Disruptive Innovation

Clayton M. Christensen's 'The Innovator's Dilemma' explores why successful companies often fail to stay at the top when disruptive technologies emerge.

The book introduces the concept of disruptive innovation, which refers to innovations that create new markets by discovering new categories of customers.

Christensen argues that established companies tend to focus on sustaining innovations, which improve existing products for existing customers, while overlooking disruptive innovations that initially appeal to a niche market.

As disruptive technologies improve, they eventually overtake the mainstream market, leading to the downfall of established companies.

The book provides frameworks and strategies for companies to recognize and respond to disruptive innovations, emphasizing the importance of creating separate, independent units to pursue these opportunities.