Amazon.com's Best of 2001
Five years ago, Jim Collins asked the question, "Can a good company become a great company and if so, how?" In Good to Great Collins, the author of Built to Last, concludes that it is possible, but finds there are no silver bullets. Collins and his team of researchers began their quest by sorting through a list of 1,435 companies, looking for those that made substantial improvements in their performance over time. They finally settled on 11--including Fannie Mae, Gillette, Walgreens, and Wells Fargo--and discovered common traits that challenged many of the conventional notions of corporate success. Making the transition from good to great doesn't require a high-profile CEO, the latest technology, innovative change management, or even a fine-tuned business strategy. At the heart of those rare and truly great companies was a corporate culture that rigorously found and promoted disciplined people to think and act in a disciplined manner. Peppered with dozens of stories and examples from the great and not so great, the book offers a well-reasoned road map to excellence that any organization would do well to consider. Like Built to Last, Good to Great is one of those books that managers and CEOs will be reading and rereading for years to come. --Harry C. Edwards
Book Description
The Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sustained performance can be engineered into the DNA of an enterprise from the verybeginning.
But what about the company that is not born with great DNA? How can good companies, mediocre companies, even bad companies achieve enduring greatness?
The Study
For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority? And if so, what are the universal distinguishing characteristics that cause a company to go from good to great?
The Standards
Using tough benchmarks, Collins and his research team identified a set of elite companies that made the leap to great results and sustained those results for at least fifteen years. How great? After the leap, the good-to-great companies generated cumulative stock returns that beat the general stock market by an average of seven times in fifteen years, better than twice the results delivered by a composite index of the world's greatest companies, including Coca-Cola, Intel, General Electric, and Merck.
The Comparisons
The research team contrasted the good-to-great companies with a carefully selected set of comparison companies that failed to make the leap from good to great. What was different? Why did one set of companies become truly great performers while the other set remained only good?
Over five years, the team analyzed the histories of all twenty-eight companies in the study. After sifting through mountains of data and thousands of pages of interviews, Collins and his crew discovered the key determinants of greatness -- why some companies make the leap and others don't.
The Findings
The findings of the Good to Great study will surprise many readers and shed light on virtually every area of management strategy and practice. The findings include:
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Level 5 Leaders: The research team was shocked to discover the type of leadership required to achieve greatness.
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The Hedgehog Concept (Simplicity within the Three Circles): To go from good to great requires transcending the curse of competence.
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A Culture of Discipline: When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great results. Technology Accelerators: Good-to-great companies think differently about the role of technology.
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The Flywheel and the Doom Loop: Those who launch radical change programs and wrenching restructurings will almost certainly fail to make the leap.
“Some of the key concepts discerned in the study,” comments Jim Collins, "fly in the face of our modern business culture and will, quite frankly, upset some people.”
Perhaps, but who can afford to ignore these findings?
Customer Reviews:
A very thought-provoking book for people trying to grow their business........2007-10-02
This was a very interesting book for me to read. I have to imagine that I am in a pretty narrow target market for this book, though the concepts may be broadly applied. I work for a small business and can see many opportunities to put this book's findings to work.
The book tells the various stories of companies that made a transition from a market participant to market leader and saw sustained success for at least 15 years. The author was able to identify a few common factors between these companies, and he and his research team present them as a model for us to follow.
I had but one small issue, which is probably not information that contributes to the rest of the research. They detail radical decisions made by upper management, sometimes completely changing the face of an established business. I figure there must be a largely disproportionate number of business that fail when they made the same or a similar move. I would have liked to see some detail behind how those successful companies came to make that decision. The decision itself was largely overlooked.
Like many "business" books, I feel that much of what was written here was largely common sense. They weren't necessarily ideas that I have had or would have come up with on my own, but as I read them they seemed mundane in analysis. It made the reading slow going, but there was a silver lining -- for instant gratification, each chapter ends with a few pages of main concepts extracted from the text.
There was some very insightful research in Good to Great. The common elements identified were relevant and practical. It would not be an easy model to follow, but if it were it would defeat its own purpose to isolate those corporate characteristics that set successful companies apart. If you have ever wondered what steps you should follow to take your company from Good to Great, this is a book you should read (even if it is just the chapter summaries).
"Good" is not "good enough"........2007-10-02
"Good" is not "good enough". When organizations and/or individuals settle for "good" as "good enough" they set themselves up to become obsolete. "Good to Great" looks at those organizations that decided never to settle for "good enough" and became "Great". How about you? Are you striving to become great at what you do, or have you settled for being good enough to get by? Does the organization that you work for have a plan to move from good to great? Are you a part of the change that will take your company to the next level or do you believe that your company is "good enough" right where it is?
I believe there is more value to be gained by pushing good organizations to become great than trying to turn mediocre organizations into good ones. The data presented in "Good to Great" shows just how much value can be gained by those willing to make the leap to Great. The book also shows you what principles of business those companies that made the leap had to adopt.
My favorite chapters are chapter two (Level 5 Leadership) and three (First Who...Then What). Level 5 Leadership address the benefits of having personal humility combined with a strong will to build something great. We have to many leaders at the top that have let their egos become more important than the organizations they run. "Good to Great" explains how the leaders of those companies that made the leap avoided the ego trap while having great ambitions for building something exceptional. Everyone who wishes to become a leader that makes a difference should read this chapter.
"First Who...Then What" does a good job of showing how great companies put "talent" at the top of the agenda. Any leader who wants to build a strong organization must put "talent" at the top of their agenda. Jim Collins address two critical issues companies need to address when it comes to recruiting and developing their talent. He shows us why it is important to get the right people on the bus and the wrong people off the bus. And then goes on to explain how great companies get the people in the right seat. How many people in your organization are in the wrong seat? How many should be taken off the bus entirely? Companies are not good at hiring the right people and then are terrible at assigning them to the right job. This chapter is a must for anyone involved in the hiring of talent.
I also recommend spending some time at jimcollins.com. I have visited and revisited this site to get more information on the concepts presented in "Good to Great". Buy the book, then go to the website and start your own journey from good to great.
Larry Kevin Adams
theactionator.com
Good To Great.......2007-09-28
Our company is taking the advice of the book to heart. We have formed our "hedgehog" group and all are excited. We want to work in an environment of greatness. The book shows us the way. We have 7 of our employees who have agreed to "donate their time" at lunch several times a month to help us identify our circles. I would recommend this book to any company or organization that truly wants to have their maximum impact in the arena in which they operate!
My Business Bible.......2007-09-24
If I have a bible for business, this is it. First who then what is the only way to go!
Still applicable in 2007.......2007-09-19
I enjoyed the thought provoking aspect of this book. The different levels of leadership, the hedgehog concept are the two takeaways from this book.
How many of us fall into the trap of being everything to everyone? Most I suspect from the findings presented in the book.
