How could Digital's collapse be so precipitous? It's because, in many ways, financial performance data is misleading. As you move up to the top of the market, you're getting rid of the less profitable products at the low end and adding business with more attractive margins at the high end. The rate of unit volume growth might be tapering off as you pursue these smaller markets, but your margins actually look better. So Wall Street rewards your stock price until you hit the ceiling.
Clayton ChristensenSteve Jobs and Apple taught us that profit is not the ultimate goal, but rather a consequence of something greater.
Clayton ChristensenThe answer is the disruptive innovator, an outsider, who creates a product or service for the non-existing consumer in a non-existing market for almost no profit.
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 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 Christensen