THE INNOVATOR’S DILEMMA: WHEN NEW TECHNOLOGIES CAUSE GREAT FIRMS TO FAIL by!ClaytonChristensen! Christensen's strength lies in seeing the way out of the trap: embed the disruptive technology initiative in a separate organization (subsidiary) or a geographically remote laboratory. The" Innovator's Dilemma" demonstrates why outstanding companies that had their competitive antennae up, listened astutely to customers, and invested aggressively in new technologies still lost their market dominance. Tools. “First, disruptive products are simpler and cheaper; they generally promise lower margins, not greater profits. The Innovator’s Dilemma ; WRITING YOUR REPORT: You must submit either a Word document or a Google document (please do not send an Apple .pages file) Write at least your name and the date at the top of the first page; OR create a separate cover page. ]: Harvard Business School Press, 1997. Innovation guru Clayton M. Christensen has been pessimistic about whether established companies can prevail in the face of disruption, but Charles A. O’Reilly III and Michael L. Tushman know they can! 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His work is cited by the world's best known thought leaders, from Steve Jobs to Malcolm Gladwell. An innovation classic. One of this text's strong points is the wide variety of examples the author provides, extending beyond computing technology. Please use this display as a guideline and modify as needed. APA Citation. When I began my search for an answer to the puzzle of why the best firms can fail, a friend offered some sage advice. No matter the industry, he says a successful company with established products WILL get pushed aside unless managers know how and when to abandon traditional business practices. It’s easier to hold to your principles 100% of the time than it is to hold to them 98% of the time. Christensen—who recently authored the award-winning Harvard Business Review article "How Will You Measure Your Life"—explains why most companies miss out on new waves of innovation. The Innovator's Dilemma, according to Christensen, describes companies whose successes and capabilities can actually become obstacles in the face of changing markets and technologies. The sobering idea presented by Christensen is that the very method by which good managers in successful firms make decisions sows the seeds of eventual failure. In every case, the leaders of one generation of disk drives (14-inch, 8-inch, 5.25-inch, and so on) were displaced during the next. The Innovator's Dilemma is of interest to requirements and acquisition community stakeholders because the department relies on both sustaining and disruptive technological solutions to maintain its advantage. 2. His answer is surprising and almost paradoxic: it is actually the same practices that lead the business to be successful in the first place that eventually can also result in their eventual demise. In this classic bestseller, innovation expert Clayton M. Christensen shows how even the most outstanding companies can do everything right—yet still lose market leadership. See Rebecca M. Henderson and Kim B. Clark, "Architectural Innovation: The Reconfiguration of Existing Systems andtheFailure of Established Firms" Administrative Science Quarterly (35), 1990, 9-30. Estimating the Innovator’s Dilemma: Structural Analysis of Creative Destruction in the Hard Disk Drive Industry, 1981–1998. A sustaining technology is either incremental or radical (discontinuous), but maintains a consistent performance trajectory and provides a consistent basis for competition. This practical recommendation, though by no means trivial to implement, is an obvious starting point. Having established a foothold, the new product then moves upmarket, along competitive dimensions that favor the disruptive technology. Warning: These citations may not always be 100% accurate. Edison's light bulb is just a clever kludge—indeed, inferior to illuminating gas—without the right of way for the wires and generators needed to deliver electricity. There, a smaller-scale market matches the size of the nascent technological initiative. The Innovator’s Dilemma. and Jason Hwang M.D. ClaytonChristensen,!a!professor!at!the!prestigious!HarvardBusiness!School,!has!writtenmany!books!that!have! The footnotes, which make for excellent reading, contain useful references for further research. The Innovator's Prescription: A Disruptive Solution for Health Care by Clayton M. Christensen, Jerome H. Grossman M.D. Christensen exemplifies the aphorism that those who see further stand on the shoulders of others who came before them—in this case Utterback [1] and Moore [2]. His work is cited by the world's best known thought leaders, from Steve Jobs to Malcolm Gladwell. A key example is drawn from the development of the computer disk drive industry. Christensen, Clayton M. 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