Read this book to find out how you can strive to be a Level 5 leader. I found the book very insightful. Jim Collins and his team hit a homerun!
Book Description
Since the first edition of this landmark book was published in 1962, Everett Rogers's name has become "virtually synonymous with the study of diffusion of innovations," according to Choice. The second and third editions of Diffusion of Innovations became the standard textbook and reference on diffusion studies. Now, in the fourth edition, Rogers presents the culmination of more than thirty years of research that will set a new standard for analysis and inquiry.
The fourth edition is (1) a revision of the theoretical framework and the research evidence supporting this model of diffusion, and (2) a new intellectual venture, in that new concepts and new theoretical viewpoints are introduced. This edition differs from its predecessors in that it takes a much more critical stance in its review and synthesis of 5,000 diffusion publications. During the past thirty years or so, diffusion research has grown to be widely recognized, applied and admired, but it has also been subjected to both constructive and destructive criticism. This criticism is due in large part to the stereotyped and limited ways in which many diffusion scholars have defined the scope and method of their field of study. Rogers analyzes the limitations of previous diffusion studies, showing, for example, that the convergence model, by which participants create and share information to reach a mutual understanding, more accurately describes diffusion in most cases than the linear model.
Rogers provides an entirely new set of case examples, from the Balinese Water Temple to Nintendo videogames, that beautifully illustrate his expansive research, as well as a completely revised bibliography covering all relevant diffusion scholarship in the past decade. Most important, he discusses recent research and current topics, including social marketing, forecasting the rate of adoption, technology transfer, and more. This all-inclusive work will be essential reading for scholars and students in the fields of communications, marketing, geography, economic development, political science, sociology, and other related fields for generations to come.
Download Description
"Now in its fifth edition, Diffusion of Innovations is a classic work on the spread of new ideas. It has sold 30,000 copies in each edition and will continue to reach a huge academic audience. In this renowned book, Everett M. Rogers, professor and chair of the Department of Communication & Journalism at the University of New Mexico, explains how new ideas spread via communication channels over time. Such innovations are initially perceived as uncertain and even risky. To overcome this uncertainty, most people seek out others like themselves who have already adopted the new idea. Thus the diffusion process consists of a few individuals who first adopt an innovation, then spread the word among their circle of acquaintances--a process which typically takes months or years. But there are exceptions: use of the Internet in the 1990s, for example, may have spread more rapidly than any other innovation in the history of humankind. Furthermore, the Internet is changing the very nature of diffusion by decreasing the importance of physical distance between people. The fifth edition addresses the spread of the Internet, and how it has transformed the way human beings communicate and adopt new ideas."
Customer Reviews:
Interesting.......2007-09-12
This book is fascinating. It discusses the spread of ideas and products through communities, how they spread and why. Rogers breaks down the process and describes different categories of people depending on when they take up the innovation. This book is very readable, and although written by an academic, not written in academese. It covers various domains of interest (agriculture, sociology, marketing) and has something for everyone.
The one thing I think Rogers has missed is subjective norm. Not only do people weigh the relative advantage, compatibility, complexity, trialability and observability, but they also weigh up what they believe their personal network believes what they should do.
For instance, I will do something that someone important (to me)tells me to do, even if I personally find it silly, simply because I put enough weight and consideration into what I believe is their opinion.
Rogers gets close to that with the discussion of personal networks and adoption of innovations by organisations, but still misses the point. That is why this book only gets four stars, from me.
Excellent.......2007-08-10
Very insightful. A must read for a variety of academic disciplines. I don't know that I've been in a professor's office at my university and not seen this book on the shelf!
Diffusion of Innovations--The scientific framework of lessons learned.......2007-06-12
As a physician who has had the pleasure to experience life-changing innovations in his medical career, the chance to read Dr Rogers book on Innovation has been a real delight. Technology has changed so much around us in the last half of the 20th century that we can scarcely describe what life was like before "the innovation".
To my friends who happen to be innovators, early adaptors, beta testers and entrepreneurs, I recommend the book to provide the scientific disicpline with its glossary, case reports, primary scientific citations and organization of innovation theory that ones needs if one is in an "innovation" field and wishes to communicate professionally.
To the casual reader who is fascinated by the world around him/her and wishes to explore innovation scientifically, then this should be considered the "primer".
A textbook in disquise..........2007-02-15
This is a textbook in disquise. The information is good, but could be summarized better and in a more consise manner.
Good reference material...
most excellent piece of work on diffusion of innovation.......2006-12-26
There are several well written books on innovation but this is one of the most excellent piece of work on diffusion of innovation. Though if we look at history, research on the diffusion of innovations model began with the Bryce and Gross' (1943) investigation of the diffusion of hybrid seed corn among Iowa farmers. They explained how it came to attention and which of two channels (i.e., mass communication and interpersonal communication with peers) led farmers to adopt the new innovation.
But Rogers has further discussed the five characteristics of a technology acceptance - 1) relative advantage, the extent to which it offers improvements over available tools, 2) compatibility, its consistency with social practices and norms among its users, 3) complexity, its ease of use or learning, 4) trialability, the opportunity to try an innovation before committing to use it, 5) observability, the extent to which the technology's gains are clear to see.
Amazon.com
What do the Honda Supercub, Intel's 8088 processor, and hydraulic excavators have in common? They are all examples of disruptive technologies that helped to redefine the competitive landscape of their respective markets. These products did not come about as the result of successful companies carrying out sound business practices in established markets. In The Innovator's Dilemma, author Clayton M. Christensen shows how these and other products cut into the low end of the marketplace and eventually evolved to displace high-end competitors and their reigning technologies.
At the heart of The Innovator's Dilemma is how a successful company with established products keeps from being pushed aside by newer, cheaper products that will, over time, get better and become a serious threat. Christensen writes that even the best-managed companies, in spite of their attention to customers and continual investment in new technology, are susceptible to failure no matter what the industry, be it hard drives or consumer retailing. Succinct and clearly written, The Innovator's Dilemma is an important book that belongs on every manager's bookshelf. Highly recommended. --Harry C. Edwards
Book Description
The Innovator's Dilemma demonstrates why outstanding companies that had their competitive antennae up, listened astutely to customers, and invested aggressively in new technologies still lost their market dominance. Drawing on patterns of innovation in a variety of industries, the author argues that good business practices can, nevertheless, weaken a great firm. He shows how truly important, breakthrough innovations are often initially rejected by customers that cannot currently use them, leading firms to allow their most important innovations to languish. Many companies now face the innovator's dilemma. Keeping close to customers is critical for current success. But long-term growth and profits depend upon a very different managerial formula. This book will help managers see the changes that may be coming their way and will show them how to respond for success. The Management of Innovation and Change Series.
