THEORY:
'Good management’ was the most powerful reason [leading firms] failed to stay atop their industries.
Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership."
-Clayton Christensen, The Innovator’s Dilemma
This theory talks about the power of disruptive technologies and breakthrough innovations to re-shape a market almost overnight.
PROOFS:
- Christensen's example (from 1997) was disk-drive manufacturers who failed to recognize how personal comuters would distroy the need for their main-frame product lines.
- The music industry's sale of CD's being usurped by web-based music services.
Exerpt
Book summary
Update from Fast Company
Clayton Christensen's website
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