One 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.

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.

Children build self-esteem by doing things that are hard and learning what works.

At the beginning of almost every industry, the available products and services are so expensive to own and complicated to use that only people with a lot of money and a lot of skill have access to them. A disruptive technology is an innovation that simplifies the product and makes it so affordable that a whole new population of people can now have one and use it at the beginning for simple applications, and then it improves to the point that it makes the old technology obsolete.

Motivation is the catalyzing ingredient for every successful innovation. The same is true for learning.

Businesses want to think in terms of categories. Consumers want us to think in terms of their needs.

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.