Harvard Business Review

SEPTEMBER 27, 2013

In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. The idea was to transform his theory of disruptive innovation into an investment thesis. Disruptive innovation can take several forms, and the market understands some types better than others.

Innovation 9

Innovation Marketing Disruptive Innovation Discounted Cash Flow 9

Harvard Business Review

JUNE 7, 2012

Or you could completely undercut industry pricing models by, say, 90%. Incremental change doesn’t disrupt an industry; radical change does," they note. You don’t cut prices by 90% through marginal improvements in existing products. The numbers are enough to make the apple pop right out of the marketer's eye.

Disruptive Innovation 12

Disruptive Innovation Innovation Pharmaceuticals Class 12

Harvard Business Review

JULY 28, 2014

Tech start-up Haystack has developed an innovative – and controversial — solution to the stressful challenge of finding an open parking meter in congested areas. We explored these and other questions with pricing strategy author and consultant Rafi Mohammed. First off: From a pricing perspective, is Haystack a good idea?

Price 10

Price Transportation Disruptive Innovation Bottom-up 10

Harvard Business Review

NOVEMBER 10, 2011

The most punishing innovations, they argued, were the ones that were easy to dismiss at first blush — simple, affordable solutions that took root outside the mainstream market. The authors called these "disruptive" solutions and provided a straightforward prescription for leaders looking to turn disruption into an opportunity.

Innovation 15

Innovation Disruptive Innovation Christensen Kahneman 15

Harvard Business Review

OCTOBER 1, 2012

They're bad at innovation by design: All the pressures and processes that drive them toward a profitable, efficient operation tend to get in the way of developing the innovations that can actually transform the business. However, I also pointed out a paradox: being bad at innovation and good at execution isn't necessarily undesirable.

Innovation 16

Innovation Company ROI Disruptive Innovation 16

Marshall Goldsmith

FEBRUARY 8, 2018

Whitney Johnson – Author of the critically acclaimed: Disrupt Yourself. Co-founder of Rose Park Advisors—Disruptive Innovation Fund. A leading thinker on strategy and breakthrough innovation. Deepa Prahalad – Focused on design and emerging markets. Leads Tuck’s incredibly innovative coaching program.

Executive Coaching 70

Executive Coaching CEO Magazine Banking 70

Harvard Business Review

JUNE 20, 2013

At its core, reverse innovation describes solutions adopted first in poorer, emerging nations that subsequently—and disruptively—find a market in richer, developed nations. But can reverse innovation be relevant in the world of high-technology? Disruptive innovation India'

Technology 14

Technology Innovation CRM Retail 14

Harvard Business Review

AUGUST 29, 2011

We've all been in conversations on the topics of creativity and innovation when Henry Ford's most famous adage is (excuse the pun) trotted out, usually accompanied by a knowing smirk and air of self-evidence. Battle lines are quickly drawn. Having grown weary of both sides of the debate, I was curious; did Ford utter those words?

Innovation 17

Innovation Mass Marketing Price Market Segmentation 17

Harvard Business Review

MARCH 8, 2012

Thanks to disruptive innovations , much of our world today looks radically different than it did just a decade or two ago. In industry after industry, disruptions deliver more for less and change everything from how we communicate with one another to how we work and shop. Remember flying in the old days?

Disruptive Innovation 14

Disruptive Innovation Health Care Innovation Business Model 14

Harvard Business Review

MARCH 28, 2016

Since the start of 2016, oil prices have swung between $27 and $42 per barrel, about a quarter of the 2008 peak crude oil price of $145. On February 16, oil ministers from Saudi Arabia, Russia, Qatar, and Venezuela agreed to a tentative deal to freeze their production in an attempt to boost prices. That has enabled the U.S.

Price 8

Price Energy Airlines Supply Chain 8

Harvard Business Review

JULY 8, 2016

They’ve simply undercut Western competitors by offering cheaper prices. They have been displacers, not disrupters. The difference between displacement (outperforming existing market incumbents at their own game) and disruption (changing the game) is strategically important, no matter how similar the pain they cause is.

Business Model 13

Business Model Innovation Company Apparel 13

Harvard Business Review

NOVEMBER 5, 2018

When innovations threaten to disrupt an industry by replacing an old business model with a new one, incumbents need to invest in that model in order to survive. That’s the conventional wisdom, and it’s given rise to popular mantra “Disrupt or Be Disrupted.” Fuse/Getty Images.

Company 8

Company Disruptive Innovation Decentralization Software 8

Harvard Business Review

JUNE 6, 2014

A good friend of yours calls you one day to pick your brain about an innovative business idea. Clearly, there are many ways to evaluate an innovative business opportunity. Here’s what they’ve found, and how they explain their results when they look at them through the lens of disruptive innovation theory.

