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. Christensen calls this “ disruptive innovation ” and gives examples as diverse as the personal computer industry, milkshakes, and steel minimills. the tablets disrupting PCs.

Leading to Disruptive Innovation

LDRLB

Disruptive innovation is no longer the exception, it’s the rule. If we’re not proactively driving disruption, we’ll eventually need to react to it. And to top it off, most organizations are set-up to reward predictability and control – the exact opposites of what’s required to lead during disruptive times. Christensen calls these attributes “discovery skills” which are all focused on the front-end of the innovation process related to identifying new opportunities.

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Disrupt Yourself

Lead Change Blog

Consider this simple yet powerful idea: disruptive companies and ideas upend markets by doing something truly different—they see a need, an empty space waiting to be filled, and they dare to create something for which a market may not yet exist. We are living in an era of accelerating disruption—managing the S-curve waves of learning and mastering is a requisite skill. Perhaps innovative thinking among your management team has stalled. Dare to innovate.

Breaking Through | A New Frontier of Technology and Innovation

N2Growth Blog

We are witnessing the creation of an entirely new paradigm, a fierce wave of technological innovation boosting generations of new businesses and business leaders. The pace of technological applications and innovations has increased significantly in recent years.

The Next Trillion-Dollar Market

Harvard Business

Research & development Disruptive innovation Financial markets AudioHow AI, genomics, and automation are powering biotech breakthroughs.

Power 36

Where Disruptive Innovation Came From

Harvard Business Review

After a long and successful run, the theory of disruptive innovation has come under attack of late. In a recent Sloan Management Review article, Dartmouth professor Andrew King asked “ How Useful Is the Theory of Disruptive Innovation? My own take is that Clay Christensen and his co-authors on the theory made a substantial contribution to our understanding of innovation. Disruptive innovation is a parsimonious theory that explains many business failures.

Netflix's Bold Disruptive Innovation

Harvard Business Review

It is Clayton Christensen 's innovator's dilemma incarnate, and Netflix is very publicly trying to solve it. On top of the technical skills, Netflix is building an organization tuned to the needs of a disruptive environment. The presentation goes on to say, "We're in a creative-inventive market, not a safety-critical market like medicine or nuclear power. Music to any innovator's ears. Disruptive innovation Managing uncertainty Organizational culture

Is Innovation manageable?

N2Growth Blog

In the years leading up to 2018, I have spent my time bringing innovation to the financial services space. Fintech, as this sector is colloquially referred, focuses for the most part on disrupting the state of affairs induced by the use of technology. As such it is all about innovation. And now, from a distance, my optimism regarding the sector’s ability to innovate and capture opportunities has not changed. Let’s study a bit about Innovation.

How Big Data Is Changing Disruptive Innovation

Harvard Business Review

Much fanfare has been paid to the term “disruptive innovation” over the past few years. Disruptive innovations are: Cheaper (from a customer perspective). The reason these characteristics of disruption are important are that when all three are present, it’s difficult for an existing business to respond to competition. Historically, the place we’ve looked for hints of oncoming disruptions has been in the low end of the market.

Disruptive Innovation Comes to Health Care

Harvard Business Review

For me and many other physicians, reading " Will Disruptive Innovations Cure Health Care " by Clayton Christensen, Richard Bohmer, and John Kenagy in the September-October 2000 issue of Harvard Business Review was like having a light turned on. The article describes how disruptive innovations have come to other industries, and would inevitably come to health care. It was like World War I trench warfare, where a 1% shift in market share was a big deal.

Amazon's Kindle Fire Is a Disruptive Innovation

Harvard Business Review

On the other hand, the consensus was strong among market observers that Apple should not be concerned at all and that it should keep on doing exactly what it's doing — making more powerful tablets. The majority of market observers reckon there is no way that it could slay the giant. It is this type of thinking that leaves venerable, high-performing companies — like Apple — open to the existential threats posed by competitors' disruptive innovations.

