People still cling to this belief that innovation is just random and unpredictable. But if you look closely, there are some real patterns. The companies that recognize and take advantage of those patterns have the real opportunity to create competitive advantage.
Clayton ChristensenDon't worry about the level of individual prominence you have achieved; worry about the individuals you have helped become better people.
Clayton ChristensenIf I know what to spec, and I can measure it, and there are no unpredictable interdependencies between what you do and what I must do in response, then an economist would say that is sufficient information for a market to emerge between you and me.
Clayton ChristensenManagement has to provide the coordinating mechanism between what the supplier provides and what the user needs in not-good-enough situations where product architecture is consequently interdependent. Management always beats markets when there is not sufficient information.
Clayton ChristensenYear after year after year, people write books about managing innovation or about leadership, for example, without ever going through the pain of saying, "This kind of leadership will cause this result in these circumstances and a very different result in those circumstances." This is academic malpractice of the worst kind.
Clayton ChristensenEfficiency innovations provide return on investment in 12-18 months. Empowering innovations take 5-10 years to yield a return. We have ample capital - oceans of capital - that is being reinvested into efficiency innovation.
Clayton ChristensenLets take the best of our ideas from Global Drucker Forum, and the best of our language, and then focus and clarify.
Clayton ChristensenDisruptive technology is a theory. It says this will happen and this is why; it's a statement of cause and effect. In our teaching we have so exalted the virtues of data-driven decision making that in many ways we condemn managers only to be able to take action after the data is clear and the game is over. In many ways a good theory is more accurate than data. It allows you to see into the future more clearly.
Clayton ChristensenThe reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption. Companies in fact are specifically organized to under-invest in disruptive innovations! This is one reason why we often suggest that companies set up separate teams or groups to commercialize disruptive innovations. When disruptive innovations have to fight with other innovations for resources, they tend to lose out.
Clayton ChristensenIts actually really important that you succeed at what youre succeeding at, but that isnt going to be the measure of your life.
Clayton ChristensenIf you just look at the data, you are led to believe that things are getting better, rather than worse. That's why the fall is really precipitous, once you hit the ceiling.
Clayton ChristensenThe best strategy is a balance between having a deliberate one, and a flexible, or emergent strategy.
Clayton ChristensenIn a large successful company where your power base as CEO isn't all that secure, it's hard for a CEO to pursue a truly disruptive strategy.
Clayton ChristensenYou can invest to create the new growth business while the core business is still growing, because new business units don't need to get big fast. But when the core business stops growing, investing to create new growth businesses becomes impossible.
Clayton ChristensenI have been blessed to see visions of eternity; and events in my future that have been important for me to foresee, have been revealed to me.
Clayton ChristensenTo prop up the stock price, managers have to turn down the screws on everybody. That forces them to cancel all the projects that would lead to future growth in order to drop money to the bottom line. This is HP's dilemma today. Once a company's growth has stopped, the game as we have known it is over. It's a scary thing.
Clayton ChristensenIn most instances, biotechnology, though a radically different approach, is a sustaining technology: It's a dramatically improved way of targeting problems that we hadn't been able to solve with the conventional approach of mainstream pharmaceutical companies.
Clayton ChristensenAnd if your attitude is that only smarter people have something to teach you, your learning opportunities will be very limited. ... When we see people acting in an abusive, arrogant, or demeaning manner toward others, their behavior almost always is a symptom of their lack of self-esteem. They need to put someone else down to feel good about themselves.
Clayton ChristensenOne of the factors that make great companies so great is that they have processes that allow them to solve difficult problems again and again. These processes have developed over time as teams have successfully wrestled with a certain type of challenge. Eventually, people begin to say, "This is just how we do something around here." The problem develops when that team then has to solve a very different set of challenges. The processes that are such strengths can be crushing liabilities.
Clayton ChristensenOne reason there are so many short-lived management fads is that their prescriptions were derived and advocated in precisely this way. So managers read about a fad and try it, find that it doesn't work, abandon the effort, and move on to the next thing. In reality, it is usually the case that the faddish prescription was indeed sound advice in certain circumstances, but actually was poor advice in other circumstances.
Clayton ChristensenI don't view it as mystic. I believe that God is our father. He created us. He is powerful because he knows everything. Therefore everything I learn that is true makes me more like my father in heaven. When science seems to contradict religion, then one, the other, or both are wrong, or incomplete. Truth is not incompatible with itself. When I benefit from science it's actually not correct for me to say it resulted from science and not from God. They work in concert.
Clayton ChristensenI've concluded that the metric by which God will assess my life isn't dollars, but the individual people whose lives I've touched. I think that's the way it will work for us all. Don't worry about the level of individual prominence you have achieved; worry about the individuals you have helped become better people.