Disruptive Innovation 10

Disruptive Innovation Innovation Business Model Marketing 10

Harvard Business Review

DECEMBER 25, 2013

health care market more than a decade ago, they were greeted with high expectations. The hope was their lower cost structure and focus on convenience and price transparency — two things sorely lacking in traditional health care — would engender radical changes. When retail clinics entered the U.S.

Health Care 9

Health Care Retail Disruptive Innovation Market Segmentation 9

Harvard Business Review

AUGUST 16, 2017

There’s little argument that Tesla is a wildly innovative company. Tesla clearly doesn’t qualify under the traditional definition of a disruptive innovation. Tesla is also not comparable to Netflix, another frequently-cited example of a disruptive innovator. car manufacturer and all but three worldwide.

Supply Chain 14

Supply Chain Automotive Disruptive Innovation Transportation 14

Harvard Business Review

JUNE 2, 2014

I also love Uber as a student (and teacher) of disruptive innovation theory, because the challenges the transportation company is encountering as it seeks to expand into new cities helpfully illustrate how to assess an idea’s disruptive potential. I clicked three buttons, and my ride was there in 12 minutes. Uber nails this.

Disruptive Innovation 8

Disruptive Innovation Disintermediation Business Model Innovation 8

Harvard Business Review

JULY 4, 2014

Today, almost every industry is vulnerable to the effects of digitization and to what Accenture calls “Big Bang Disruption.” New services can quickly go from trial to large-scale rollout and massive adoption, and established players can fall quickly by the wayside; think of how mobile GPS applications have taken the market by storm.

Insurance 16

Insurance Disruptive Innovation Industry Innovation 16

Harvard Business Review

JULY 29, 2014

As the Internet of Things (IoT) spreads, the implications for business model innovation are huge. And when feature innovation eventually proved to be too incremental, price competition would ensue, and products would become obsolete. Design Disruptive innovation Internet'

Business Model 15

Business Model Venture Capitalist Disruptive Innovation Porter 15

Harvard Business Review

MARCH 9, 2016

For a new digital technology to deliver a disruptive innovation, a new technology must leverage two things: A new route to market. All disruptive innovators in business have capitalized on a channel of commercialization where the leading firms are not present. A new business model.

Entrepreneur 8

Entrepreneur Disruptive Innovation Venture Capitalist Business Model 8

Harvard Business Review

SEPTEMBER 24, 2013

The “jobs-to-be-done” theory articulates the gap between how producers view and market a product and how customers actually use it. In the words of Harvard Business School marketing professor Theodore Levitt, “ People don’t want to buy a quarter-inch drill. Hence the focus on non-consumers. Xiaomi’s Challenge.

Marketing 8

Marketing B2B Levitt Disruptive Innovation 8

Harvard Business Review

MAY 27, 2016

Instead of getting into a price war or squabbling over a shrinking market, both disruptors and incumbents find new ways to create value. This benefits customers – both the high-end customers being chased by incumbents, and the low-end or middle-market consumers being served by disruptors — and the industry at large.

Airlines 13

Airlines Travel Industry Disruptive Innovation 13

Harvard Business Review

OCTOBER 14, 2014

Customers that are relatively less risky and more predictable can make it easier for new to firms gain a market foothold. For starters, unlike Apple, Xiaomi is not targeting premium customers; it’s mostly teens buying those high-quality phones, and hardly at a premium, since Xiaomi’s prices are at least 60% lower. A neat trick.

Industry 15

Industry Price Business Model Disruptive Innovation 15

Harvard Business Review

APRIL 15, 2014

By now, the idea that organizations must adapt in order to maintain both relevance and market share in a rapidly changing world is so ingrained that it’s been reduced to pithy sayings. If you bounce from one strategy (say, low prices) to another (full service) and back again, people won’t know what you stand for. What is the cost?

Disruptive Innovation 13

Disruptive Innovation Mass Marketing Fashion Porter 13

Harvard Business Review

DECEMBER 4, 2018

Maxx and Marshalls—which compete aggressively on price. Price competition hurts. A recent report by the consultancy BCG documented a general decline in sales among consumer packaged goods (CPG) companies in the United States during 2017, with mid-sized and large companies losing market share and small companies increasing theirs.

Brand 14

Brand Retail Incubator Merchandising 14

Harvard Business Review

JULY 22, 2011

But innovation theory can provide a crystal ball; theory could have predicted iTunes' success and it's currently predicting Spotify's success. To appreciate the truth of this claim, it's vital to understand one of Clayton Christensen's theories on marketing and product development: Jobs-to-be-done. It's business model innovation.