Download Description
Revised, updated, and with a new chapter, this book continues to take the radical position that great companies can fail precisely because they do everything right. It demonstrates why outstanding companies lose their market leadership when confronted with disruptive technology--and it explains how to avoid a similar fate. Drawing on insights from a number of industries--such as the computer and disk drive industries, discount retailing, minimills, pharmaceuticals, and the automobile industry--Christensen shows why good management often turns out to be all wrong--and what to do about it.
Customer Reviews:
No Dilemma Here.......2007-08-18
It is the typical manager's nightmare. A startup with a powerful idea wipes out all the dominance your large ogranisation had. It can happen overnite and without warning.
How do you stop this nightmare from happening? Well, the answer could lie in The Innovator's Dilemma.
Kishore Dharmarajan
Author of Eightstorm: 8-Step Brainstorming for Innovative Managers
A disruptive view on innovation.......2007-08-09
Professor Clayton Christensen introduced the term "disruptive innovation" as a management buzzword, the whole book spins around this concept and offers very perturbing views on why being a star performer is a major threat to pass the next opportunity.
First, a definition: disruptive innovations are those that offer "less" in the critical performance parameters of current customers. As a consequence disruptive innovators have to look for different customers than the ones that established companies already have.
To make the point a deep analysis of the hard disk drive industry is made. More than 100 innovations are analysed and only 5 are claimed as being disruptive: the progressive reduction of size from 14", to 8", to 5 1/4", etc. All follow the same pattern: the innovation had lower performance on capacity which was the critical parameter for existing customers and innovators had to find new customers, eg for the 8" drive the mini-computer manufacturers instead of mainframe manufacturers. In fact innovations were so disruptive that almost none of the established companies was able to be successful in the new market. Although current players where by and large able to bring forward the other 100 sustaining inovations without major troubles.
The second part of the book recommends how to make disruptive innovations work, with supporting evidence from examples. This are:
-Create a new organization to deal with the innovation
-Match organization and opportunity size
-Allow the organization to fail rapidly and inexpensively and move on
-Leverage some of the existing resources but not the values and processes of the main organization
-Spend time looking for the right customers rather than the right technology.
The surprising learning is that what impedes that good companies cannot profit from disruptive innovations are that they are good at what they do in their main business not that htey are bad. The hot topic is still when a disruptive innovation is comming how can we spot and capitalise on it, and put ourselves in the dilemma of chosing the best option.
A well laid out, thought provoking and seminal work on innovation.
Repetitive.......2007-06-23
It was a hassle getting through this book, but overall it was worth it. A lot of good lessons learned, but he says the same things over and over again. Read the first and last chapters and you'll be fine.
Business calssic.......2007-06-17
The Innovator's Dilemma by Clayton M. Christensen is a must read book for any person interested in keeping their business moving forward or for any person starting a business. Christensen clearly exposes the traps that cause successful companies to stop innovating and succumb to innovative new firms. The material is presented as a series of fascinating case studies with commentary.
just great book.......2007-05-12
Just great book for those considering start their own business.
Would be helpful for bean counters in large corporations too.
Book Description
Under Andy Grove's leadership, Intel has become the world's largest chip maker and one of the most admired companies in the world. In
Only the Paranoid Survive, Grove reveals his strategy of focusing on a new way of measuring the nightmare moment every leader dreads--when massive change occurs and a company must, virtually overnight, adapt or fall by the wayside.
Grove calls such a moment a Strategic Inflection Point, which can be set off by almost anything: mega-competition, a change in regulations, or a seemingly modest change in technology. When a Strategic Inflection Point hits, the ordinary rules of business go out the window. Yet, managed right, a Strategic Inflection Point can be an opportunity to win in the marketplace and emerge stronger than ever.
Grove underscores his message by examining his own record of success and failure, including how he navigated the events of the Pentium flaw, which threatened Intel's reputation in 1994, and how he has dealt with the explosions in growth of the Internet. The work of a lifetime,
Only the Paranoid Survive is a classic of managerial and leadership skills.
The Currency Paperback edition of
Only the Paranoid Survive includes a new chapter about the impact of strategic inflection points on individual careers--how to predict them and how to benefit from them.
Customer Reviews:
Enriching Personal Real-Life Account by Someone Who Had Managed a Mega-Size Corporation!!! .......2007-03-20
The real value of this book is that it is written by someone, Andrew Grove, who has actual experiences and managed a start-up right up to a mega successful corporation. There are tons of management and marketing books written by people, based on case-studies and analysis, but lack actual experiences managing or working in a corporation.
The main concept of this book is on strategic inflection point, which is a time in the life of the business when its fundamentals are about to change. This change can either infer an opportunity to rise to new heights or signal the beginning of the end. Hence, this book is about the impact of changing rules, guidelines to assist in identifying those situations and about finding your way through those uncharted territories. This book serves to raise our awareness of going through cataclysmic changes and to provide a framework in which to deal with them.
This book uses Porter's competitive analysis strategy in terms of the 6 forces as a base. The 6 forces are
1. Power, vigor and competence of existing competitors
2. Power, vigor and competence of complementors
3. Power, vigor and competence of customers
4. Power, vigor and competence of suppliers
5. Power, vigor and competence of potential competitors
6. Power, vigor and competence of substitutes
Once a very large change happens in one or several of these 6 forces, a "10X" force is in effect. Very often the transition from a normal business environment to that of a "10X" business environment is very gradual and thus, it is difficult to pinpoint the exact time in which the "10X" force came about. Strategic inflection point comes about when this balance of forces shifts from the normal environment to that of the new "10X" environment and it is difficult to pinpoint its exact occurrence.
The circumstances that help to identify this strategic inflection point are
1. Presence of troubling sense that something is different such as changes in customers' attitudes, entrant of new competitors, etc.
2. Growing dissonance or misalignment between corporate statements and operation actions.
3. Emergence of new framework or actions.
4. New set of corporate statements is generated.
Andrew gave an analogy of working your way though a strategic inflection point to be just like venturing into the valley of death, the perilous transition between the old and the new environments. It is difficult to know the right moment to execute the appropriate actions. Since timing is everything, it is attractive to undertake these changes when the company is in a healthy financial state. This means "acting when not everything is known, when the data aren't in.", merely relying on "instinct and personal judgments" (Chapt 2). Hence it is a matter of training your instincts to pick up a different set of signals.
The only way we know whether a change signals a strategic inflection point is through the process of clarification that comes from broad and intensive debate. This debate should involve technical discussions, marketing discussions and considerations of strategic repercussions (how will it affect our business if we make a dramatic move; how will it affect if we don't?). The more complex the issues are, the more levels of management should be involved because people from different levels of management bring completely different points of view and expertise. The debate should involve people from outside the company, customers and partners with different areas of expertise and interests. When dealing with emerging trends, you may very well have to go against rational extrapolation of data and rely instead on anecdotal observations and your instincts. (chapter 6). Constructively debating tough issues and getting somewhere is only possible when people can speak their minds without fear of punishment.
