Create new value networks
Seek out new opportunities
Invest and experiment with technology
Adapt to disruptive technologies
The potential of disruptive technologies
About the author
Summary
Uber disrupted the traditional taxi industry by creating a new value network that connected drivers and riders through a mobile app.
Why it's important: Companies must be willing to adapt their business models to new value networks created by disruptive technologies. They must also be willing to collaborate with new partners and stakeholders.
How to implement it: Companies should actively seek out opportunities to collaborate with new partners and stakeholders in emerging value networks. They should also be open to new business models and revenue streams that may arise from disruptive technologies.
IBM became complacent with its mainframe business and failed to anticipate the rise of personal computers, which eventually led to a decline in revenue and market share.
Why it's important: Companies must continually seek out new opportunities and markets to maintain growth and avoid becoming stagnant.
How to implement it: Companies should encourage innovation and experimentation with new products, services, and markets. They should also be willing to pivot and adapt their business strategies as needed.
Early MP3 players had limited storage capacity and poor battery life compared to CD players, but eventually evolved into the dominant music player.
Why it's important: Companies should not dismiss inferior technology simply because it does not meet current standards. Disruptive technologies often have the potential to improve and eventually surpass existing technologies.
How to implement it: Companies should invest in and experiment with emerging technologies. They should also be open to new business models that may emerge from the disruptive technology.
Blockbuster prioritized its brick-and-mortar stores, which became obsolete with the rise of online streaming services like Netflix.
Why it's important: Companies must be willing to cannibalize their own products or services to stay ahead of disruptive technologies and maintain a competitive advantage.
How to implement it: Companies should be aware of their own biases and challenge the status quo. Leaders should prioritize innovation and encourage experimentation.
The introduction of digital photography disrupted the film photography market, eventually leading to the decline of major film manufacturers such as Kodak.
Why it's important: Companies need to recognize the potential of disruptive technologies and respond proactively to avoid being overtaken by competitors.
How to implement it: Companies should invest in research and development and be open to new ideas and technologies that may challenge existing products or services.
Adapt to disruptive technologies
Adapt to disruptive technologies
The potential of disruptive technologies
Invest and experiment with technology
Who is it for?
The potential of disruptive technologies
The Innovator's Dilemma explains how established companies can fail to adapt to disruptive innovation, even when they have the resources and expertise to do so. Christensen argues that successful companies often focus too much on improving their existing products and processes, and are therefore unable to recognize and respond to disruptive technologies that can create new markets and redefine industry dynamics.
The book presents several case studies of companies that failed to adapt to disruptive innovation, such as the steel industry and the hard drive industry, and identifies common factors that contribute to their downfall. Christensen also provides strategies for managing disruptive innovation, such as creating separate business units or acquiring small startups that are developing disruptive technologies.
Clayton M. Christensen is a distinguished professor of Business Administration at the Harvard Business School, holding the Kim B. Clark Chair. He is an accomplished author of nine books, with several becoming New York Times bestsellers. Among these books are The Innovator's Dilemma, The Innovator's Solution, Disrupting Class, and his most recent publication, How Will You Measure Your Life?.
Christensen is a co-founder of Innosight, a consultancy specializing in growth-strategy, and Rose Park Advisors, an investment firm. He is also a co-founder of the Christensen Institute, a non-profit think tank that focuses on applying his theories of disruptive innovation to societal issues.
For his contributions, Christensen has been named the world’s most influential business thinker by Thinkers50, twice: once in 2011 and then again in 2013.
Invest and experiment with technology
Create new value networks
Seek out new opportunities
Create new value networks
Seek out new opportunities
Clayton M. Christensen
The Innovator's Dilemma
When New Technologies Cause Great Firms to Fail
Product design, Business Strategy