Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail
AUTHOR: Clayton Christensen
The Innovator’s Dilemma is the most well-known work of the Harvard professor and businessman Clayton Christensen.
The book suggests that successful companies can put too much emphasis on customers’ current needs, and fail to adopt new technology or business models that will meet their customers’ unstated or future needs. He argues that such companies will eventually fall behind.
Companies fail due to several reasons such as arrogance, poor planning, bad management, lack of skill and resources, bad customer service and other weaknesses. But companies that are studied in this book are not such companies with weaknesses, but well-managed companies that invest aggressively on technology; takes customer feedback and listens to the competitive market.
Failure of well-managed, competitive, aggressive leading firms usually will never happen due to sustaining technology. It is disruptive technology that creates almost all the failures. Click on the links below if you want to jump to specific sections of the notes.
- START FROM BEGINNING
- LETS START WITH SOME EXAMPLES
- SUSTAINING TECHNOLOGY
- DISRUPTIVE TECHNOLOGY
- WHY BIG BUSINESSES FAIL DUE TO DISRUPTIVE TECH
- REASONS FOR FAILURE
- BIG BUSINESSES DON’T LIKE SMALL MARKETS
- MARKET THAT DON’T EXIST CANT BE ANALYZED
- GETTING FEEDBACK FROM EXISTING CUSTOMERS WILL KILL YOU
- TECHNOLOGY SUPPLY MAY NOT EQUAL MARKET DEMAND
- ORGANIZATIONS CAPABILITIES CAN BE A DISABILITY
- UNDERSTANDING VALUE NETWORK
- UNDERSTANDING S-CURVE OR INNOVATION CURVE
- PATTERNS OF WRONG DECISIONS BY ESTABLISHED FIRM
- HOW TO HANDLE DISRUPTIVE TECHNOLOGY ?