In a world increasingly dominated by artificial intelligence, a familiar question echoes through the halls of industry: Why do some companies, even those leading the charge in AI development, find… | Sonu Goswami
In a world increasingly dominated by artificial intelligence, a familiar question echoes through the halls of industry: Why do some companies, even those leading the charge in AI development, find themselves blindsided by disruption? Good Morning, Everyone.😊This is the central theme of Clayton Christensen's iconic book, The Innovator's Dilemma, which was published in 1997, and it resonates more than ever in the age of AI. Once-dominant companies like Blackberry and Blockbuster failed to adapt to the changing landscape, ultimately succumbing to innovative forces. Today, the landscape is AI. Powerful algorithms are automating tasks, analyzing data, and making decisions with unprecedented accuracy. While this presents immense opportunities for businesses, it also carries the potential for disruption. ✴ Christensen delves into the hard disk drive industry in his📙: ✳From the 1970s to 1990s, costs dropped 5% quarterly, while information density increased 35% annually. ✳Between 1976 and 1995, 17 firms (except IBM) and 109 new entrants failed. Their struggle wasn't coping with tech changes but adapting to disruptive technologies. Exploring why great firms can fail, Christensen highlights two important management principles: 1️⃣ Always respond to the needs of your best customers: For instance, consider how a successful smartphone company constantly updates its features based on user feedback, ensuring a loyal customer base. 2️⃣ Invest in innovations promising the highest returns: Think about a forward-thinking tech company that allocates resources to cutting-edge projects, aiming for breakthroughs that bring substantial returns on investment. This arises due to the contrast between *Sustaining and Disruptive Technologies*. Big companies do well with regular improvements (sustaining innovations). But, they struggle when new, game-changing things come up (disruptive technologies). Christensen explains this difference in 'How Great Firms Can Fail. Innovation Challenges:📙Spotlight - Navigating Blind Spots, Shifting Markets. ✳ Customer Blindspot: Big companies may miss new, simpler technologies at first, serving smaller markets. These evolve to threaten big players. ✳ Market Direction Pressure: Big companies, due to their costs and resource choices, keep moving up to fancier products, leaving room for simpler solutions in basic markets. 5 Simple Rules for Dealing with New Technologies: Guidelines help us grasp and deal with changes effectively. Rule 1: Allocate Resources Wisely—Create Independent Unit for Disruptive Tech. Rule 2: Conquer Small Markets—Establish Independent Unit Aligned with Market Size. Rule 3: Tackle Uncharted Markets—Apply "Discovery-Based Planning" for Disruptive Tech. Rule 4: Assess Abilities—Assigning Capable Individuals Isn't Enough; Appraise Organizational Strengths and Weaknesses. Rule 5: Balance Tech Progress—Recognize Disruptive Tech as Market Demand Shifts. ✅Lesson: Seize New Market Niches! | 104 comments on LinkedIn
www.linkedin.com
In a world increasingly dominated by artificial intelligence, a familiar question echoes through the halls of industry: Why do some companies, even those leading the charge in AI development, find themselves blindsided by disruption?
Good Morning, Everyone.😊This is the central theme of Clayton Christensen's iconic book, The Innovator's Dilemma, which was published in 1997, and it resonates more than ever in the age of AI. Once-dominant companies like Blackberry and Blockbuster failed to adapt to the changing landscape, ultimately succumbing to innovative forces.
Today, the landscape is AI. Powerful algorithms are automating tasks, analyzing data, and making decisions with unprecedented accuracy. While this presents immense opportunities for businesses, it also carries the potential for disruption.
✴ Christensen delves into the hard disk drive industry in his📙:
✳From the 1970s to 1990s, costs dropped 5% quarterly, while information density increased 35% annually.
✳Between 1976 and 1995, 17 firms (except IBM) and 109 new entrants failed. Their struggle wasn't coping with tech changes but adapting to disruptive technologies.
Exploring why great firms can fail, Christensen highlights two important management principles:
1️⃣ Always respond to the needs of your best customers: For instance, consider how a successful smartphone company constantly updates its features based on user feedback, ensuring a loyal customer base.
2️⃣ Invest in innovations promising the highest returns: Think about a forward-thinking tech company that allocates resources to cutting-edge projects, aiming for breakthroughs that bring substantial returns on investment.
This arises due to the contrast between *Sustaining and Disruptive Technologies*.
Big companies do well with regular improvements (sustaining innovations). But, they struggle when new, game-changing things come up (disruptive technologies). Christensen explains this difference in 'How Great Firms Can Fail.
Innovation Challenges:📙Spotlight - Navigating Blind Spots, Shifting Markets.
✳ Customer Blindspot: Big companies may miss new, simpler technologies at first, serving smaller markets. These evolve to threaten big players.
✳ Market Direction Pressure: Big companies, due to their costs and resource choices, keep moving up to fancier products, leaving room for simpler solutions in basic markets.
5 Simple Rules for Dealing with New Technologies: Guidelines help us grasp and deal with changes effectively.
Rule 1: Allocate Resources Wisely—Create Independent Unit for Disruptive Tech.
Rule 2: Conquer Small Markets—Establish Independent Unit Aligned with Market Size.
Rule 3: Tackle Uncharted Markets—Apply "Discovery-Based Planning" for Disruptive Tech.
Rule 4: Assess Abilities—Assigning Capable Individuals Isn't Enough; Appraise Organizational Strengths and Weaknesses.
Rule 5: Balance Tech Progress—Recognize Disruptive Tech as Market Demand Shifts.
✅Lesson: Seize New Market Niches!
