article thumbnail

Disruptive Business Models | N2Growth Blog

N2Growth Blog

So, in today’s post I’ll examine the power of disruption as a key business driver… Disruptive business models focus on creating, disintermediating, refining, reengineering or optimizing a product/service, role/function/practice, category, market, sector, or industry. When was the last time you entered a new market?

article thumbnail

Why Preventing Disruption in 2017 Is Harder Than It Was When Christensen Coined the Term

Harvard Business Review

Disruption is a systemic problem: Clayton Christensen outlined in 1997 why it was so difficult for any individual business to defuse disruptive threats and embrace disruptive trends. They’ve read Christensen’s book The Innovator’s Dilemma. Asset-light businesses are not financed with debt.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Markets Do and Don’t Get About Innovation

Harvard Business Review

In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. Disruptive innovation can take several forms, and the market understands some types better than others. But do markets really follow the logic of an academic theory? Mostly, though, markets get things right.

article thumbnail

Dinosaurs, Big Consulting Firms and Disruptive Innovation

N2Growth Blog

Thanks to Professor Clayton Christensen of Harvard University and his 1997 landmark book, The Innovator’s Dilemma , we have a new way of understanding the life cycle of companies and why some market leaders maintain their dominant position and other one-time market leaders disappear. WHAT IS A DISRUPTIVE INNOVATION?

article thumbnail

Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Clayton Christensen would agree with the intuition that Groupon displays but ignores: businesses should become profitable before they become big. Finally, reaching profitability quickly ensures that when outside financing dries up, the venture can succeed on its own.

article thumbnail

In 2014, Resolve to Make Your Business Human Again

Harvard Business Review

In 1960, marketing legend Ted Levitt provided perhaps his seminal contribution to the Harvard Business Review : “ Marketing Myopia.” As Clayton Christensen likes to note , the primary job of leadership today is to “source, assemble, and ship numbers.” No, it’s to maximize shareholder value. And short-term numbers at that.

Levitt 11
article thumbnail

Is Venture Capital Broken?

Harvard Business Review

Our research suggests that investors like us succumb time and again to narrative fallacies, a well-studied behavioral finance bias. Most of the funds in which Kauffman invested failed to beat public market indices, despite the higher-risk nature of their work. Many successful venture capitalists observe directional patterns.