We Need to Expand the Definition of Disruptive Innovation

Harvard Business Review

Zipcar counts as a disruptive innovation. The latter is according to Clayton Christensen, Michael Raynor, and Rory McDonald in their recent HBR article “ What is Disruptive Innovation?” ” The authors explain that disruption “describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses.” I see the ability to leverage excess capacity as completely disruptive.

Good Entrepreneurs Don’t Set Out to Disrupt

Harvard Business

Lessons on market expansion from the cofounder of Square. Business history Innovation Disruptive innovation Digital Article

Box’s CEO on Pivoting to the Enterprise Market

Harvard Business

Aaron Levie, the CEO of Box, reflects on the cloud storage company’s entry into the enterprise market. But by staying disciplined with the product and deeply understanding market trends, they’ve made the strategic shift from B2C to B2B work. Technology Disruptive innovation Business models AudioHe was skeptical about pivoting away from consumers, and it was challenging.

B2C 47

Can Airtable Democratize Software Development?

Harvard Business

Airtable is creating a new $100 billion market category. Technology Competition Disruptive innovation Audio

Morning Advantage: Disruptive Innovation Made Easy

Harvard Business Review

Incremental change doesn’t disrupt an industry; radical change does," they note. The numbers are enough to make the apple pop right out of the marketer's eye. Clearly that's not quite the target market for a new washer and dryer. Medical supply and equipment costs are abating under market pressure. On Fast Company's website, Bruce Kasanoff and Michael Hinshaw offer a nifty little primer for prospective disruptors. Looking to take an unsuspecting industry by storm?

Morning Advantage: Disruptive Innovation Made Easy

Harvard Business Review

Incremental change doesn’t disrupt an industry; radical change does," they note. The numbers are enough to make the apple pop right out of the marketer's eye. Clearly that's not quite the target market for a new washer and dryer. Medical supply and equipment costs are abating under market pressure. On Fast Company's website, Bruce Kasanoff and Michael Hinshaw offer a nifty little primer for prospective disruptors. Looking to take an unsuspecting industry by storm?

Approach to Innovation

Coaching Tip

Today's conventional wisdom says to survive, companies must move beyond incremental innovation and invest in radical, disruptive innovation. In "THE POWER OF LITTLE IDEAS" , Wharton professor David Robertson examines an approach to innovation; one that is neither incremental nor disruptive. This low-risk, high-reward strategy is an approach to innovation that all companies should recognize and apply when it will give them a competitive advantage.

The FOOD Episode!

Harvard Business

Financial markets Disruptive innovation Social responsibility AudioIn this special Thanksgiving edition taped a few days before the holiday, Youngme, Felix, and Mihir discuss all things food, including food halls, the plastic problem, vertical farming, CBD menu sightings, culinary tourism, and fast whiskey.

What 40 Years of Research Reveals About the Difference Between Disruptive and Radical Innovation

Harvard Business

The second wave of digitization is set to disrupt all spheres of economic life. ” Yet, despite the unprecedented scope and momentum of digitization, many decision makers remain unsure how to cope, and turn to scholars for guidance on how to approach disruption. The first thing they should know is that not all technological change is “disruptive.” Or, they may create markets where no market exists and turn non-consumers into consumers.

The 4 Types of Innovation and the Problems They Solve

Harvard Business

One of the best innovation stories I’ve ever heard came to me from a senior executive at a leading tech firm. That, in essence, is the value of open innovation. In researching my book, Mapping Innovation , I found that every innovation strategy fails eventually, because innovation is, at its core, about solving problems — and there are as many ways to innovate as there are types of problems to solve. Sustaining innovation.

Turning Inn-Oi-Vey-Tion into Innovation

Mills Scofield

My friend and marketing/branding guru, Brian Sooy, send me a message saying that what I really do is "Inn-Oi-Vey-Tion." Let's face it - innovation is hard - it can be fun, but it's also hard. Virtures Values Sooy R and D Open Innovation Learning Leadership Innovation Strategy Innovation Culture Failure Execution Entrepreneur Disruptive Innovation Design Culture Change Culture Business Model Innovation 21st Century Capitalism

A New Model for Emerging Markets

Harvard Business Review

Matt Eyring , president of Innosight, explains why disruptive innovation in developing countries means not just tweaking, but instead rethinking, your business. He is the coauthor of the HBR article New Business Models in Emerging Markets. Disruptive innovation Strategy

Will Wall Street Be Able to Earn the Trust of Younger Investors?