Andrew offers a few guidelines to discern "signal" from "noise"
1. Is your key competitor about to change? Suggested using the "silver bullet test": If you had just one bullet, whom among your many competitors would you save it for? When the answer to this question stops being as crystal clear, it is time to sit up and pay special attention.
2. Is your key complementor about to change? Does the company that in the past years mattered the most to your business seem less important today? Does it look like another company is about to eclipse them? If so, it may be a sign of shifting industry dynamics.
3. Does it seem that people who for years had been very competent have suddenly gotten decoupled from what really matters? If key aspects of the business shift around us, the very process that got us where we were might retard your ability to recognize the new trends.
Generally you cannot judge the significance of the strategic inflection point by the quality of the first version or release of the product. You will need to draw on your experiences to discern its possible impacts.
Strategic dissonance is the divergence between actions and statements; saying one thing and doing another. Strategic dissonance is an automatic reaction to a strategic inflection point that probing for it is perhaps the best test of one.
Clarity of direction, which includes describing what we are going after, as well as, describing what we will not be going after, is exceedingly important at the late stage of a strategic transformation. This book defines strategic plans as statements of what we intend to do, whereas strategic actions as steps we have already taken or are taking. Strategic plans are abstract and are usually couched in language meant for the company's management. Strategic actions matter because they immediately affect people's lives. The most effective way to transform a company is through a series of incremental changes that are consistent with a clearly articulated end result.
This book mentions the "Taillight" approach - some companies may profitably wait for others to test the limits of technological possibilities or market acceptance and then commit to following, catching up and passing them.
A question that often comes up at times of strategic transformation is whether you should pursue a highly focused approach, betting everything on one strategic goal or should you hedge. It takes every erg of energy in your organization to do a good job pursuing one strategic aim, especially in the face of aggressive and competent competition. It is hard to lead the organization out of the valley of death without a clear and simple strategic direction. Demoralized organizations are unlikely to be able to deal with multiple objectives. Thus, hedging is expensive and dilutes commitment, and is not recommended.
"Most companies don't die because they are wrong; most die because they don't commit themselves... The greatest danger is in standing still" (Chapter 8).
The leader needs to show interest in the elements leading to the strategic direction, by getting involved in details that are appropriate to the new direction and by withdrawing attention, energy and involvement from those things that do not fit. At times like this, the calendar is the most important strategic tools in communication. Andrew emphasizes that communicating strategic change in an interactive exposed fashion is important and necessary such as corporate email announcements and meetings, etc.
Companies that successfully navigate through strategic inflection points tend to have a good dialectic between bottom-up and top-down actions. Bottom-up actions come from the ranks of middle managers, who by the nature of their jobs are exposed to the first whiffs of the winds of change, who are located at the peripheral of the action where change is first perceived and who catch on early. But by the nature of their work, they can only affect things locally. Their actions must meet halfway the actions generated by senior management. While those managers are isolated from the winds of change, but once they commit themselves to a new direction, they can affect the strategy of the entire organization. The best results seem to prevail when bottom-up and top-down actions are equally strong. When the top management lets go a little, the bottom-up actions will drive towards chaos by experimenting, by pursuing different product strategies, by generally pulling the company in a multiplicity of directions. After such creative chaos reigns and a direction becomes clear, it is up to senior management to reign in chaos. A pendulum-like swing between the 2 types of actions is the best way to work your way through a strategic transformation. What is needed is a balanced interaction between the middle managers, with their deep knowledge but narrow focus and senior management, whose larger perspective could set a context.
An organization that has a culture that can deal with these 2 phases - debate (chaos reign) and a determined march (chaos reined in) is a powerful, adaptive organization. Such an organization has 2 important attributes:
1. It tolerates and even encourages debates. These debates are vigorous, devoted to exploring issues, indifferent to rank and include individuals of varied backgrounds.
2. It is capable of making and accepting clear decisions, with the entire organization then supporting the decision.
This book emphasizes on the concepts by reliving a few of Intel's crisis; the mid-80s shift from memory to microprocessors business, RISC vs CISC architecture and during the fall of 1994 the floating point bug associated with Intel's flagship device; the Pentium processor. The magnitude of this crisis is so significant in that a tiny flaw in the microprocessor's floating point unit could mushroom into half a billion dollars' worth of damage in less than 6 weeks. This was later narrowed down to 2 key factors. First the success of Intel's merchandising "Intel Inside" program, which has projected a strong Intel image right to the end-user, became a double-edge sword in that end users directly contact Intel for a replacement microprocessor. In a normal incidence, it is likely to be the computer manufacturers who will perform the recall and replacement. But Intel's identity is so strong with the end-users that they became the ones asking for a recall and replacement. Second, the other factor is attributed to Intel's sheer size. Intel had become gigantic in the eyes of the computer buyers. And thus the huge cost in replacement.
This book also relates the transition of the computer industry in the 80s vertical alignment to that in the 90s; the horizontal alignment. This came about with the appearance of the microprocessor and then the personal computer. The "10X" force came about when the technology permitted the integration of several chips into one single chip and this same microprocessor enabled the production of all kinds of personal computers. As the microprocessor became the basic building block, economics of mass production worked its charm giving extremely cost-effective PCs. Over time, this changed the entire structure of the industry and a new horizontal industry emerged. As a result of this trend, companies previously successful in the vertical alignment, but who failed to adapt or recognize this "10X" force failed and no longer existed today. Examples are Wang and Cray. At the same time, this change also spelled opportunities for new entrants such as Dell and Compaq. Thus when an industry goes through a strategic inflection point, the practitioners of the old industry may have trouble, while on the other hand, this new environment provides opportunities for new entrants into this industry.
The key characteristics of horizontal industries is that they live and die by mass production and mass marketing, bringing cost-effective solutions and more specialization, i.e the best in class for that particular market segment such as TV monitors, memory, storage devices, etc.
The new rules of the horizontal industry are
1. Do not differentiate without a difference. Do not introduce improvements whose only purpose is to give you an advantage over your competitor without giving your customer a substantial advantage. Example is a "better PC" departed from the mainstream standard and hence giving rise to software incompatibility.
2. Grab opportunity when there is a technology break or change coming along.
3. Price for what the market will bear. Price for volume. Work like the devil on your costs so that it becomes profitable. This leads to economies of scale whereby by being a large-volume supplier, you can spread and recoup those costs. In contrast, cost-based pricing will often lead you into a niche position.
To be a leader or survivor in a horizontal and commoditized industry, this book provides some food for thought. A prime example is Intel exiting the commoditized memory industry in which they were once in the lead, until the entrance of the Japanese manufacturers.
