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Clayton Christensen wrote the book The Innovator’s Dilemma to help us understand how innovation works, and how companies of all sizes can learn how to do it better.
At the heart of the book is the distinction between sustaining and disruptive technologies (or innovation).
sustaining
disruptive (or innovation)TECHNOLOGIES
SUSTAINING INNOVATIONimproves established products. Think of this like faster processing speed on a computer,
or better fuel efficiency on existing cars.
DISRUPTIVE INNOVATION
creates new markets. Think of this like what the iPod did for the music market and what Tesla is doing right now
in the car industry. These technologies are generally “cheaper, simpler, smaller, and, frequently, more
convenient to use.”
MARKET
The problem most established companies
face is there is little to no market for disruptive
technologies at first, and so it’s hard to make a
business case for investing in them.
STARTUP
The solution for this, Christensen suggests, is to create a separate organization (like a startup) to experiment in as many ways as possible to find out what works.
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