Christensen 18

Christensen Disruptive Innovation Price Business Model 18

Harvard Business Review

SEPTEMBER 12, 2012

How willing are customers to continue to pay for further improvements in performance that historically merited attractive price premiums? One of the key tipping points in a market occurs when a company, in Christensen's language, overshoots a given market tier by providing them performance that they can't use.

System 15

System Christensen Disruptive Innovation Telecommunications 15

Harvard Business Review

DECEMBER 19, 2016

CEOs should actively manage five specific tensions in today’s complex global business environment: Disruptive innovation versus leveraging the company’s core strengths. When confronted with disruptive technologies, many companies fail to align digital strategies with their core strategies. Insight Center.

CEO 8

CEO Supply Chain Disruptive Innovation P&L 8

Harvard Business Review

APRIL 23, 2015

But Telsa is starting from the top of a market, selling high-end vehicles at high prices. To scale, Tesla will eventually have to grow down market but there are real impediments to doing so. That’s why the most successful innovators usually do the reverse.

Price 8

Price Disruptive Innovation Incentives Bottom-up 8

Harvard Business Review

MARCH 1, 2018

shale oil and gas producers have been ramping up production to take advantage of rising crude oil prices — prices that had been rising in the wake of a deal between the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other non-OPEC producers to reduce oil output. The soaring U.S.

Offshoring 14

Offshoring Price Transportation Long-term 14

Harvard Business Review

JANUARY 16, 2013

Volatile stock: In 2008, under Jobs, the stock price dropped by more than 50%. No advertising innovation: The "I'm a Mac/"I'm a PC" campaign ran for three and a half years without a refresh. Amazon's price-to-earnings ratio is now 2,767. There are other markets waiting to be disrupted, for sure. Apple's is 13.

Marketing 14

Marketing Stage-Gate Advertising Price 14

Harvard Business Review

APRIL 14, 2015

It’s easy to assume Apple Pay is one in a long line of disruptive innovations from the master of serial disruption. They would be disruptive if they were selling insurance from a company new to the industry using an independent, low-cost distribution channel, such direct to the customer, either by phone or online.

Company 8

Company Disruptive Innovation Retail Banking 8

Harvard Business Review

JANUARY 24, 2011

These were companies following the pattern of disruptive innovation. Now, I'm always hesitant to avoid basing too much on a company's stock performance as stock prices can move around for many reasons. Six of the seven companies individually exceeded the overall market, by wide margins.

Disruptive Innovation 14

Disruptive Innovation Benchmarking Sample Retail 14

Harvard Business Review

JULY 4, 2014

Today, almost every industry is vulnerable to the effects of digitization and to what Accenture calls “Big Bang Disruption.” New services can quickly go from trial to large-scale rollout and massive adoption, and established players can fall quickly by the wayside; think of how mobile GPS applications have taken the market by storm.

Insurance 8

Insurance Disruptive Innovation Industry Innovation 8

Harvard Business Review

JANUARY 30, 2014

In after-hours trading, the company’s share price fell 9% — representing $44 billion in lost market value. This kind of sharp price movement on seemingly modest news is not a new or isolated occurrence for Apple. Over the past 18 months the company’s stock price has careened from $705 (in Sept.

Price 8

Price Disruptive Innovation Uncertainty Marketing 8

Harvard Business Review

APRIL 11, 2014

And they’d all seen radial tires take over the European market. But even though radial tires were far superior to bias tires in terms of durability, cost per mile, and safety – and could be sold for an attractively higher price — they presented a challenge to U.S. market in the first 18 months after their introduction.

Disruptive Innovation 9

Disruptive Innovation Technology Industry Business Model 9

Harvard Business Review

AUGUST 20, 2013

Relative to the enormous economic value talent can deliver, gluten-free gourmet cafeterias and concierge service represent a small price to pay. Keeping it productively innovative and innovatively productive is another. At a certain point, innovation cultures are as much about "credibility" as creativity and ingenuity.

Innovation 17

Innovation Disruptive Innovation Bottom-up Metrics 17

Harvard Business Review

JUNE 26, 2013

In the early days of the Internet, services such as eBay and Craigslist revolutionized secondary markets, making it easy for individuals to buy and sell used goods. This idea of peer-to-peer commerce, or the "sharing economy" as it is sometimes known, has spawned a new breed of innovations. Disruptive innovation Government Internet'

Hotels 10

Hotels Disruptive Innovation Licensing Efficiency 10