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The Innovator's Dilemma (Clayton M. Christensen)

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The Innovator's Dilemma (Clayton M. Christensen)

Practice 1: Invest in disruptive technologies before they reach your main market

Problem
Successful companies can overlook disruptive technologies because current customers do not demand them.

Action
Track and invest in emerging technologies even when they serve small or low-end markets.

Outcome
You improve your ability to respond before disruptive competitors become market leaders.

Chapter: Why Great Companies Can Fail - How Can Great Firms Fail? Insights from the Hard Disk Drive Industry

Practice 2: Evaluate innovations within their value network

Problem
An innovation can fail when it is judged by the wrong customer priorities.

Action
Assess each innovation based on the needs of the value network it will serve.

Outcome
You make better decisions about where new products can succeed.

Chapter: Why Great Companies Can Fail - Value Networks and the Impetus to Innovate

Practice 3: Watch low-end competitors as they improve

Problem
Small competitors can grow into serious threats over time.

Action
Monitor how low-end entrants improve their products and move toward larger markets.

Outcome
You gain time to respond before they challenge your core business.

Chapter: Why Great Companies Can Fail - Disruptive Technological Change in the Mechanical Excavator Industry

Practice 4: Challenge successful strategies before the market changes

Problem
Past success can hide the need to change.

Action
Regularly test whether your current strategy still fits changing market conditions.

Outcome
You reduce the risk of falling behind industry changes.

Chapter: Why Great Companies Can Fail - What Goes Up, Can't Go Down

Practice 5: Give disruptive projects to independent organizations

Problem
Core business priorities often prevent disruptive projects from growing.

Action
Place disruptive technologies in organizations that serve customers who need them.

Outcome
The new business has a better chance of developing successfully.

Chapter: Managing Disruptive Technological Change - Give Responsibility for Disruptive Technologies to Organizations Whose Customers Need Them

Practice 6: Match the organization to the opportunity

Problem
Large organizations often expect growth that small emerging markets cannot provide.

Action
Build organizations whose size matches the target market's size.

Outcome
The new venture can grow with realistic expectations.

Chapter: Managing Disruptive Technological Change - Match the Size of the Organization to the Size of the Market

Practice 7: Discover new markets through experiments

Problem
New markets cannot be predicted with confidence.

Action
Run small experiments with real customers to learn where demand exists.

Outcome
You find promising markets with better evidence.

Chapter: Managing Disruptive Technological Change - Discovering New and Emerging Markets

Practice 8: Match opportunities to organizational capabilities

Problem
Organizations cannot succeed at work that does not fit their capabilities.

Action
Assign new opportunities to organizations with the resources and processes they require.

Outcome
Projects have a greater chance of successful execution.

Chapter: Managing Disruptive Technological Change - How to Appraise Your Organization's Capabilities and Disabilities

Practice 9: Target customers who need simpler products

Problem
Customers often receive more product performance than they value.

Action
Develop simpler products that meet the performance customers actually need.

Outcome
You create opportunities for disruptive growth.

Chapter: Managing Disruptive Technological Change - Performance Provided, Market Demand, and the Product Life Cycle

Practice 10: Apply disruptive principles throughout execution

Problem
Innovation efforts often fail because execution ignores disruptive principles.

Action
Make decisions that consistently adhere to the principles of disruptive innovation.

Outcome
You improve the likelihood of building successful new businesses.

Chapter: Managing Disruptive Technological Change - Managing Disruptive Technological Change: A Case Study

Practice 11: Balance current success with future disruption

Problem
Focusing only on today's business limits future growth.

Action
Invest in disruptive opportunities while continuing to support the core business.

Outcome
Your organization stays competitive as markets change.

Chapter: Managing Disruptive Technological Change - The Dilemmas of Innovation: A Summary