The Innovator's Dilemma

This is consistent with the findings reported by Arnold Cooper and Dan Schendel in "Strategic Responses to Technological Threats," Business Hori zons, February, 1976, 61-69

Clayton M. Christensen


Scholarcy highlights

  • This book is about the failure of companies to stay atop their industries when they confront certain types ofmarket and technological change
  • It's not about thefailure ofsimply any company, butoigoodcompanies—the kinds that many managers have admired andtried to emulate, thecompa nies known for their abilities to innovateand execute
  • Instead, itlooked as though everybody in its organiza tion did the right thing, and naturally. Their cumulative effect was to create an extraordinary powerhouse of a company." Yet no one speaks about Sears that way today
  • If good management practice drives the failure of successful firms faced with disruptive technological change, thenthe usualanswers to companies' problems—planning better, working harder, becoming more customerdriven, and taking a longer-term perspective—all exacerbate the problem
  • The first is that the disruptive innovations were technologically straightforward
  • An important corollary is that, because markets for disruptive technologies are unpredictable, companies' initial strategies for entering these markets will generally be wrong. How does this statement square with the findings presented in Table 6.1, which showed a stunning difference in the posterior probabilities of success between firms that entered new, emerging value networks and those that entered existing value networks? If markets cannot be predicted in advance, how can firms that target them be more successful? when I have shown the matrix in Table 6.1 to managerial audiences, they are quite astonished by the differences in the magnitudes and probabilities of success
  • "This book provides new insight into why certain major companies of today will succeed and others willfail—each depending on how successfully they adapt to changes in technology.The concept of sustained technologies as contrasted with disruptive technologieswill become a fundamental part ofour thinking as Clayton Christensens ideas are more widely disseminated

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