Clayton ChristensenEvery disruptive innovation is powered by a simplifying technology, and then the technology has to get embedded in a different kind of a business model. The first two decades of digital computing were characterized by the huge mainframe computers that filled a whole room, and they had to be operated by PhD Computer Scientists. It took the engineers at IBM about four years to design these mainframe computers because there were no rules. It was an intuitive art and just by trial and error and experimentation they would evolve to a computer that worked.
Clayton ChristensenFocus is scaryโuntil you realize that it only means turning your back on markets you could never have anyway. Sharp focus on jobs that customers are trying to get done holds the promise of greatly improving the odds of success in new-product development.
Clayton ChristensenThere are other dimensions of biotechnology. If you think of biotechnology like the Internet, it's not a category - it's an infrastructure that can be deployed to sustain or disrupt. In health care, the most complex problems at the high end have to be dealt with in a problem-solving mode by the best, most experienced physicians you can find.
Clayton ChristensenAn innovation will get traction only if it helps people get something that they're already doing in their lives done better.
Clayton ChristensenIn my first career I had founded my own company, with a group of MIT professors, before coming to Harvard to finish my doctorate, and so I had a deep respect for the brains, talent, and dedication of managers. That made it hard for me to believe the attributions in the business press that stupid management was to blame. So I looked elsewhere for an explanation.
Clayton ChristensenA lot has been written about the Internet bust. From my point of view, it's quite clear the Internet isn't a category; the Internet is a technological infrastructure that can be deployed to facilitate a disruptive business model or a sustaining business model.
Clayton ChristensenChristine and I haven't raised our children. A whole community of selfless Christians has contributed to helping them become faithful, competent adults.
Clayton ChristensenBecause we employ no professional preachers, it means that every sermon or lesson in church is given by a regular member - women and men, children and grandparents.
Clayton ChristensenBusinesses want to think in terms of categories. Consumers want us to think in terms of their needs.
Clayton ChristensenIt is when the product is not good enough that proprietary integration gives you a competitive edge. You cannot outsource and be competitively successful in this situation. But at the other end, where standard components assembled in standard ways can yield acceptable performance, you must outsource.
Clayton ChristensenEach of our children during their high school years went to 'early morning seminary' - scripture study classes that met in the home of a church member every school day morning from 6:30 until 7:15.
Clayton ChristensenHistory is littered with great firms that got killed by disruption. Of course, the personal computer, a technology that first took root as a toy, got Digital Equipment Corporation. Kodak missed the boat for a long time on digital imaging. Sony was slow to get MP3 technology. Microsoft doesn't know what to do with open source software. And so on.
Clayton ChristensenThe only useful information about the market will be what I create through expeditions into the market, through testing and probing, trial and error, by selling real products to real people who pay real money.
Clayton ChristensenIf the theory accurately predicts what they [scientists] see, it confirms that it's a good theory. If they see something that the theory didn't lead them to believe, that's what Thomas Kuhn calls an anomaly. The anomaly requires a revised theory - and you just keep going through the cycle, making a better theory.
Clayton ChristensenThe mistake managers often make is defining their industry too narrowly. Digital's market share in the minicomputer market stayed very robust even as it fell off the cliff. Disruption seems to come out of nowhere, but if you know what to look for, you can spot important developments well before the market does.
Clayton ChristensenSteve Jobs and Apple taught us that profit is not the ultimate goal, but rather a consequence of something greater.
Clayton ChristensenIn 15 years from now half of US universities may be in bankruptcy ... in the end I'm excited to see that happen. So pray for Harvard Business School if you wouldn't mind.
Clayton ChristensenThe important thing is that over time, scientific progress transforms things that used to have to be dealt with in a problem-solving mode down to the pattern-recognition space; and from pattern recognition into the rules-based mode. This is the mechanism by which less-trained people are enabled to do more sophisticated things. This is always the way disruption happens. It enables a larger population of less-experienced people to do more sophisticated things.
Clayton ChristensenI have healed the sick by the power of the God. I have spoken with the gift of tongues.
Clayton ChristensenYou can talk all you want about having a clear purpose and strategy for your life, but ultimately this means nothing if you are not investing the resources you have in a way that is consistent with your strategy. In the end, a strategy is nothing but good intentions unless it's effectively implemented.
Clayton ChristensenBy the time it becomes obvious that a technology will have truly disruptive impact, it is often too late to take action. This is one reason why we are such advocates of using theory to try to analyze industry change. Conclusive evidence that proves that a company needs to take action almost never exists. In fact, the data can fool management, lulling them into a false sense of security.
Clayton Christensen