The Innovator’s Dilemma by Clayton Christensen summary
When New Technologies Cause Great Firms To Fail
Well-managed firms fail because they listen to their customers, invest in technologies that will provide their customers with better products that will promise the best returns.
There are times when it is right not to listen to customers, to invest in low-performance products with lower margins and aggressively pursue small markets.
Innovation can be a change in marketing, investment, and managerial processes.
The pace of technology can progress past the market’s needs.
Sustaining technologies foster improved product performance.
Disruptive technologies result in worse product performance in the short term.
Disruptive products are simpler and cheaper and promise lower margins, not greater profits.
Set up an autonomous organization to build new and independent businesses around disruptive technology.
Keeping close to your customers can sometimes be a fatal mistake.
Conserving enough resources so that new businesses can get a second or third stab at getting it right leads to success.
Organizational capacities should reside in its people to change and address new problems, not its processes and values.
Customers prefer convenient products and vendors who are convenient to deal with.
Make your product convenient to use and simpler by watching how customers use it, not by listening to what they or the experts say they need. Make it progressively simpler and more convenient rather than more functionality.
Products that exceed market demands suffer commodity-like pricing, while disruptive products that redefine the basis of competition command a premium.
Disruptive technologies are a marketing challenge, not a technological one.
Managers who don’t bet the farm on their first idea, who leave room to try, fail, learn quickly, and try again, can understand their customers and technology to commercialize disruptive innovations.
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