The Innovator's SolutionThursday, May 05, 2005
I am afraid I cannot recommend this book. It wonders around in theory and academic analysis and never says anything practical. The imagined "solution" is so complex and ethereal that even the authors admit they know of no company that has successfully implemented the "solution". A waste of time for any real solution.
1 out of 1 people found the following review helpful:
TOWARD A COMPREHENSIVE THEORY OF DISRUPTION IN ECONOMICSTuesday, April 19, 2005
Prof Christensen, in this concise book, aims to develop a theory to explain how disruption occurs (much of which he had already done in Innovator's Dillemma) and how companies can position themselves to defend their markets, exploit opportunities in disrupted markets, and tell the difference between incremental market improvements and disruptions.
Disruption, he describes convincingly, usually occurs at the "bottom" of the market, where new companies compete mainly with non-consumption and powerful incumbents would not mind. The best example I found was used in many different chapter, was that of department stores being moved to high margin clothing by discounters and category killers. The disruptors came in and took the most undesirable parts of the business and built a model to make it economical.
The most brilliant insight, however, I found to be the effect when the disruption is complete, that is, when the original incumbent is driven out of the market. Then margins fall precipitously, since the marginal cost now is at the disruptor rather than the disruptee.
A manager facing a disrupted industry would do well to read this book. In it, there are simple pieces of advice on how a company should organize to gain the agility to implement a disruptive model, even if originating within the incumbent. You will read it and immediately start looking for disruptions all around you, eager to find one that can be exploited. The model developed is very interesting, as the authors spend quite a bit of writing on the underpinnings of the theory. Overall, it is a very useful book, though if you are a practical businessman (rather than one interested in and who finds theories helpful) you will likely not enjoy it. Theorists in business would be the best atrget audience.
Generating GrowthFriday, April 15, 2005
The Innovator's Dilemma concentrated on the forces that tend to cause established companies to do things that eventually lead to their downfall in the face of disruptive innovation. There was some discussion about how the company can structure the group to face the disruptive innovation, but in generalities rather than specifics.
The Innovator's Solution is really more concentrated on producing new growth through disruptive markets rather than on maintaining dominance in the presence of disruptive innovation. That being said, the specific details on generating new growth areas are equally applicable to avoiding being toppled by a new entrant.
Particularly good is the emphasis on what circumstances are important for success & failure. Most of the examples are very applicable, but some are stonger than others. Some have mentioned the milkshake example of being particularly weak, but I don't agree that it is worthless. Yes, the problem being addressed is a marketing research problem, but that is directly applicable to the circumstances in that case. There were other, stronger examples of identifying how to compete against non-consumption, but if viewed as a simple, pedagogical example, it does serve to show an application of what was just discussed.
I enjoyed this very much and if you liked The Innovator's Dilemma, this will leave you feeling much less fatalistic.
3 out of 3 people found the following review helpful:
Surpasses "The Innovator's Dilemma"Tuesday, January 04, 2005
This book crisply explains the meaning of disruptive innovation
in business. While many of the examples of disruption are
technological innovations, many other examples are
not technological. Nor are the technological examples all
high technology.
The authors go on to explain why companies fail to embrace
disruptive innovation and give some advice for how
companies can change to sustain growth through disruption.
Understand though that the authors admit (or claim) that no
company have managed to sustain innovation through disruption
across two or more CEOs.
Even if you aren't in management, as an employee this
book might be of use in helping you understand why your
company is winning or losing, and what to look for in
a future employer.
2 out of 4 people found the following review helpful:
Every Page Gave Me a New IdeaMonday, October 11, 2004
Great combination of "egg head" business theory and practical techniques. If you're in the technology world your head will spin with all the new ideas this book will generate.