Bookworm: The Innovator’s Dilemma

Organisations must understand the difference between sustaining technologies and disruptive technologies, writes Clayton Christensen.

What’s this book about?

It focuses on disruptive innovation and how new technologies can bring down giants – a theme that only becomes more relevant as the pace tech change ramps up. The book’s author is Clayton Christensen, one of the most influential management thinkers of his time.

What’s a good example of disruptive innovation?

Christensen writes about the path that Sony carved out in the US in the 1950s. Prior to Sony’s arrival, the dominant radio system for the affluent American consumer was an expensive luxury radio inside a cabinet – an enormous fixture in the room.

The company’s founder Akio Morita guessed that there would be enough people who couldn’t afford that kind of item but would want to play music on some kind of radio. Sony brought in a portable transistor radio in 1955. Although the sound quality was much lower, there was enough demand (for example, from teenagers) to enable Sony to transform the industry.

What’s the message there?

For Christensen, it illustrates the fact that having something inferior is better than having nothing at all. Sony entered the market with a small radio and had the market cornered once the technology – and their technology – had improved. The crucial thing here was that the market had to be new, meaning that when they entered at the ground floor they had little competition so customers would take whatever was available to buy.

So, are customers the key to disruptive innovation?

Christensen doesn’t think that companies should rely on their customers when it comes to disruptive innovation. He does, however, believe that established companies have to innovate and produce new ideas otherwise they risk extinction. 

He explains that "sustaining technology" largely comes about as a result of listening to the needs of our current audience, whereas disruptive technology is all about shooting for a new audience or persuading existing users that they want something different

Can you give a specific example? Name names.

Gillette is an example that Christensen discusses. Gillette prides itself on making razors that are always improving in quality. Their products become increasingly sophisticated, constantly changing, constantly being refined. This is what Christensen would call “sustaining innovation”. 

What’s wrong with that?

Customers don’t necessarily need such sophisticated technology; perhaps they just want something cheaper or would like their product delivered to their door.

This was the way One Dollar Shave Club began to disrupt the market, sending Gillette into a tailspin. What Gillette had perhaps never really considered was that people don’t want their products overcomplicated and made closer and closer to perfection; they just want them to be good enough, cheap enough and convenient to buy.

What am I most likely to say after reading this book?

“Innovate or die.”

What am I least likely to say after reading this book?

“We’re a giant in the industry, nobody can touch us.”