The Innovator's DNA. Pages dna. Preview Download Downloads. bvifacts.info The glass castle: a memoir. The innovators solution:creating and sustaining successful growth / Clayton M. Christensen, Michael E. Raynor. p. cm. Includes bibliographical references and. Dyer, Jeff. The innovator's DNA: mastering the fiveskills of disruptive innovators/. Jeff Dyer 2. INTRODUCTION. Dilemma and The Innovator's Solution, conveyed important in PDF photos and descriptions of how they fit. This experiment.
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The Innovator's Solution - Download as PDF File .pdf), Text File .txt) or read online. The Innovator's Solution by Clayton M. Christensen, September , Harvard Business School Press edition, Hardcover in English. The'Innovator's'Solution:'Creating'and'Sustaining'Successful'Growth'ebook' download'epub'pdf'audiobook. Anssajasolas; 5 videos; No views; Updated today.
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The key to success with low-end disruptions is to devise a business model that can earn attractive returns at the discount prices required to capture the low end of the market. This is why the trajectories of improvement that customers can utilize in any given application or tier of the market tend to be quite flat.
The target customers are trying to get a job done. Christensen and Raynor explain the building blocks of new market disruption. Identifying disruptive footholds means connecting with specific jobs that people are trying to get done in their lives. An important point which Christensen and Raynor make is that at a fundamental level. They may be willing to accept improved products. Targeting the right customers Which initial customers are most likely to provide the right foundation for a successful growth business?
And how should we reach them? The ideal customers for a low-end disruption are current users of a mainstream product who seem disinterested in improved-performance products.
When only a fraction of the population is using a product. Only by staying connected with a given job as improvements are made. This mismatch between the true needs of consumers and the data that shape most product development efforts leads most companies to aim their innovations at wrong targets. An architecture is interdependent at an interface if one part cannot be created independently of the other part — if the way one is designed and made depends on the way the other is being designed and made.
Despite how appealing these kinds of customers appear to be on paper. Instead of asking what their company does best today. Defining the scope of a business It has now become a fad to state that the scope of a business must be related to its core competence.
The customers should be so attractive that everyone in the value network is motivated to cooperate in pursuing the opportunity. The place where any two components fit together is called an interface. They are delighted to buy it even though it may not be as good as other products available at high prices to current users with deeper expertise in the original value network. What kinds of customers are most desirable?
Companies must look for customers who have long wanted their product but were not able to get one until they arrived on the scene. The new customers typically purchase the product through new channels and use the product in new venues. What might seem to be a noncore activity today might become an absolutely critical competence to have mastered in a proprietary way in the future.
Interfaces exist within a product. Such architectures are proprietary with each company developing its own. When there is an interface across which there are unpredictable interdependencies. Christensen and Rayor point out the limitations of core competence.
They must be able to have them all to ourselves. The disruptive innovation creates a whole new business model.
The performance hurdle required to satisfy such customers is quite modest. Interdependent architectures optimize performance. They target customers who already are using a product to which they have become accustomed. They must be able to easily delight these customers. The technology that enables the disruption might be quite sophisticated.
Such customers will compare the disruptive product to having nothing at all. Companies that position themselves at a spot in the value chain where performance is not yet good enough will capture the profit. The reciprocality of these processes means that the locus of the ability to differentiate shifts continuously in a value chain as disruptive technologies emerge.
Companies that compete with proprietary. On the other hand. Three conditions must be met in order for a firm to procure something from a supplier or partner. The customer needs to understand how the subsystem will interact with the performance of other pieces of the system so that it can be used with predictable effect. While commoditization undermines differentiability. The standardization inherent in modularity takes away much of the flexibility from engineers.
When product performance is not good enough. When product functionality and reliability are not yet good enough to address the needs of customers. Firms that build their products around proprietary.
They must control the design and manufacture of every critical component of the system in order to make any piece of the system.
When there are complex. As a result. Modular architectures optimize flexibility. These three conditions — specifiability. But as the company strives to keep ahead of its direct competitors. A company develops a proprietary product that. This facilitates the dis-integration of the industry and makes it very difficult to differentiate the performance or costs of the product versus those of competitors. The role of a good brand in closing this gap is apparent in the price premium that branded products are able to.
The Innovator's Solution: Creating and Sustaining Successful Growth
Competition among subsystem suppliers causes their engineers to devise designs that are increasingly proprietary and interdependent. Because the mechanisms that constrain or determine how rapidly they can move upmarket are the performance-defining subsystems.
Christensen and Raynor emphasise that core competence. That is the circumstance where differentiable products. Competitiveness is far more about doing what customers value than doing what we think we are good at. Profitability depends on the circumstance in which companies happen to be at a particular point in time. This creation of a profitable. It is wrong to conclude that an industry is inherently unprofitable. Executives who seek to avoid commoditization often rely on the strength of their brands to sustain their profitability.
This precipitates a change in the basis of competition in those tiers. It is useful to understand the reciprocal process of de-commoditization.
The Innovator's DNA - PDF Drive
As the basis of competition shifts. It does this through a proprietary architecture. The low-cost strategy of modular product assemblers is only viable as long as they are competing against higher-cost opponents. As soon as they drive the high-cost suppliers of proprietary products out of a tier of the market.
The leading providers of these subsystems therefore find themselves selling differentiated. The companies that are positioned at a spot in a value chain where performance is not yet good enough will capture the profit.
So managers can readily assess their value. When the functionality and reliability of a product become more than good enough. The very skills that propel an organization to succeed in sustaining circumstances systematically bungle the best ideas for disruptive growth.
