-founded our company in 2000, five years after his Harvard Business Review article with Joseph L. First, disruption directs you to look in places you might otherwise ignore.
Ballmer, whose skills were in many ways complementary to Gates'', took the helm of an already massive organization as it entered an era of relentless disruptiveinnovation by competitors. has reached a "technological plateau" and reenergizing economic growth will be extremely hard to do.
Disruption is a systemic problem: Clayton Christensen outlined in 1997 why it was so difficult for any individual business to defuse disruptive threats and embrace disruptive trends. But the corporate innovators we’ve talked to all know that. A problem where the solution is less readily apparent.
Recent corporate history is littered with successful established firms who failed to manage disruptiveinnovation even with full knowledge that it was coming. They knew digital photography was the future and invested heavily in hybrid technology in the hope of managing the transition from physical photo printing. It didn't work.
That was the essence of Jill Lepore’s essay last year in The New Yorker about the “disruption machine,” in which she argued that, “disruptiveinnovation is competitive strategy for an age seized by terror” and referred to startups as “a pack of ravenous hyenas” intent on blowing things up.
After all, it was hardly a new technology; the first radial tire patents had been filed more than 40 years before. This is the transformational and dramatic effect of a superior technology entering an industry. Tesla, Nespresso, and Geox are current successful examples of such high-end disruptions. Goodrich, and General Tire).
Consider the following examples: The #1 Management Thinker on the Thinkers 50 list is Clay Christensen , Harvard Business School professor and author of The Innovator's Dilemma , which introduced the idea of disruptiveinnovation. As one data point, while something in the range of 1.9% of the U.S.
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