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When product performance outstrips the ability of customers to use that performance in an industry, the competitive game changes. Under those circumstances you have to decouple components businesses from assembly businesses.

Clayton Christensen

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Clayton Christensen
Age: 67 †
Born: 1952
Born: April 6
Died: 2020
Died: January 23
Economist
Missionary
Priest
Professor
University Teacher
Writer
Salt Lake City
Utah
Clayton Magleby Christensen
Games
Customers
Ability
Product
Use
Performances
Outstrips
Changes
Assembly
Products
Components
Circumstances
Competitive
Industry
Businesses
Game
Performance

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The outsourcing gurus have been driving the theory, and they are saying everybody ought always to do this. But it is really contingent on where you are on the spectrum from not good enough to more than good enough, relative to each tier of the market.
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Businesses want to think in terms of categories. Consumers want us to think in terms of their needs.
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To prop up the stock price, managers have to turn down the screws on everybody. That forces them to cancel all the projects that would lead to future growth in order to drop money to the bottom line. This is HP's dilemma today. Once a company's growth has stopped, the game as we have known it is over. It's a scary thing.
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In a large successful company where your power base as CEO isn't all that secure, it's hard for a CEO to pursue a truly disruptive strategy.
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But actually theory is very practical. Gravity is a theory, for example. It allows you to predict that if you step off a cliff you will fall you don't have to collect data on that.
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Focus is scary—until you realize that it only means turning your back on markets you could never have anyway. Sharp focus on jobs that customers are trying to get done holds the promise of greatly improving the odds of success in new-product development.
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The transformation at the corporate level was achieved by selling off business units in old markets and by creating new business units to pursue the new opportunities. But the individual business units themselves within those transformed corporations were almost inert to change.
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You can talk all you want about having a clear purpose and strategy for your life, but ultimately this means nothing if you are not investing the resources you have in a way that is consistent with your strategy. In the end, a strategy is nothing but good intentions unless it's effectively implemented.
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If the theory accurately predicts what they [scientists] see, it confirms that it's a good theory. If they see something that the theory didn't lead them to believe, that's what Thomas Kuhn calls an anomaly. The anomaly requires a revised theory - and you just keep going through the cycle, making a better theory.
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The 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.
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History is littered with great firms that got killed by disruption. Of course, the personal computer, a technology that first took root as a toy, got Digital Equipment Corporation. Kodak missed the boat for a long time on digital imaging. Sony was slow to get MP3 technology. Microsoft doesn't know what to do with open source software. And so on.
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There are direct paths to a successful career. But there are plenty of indirect paths, too.
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Innovation simply isn't as unpredictable as many people think. There isn't a cookbook yet, but we're getting there.
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Its actually really important that you succeed at what youre succeeding at, but that isnt going to be the measure of your life.
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One quarter of Medicare beneficiaries have five or more chronic conditions, sees an average of 13 physicians each year, and fills 50 prescriptions per year.
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People still cling to this belief that innovation is just random and unpredictable. But if you look closely, there are some real patterns. The companies that recognize and take advantage of those patterns have the real opportunity to create competitive advantage.
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Regulatory fiat cannot create a market at a technologically interdependent interface. And by the same token, regulation and so-called monopoly power rarely prevail at modular interfaces between stages of value-added technology.
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We don't hire ministers or priests to teach and care for us. This forces us to teach and care for each other - and in my view, this is the core of Christian living as Christ taught it.
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Justification for infidelity and dishonesty in all their manifestations lies in the marginal cost economics of “just this once.
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There needs to be conviction and action behind rules.
Clayton Christensen