Rhetoric and boring!.......2007-01-11
This book is rhetoric and boring with a few examples of successful and unsuccessful ventures so I started reading about Grove and his background.
The influence of communism in his early years seems to have put Grove in the paranoia groove. The culture of paranoia is clearly seen in Intel's business today- slow decision making, trust issues with employees and even customers!
Hire and fire culture has made the remaining employees work the system to `survive' rather than innovate and thrive.
Compare and contrast this Apple or for that matter even AMD and you will realize these companies are more in tune with their customers and employees (and hence their stock holders) in terms of basic trust.
We are not in a communist environment anymore. By being paranoid Grove's Intel has proved, you can only survive and barely at that.
Only for business managers?.......2006-08-28
Contrary to popular opinion on this website, I found this book to be boring, repetitive and badly written. It was so boring I struggled to finish it during a journey where I had little else to do. This book summarizes a few events that were significant to Intel and offers advice on how similar business changes should be handled. Being an engineer, and not a manager, I found this to be vague and rambling. However I do agree with the book's title - Only the Paranoid survive. I think this outlook is useful for everyone, and not just business types.
Lengthy Writing.......2006-01-27
I picked up this book after seeing some good reviews about it.
The whole book is about "Strategic Reflection Point".
I was disappointed that Andy Grove didn't try to explain SRP in a more concrete manner. After finishing the book, I still have very vague & abstract knowledge on SRP.
Nevertheless, Andy Grove is still one of the best CEOs I admired.
How to survive in the new economy.......2006-01-22
This a good book based on facts. Andrew Grove goes on describing how Intel managed to shift from a semiconductor to the microprocessor company while he was the CEO... (now it is shifting again under Paul Otellini).
Although the example a bit outdated since it was written in 1996, the same principles still apply. A must read if you want to understand why some great and big companies suddenly go down while others emerge quickly.
You always need to learn the history to understand the future.
Book Description
In Creating Great Schools, Phillip C. Schlechty—one of the nation’s best-known experts on leadership and change in schools—offers a hands-on primer that will help arm school leaders with the tools they need to buck the system from within. Creating Great Schools shows educational leaders how they can sustain continuous innovation and improvement in order to create truly great schools. Schlechty outlines the six critical systems that define the norms and expressions of the school’s organizational culture¾recruitment and induction, knowledge transmission, power and authority, evaluation, direction, and boundaries¾and shows what it takes to lead effective systemic change in order to sustain new values and direction. The book is filled with effective strategies and offers guidelines for introducing the “disruptive innovations” that are necessary to change the fundamental norms of an educational organization and truly revitalize a school. He offers suggestions for working through the thorny issues that arise from the efforts to introduce new norms and provides school leaders with valuable insights of the critical rules, roles, and relationships in schools.
Customer Reviews:
The Last Hope for Our American Democracy.......2006-10-18
As a school principal who has been guided by the framework of Dr. Schlechty for a dozen years, I truly believe that those who roll up their sleeves and do the work in schools everyday know that to move a school "from good to great", each of these systems need to be in place. Not an "easy read" by any means, Phil Schlechty continuously causes the reader to really think about the importance of the engagement of students and staff in the design of the learning process. To become a learning organization, the values, beliefs, roles and relationships of those involved must be clearly defined at the highest level. Schools can no longer metaphorically reflect a hospital, factory or prison model to survive the next decade, much less the next century. Leadership and engagement must occur at every level of the organization, whether it be an individual school house or a school system.
Our current politicians who use the rhetoric of "no child left behind" to define schools, need to sit up and take note that it was a "free and public education for all" at the grass roots from which our democracy has been able to sustain and flourish, not one that promotes an elitest system driven by government. I recommend this book as a tool for everyone who has the passion and heart to see that our children are prepared to survive in the world in which they will live. Conversation about and the action of these six critical systems must occur throughout communities for the survival of public education itself.
Book Description
Creativity, new ideas, innovation -- in any age they are keys to success, but in today's whirlwind economy they are essential for survival itself. Yet, as Robert Sutton explains, the standard rules of business behavior and management are precisely the opposite of what it takes to build an innovative company. We are told to hire people who will fit in; to train them extensively; and to work to instill a corporate culture in every employee. In fact, in order to foster creativity, we should hire misfits, goad them to fight, and pay them to defy convention and undermine the prevailing culture. Weird Ideas That Work codifies these and other proven counterintuitive ideas to help you turn your workplace from staid and safe to wild and woolly -- and creative.
Stanford professor Robert Sutton is an authority on innovation and a popular speaker. In Weird Ideas That Work he draws on extensive research in behavioral psychology to explain how innovation can be fostered in hiring, managing, and motivating people; building teams; making decisions; and interacting with outsiders. Business practices like "hire people who make you uncomfortable," "reward success and failure, but punish inaction," and "decide to do something that will probably fail, and then convince yourself and everyone else that success is certain" strike many managers as strange or even downright wrong. Yet Weird Ideas That Work shows how some of the best teams and companies use these and other counterintuitive practices to crank out new ideas, and it demonstrates that every company can reap sales and profits from such creativity.
Weird Ideas That Work is filled with examples of each of Sutton's 11 1/2 practices, drawn from hi- and low-tech industries, manufacturing and services, information and products. More than just a set of bizarre suggestions, it represents a breakthrough in management thinking: Sutton shows that the practices we need to sustain performance are in constant tension with those that foster new ideas. The trick is to choose the right balance between conventional and "weird" -- and now, thanks to Robert Sutton's work, we have the tools we need to do so.
Download Description
Creativity, new ideas, innovation -- in any age they are keys to success, but in today's whirlwind economy they are essential for survival itself. Yet, as Robert Sutton explains, the standard rules of business behavior and management are precisely the opposite of what it takes to build an innovative company. We are told to hire people who will fit in; to train them extensively; and to work to instill a corporate culture in every employee. In fact, in order to foster creativity, we should hire misfits, goad them to fight, and pay them to defy convention and undermine the prevailing culture. Weird Ideas That Work codifies these and other proven counterintuitive ideas to help you turn your workplace from staid and safe to wild and woolly -- and creative. Stanford professor Robert Sutton is an authority on innovation and a popular speaker. In Weird Ideas That Work he draws on extensive research in behavioral psychology to explain how innovation can be fostered in hiring, managing, and motivating people; building teams; making decisions; and interacting with outsiders. Business practices like "hire people who make you uncomfortable," "reward success and failure, but punish inaction," and "decide to do something that will probably fail, and then convince yourself and everyone else that success is certain" strike many managers as strange or even downright wrong. Yet Weird Ideas That Work shows how some of the best teams and companies use these and other counterintuitive practices to crank out new ideas, and it demonstrates that every company can reap sales and profits from such creativity. Weird Ideas That Work is filled with examples of each of Sutton's 11 1/2 practices, drawn from hi- and low-tech industries, manufacturing and services, information and products.
