The Dilemmas of Innovation

Brief Summary of the book: “The Innovator’s Dilemma”

 
First: Market progress is separate from technology progress. Customers do not always know what they need.

Second: Innovation requires resource allocation which is extraordinarily difficult for disruptive technologies.

Third: Disruptive technology needs a new market. Old customers are less relevant. Disruptive technology is a marketing problem, not a technological one.

Fourth: Organizations have narrow capabilities. New markets enabled by disruptive technologies require very different capabilities.

Fifth: Information required to make investment decisions does not exist. Failure and iterative learning are required.

Sixth: It is not wise to always be a leader or always a follower. Disruptive innovations reward leaders.

Seventh: Small entrant firms enjoy protection because they are doing things that do not make sense to the industry leaders.

 

 

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