Companies that integrate across the retail interface to the customer. The brands of companies with proprietary products typically create value mapping upward from their position in the improvement trajectory — toward those customers who still are not satisfied with the functionality and reliability of the best that is available.
What becomes not good enough are speed to market and the rapid and responsive ability to configure products to the specific needs of customers in ever-more-targeted market segments. They fail because managers are not up to the task. Resources include people. It is relatively easy to transport them from one place to another. Branding power tends to migrate in a market that is composed of multiple tiers. They tend to be quite flexible as well.
But mapping downward from that same point — toward the world of modular products where speed. For similar logic. Resources usually can be hired and fired.
Three classes or sets of factors define what an organization can and cannot accomplish: Most resources are visible and often are measurable. Christensen and Raynor have coined the law of conservation of attractive profits. The law states that in the value chain there is a requisite juxtaposition of modular and interdependent architectures.
The customer interface is the place in the value chain where the ability to excel on this new dimension of competition is determined. In contrast to the flexibility of many resources. Established companies have the resources — the engineers.
Over time. Sustaining-technology investments also fit the values of the leading companies. These include how market research is habitually done. The patterns of interaction. As established companies introduce new and improved products in order to gain an edge over the competition. The second dimension along which values can change relates to how big a business has to be in order to be interesting. In other words. The third class of factors that affect what an organization can or cannot accomplish is its values.
A process that defines a capability in executing a certain task concurrently defines disabilities in executing other tasks. As companies upgrade their products and services to capture more attractive customers in premium tiers of their markets.
They are established to help employees perform recurrent tasks in a consistent way. In the start-up stages of a business. Many managers will not be thrilled unless the business is big enough. But their processes and values constitute disabilities in their efforts to succeed at disruptive innovation.
Values are the standards by which employees make prioritization decisions — those by which they judge whether an order is attractive or unattractive.
Processes include the ways that products are developed and made and the methods by which procurement. Deliberate processes are appropriate if three conditions are met. The deliberate strategy-making process is conscious and analytical.
These tend to be tactical. Strategy development More than finding the right strategy. Their values enable them to embrace small markets. Established companies are prone to push disruptive ideas into the mainstream market. The deliberate strategy process should be dominant once a winning strategy has become clear.
As long as the strategies for developing and commercializing these disruptive innovations are developed within the mainstream organization. Their less formal market research and resource allocation processes allow managers to proceed intuitively instead of going by careful research and analysis. In those circumstances. They lack resources. In every company. A better strategy is to let the acquired business stand alone.
Strategy in this process typically is formulated in a project with a discrete beginning and end. It is often based on rigorous analysis of data on market growth. There is an important lesson here for innovative companies who try to strengthen their capabilities by acquisitions. Because it is difficult to find a situation in which all three of these conditions apply. Capital which is impatient for growth but patient for profit might kill a new venture.
So the process of getting the money to start a new venture needs to be carefully understood. The best money during the nascent years of a business is patient for growth but impatient for profit. The need for emergent strategy also arises whenever a change in circumstances indicates what worked in the past may not be as effective in the future. Competing against non-consumption and moving disruptively up-market involves small markets for a time.
Those expectations then heavily influence the types of markets and channels that the venture targets. The right kind of capital The type and amount of money that managers accept. Entrepreneurs rarely get their strategies exactly right the first time. The only way that a venture can instantly become big is for existing users of a high-volume product to be enticed to switch en masse to the new.
Senior executives must personally and repeatedly intervene. Emergent process should dominate in circumstances in which the future is hard to read and in which it is not clear what the right strategy should be.
CEOs must not leave the choice about strategy process to policy. The process of securing funding forces many disruptive ideas to get shaped as sustaining innovations that target large and obvious markets. The successful ones make it because they have money left over to try again after they learn that their initial strategy was flawed. The process by which a viable strategy emerges must be accelerated by ensuring that business plans are designed to test and confirm critical assumptions.
Keep dividing business units so that as the corporation becomes increasingly large. They must facilitate a process which capably and repeatedly launches successful growth businesses. It is when senior executives sense that the processes and values of the mainstream organisation are not designed to handle important decisions in an organization that they need to participate. When new ventures are expected to generate profit relatively quickly. Tuning the growth engine All companies desire for growth.
Early profitability also protects a growth venture from cutbacks when the corporate bottom line turns sour. For those decisions that the mainstream processes and values were designed to make effectively. Money needs to be impatient for profit. Because the values of the mainstream business have evolved to weed out the very sorts of ideas that have disruptive potential.
But most struggle to grow. A senior executive is needed to break the grip of corporate processes and decision rules when they are not.
Sustaining innovation is the circumstance in which delegation works effectively. Minimize the use of profits from established businesses to subsidize losses in new-growth businesses.
The growth engine is a much more delicate machine that must be kept running continuously by process and policy. This is a battle of sustaining innovation. Start-ups can rarely win such a battle. They must sense when the circumstances are changing. We must be impatient for profit: There is nothing like profitability to ensure that a high-potential business can continue to get the funding it needs.
Businesses must target jobs that customers are trying to get done. Senior executives must actively coordinate action and decision when no processes exist to do the coordination. Hardcopy, paperback, softbound, magazine: Physical copy shipped from our warehouse to your requested shipping location. PDF digital file. A themed collection containing two or more items at a special savings. A security code is added protection against credit card fraud. It is a 3 or 4 digit number appearing on the front or back of your credit card.
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