Customer Reviews:
Weird and Wonderful.......2007-07-20
"Weird Ideas That Work" works! This is one of the most compelling books I've read in a long time. Sutton manages not only to come up with ideas that seem weird at first glance, but to actually prove them useful and logical at the same time.
The author instructs readers on how to build a creative company by using his 11½ weird ideas, which range from hiring people who make you uncomfortable to deciding to do something that will probably fail. The list looks hilarious until you read the sense that he makes. Of course, Sutton points out that there are different kinds of companies - some aim for innovation and some for efficiency. (He makes it clear that the weird ideas are not for those who require precision -- like airline pilots, for example!)
This book explains how to shatter old habits by giving advice on enhancing variation, seeing old things in new ways ("vu-ja-de"), and breaking away from stifling routines. Sutton also points out that one should not go hog wild - there is a balance between productivity and creativity which everyone must find for themselves.
"Weird Ideas" offers great wisdom mixed with humor and pure entertainment. If you're a rebel, a brat, or just plain anyone who wants to try completely new management techniques, then you'll love this book. So whip the tablecloth right out from under that crippled, jaded system you've got going and try at least a few of these wild weird ideas.
Agitate, Isolate & Be Ridiculous... Oh, and AGITATE.......2006-12-01
I was a big fan of Sutton's Knowing-Doing gap that offered a real solution to a real problem. This book had an unreal feel to it for me though.
He offers 12 practices for fostering innovation. The first four of these have to do with Human Resources. Hire slow learners. Hire people that make you feel uncomfortable. Hire people you probably don't need. Now forgive me if I am wrong, but as imperfect as Human Resources is anyway, don't we already do some of that? Also recommended is to interview job applicants to get new ideas. What about the people?
The next two have to do with office manners. Encourage people to ignore and defy superiors. Isn't ignore a little strong? Find some happy people and get them to fight. No comment.
The next is to reward success and failure, but punish inaction. OK, we already fire non-producers, but is it really so that success and failure deserve the same billing?
The next two are on the edge of silliness. Decide to do something that will probably fail and be 100% certain of its success. Think of some ridiculous or impractical things to do.
The next is avoid, distract and bore customers and critics.
Then, don't try to learn anything from people who say they have solved the problems you face.
Finally, forget the past success of the company.
This book says some pretty wild things that will get you thinking. Although these counterintuitive ideas are offered as 'proven', you won't find the proof in this book. By the normal lottery of hiring, you will certainly get a mix of the above. There are many better books on the philosophy and practical application of innovation available.
Sorry to disappoint some with this review, but don't let this stop you from reading Sutton's Knowing-Doing Gap which I found excellent and have also reviewed it here on Amazon.
3 Stars
Routine right and wrong.......2006-10-24
All activities need both effective routine and regular innovation. Consider the difference. There are times when it makes sense to do the same thing right, over and over again, without slipping. But there are also times, and types of activities, where doing something in a very new and different way is essential. The real-life examples in this book support these 11½ methods for finding new ways of doing things, and producing new kinds of products and services. Worthwhile reading for anyone who wants to inject a little spice into the routine of software development and delivery.
Productive New Concepts.......2005-11-23
This is a wonderful but dangerous book. The 11 and 1/2 weird ideas it contains are terrific, exciting and slippery. Use them right and you could transform your company into a hotbed of innovation. Use them wrong and you could also transform your company into a disorganized mess. Author Robert I. Sutton clearly explains that some situations do not require innovation - that they are, in fact, terrible settings for new things. Companies focus on the routine for an extremely logical reason: it makes money now. Identifying situations that can make money with routine work versus circumstances that require change is a tough distinction, particularly since innovation requires many failures, disrupts your culture and forces you to take a rough look into the future. We thus recommend this book to a select group: those who know their fields and organizations extremely well. If you can see clearly through both the current jargon that promotes innovation and your organization's often unspoken prejudices, you will find this book exciting and extremely productive.
Not so weird ideas for innovation labeled weirdly.......2005-11-16
This book is a useful and fun read. It offers some solid ideas for innovation but the ideas are labeled in order to draw attention. For instance, the first idea is, "Hire "slow learners"", however the intention behind this is just hire stubborn people who are unaffected by others opinions and norms. These people will go against the standards and breed creativity. Another idea is "Find some happy people and make them fight" with the basic idea behind this technique being get optimistic people, who are naturally more creative. Put them in a room together and let them bounce ideas together until a new and improved idea is created.
Another thing to be prepared for with this book is that the ideas all go against commonly accepted business practices. That is because the ideas are admittedly not for present success but calculated and proven risks for future innovation. So anyone interested in changing their business and preparing to get an edge on competitors in the future will benefit from this book.
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"To compete effectively, you must innovate: Not just once, but consistently, in all your products, services, and business functions. But, profitable innovation doesn't just ""happen."" It must be managed, measured, executed on¿and few companies do that well. Making Innovation Work offers the first real solution: A start-to-finish process for driving growth from innovation.
The authors draw on unsurpassed innovation, consulting experience, and a thorough review of innovation research. Their techniques have been proven at top companies ranging from Apple and GE to Toyota. In this book, they demonstrate what works, what doesn't, and how to use all your management tools to maximize the value of your innovation investments.
You'll learn how to define effective strategies and organizational structures for innovation, manage innovation more successfully, incent teams to deliver, and infuse metrics throughout every phase of the innovation process. Simply put, Making Innovation Work takes the mystery out of profitable innovation, showing how to lead it, track it, incent it, and get more of it.
Leading innovation
Defining innovation strategy, designing portfolios, and encouraging value creation
Integrating innovation and business strategy
Matching innovation to your overall business strategy
Balancing creativity and value capture
Generating successful new ideas that drive maximum ROI
Weaving innovation into the fabric of business
Making innovation truly integral to your company's business mentality
Neutralizing organizational ""antibodies""
Preventing your company from killing off its best new ideas
Building innovation networks
Leveraging innovation resources both inside and outside the organization
Measuring and rewarding innovation
Implementing the right metrics and the right incentives to drive results"
Customer Reviews:
Innovation: Thrive or Fade Away.......2006-07-20
The term "Innovation" has been used so much in recent years that it's become cliche. Humans have been innovative for over 30,000 years, before the day of the first fire pit. People have always utilized innovation. But now it's is more vocally emphasized in the business realm because of ultra-competitive global market forces, and because we've reached the stage where technology enables change at a more rapid pace. "Innovation" is a Mantra. For lack of better words, creativity, adaptability, and innovation have always been vital. They've always been used by the successful: the winners; the victors. Innovation has always been mandatory. Survival: both literally and figuratively.
