Clayton Christensen

The important thing is that over time, scientific progress transforms things that used to have to be dealt with in a problem-solving mode down to the pattern-recognition space; and from pattern recognition into the rules-based mode. This is the mechanism by which less-trained people are enabled to do more sophisticated things. This is always the way disruption happens. It enables a larger population of less-experienced … [ Read more ]

Clayton Christensen

Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But… in the absence of sufficient information… management has to provide the coordinating mechanism between what the supplier provides and what the user needs… Management always beats markets when there is not sufficient information.

Clayton Christensen

The outsourcing gurus have been…saying everybody ought always to do this. But it is really contingent on where you are on the spectrum from “not good enough” to “more than good enough,” relative to each tier of the market. It is when the product is not good enough that proprietary integration gives you a competitive edge. You cannot outsource and be competitively successful in this … [ Read more ]

Clayton Christensen

When there are unpredictable interdependencies, the integrated player is going to win… If I know what to spec, and I can measure it, and there are no unpredictable interdependencies between what you do and what I must do in response, then an economist would say that is sufficient information for a market to emerge between you and me.

Clayton Christensen

The capabilities of business units reside in their processes and their values, and by their very nature, processes and values are inflexible and meant not to change.

Clayton Christensen

When management waits until the data is clear, the game is over. But that means management has to take action on a theory rather than evidence. Unfortunately, the word theory gets a bum rap at the Harvard Business School and in business in general because it’s associated with the term theoretical, which connotes impractical. But actually theory is very practical. It says this will happen … [ Read more ]

Clayton M. Christensen, Scott Cook and Taddy Hall

Purpose brands create enormous opportunities for differentiation, premium pricing and growth. But reckless management can erode the equity of these brands. There are only two ways to extend brands without destroying them: Marketers can apply the brand to different products that address the same job. Or they can apply the brand to endorse the quality of products that do other jobs and create new purpose … [ Read more ]

Should You Reinvent Your Business Model?

HBR interviews Clayton Christensen about how disruptive innovation and business model reinvention are linked.

Mark W. Johnson, Clayton M. Christensen, and Henning Kagermann

One way to generate a precise customer value proposition is to think about the four most common barriers keeping people from getting particular jobs done: insufficient wealth, access, skill, or time.

Think Like A ‘Disrupter’

How can other companies write their own disruptive success stories? We have found the following five principles to be a good starting point.

Seeing What’s Next: Using Theories of Innovation to Predict Industry Change

When a disruptive innovation is launched, it changes the entire industry and every firm operating within it. This book argues that it is possible to predict which companies will win and which will lose in a specific situation–and provides a practical framework for doing so. Most books on innovation–including Christensen’s previous two books–approached innovation from the inside-out, showing firms how they can create innovations inside … [ Read more ]

The Innovator’s Solution: Creating and Sustaining Successful Growth

Christensen (The Innovator’s Dilemma) analyzes the strategies that allow corporations to successfully grow new businesses and outpace the other players in the marketplace. Christensen’s earlier book examined how focusing on profits can destroy even well-run corporations, while this book focuses on companies expanding by being “disruptors” who are able to outpace their entrenched competition. The authors (Christensen is a professor at Harvard Business School and … [ Read more ]

The Innovator’s Battle Plan

Great firms can be undone by disruptors who analyze and exploit an incumbent’s strengths and motivations. From Clayton Christensen’s new book Seeing What’s Next.

Six Keys to Building New Markets by Unleashing Disruptive Innovation

Managers know they need growth to survive-but innovation isn’t easy. In this Harvard Management Update article, HBS professor Clayton Christensen and co-authors detail the six keys to creating new-growth businesses.

Disrupt And Prosper

CIOs at established companies can help identify and foster disruptive innovation to ensure future growth in existing and emerging markets.

Assessing Your Organization’s Innovation Capabilities

This is an excellent article from the author of The Innovator’s Dilemma. It discusses his Resources-Processes-Values (RPV) framework for evaluating an organization’s ability to innovate successfully. The author argues that most organizations focus too heavily on the most flexible variable – the resources whereas the less flexible processes and values have a greater importance on the success of new business initiatives.

Editor’s … [ Read more ]