The Innovator’s Dilemma

Outline

The Innovator’s Dilemma (1997) explains why successful, well-managed companies often fail when new technologies emerge. Clayton Christensen shows that by focusing on their best customers and highest profits, leading firms can overlook simpler, cheaper innovations that start small and later take over the market. His theory of disruptive innovation became one of the most influential ideas in business.

• Successful, well-managed companies often fail when new technologies emerge, even though they make sound decisions by conventional standards.
• Focusing on your best customers and highest profits can blind a leading firm to other opportunities.
• Disruptive innovations are often simpler and cheaper than existing products, and they usually start small.
• Small, overlooked innovations can later grow until they take over the market.
• Leaders who recognise transformative change early have a better chance of staying ahead of competitors who would redefine their market.

Clayton Christensen (1952–2020) was an American business scholar and professor at Harvard Business School, best known for his theory of disruptive innovation. He was repeatedly ranked among the world’s most influential management thinkers and co-founded several companies. His books include The Innovator’s Dilemma, The Innovator’s Solution, and How Will You Measure Your Life?