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The Innovator's Solution: Creating and Sustaining Successful Growth

The Innovator's Solution: Creating and Sustaining Successful Growth
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Manufacturer: Harvard Business School Press
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The Growth Paradox

At best one company in ten is able to sustain profitable growth. Yet capital markets demand that all companies seek it relentlessly and mercilessly punish those who fail. Why is consistent, persistent growth so difficult to achieve? Surprisingly, it’s not for lack of great ideas or capable managers, nor is it because customers are too fickle or innovation too unpredictable. Innovation fails, say Clayton M. Christensen and Michael E. Raynor, because organizations unwittingly strip the disruptive potential from new ideas before they ever see the light of day.

In his worldwide bestseller The Innovator’s Dilemma, Christensen explained how industry leaders get blindsided by disruptive innovations precisely because they focus too closely on their most profitable customers and businesses. The Innovator’s Solution shows how companies get to the other side of this dilemma, creating disruptions rather than being destroyed by them.

Drawing on years of in-depth research and illustrated by company examples across many industries, Christensen and Raynor argue that innovation can be a predictable process that delivers sustainable, profitable growth. They identify the forces that cause managers to make bad decisions as they package and shape new ideas—and offer new frameworks to help managers create the right conditions, at the right time, for a disruption to succeed. The Innovator’s Solution addresses a wide range of issues, including:

• How can we tell if an idea has disruptive potential?
• Which competitive situations favor incumbents, and which favor entrants?
• Which customer segments are primed to embrace a new offering?
• Which activities should we outsource, and which should we keep in-house?
• How should we structure and fund a new venture?
• How do we choose the right managers to lead it?
• How can we position ourselves where profits will be made in the future?

Revealing counterintuitive insights that will change your perspective on innovation forever, this landmark book shows how to create a disruptive growth engine that fuels ongoing success.

 

What Customers Say About The Innovator's Solution: Creating and Sustaining Successful Growth:

The book took a couple of weeks to get to Portugal, but it was in good condition.

They find out in the morning most people bought a smoothie as a better on-the-go breakfast alternative (coffee was not fulfilling, bananas were messy, doughnuts were less healthy, sandwiches hard to maneuver while driving etc). And so that is your real competition. In the afternoon moms with kids were most of the customers. There are suggestions and practical examples on how to start implementing this new thinking in the organization.If anything the book it's a very refreshing look on the strategic planning required to building new products and services. I loved the airport example about the smart phone.for years we're sold that we need to bring all the office applications onto the berries and PDAs (think Word, Excel, PowerPoint).your office away from office for all these road warriors. This is turning common marketing and product development wisdom on its head. The basic idea is that you should not follow the masses, go with the flow or to look at previous successes to define your future products and services. When they have 5-10 minutes to kill at the airport people (when not talking on the phone) like to read the paper, play games, browse through magazines, check sports and stocks online and watch TV.

Then they analyzed for a whole week how people use their product. Sometimes they do nothing in which case you have a virgin territory to explore.The book warns the change is not easy and in fact is susceptible to lot of push back. So the owners adjusted the product to these 2 main uses instead of one universal change across the board. Definitely a great discussion point. instead ask yourself if people are not buying this kind of product / service, then what are they doing today to fulfill the need. So your competition is not the desktop applications but the newspapers, TV and the entertainment. The book teaches you a new way to look at competition and what you need to innovate against:Stop looking at your direct competitors to think about innovation (if we had that feature as they did, if we had more widgets, more colors, more sizes.). Instead look at how people use products and services in their every day life and develop something that will do it better (cheaper, faster, more pleasant).

They bought a smoothie to give a healthier, more fulfilling and cheaper snack to the kids. The owners tried all the usual marketing techniques (discounts, different flavors, names) to increase sales to no success. Well it turns out, people don't really care to do office work while on the road. Voila, need to figure out how to bring that onto the berries/PDA instead of how to cram rich SW apps on the screen.Another great example was the smoothie cafe.

I would use this supplier again. It took awhile for the book to get here, but it arrived in good condition.

Once you are done with this book, continue to to read on another of Clayton's book known as Seeing What's Next. This 2nd book provides several good case studies and information on how business growth can be and should be sustained and how to create the necessary growth potential. Steven Lim (RSTN) Singapore. This is another Masterpiece from Clayton Christensen, one of the acknowledged opinion leader on Innovation. This 2nd book is a MUST READ for those who have read his first book, "Innovator's Dilemma".

Even better, create a new market instead of improving an existing product. The proposal is to create small business units, since the initial returns will be small, then make sure they rapidly become _profitable_. A crappy sounding transistor radio lets lots of kids listen to music outside their house, compared to the old vacuum tube model that was stuck in the den. I assume you're interested in this book because it's a shortcut: we hear that a business can be undermined by [initially] unattractive innovations, aka the innovator's dilemma. But what do we do about it.The answer is to create those innovations, of course.

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