Authors Tony Davila, Marc Epstein, and Robert Shelton list 7 rules for innovation. This book uses matrices and tables to detail the different choices and the positives and negatives of choosing these various options. There are three types of innovation: 1) Incremental 2) semi-radical and 3) Radical.
Of the tons of information in this book, some things noted are the case study of the Coca-cola company and it's drop in sales, to Individual employee motivation in the "pay-performance relationship." Why do incentives for employees fail at times? Because they are overused. What can inhibit and actually kill creativity? "Fear, Failure, and Fairness" affect calculated risk taking by individuals, staff-teams, and entire companies. As for Radical Innovation, what is the motivation for radical innovations? That groundbreaking new idea, invention, product, vaccine, or piece of technology? Answer: intrinsic motivation.
One example of the types of innovation is a combination of them, such as in "Ersatz Radical Innovation." Ersatz is when a company (e.g. Apple) combines two forms of semi-radical change to create of successful product that changes an entire industry.
One case study enumerated how a company can focus too much on
innovation and lose site of the goal, such as in the case of Xerox PARC. The creative process must have the crucial ingredient that's equally vital: commercialization. It's a symbiotic relationship. Another very relevant issue discussed is the Outsourcing of Innovation. Which developments should be kept in-house? Which should be shared and outsourced? Innovation is so critical that it can't be outsourced entirely, so partial and selective outsourcing (sharing) is done under the proven concept of "partnering." Innovation is obviously borrowed, and oft-times today, it's outright stolen.
Perhaps a lot of this new focus on "creativity," and "innovation" and "adaptability," and "co-operation" is because of the recent rise of China, India, and other parts of the world. Game Theory's concepts are sprinkled about in this book because Game theory is an underlying and also an explicit element in economics, business, and calculated risk taking. Because of the theoretical and applicable strengths of
Game Theory we see innovation and adaptability + Game Theory.
This book deserves more attention. The writing style is
reader-friendly and keeps your interest. The authors provide
numerous case studies, stats, tables & figures, theory, and
practicality, and specific ways on how to survive and thrive in
today's world. Great book that more people should know about.
The first word on innovation.......2006-05-01
We recommend this book to everyone involved in innovation. Whether you're involved as a creative thinker, a promoter of new products, a manager guiding the innovation process or an investor evaluating an innovative company, there's gold here for you. Authors Tony Davila, Marc J. Epstein and Robert Shelton compress a mass of research and experience in innovation practices into a set of rules and guiding principles. Then, they use stories, lucid explanations, charts and careful definitions to illustrate how these principles work. A few of these concepts could have been expanded profitably - for example, how to tell in practice when radical innovation is needed, how to determine if you're innovating too much or too fast, and how to sort out the best ideas without discouraging the creators of the rejected concepts. That's the only caveat; everything else is fascinating and immediately applicable.
An Important Guide to Establishing Innovation Processes.......2006-03-01
Many executives decide they want more innovation from their organizations . . . but aren't quite sure how to encourage that result. Relax. You can read and apply Making Innovation Work, and you'll do a lot better.
The authors clearly understand today's best practices in innovation both for breakthroughs and for on-going incremental improvements. They take what seems amorphous to many and make it as concrete as is desirable to do.
The basic approach entails helping readers to understand that the processes you use to innovate determine what kind and how much innovation you will accomplish. From there, the book focuses on how to use a process that permits all of the kinds of innovation to prosper that the company's strategy pursues.
While many such books exhort everyone to go for breakthroughs, Making Innovation Works also explains when it's appropriate to have a more defensive innovation strategy . . . but to stay in the game . . . rather than to fall behind by being too defensive.
For me, though, the book really hit its stride in chapter six where the appropriate measurements are described to identify how your innovation process is doing. The book became even more impressive in chapter seven where incentives for innovation are explained. Chapter eight on how to learn innovation is perhaps the most pivotal section in the book. Chapter nine on creating a supportive culture for innovation was also solid.
I was pleased to see that Making Innovation Work looks beyond just innovating products and processes. The book also addresses business model innovation, perhaps the most important subject for innovation.
The only weakness I found in the book came in describing business model innovation and how to pursue it. The authors have too narrow a view of what's involved in business model innovation. They need to become more familiar with the less frequently cited best practices in business model innovation. Although their bibliography on innovation is a marvelous one, I was surprised to see how thin it is on the subject of business model innovation.
Until a better overview of how to manage innovation comes along, Making Innovation Work will be the standard reference.
My review is addressed to undergraduates.......2006-02-25
It is a good book that clearly shows models to map the different types of innovation and the problems involved to manage it.
A Fresh Look at Nothing New.......2006-01-21
There is a dire need for a fresh look at innovation.
Contrary to popular belief, the authors assert, much of what is held as common wisdom regarding how innovation is managed is wrong. Tony Davila, a faculty member of Stanford's Graduate School of Business, Marc Epstein, a research professor at Rice University's School of Management, and Robert Shelton, managing director of Navigant Consulting's Innovation practice write that contrary to popular belief, innovation:
* Does not require a revolution.
* Is not alchemy
* Does not require a "creative" culture.
* Is not solely about processes and stage-gate tools.
* Does not focus exclusively on new technology.
* Is not needed in copious quantities.
The authors write that innovation, like many business functions, is a management process that requires tools, rules and discipline. It needs to be measured and promoted if sustained, high yields are going to be delivered. It is a necessary ingredient to safeguard an organization's tangible and intangible assets. In short, it is a vital and must be managed.
To do so, the book identifies seven rules:
1. Strong leadership encourages value creation.
2. Innovation is a vital part of an organization's mentality.
3. Innovation matches the organization's business strategy.
4. Creativity and value creation are balanced.
5. Seek to neutralize forces that discourage good ideas.
6. Networks, not individuals, are the building blocks of innovation.
7. Metrics and rewards make innovation manageable.
Execution of innovation is not difficult, the authors conclude. It is similar to other management activities, such as manufacturing or financial control. There are no secret formulas. This book replaces the myths and half-truths with clear and concise thinking on how to manage and execute innovation.
Book Description
The successful implementation of health information systems in complex health care organizations ultimately hinges upon the receptivity and preparedness of the user. Although the Information Age is well underway, user resistance to information systems is still a valid concern facing the informatics community. This book provides effective management strategies to health care administrators, for the productive integration and maintainance of such information systems. The Second Edition covers three main areas: technical skills, project management skills, and organizational and people skills, including the practical implementation strategies necessary to make the system an operational success. The text will be complemented by 40 illustrations and 20 tables, as well as providing more guides and "how to" information, which are of great use to the reader. Key topics include: setting the stage; strategic vision, direction, and project planning; critical issues in project planning and management; critical design issues; the implementation process; negotiating political minefields; the critical role of leaders and leadership; dealing with end stage people issues; evaluating project success; managing the altered organization; and organizational and personal preparation for the future. The audience for this book consists of those who require sophisticated health information systems, namely health care administrators, CEOs, clinicians, IT developers, librarians, and professors.
