The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail - cover

The Innovator’s Dilemma

When New Technologies Cause Great Firms to Fail

By Clayton Christensen

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About the book

Harvard professor Clayton Christensen explains how well-run companies can do almost everything right and still lose market leadership. Large incumbents listen closely to their customers and keep improving their leading products, while new entrants serve low-value buyers with crude technology that gets better step by step until it takes market share from established firms. Christensen calls this disruptive innovation, building on a 1995 article in which he introduced the idea of disruptive technologies. His main evidence comes from the hard disk drive industry, with further cases such as personal computers displacing mainframes and inkjets displacing laser printers. He advises incumbents to place disruptive projects in small, autonomous units. First published in 1997, it remains the best known of his works.

Jeff Bezos was reported to have developed a strategy after reading it, and Steve Jobs cited Christensen's idea that inventors are usually the last to see past their own inventions. Mark Cuban named it as a reminder that no business should take what it has for granted.

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This book has 19 recommendations

Steve Jobs (Founder/Apple)

It's important that we make this transformation, because of what Clayton Christensen calls "the innovator's dilemma," where people who invent something are usually the last ones to see past it, and we certainly don't want to be left behind.

Jeff Bezos (Founder/Amazon)

Brad Stone's new book, The Everything Store, describes how Bezos developed this strategy after reading another book called The Innovator's Dilemma by Harvard professor Clayton Christensen.

Recommended by Bogdan Iordache (Co-Founder/How to Web)

Source: Bogdan Iordache: Recommended Books and Learnings

Vladimir Oane (Founder/UberVU)

As for a business book. I will probably go with Clayton’s Christiansen’s “Innovator’s Dilemma”. Clayton’s book not only defined “disruption” (a word that is still abused by journalists to this date) but it introduced me to strategic thinking. When I read the book I probably missed a lot of the nuances around corporate politics, as I barely had any work (or life) experiences. But I keep re-reading it from time to time and always find new insights.

Dragos Novac (CEO/Nordic 9)

Probably one such a moment [when something I read in a book helped me] was about 20 years ago when I discovered Clayton Christensen, first via his academic papers and then after he started writing his books. Innovator’s Dilemma was his first and an a-ha moment for me at that time, as I started to perceive the value of creation process in a company in a different way than I thought it was like and which ultimately made me quit my corporate career and become an entrepreneur.

Tim O'Reilly (Founder/O'Reilly Media)

The Innovator's Dilemma, by Clayton Christensen. An analysis of why great companies fail, because innovation often requires throwing out everything that has made you successful in the past. Disruptive technologies are often born on the fringes, in markets where worse is better.

Howard Marks (CEO/StartEngine)

Then you have the classic business books like The Innovator's Dilemma. Then you're getting into more the large business kind of thinking.

Recommended by Ashley Hathaway (Enterprise Product Manager)

Source: Interview with Ashley Hathaway

Recommended by Marvin Liao (Partner/500 Startups)

Source: Book-Talk with Marvin Liao, Partner at 500 Startups, Avid Reader & Tsundoku

Recommended by Antonio Eram (Founder & CEO/NETOPIA mobilPay)

Source: Antonio Eram, Founder of NETOPIA mobilPay, Shares the Books that Help Him Change, Rediscover, Reshape

Bill Earner (Founder/Connect Ventures)

The Innovator's Dilemma by Clayton Christensen in order to understand what disruptive innovation really means.

Darvin Kurniawan (CEO & Founder/CrowdVilla)

"The Innovators Dilemma" by Clayton M. Christensen, especially for those having a deep organisational (big company) experience before making the switch to entrepreneurship.

Aviers Lim (CEO/Gashub)

  • The Innovator’s Dilemma by Clayton M. Christensen
  • One Good Trade by Mike Bellafiore

The above two to learn to take advantage of opportunities and constantly balance between growth + guaranteed success.

Recommended by Marc Andreessen (Co-Founder/Andreessen Horowitz)

Source: AMA with Marc Andreessen

Garrett Moon (CEO & Co-Founder/CoSchedule)

Frequently books will trigger moments of clarity for me as a leader. There are always problems that I am working/thinking through and books can frequently provide a new lens that leads to a solution. Recently Clayton Christensen’s book The Innovator's Dilemma did this for me. It was my second time reading the book but it sparked a weekend’s worth of writing and processing that led to actionable changes the following week. I can’t remember specifically what I read that initiated it all, but the results are undeniable.

Drew Houston (CEO/Dropbox)

This is an important read, even if you’re at the very early stages of growing a startup.

Bill Gurley

Innovator’s Dilemma is probably the most efficient analysis of why startups are able to disrupt. These are books people know about, but entrepreneur should read these things like bibles.

Mohnish Pabrai

Awesome book. May move soon to my Top Ten List. If anything will keep CEOs awake at night, reading this book certainly will. Eyeopening.

Mark Cuban (Entrepreneur / Shark Tank)

The Innovator's Dilemma by Clayton M. Christensen. No business should ever take what they have for granted

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See more books recommended by

Steve Jobs, Jeff Bezos, Bogdan Iordache, Vladimir Oane, Dragos Novac, Tim O'Reilly, Howard Marks, Ashley Hathaway, Marvin Liao, Antonio Eram, Bill Earner, Darvin Kurniawan, Aviers Lim, Marc Andreessen, Garrett Moon, Drew Houston, Bill Gurley, Mohnish Pabrai, Mark Cuban

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