Theories of Disruption

We study ‘Disruptive Business Models’  for our #Emeritus Program. Summary of this week discussion was noted in my blog for anyone interested.

Here are the notes  from the great book that was presented :

The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail?

  1. Market progress is separate from technology progress. Customers do not always know what they need.
  2. Innovation requires resource allocation which is extraordinarily difficult for disruptive technologies.
  3. Third: Disruptive technology needs a new market. Old customers are less relevant. Disruptive technology is a marketing problem, not a technological one.
  4. Organizations have narrow capabilities. New markets enabled by disruptive technologies require very different capabilities.
  5. Information required to make investment decisions does not exist. Failure and iterative learning are required.
  6. It is not wise to always be a leader or always a follower. Disruptive innovations reward leaders.
  7. Small entrant firms enjoy protection because they are doing things that do not make sense to the industry leaders

The Innovators > Clayton M. Christensen

 

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