Harvard Business

Uber and Netflix have fundamentally shifted consumer behavior and disrupted incumbent firms. First, they created a combination of breakthrough product innovation and breakthrough business model innovation— the definition of category creation. Second, Uber and Netflix appealed to a younger superconsumer before they entered the category, which caught the market leaders flat-footed. How much disruption could Wall Street be facing? Image Source/Getty Images.

Is Tesla Really a Disruptor? (And Why the Answer Matters)

Harvard Business

There’s little argument that Tesla is a wildly innovative company. Tesla clearly doesn’t qualify under the traditional definition of a disruptive innovation. In our continuing work on Big Bang Disruption , we have noted several alternative paths to industry transformation. For one thing, it’s not clear what disruptive technology the company is offering. Disruptive innovation Transportation Digital Article

The Goldilocks Theory of Product Success

Harvard Business

Almost 50% of market pioneers fail, and later entrants or organizations that don’t enter a market first often end up being more successful. Being optimally distinct—and marketing yourself as such. When the company started in 2005, so-called “Greek” yogurt made up only a tiny sliver of the yogurt market—less than one-quarter of one percent. Innovations that catch on mix familiarity and novelty, old and new.

The Real Reason Uber Is Giving Up in China

Harvard Business

In a group photograph, 30 CEOs with a combined market capitalization of $2.5 It is true that Kalanick consistently called China the most important market for Uber. Uber truly wanted to succeed in its fastest-growing market, one where taxi drivers outnumber their U.S. The company’s losses were mounting in a bid to win market share. When Uber entered the Chinese market, it soon learned it had to change its core product.

Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

Unlike national oil companies and oil majors that typically take five to 10 years to develop conventional oil reserves, these independent and “unconventional” players have improved their drilling and fracturing technology to the point where they can respond within months to temporary spikes or dips in the market. The recent price swings highlight a new era of uncertainty gripping the world’s energy markets. hbr staff/bettmann/Getty Images.

3 Changes Retailers Need to Make to Survive

Harvard Business

Few industries are being disrupted as drastically as the retail industry. Pioneers of new business models, such as Alibaba and Amazon, are launching innovations in rapid succession, such as voice ordering and real-time pricing, while simultaneously building scale and driving down costs. The retailers left standing are those that figure out how to treat disruption as business-as-usual in an industry accustomed to slow, strategic planning. Danita Delimont/Getty Images.

Disruptive Change vs. The Small Steps of Kaizen (Maybe not Either/Or, but Both/And)

First Friday Book Synopsis

We know of the value of disruptive change, described best by Clayton M. Here’s the description (from Wikipedia): A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. Christensen.

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Startups Are Turning Customers into Lobbyists

Harvard Business

In industries being disrupted by new entrants with distinct business models, incumbents often have an important advantage: entrenched regulatory and legal barriers. These have forced AirBnB, Tesla, and Uber to make costly concessions to their operating practices or to exit certain markets altogether. Disruptive innovation Competitive strategy Competition Digital ArticleJurgen Ziewe/Getty Images.

How to Navigate the Politics of an Innovation Project

Harvard Business

The innovation would boost efficiency by taking the excess inventory of one business unit and shipping it to units that had deficits, thereby reducing inventory-carrying costs companywide. Luckily, Denise, who was an executive MBA student of mine, took the time to understand the politics of innovation at play, and followed a series of steps to harness these dynamics to her benefit. The Politics of Innovation. The same goes for innovation. juanluisgx/Getty Images.

The Businesses That Platforms Are Actually Disrupting

Harvard Business

After all, platforms, including disruptive ones, are nothing new. Village matchmakers started making their living organizing marriage markets millennia ago. The evidence is striking that these existing matchmakers, rather than traditional firms, have so far experienced the greatest disruption from new platforms. All but one of these new matchmakers directly disrupted an existing platform industry. Uber and the other ride-sharing companies have disrupted them.

