We are all trained to be data driven people, but no hard data exist about the future. Therefore, the only way to look into the future with any degree of accuracy is to use theory, statements of what causes what and why. If executives have the right theories in their heads, they can very quickly interpret market developments. They can identify what matters and why, and act accordingly. So we suggest decision-makers should start by gaining a deep understanding of the relevant collection of theories, and then be alert for signals that indicate certain types of developments.

Generally, the technology that enables disruption is developed in the companies that are the practitioners of the original technology. That's where the understanding of the technology first comes together. They usually can't commercialize the technology because they have to couple it with the business model innovation, and because they tend to try to take all of their technologies to market through their original business model, somebody else just picks up the technology and changes the world through the business model innovation.

And 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.

Because of the disruption phenomenon - technological progress outstripping the ability of customers to utilize it - the general tendency is for the money to migrate toward the subsystems.

Disruptive innovations create jobs, efficiency innovations destroy them.

Breaking an old business model is always going to require leaders to follow their instinct. There will always be persuasive reasons not to take a risk. But if you only do what worked in the past, you will wake up one day and find that you’ve been passed by.

Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.