Adam Twidell, CEO of online private jet network PrivateFly.com
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail
Clayton M Christensen
Havard Business School Press
1997
Our business embraces new technology to drive innovation in the private jet market, so I am drawn to business titles which look at the issues around disruptive business models and new technology. Ironically, the one that really stands out for me is actually 14 years old.
The Innovator's Dilemma, first published in 1997, claims that the same principles that make a company successful will often bring it to failure when facing innovations from disruptive technologies. The book looks at what happens when an established, successful company with an innovative product or service runs into a disruptive, start-up competitor with revolutionary thinking: the established company (with something to lose) will usually protect the old at the expense of the new, as it will have developed in such a way as to prioritise short or medium-term profits.
Harvard professor Christensen gives an in-depth analysis of the reasons why this is so and shares some useful thoughts on how a growing business might create a successful change management strategy, so that it can remain responsive to change as it grows. One interesting conclusion Christensen reaches is that companies should not always listen to their existing customers, who typically will ask for more of the same.
The book refers to interesting case studies, the major one being focused on the hard disk industry. While specific examples are often out-dated, the principles remain relevant and it’s a valuable addition to the literature of change management for any growing business.