CHRISTENSEN'S THE INNOVATOR'S DILEMMA

Christensen's The Innovator's Dilemma

Christensen's The Innovator's Dilemma

Introduction

With "The Innovator's Dilemma" put Clayton M. Christensen 1997, a comprehensive examination of the phenomenon of disruptive innovation front. Based on the hard drive industry Christensen examines why well-managed companies fail in the exploitation of innovative technologies. Based on data from several decades, he concludes that between Sustaining Innovation and Disruptive innovation is to distinguish. Established businesses fail after his observation of rare - possibly consuming, costly and / or risky - as far as these innovations represent an added value for existing customers (Sustaining Innovation). Successful businesses fail, according to Christensen, however, often Disruptive Innovations change, which is the basis of competition. This book Demonstrates why outstanding companies that had their competitive antennae up, listened astutely to customers, invested aggressively in new technologies and quietly lost their market leadership when confronted with disruptive changes in technology and market structure. Characteristic of disruptive innovations is that they initially the dominant (older) technology - have been unsuccessful and only over time to realize their true potential - in terms of established performance measures. Companies using the successful disruptive innovation, therefore, first establish new markets in which are other performance measures than in the established markets of importance (Christensen, 2003).

A dilemma that occurs in all industries

The structure of any company emerges from the characteristics of products or services that have made it successful. The person who decides which incremental innovations will come true and which are to be neglected is the client. The most demanding customers push the company to develop incremental innovations that extend the life of a current product. They often go to be choosy before a breakthrough innovation. But the new product or new business model (business model innovation) as the most important customers refuse to adopt at first, because of lower quality than the current product is one that sometimes triumph over time. The company, under the influence of existing customers, refuses to implement breakthrough innovations may be away from these same customers when the product or the process of "rupture" regarded as "inferior" to initially improved, among competitors, to the point where it can now meet their needs.

Innovation is an essential element for any organization in order to survive, grow and significantly influence the direction of any industry. Development does not; however, guarantee success, but most be followed up with successive streams of innovation and change, from the incremental to the radical. The most reliable way to be successful in the industry is to innovate better and longer than the competitor, leading companies develops innovation portfolios that they can use to help sustain growth over the long term. Innovation and change is an essential part of any business activity, but only some people recognize its importance and significance. Often, management fails to notice the implication of innovation and change, which becomes the reason of the change failure (Christensen, 2003).

The modern world economy shows that the scientific and technological knowledge and innovation are key factors for sustainable economic ...