Toys ‘R’ Us Is Dead, but Physical Retail Isn’t

Harvard Business

As Darrell Rigby argued in a 2011 HBR article , every 50 years the retail industry goes through a major disruption. Chan Kim and Renée Mauborgne popularized the notion of a blue ocean strategy , which focuses on new markets, rather than fighting it out in “red oceans” filled with rabid competition. Competitive strategy Disruptive innovation Retail & Consumer Goods Digital Article

Why Elon Musk’s New Strategy Makes Sense

Harvard Business

The second installment moves Tesla beyond the traditional car market, with a plan to reconfigure our cities, energy systems, and our impact on the environment. Tesla’s initial strategy began like a start-up: to build a minimum viable product to test the market. They then moved into the luxury market where they applied plenty of competitive pressure with the Model S. He clearly believes there is more innovation to be had with the two businesses combined.

The Reason Air Travel Is Terrible and So Few Airlines Are Profitable

Harvard Business

There is an answer, and it has to do with the dynamics of disruption. One of the most powerful corporate growth mechanisms – and at the heart of disruption theory — is moving upmarket. Instead of getting into a price war or squabbling over a shrinking market, both disruptors and incumbents find new ways to create value. The upmarket mechanism is also what separates a company from being just another niche player or becoming a serious disruptive threat.

Why Platform Disruption Is So Much Bigger than Product Disruption

Harvard Business

How does disruptive innovation differ when it’s applied to a product versus a platform? But as more electric cars enter the market (including more Tesla models) and there are more uses for rechargeable electric batteries, perhaps the battery will one day move up the scale to become more like a platform. Similarly, it’s useful to distinguish between types of disruption. market with the Corolla and the scooter, respectively.

How Chinese Companies Disrupt Through Business Model Innovation

Harvard Business

Experts continue to debate whether Chinese businesses are truly disruptive. Far from being disruptive, Chinese textile, apparel, appliances, metal, and solar and wind players have done little that has been different from the practices they found in these industries when they entered them. They have been displacers, not disrupters. Displacement generally is easier to combat than disruption. For some industries in the West, this question appears a bit ridiculous.

Kodak’s Downfall Wasn’t About Technology

Harvard Business

Today, the term increasingly serves as a corporate bogeyman that warns executives of the need to stand up and respond when disruptive developments encroach on their market. Once one of the most powerful companies in the world, today the company has a market capitalization of less than $1 billion. There were other ways in which Kodak could have emerged from the digital disruption of its core business. Companies often see the disruptive forces affecting their industry.

What Innovative Companies Can Learn from Keurig’s Highs and Lows

Harvard Business

Continuously reinventing your organization doesn’t mean you have to start from scratch with each new innovation. The partnership provided Keurig with the funding it needed, plus the value-added education in roasting and brewing coffee, and gave GMCR a stake in a promising innovation at relatively low risk. If the innovation is developed within your organization, assign responsibility to a dedicated team. The innovation was a bold move.

The Power of Designing Products for Customers You Don’t Have Yet

Harvard Business

Measuring Marketing Insights. Enter ING Direct, which looked at the market through a new lens. ” But as Christensen observes, finding pockets of non consumption is a ripe opportunity for innovation. Getting innovation right doesn’t have to be a crap shoot. Innovation Disruptive innovation Growth strategy Digital ArticlePaul Garbett for HBR.

Research: Self-Disruption Can Hurt the Companies That Need It the Most

Harvard Business

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.” ” If you’re dealing with innovations that have led to a dominant new business model in your industry, that advice is sound, as the leaders of Netflix and Blockbuster can tell you.

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

Harvard Business

Those that do spend an evening discussing the challenges of digital disruption with us and some of the brightest MBA students on the planet. Invariably, each CEO we host recognizes two truths: Digital disruption will reshape their industry in one fashion or another and they must find a way to embrace these changes. But the corporate innovators we’ve talked to all know that. They’ve read Christensen’s book The Innovator’s Dilemma.