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The Innovator's Solution

The Innovator's Solution

by Clayton Christensen, Michael Raynor

The Growth Imperative

Investors don’t seem to care so much about a company’s assets or how much money it makes in the present, they're most interested in seeing growth. But after the core business matures, growth usually plateaus. This is the time to work on new growth opportunities, ...

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  • New-market disruption: this is where disruptive products compete with non-consumption. They create new markets and reach people who previously weren’t consumers. As their performance improves, they run into some existing markets to disrupt. 
  • Low-end ...

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CLAYTON CHRISTENSEN

“Competitiveness is far more about doing what customers value than doing what you think you’re good at."

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Customers "hire" products to do specific "jobs".

Customers - people and companies - have "jobs" that arise regularly and need to get done. When customers become aware of a job that they need to get done in their lives, they look around for a product or service that the...

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Marketers put a lot of emphasis on market segments, dicing up the populace and finding the percentage that will need or want the product. But if you get the process wrong, you can end up without any actual customers. 

To accurately segment the market, don’t focus so much on the attr...

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Instead of asking what their company does best today, managers should ask, "What do we need to master today, and what will we need to master in the future, in order to excel on the trajectory of improvement that customers will define as important?"

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Three classes or sets of factors that define what an organization can and can not accomplish:

  • Resources: they include tangible things like people, equipment, and real estate, but things like brands, information, and reputation are also valuable resourc...

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DELIBEDeliberate RATE planning (traditional / for existing-sustaining):

  • make assumptions about the future
  • make a strategy based on those assumptions & build financial projections based on that strategy
  • make decisions to invest based on those financial projections

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