What do the Honda Supercub, Intel's 8088 processor, and hydraulic excavators have in common? They are all examples of disruptive technologies that helped to redefine the competitive landscape of their respective markets. These products did not come about as the result of successful companies carrying out sound business practices in established markets. In The Innovator's Dilemma, author Clayton M. Christensen shows how these and other products cut into the low end of the marketplace and eventually evolved to displace high-end competitors and their reigning technologies. At the heart of The Innovator's Dilemma is how a successful company with established products keeps from being pushed aside by newer, cheaper products that will, over time, get better and become a serious threat. Christensen writes that even the best-managed companies, in spite of their attention to customers and continual investment in new technology, are susceptible to failure no matter what the industry, be it hard drives or consumer retailing. Succinct and clearly written, The Innovator's Dilemma is an important book that belongs on every manager's bookshelf. Highly recommended. --Harry C. Edwards
When new technologies become available, how do established companies take advantage of these innovations without disrupting existing relationships with customers and stockholders? The managerial formula that solves this dilemma is far from simple, but this abridgment of the author's 1997 book will be easily understood by anyone interested in technological revolutions. The clarity of these broad-brush ideas is just plain fascinating. The reader's gravity and dramatic precision will be distracting for many people, but only for the first few minutes. After that, the big ideas in this program take over and captivate the listener's attention. T.W. © AudioFile 2001, Portland, Maine-- Copyright © AudioFile, Portland, Maine
The author, an associate professor at Harvard Business School, asks why some well-managed companies that stay on top of new technology and practice quality customer service can still falter. His own research brought a surprising answer to that question. Christensen suggests that by placing too great an emphasis on satisfying customers' current needs, companies fail to adapt or adopt new technology that will meet customers' unstated or future needs, and he argues that such companies will eventually fall behind. Christensen calls this phenomenon "disruptive technology" and demonstrates its effects in industries as diverse as the manufacture of hard-disk drives and mass retailing. He goes on to offer solutions by providing strategies for anticipating changes in markets. This book is another in the publisher's Management of Innovation and Change series. David Rouse
The New York Times, November 3, 1999
"[The book] has become the book to read among mainstream managers trying to dope out an Internet strategy."
Business Week, June 28, 1999
"The Innovator's Dilemma... has become required reading for Internet managers."
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail
This lucid and provocative analysis of corporate failure should be required reading for CEOs and managers. It`s not about small or mismanaged companies, but of sterling national and international corporations that failed in large measure because they were customer-oriented and did everything right. This is succinctly pointed out by the author in the subtitle of his publication, `When New Technologies Cause Great Firms to Fail`. Herein lies the crux of the dilemma as Dr. Christensen analyzes not only why great companies fail, but also discusses and examines the concepts and issues of managing disruptive technological change. Certainly incompetence, arrogance and bureaucracy deserve a share of the credit, but the patterns of failure are far more fundamental and go deeper. Dr. Christensen is associated with the Harvard Business School.
FROM THE PUBLISHER
This book takes the radical position that great companies can fail precisely because they do everything right. It demonstrates why outstanding companies that had their competitive antennae up, listened astutely to customers, and invested aggressively in new technologies still lost their market leadership when confronted with disruptive changes in technology and market structure. And it tells how to avoid a similar fate. Using the lessons of successes and failures of leading companies, The Innovator's Dilemma presents a set of rules for capitalizing on the phenomenon of disruptive innovation. These principles will help managers determine when it is right not to listen to customers, when to invest in developing lower-performance products that promise lower margins, and when to pursue small markets at the expense of seemingly larger and more lucrative ones.
In his cut-to-the-core wake-up call to all
businesspeople, Christensen proves that even the
greatest companies can be destroyed by new
technologies. According to a recent Forbes cover story, The
Innovator's Dilemma ought to chill any executive who
feels bulletproof -- and inspire entrepreneurs aiming their guns."
FROM THE CRITICS
This book ought to chill any executive who feels bulletproofand inspire entrepreneurs aiming their guns.
When new technologies become available, how do established companies take advantage of these innovations without disrupting existing relationships with customers and stockholders? The managerial formula that solves this dilemma is far from simple, but this abridgment of the author's 1997 book will be easily understood by anyone interested in technological revolutions. The clarity of these broad-brush ideas is just plain fascinating. The reader's gravity and dramatic precision will be distracting for many people, but only for the first few minutes. After that, the big ideas in this program take over and captivate the listener's attention. T.W. © AudioFile 2001, Portland, Maine
The Innovator's Dilemma is becoming a handbook for CEOs remaking their businesses for the Net.
Christensen marshals so much data and analysis in support of his position that he makes a powerful case.
WHAT PEOPLE ARE SAYING
. . .is absolutely brilliant. Michael R. Bloomberg
This book addresses a tough problem that most successful companies will face eventually. It's lucid, analytical–and scary. (Dr. Andrew S. Grove, chairman & CEO, Intel Corporation) Andrew S. Grove
[A] masterpiece...The most profound and useful business book ever written about innovation. (George Gilder, Gilder Technology Report) George Gilder
Clayton Christensen's groundbreaking book...brings fresh insight and understanding to the complex and critically important relationships between technological change and business success...His conclusions provide food for thought for the top management of every company. (Richard N. Foster, Director, McKinsey & Company) Richard N. Foster
The Innovator's Dilemma captures the critical role of leadership in creating markets. (John Seely Brown, chief scientist, Xerox Corp., and director, Xerox Parc) John Seely Brown
Absolutely brilliant. Clayton Christensen provides an insightful analysis of changing technology and its importance to a company's future success. (Michael R. Bloomberg, CEO & Founder, Bloomberg Financial Markets) Michael R. Bloomberg
This is a compelling argument, thoroughly researched and superbly written, which challenges conventional theory. (Jon Hughes, Supply Management) Jon Hughes
I cannot recommend this book strongly enoughignore it at your peril. (Martin Fakley, Information Access) Martin Fakley