The Innovator's Dilemma

This excerpt from Clayton Christensen's The Innovator's Dilemma examines why well-managed companies fail when confronted by disruptive technological change. Christensen argues that successful companies, focused on satisfying their most profitable customers, often miss opportunities in emerging markets.

He introduces the concepts of sustaining and disruptive technologies, showing how established firms excel at sustaining innovations but struggle with disruptive ones due to resource allocation processes and value network constraints.

The book uses case studies from various industries, including disk drives, excavators, and steel, to illustrate how good management practices can paradoxically lead to failure.

Finally, Christensen offers a framework for managing disruptive innovation, emphasising the importance of creating independent organisations to pursue new market opportunities.

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