Clayton Christensen
Clayton Christensen
Clayton M. Christensenis an American scholar, educator, author, business consultant, and religious leader who currently serves as the Kim B. Clark Professor of Business Administration at the Harvard Business School, having a joint appointment in the Technology & Operations Management and General Management faculty groups. He is best known for his study of innovation in commercial enterprises. His first book, The Innovator's Dilemma, articulated his theory of disruptive innovation. Christensen is also a co-founder of Rose Park Advisors, a venture...
NationalityAmerican
ProfessionBusinessman
Date of Birth6 April 1952
CountryUnited States of America
Businesses that distribute information and news are in the business of training and teaching people.
Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.
Management has to provide the coordinating mechanism between what the supplier provides and what the user needs in not-good-enough situations where product architecture is consequently interdependent. Management always beats markets when there is not sufficient information.
Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.
If I know what to spec, and I can measure it, and there are no unpredictable interdependencies between what you do and what I must do in response, then an economist would say that is sufficient information for a market to emerge between you and me.
India's prosperity is sectioned by geography, such as in Bangalore, where the information technology industry is prominent. Because they have a conduit out of India, competing in the world by the Internet, it's not regulated in corrupt ways, and it is very prosperous.
Eighty percent of the cases used in the typical MBA program are about successful companies. Students graduate with this notion that 'If I do everything that the people in those cases did, then my organization will grow and be successful, too.'
Efficiency innovations arise in industries that already exist. They provide existing goods and services at much lower costs. They are not empowering. Efficiency innovators become the low cost providers within an existing framework.
Efficiency innovations are a natural part of the economic cycle, but these are the innovations that streamline process and actually reduce the number of available jobs.
The basic idea that marketing is wrong at its core is one of the main reasons why innovation seems blocked and unpredictable.
Smart companies fail because they do everything right. They cater to high-profit-margin customers and ignore the low end of the market, where disruptive innovations emerge from.
The iPod is a proprietary integrated product, although that is becoming quite modular. You can download your music from Amazon as easily as you can from iTunes. You also see modularity organized around the Android operating system that is growing much faster than the iPhone. So I worry that modularity will do its work on Apple.
The world is a nested space, and so we have our brain as a person, and people are members of teams, and teams are part of business units, and business units are parts of corporations, and corporations are part of industries, which are part of economies.
The principles of disruptive innovation are indeed intended to be guidelines to assist managers both in introducing disruptive innovations as well as identifying disruptive developments in their market.