Book Description
When a disruptive innovation is launched, it changes the entire industry and every firm operating within in
This book argues that it is possible to predict which companies will win and which will lose in a specific situation—and provides a practical framework for doing so.
Most books on innovation—including Christensen’s previous two books—approached innovation from the inside-out, showing firms how they can create innovations inside their own companies. This book is written from an “outside-in” perspective, showing how executives, investors, and analysts can assess the impact of a new innovation on the firms they have a vested interest in.
Customer Reviews:
Michael Porter of Innovation.......2007-07-20
Just as Michael Porter is the authority on Strategy, Clayton Christensen has become the authority on Innovation. He has not only created a great business theory, he has created an institution that defines our modern understanding of disruptive innovation. The foundations of his business theory are unimpeachable and the illustrations of the theory across industries are appealing to professionals inside and outside the industry alike.
In this book, Christensen's students expand on the theory first proposed in The Innovator's Dilemma to create a framework that can predict whether an innovation might be disruptive (read. has potential to transform an entire industry or create a new one). The impact of understanding and applying this theory is large.
This book maintains the quality level I have come to expect of books published by HBS press, paralleled only by Harper Business. The illustrations in this book include the Telecommunications, Education, Aviation, Semiconductors and Health Care industries. The book dedicates a couple of chapters that are of international interest: Nonmarket Factors and Innovation Overseas. This whets the appetite but does not quench the thirst for more. In the US business environment where global influence is becoming more and more relevant for future growth, it would make sense for a next book in the series focusing entirely on the overseas perspective.
It is hard to pull off a quality job on part three of a sequel without rock-solid grounding. A keen student, I hope to see a lot more come out of Innosight and the institution of Innovation that is Clayton Christensen.
Seeing What's Next.......2007-05-03
This is certainly a worthwhile read. The concepts are a great mix of grounded theory and in depth information. There are no earth-shattering concepts, or get rich quick schemes, just sound strategy on how to analyze the industry leaders of the future. One concern that is not addressed is how to determine what will be a disruptive innovation and what will be a poor investment. He does encourage readers to look at nonconsumers, and create a product or service that this group would want to consume. However, I can't help but think that behind every failed innovation is a person who thought they had this dialed in. For example, Christensen cites VOIP as likely for cooption by incumbents, and suggests that one way for start ups to prevail is to offer VOIP as a second line. I am in the telecom industry, and do not see this as a viable option. Even he admits that second lines have been in decline for years, but more than that, those that do have second lines are often the most technologically resistant consumers. They are still using dial up or resisting cell phones. The consumers who are likely to use VOIP do not want to add on a second line, they want to replace their landline. This in an example of the idea for disruption still remaining mysterious. However, for those of us whose job it is to navigate the changing environment, not come up with the idea, this book is a must read.
One Book Too Many.......2007-03-12
Christensen's two earlier books ("The Innovator's Dilemma," and "The Innovator's Solution") provided great new insights into business history and strategic thinking. "Seeing What's Next" goes on to attempt to demonstrate implementation of these two books' insights, unfortunately with less than total success.
Early in "Seeing What's Next," Christensen uses Dell Computer to illustrate the "Value Chain Evolution" theory's golden rule: Integrate to improve what is "not good enough" (speed, customization, and convenience of PC ordering and acquisition), and outsource what is "more than good enough" (the PC computer's architectural design) - certainly a potentially helpful insight.
"Seeing What's Next" eventually moves on to examining several sectors and making predictions for the future. 1)Education: Christensen sees on-line services from the University of Phoenix (UOP) as an innovation that is likely to disrupt the higher-education market. However, even the UOP has had limited success with this innovation - the vast majority of its services are still provided via bricks-and-mortar classrooms. (Another major UOP problem is that increasing questions are aimed at its credibility - especially the strength of its instructors, and its very low graduation rate.) On the other hand, Christensen probably has it right in seeing community-colleges provide a much greater challenge to pupils currently "over-served" by higher-cost state universities. (This applies to businesses and the general public as well - the vast majority of "research" undertaken at major universities offers very little or no concrete value to society.)
Aviation is another sector examined. Here Christensen sees low-cost Southwest Airlines as in danger of being over-ridden by major airlines - certainly about as far from the ensuing reality as one could get. As for the semiconductor sector - Christensen sees overshot customers (eg. word-processor and spreadsheet users) as becoming vulnerable targets for less expensive/capable processors; again, however, this has been little sign of this. (Christensen's "problem" may be failing to recognize that users want only one operating system/CPU, and that combination should be able to handle most/all existing PC applications. Regardless, it is also noteworthy that Andy Grove, an enthusiastic endorser of Christensen's first two books, does not have an endorsement on this book's back cover.
Healthcare: Christensen observes a "do-it-yourself" trend with home pregnancy tests and glucose monitors. However, both are small components of a relatively trivial healthcare market not likely to sustain major innovation. His third example - cheaper/easier angioplasty replacing cardiac surgery, is an unfortunate one because the latest findings are that angioplasty is not generally an acceptable substitute. Finally, Christensen is totally correct in concluding that many patients are overserved by M.D. providers vs. eg. nurse practitioners - unfortunately, legal constraints are not likely to relax soon in this area. (This also limits "off-shore" provision of X-ray readings, etc., though combining tourism with cheaper Asian healthcare may grow into a much greater market.)
Finally, "Seeing What's Next" considers the wireless communication sector. VOIP is seen as a major challenge - not likely, in my opinion, due to users being physically tied to an on-line computer, and existing wireless providers already able to offer long-distance quite cheaply via national service plans and/or offerings of free calling on weekends and after 7 P.M. during weekdays.
Bottom Line: "Seeing What's Next's" greatest contribution is probably through demonstrating how difficult seeing into the future actually can be.
Inspired OnDisruption.......2006-08-27
My eyes were opened when I read Clayton Christensen's books on disruptive innovation.
In Seeing What's Next, Christensen chastises Wall Street analysts for their inability to see beyond current trends. -- I lived in that world for 10 years and he's right.
Extrapolating future scenarios from current trends is a dangerous business and it seldom works for investors. And it fails miserably as a method for businesses to find the next big thing, which a lot managers try to do. A new framework for analyzing identifying tech trends is needed and Christensen's theories on disruptive innovation are a great starting point, and an inspired way to think about innovation.
The book offers a framework for undertsanding and anticipating trends. This includes a recap of the theory of disruption and has a few chapters that serve as casebook examinations of industries facing disrption, including the telecom sector, higher education and aviation.
While not as strong a book as his earlier work, The Innovator's Solution or the first breakthrough on disruption, The Innovator's Dilemman, Seeing What's Next is a more practical guide for managers. The reason: Chr
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