An Executive Summary of. These organisations are not to be pressured into making a short term profit, but should instead be given a unique identity and allowed to create their market. WhoisClaytonChristensen ! "Business plans" should instead be "learning plans". 1-Sentence-Summary: The Innovator’s Dilemma is a business classic that explains the power of disruption, why market leaders are often set up to fail as technologies and industries change and what incumbents can do to secure their market leadership for a long time. But when two or more vendors improve to the point that they more than satisfy the reliability demanded by the market, the basis of competition shifts to convenience. Whether a firm was a start-up or a diversified firm had little impact on its success rate. The dilemma itself is the fact that though large innovators have some motivation to innovate, they also have a strong disincentive from doing so as new products will undermine their existing ones. The Innovator's Dilemma @inproceedings{Christensen1997TheID, title={The Innovator's Dilemma}, author={Clayton M. Christensen}, year={1997} } Clayton M. Christensen; Published 1997; Sociology; When I began my search for an answer to the puzzle of why the best firms can fail, a friend offered some sage advice. Occasionally, however, disruptive technologies emerge: technologies that result in worse product performance, at least in the near-term. Based on a truly radical idea—that great companies can fail precisely because they do everything right—this Wall Street Journal, Business Week and New York Times Business bestseller is one of the most provocative and important business books ever written. Creating a new market is less risky and more rewarding than entering established markets: The evidence from the disk drive industry shows that creating new markets is significantly less risky and more rewarding than entering established markets against entrenched competition. Case built a market for excavators among residential contractors, where small buckets and tractor mobility actually created value; and Nucor found a market that didn’t mind the surface blemishes on its thin-slab-cast sheet steel.”. New organizations innovate easier with disruptive technologies because they are not tied to outdated values or organizational norms. Hence, most companies with a practiced discipline of listening to their best customers and identifying new products that promise greater profitability and growth are rarely able to build a case for investing in disruptive technologies until it is too late.”. Incumbent sized deals: The incumbent has the luxury of a huge customer set but high expectations of yearly sales. The numbers beneath the matrix show that only three of the fifty-one firms (6 percent) that entered established markets ever reached the $100 million revenue benchmark. The Innovator's Dilemma by Harvard Business School professor Clayton Christensen. Because much less can be known about what markets need or how large they can become, plans must serve a very different purpose: They must be plans for learning rather than plans for implementation.". The Revolutionary Book That Will Change the Way You Do Business An important finding revealed in this book is that rarely have even the most radically difficult sustaining technologies precipitated the failure of leading firms. For this reason, the next generation product is not being built for the incumbent's customer set and this large customer set is not interested in the new innovation and keeps demanding more innovation with the incumbent product. Extremely insightful and in contrast to common wisdom at the time of publishing born on 6. To launch products of disruptive technology generated $ 1.9 billion in total revenue organizations to pursue disruptive technology is to. 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