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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 DISRUPTIVE INNOVATION?
Disruptive Innovation (per the Christensen model) generally takes place in an industry dominated by an oligopoly and having an unserved segment ( towards the lower end in terms of profit margins and product capability) which attains visibility as a result of technological expansion in what is most of the time, a non-related field.
Wharton School of Finance. Clayton Christensen. Gianpiero Petriglieri. gpetriglieri. Karl Moore. McGill University. profkjmoore. Ian McCarthy. Beedle School of Business. Toffeemen68. Stew Friedman. stewfriedman. CV Harquail. Howe School of Business. cvharquail. Terri Griffith. Santa Clara University. terrigriffith. Bret Simmons.
Moore and Christensen tell us what to do, but their prescription is rarely followed. David Locke Innovation fails because of management, not the innovation. Unfortunately the approach you are taking is standard management, which in the case of discontinuous/radical/disruptive innovations fails. I look forward to hearing more from you.
Clayton Christensen would agree with the intuition that Groupon displays but ignores: businesses should become profitable before they become big. Finally, reaching profitability quickly ensures that when outside financing dries up, the venture can succeed on its own.
It's an essential primer on the history and current state of finance. Christensen, The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.
It's an essential primer on the history and current state of finance. Christensen, The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail.
A similar proposal to Split Finance would likely have been rejected out of hand by organization leaders (and Harvard Business Review editors), because its obvious that the Finance function must fit the organization strategy and leader capabilities. Yet this evidence is apparently not well-known.
Just as we wouldn’t rely on a single marketing tactic or a single source of financing for the entire life of an organization, we need to build up a portfolio of innovation strategies designed for specific tasks. Clay Christensen's landmark theory -- in under two minutes. Related Video. The Explainer: Disruptive Innovation.
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. They’ve read Christensen’s book The Innovator’s Dilemma. Asset-light businesses are not financed with debt.
Our research suggests that investors like us succumb time and again to narrative fallacies, a well-studied behavioral finance bias. Barriers to entry are decreasing and disruptive entrants are surging, a recipe that both Michael Porter and Clayton Christensen could agree augurs poorly for industry returns.
Our research suggests that investors like us succumb time and again to narrative fallacies, a well-studied behavioral finance bias. Barriers to entry are decreasing and disruptive entrants are surging, a recipe that both Michael Porter and Clayton Christensen could agree augurs poorly for industry returns.
"Competition" has changed when individuals can create value through a centralized network of resources: for example, designing a product from anywhere, producing it through a 3D factory , financing it through community and distribution from anywhere to anywhere. Many of you know of Clay Christensen's iconic work the Innovators Dilemma.
As Clayton Christensen likes to note , the primary job of leadership today is to “source, assemble, and ship numbers.” Thought leaders like Christensen, Roger Martin , Michael Porter , and Steve Denning have all argued that shareholder value has been exposed as a flawed paradigm. No, it’s to maximize shareholder value.
Listening to Amazon's finance chief Tom Szkutak explain the miss, it was immediately apparent that Amazon's problem was not with the top line. More recently, Christensen has acknowledged that perhaps Apple, the most valuable publicly traded company in the world, achieved the task. per share by nearly a dime.
They represent the logical extension of a topic that’s captured the attention of a lot of great business minds for some time: the ongoing battle between those who view companies through the lens of building something, and those that view it through the lens of finance. Economy Finance' The arguments against doing so continue to mount.
There are three founding partners : Clayton Christensen, Matt Christensen, and me. When we meet with prospective investors, I don't speak much, and for good reason. When Clay is in the room, people want to hear from him. But here's the rub. To get women talking, here are three suggestions: 1) Invert the listen/talk ratio.
Although this only concerns my personal finances, the fact that I serve as editor in chief of Harvard Business Review means I've implicitly accepted not only responsibility for defending the integrity of the institution, but also for having integrity myself. Every situation is unique, but one's values can serve as a constant guide.
To start, here’s how things have gone for the main broad job categories (and three smaller ones of interest: finance, construction, and information) since 1980: The most remarkable line in the chart is education and health services, which just keeps rising and rising, paying no mind whatsoever to the rest of the economy.
Michael Mauboussin doesn't write about innovation, but his clear writing that blends finance, strategy, and psychology puts him on my list. The duo (who are affiliated with Innosight) wrote a great book with Clayton Christensen last year called The Innovator's DNA. Some readers have asked why I put A.G. Jeffrey Dyer and Hal Gregersen.
Well, he's a hedge fund veteran who has always taken a skeptical view of Wall Street, treating it more as a loopy rich uncle than the efficient information processor of standard finance theory. Clayton Christensen has long complained that standard financial metrics can be enemies of innovation and growth. Most turn out not to.
To paraphrase from "The Music Man," I am a sadder but definitely a wiser girl after this first encounter with venture financing, as this experience has become a well of lessons from which I draw daily in my personal and professional life. My husband and I lost a painful lot of money. It was devastating. Lesson 1: Set clear boundaries.
An organization's capabilities become its disabilities when disruption is afoot." – Clayton Christensen, The Innovator's Solution. ".most often the very skills that propel an organization to succeed in sustaining circumstances systematically bungle the best ideas for disruptive growth.
In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. Without theory to tell us how the rules are changing, many tools of management and finance seem to break down. Disruptive innovation Finance' But do markets really follow the logic of an academic theory?
Demand response, grid management, solar financing and installation, and electric vehicle infrastructure companies might fit this bill. By focusing on a straightforward insight: truly transformative industrial changes aren't driven by technologies replacing technologies , but by systems replacing systems.
If you are a growth-obsessed startup and venture capital financing dries up and buyers grow scarce, you can run out of money. Harvard scholar (and Innosight co-founder) Clayton Christensen guides innovators to be "patient for growth, and impatient for profits." A pure focus on growth carries risks.
We don’t know enough of its finances to know precisely how successful it has been, but with tens of millions of viewers and sponsorship packages north of $2 million, it is a good bet that ESPN has done well on its bet. But different is not disruptive.
Gary, a finance executive, told me, “Sitting at the desk checking your most recent Twitter feed while you wait for someone to give you something to do is one of the best ways to not get an invite back.” Renowned management thinker Clay Christensen recommends spending time formulating the right questions.
Between your idea and the helm, there are legal departments, finance departments, marketing departments, other business units, channel partners, and sometimes even your customers. As Clay Christensen often points out, successful companies are designed to capitalize on sustaining innovations that jibe with their existing business models.
Transformational CEOs Tend to be “Insider Outsiders” The list is topped by companies headed by visionary founders with no prior experience in their industries; Jeff Bezos came from the world of finance, and Reed Hastings from software. Clay Christensen , Professor at Harvard Business School and Innosight co-founder.
Christensen. Buckle down on your finances. Neglect your finances so that when you want to make a change, you don’t feel able to. Case study #2: Get your finances in order. Find people who are doing what you think you want to do and ask them lots of questions. Further Reading. How Will You Measure Your Life?
And Clay Christensen talked about the increasing pace of disruption across all sectors. At least in the US, we seemed to have developed a sort of allergy to the idea of a CEO getting into policy-shaping.
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