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.