The Innovaor's Dilemma by Clayton Christensen - The Diigo Meta page

• 10 Jan 15
  

  Marc/o Gagnon

  IND6128 mktg produit innovation

  • a theory about how large, outstanding firms can fail "by doing everything right."
  • Christensen describes two types of technologies: sustaining technologies and disruptive technologies.
  • Sustaining technologies are technologies that improve product performance.
  • Disruptive technologies are "innovations that result in worse product performance, at least in the near term." They are generally "cheaper, simpler, smaller, and, frequently, more convenient to use." Disruptive technologies occur less frequently, but when they do, they can cause the failure of highly successful companies who are only prepared for sustaining technologies.
  • disruptive technologies cause problems because they do not initially satisfy the demands of even the high end of the market. 
  • Disruptive technologies, however, eventually surpass sustaining technologies in satisfying market demand with lower costs.
  • Large companies have certain barriers to innovation which make it difficult to invest in disruptive technologies early on.
  • Large companies also have an established customer base whom they must be accountable to.  These customers often ask for better versions of current products rather than completely new technologies.
  • Customers are a substantial barrier to innovation.
  • The answer lies in firms being able to identify, develop and successfully market emerging, potentially disruptive technologies before they overtake the traditional sustaining technology.
  • Christensen states, “markets that do not exist cannot be analyzed."  One cannot predict what the market or probability of success will be for these emerging technologies.
  • In trying to solve the Innovator’s Dilemma, managers should leave room for failure in their planning, and be willing to invest in what may be a potentially disruptive technology.
  • Christensen suggests that firms need to provide experimental groups within the company a freer rein.
  • In short, there are many variables involved in solving the Innovator’s Dilemma with few lifelines along the way.

  12 more annotations...

• 04 Nov 13
  

  Jaekwan Kim
• 02 Sep 12
  

  cassabeans

  innovation

  •  Disruptive technologies, however, eventually surpass sustaining technologies in satisfying market demand with lower costs.  When this happens, large companies who did not invest in the disruptive technology sooner are left behind.  This, according to Christensen, is the "Innovator's Dilemma."
  • One cannot predict what the market or probability of success will be for these emerging technologies.  Therefore, managers need to engage in discovery-driven planning, in which they operate on the assumption that new markets can not be analyzed and instead rely on learning by doing and real-time adjustment of strategy and planning.  The key obstacle to success with this approach is the stigma of failure in many firms. 
  • “markets that do not exist cannot be analyzed."
  • “With a 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.”
  • "Discovering markets for emerging technologies inherently involves failure, and most individual decision makers find it very difficult to risk backing a project that might fail because the market is not there." 

  3 more annotations...

• 13 Aug 12
  

  Karen Keiller

  ifla2012

• 28 Mar 12
  

  don deka

  innovation Strategy books Business corporate culture innovation_management

• 19 Jan 12
  

  Bill McQueen

  Strategy books Business innovation

• 15 Nov 11
  

  William Eggers

  disruptive disruptive innovation

• 02 Aug 10
  

  kin wbs

  "The Innovator's Dilemma describes companies whose successes and capabilities can actually become obstacles in the face of changing markets and technologies. "

  Innovation

• 07 Jul 10
  

  jon mannion

  innovation disruptive_technology christensen litReview2010

• 20 Aug 09
  

  Bruce Lewin

  The Innovator's Dilemma
  
  In his book, The Innovator's Dilemma [3], Professor Clayton Christensen of Harvard Business School describes a theory about how large, outstanding firms can fail "by doing everything right." The Innovator's Dilemma, according to C

  innovation disruptive clayton-christensen disruption change

• 20 Mar 09
  

  dazzleopia
• 09 Nov 08
  

  Wesley Fryer

  disruptivetechnology technology education school

• 14 Jun 07
  

  darwinianvision

  Business books Strategy

  • The Innovator's Dilemma describes companies whose successes and capabilities can actually become obstacles in the face of changing markets and technologies.

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