The Innovator's Dilemma

The Innovator’s Dilemma - by Clayton Christensen #

Date Read: 2019-01-29 #

Notes #

Sustaining vs Disruptive Technology

A company that expects 50% gross margin cannot compete in disruptive technology with unknown margins and a not analyzable market.

The processes and values (of the company, e.g. customer orientation, financial analysis) and ecosystem (suppliers, distributors) expects only premiumisation.

As such, companies won’t invest in disruptive tech until it is too late, when disruptive tech has reached performance parity with your tech, which has too much functionality by now.

  1. Companies depend on Customers and Investors for Resources (customers needs will cause company to spend on sustaining tech)
  2. Small Markets don’t solve the growth needs of large companies
  3. Markets that don’t exist can’t be analyzed (small, no data, no requirements, discovered through trial and error)
  4. An organization’s capabilities define it’s disabilities
  5. Technology supply may not equal market demand (tech usually improve much faster than market can demand)