The Innovation Show

Some essential lessons in "Seeing What's Next" relate to disruptive innovations. Four critical lessons are:

1. Disruption is a process, not an event.

2. Disruption is a relative phenomenon. What is disruptive to one company may be sustaining to another company.

3. Different or radical technology does not equal disruptive.

4. Disruptive innovations are not limited to high-tech markets.

Disruption can occur in any product or service market and can even help explain competition among national economies.

Today's book shows how to use the theories of innovation developed in The Innovator's Dilemma and The Innovator's Solution—and introduces some new ones as well.

The book argues that it is possible to predict which companies will win and which will lose in a given situation--and provides a practical framework for doing so.

We are joined by a long-time collaborator, friend and student of both Clayton Christensen, and he is a long-time friend of this show, Scott D. Anthony

The HBR article Scott mentioned: https://hbr.org/2022/01/persuade-your-company-to-change-before-its-too-late

The Innovator's Dilemma summarised a theory that explains how, under certain circumstances, the mechanism of profit-maximising resource allocation causes well-run companies to get killed. The Innovator's Solution, in contrast, summarises a set of theories that can guide managers who need to grow new businesses with predictable success—to become the disruptors rather than the disruptees—and ultimately kill the well-run, established competitors. To succeed predictably, disruptors must be good theorists. As they shape their growth business to be disruptive, they must align every critical process and decision to fit the disruptive circumstance.

We are joined to share some concepts from The Innovator's Solution by Clayton Christensen's co-author Michael E. Raynor

Articles mentioned

Skate to Where the Money Will Be

by Clayton M. Christensen, Michael E. Raynor, and Matthew Verlinden

https://hbr.org/2001/11/skate-to-where-the-money-will-be

Of waves and ripples: Disruption theory's newest critic tries to make a splash

by Michael E. Raynor

https://www2.deloitte.com/us/en/insights/topics/innovation/disruptive-innovation-theory-lepore-response.html

The paper I wanted to share today aims to provide a common language about the research process that helps management scholars spend less time defending the style of research they have chosen and build more effectively on each other's work. I felt this series on Clayton Christensen's work and theories would be incomplete without this episode. It is a great pleasure to welcome the co-author of that paper and a person who has built on this work considerably, Paul Carlile.

Papers mentioned in the episode are listed here: https://www.bu.edu/questrom/profile/paul-carlile/

Our guest's award-winning research introduces a new perspective on value creation and competition when industry boundaries break down in the wake of ecosystem disruption. His two books, The Wide Lens and Winning the Right Game, have been heralded as landmark contributions to strategy literature. Clayton Christensen described his work as "Path-breaking", and Jim Collins has called him "One of our most important strategic thinkers for the 21st century."

It is a pleasure to welcome Ron Adner.

Find Ron here: https://ronadner.com

In 2003, media companies and newspapers were in free fall, when American newspapers earned only a tiny percentage of revenue from digital. The Deseret News and Deseret Digital Media were the envy of others, with more than 50 percent of the organization's combined net income coming from digital sources.

All this a little more than three years after a former Harvard Business School professor took over the company. How did he do it?

He developed his strategy thanks to his work with Clayton Christensen and employed the research to recalibrate how Deseret is organised and does business. Today, he has recalibrated his life and reallocated his resources to causes other than the business world. More about that shortly.

First and foremost, he is with us to pay tribute to his friend, share how his theories helped him perform a spectacular turnaround in the media industry and share insights from his book, "Dual Transformation, How to Reposition Today's Business While Creating the Future." It is a rare treat and absolute honour to spend time with the author of "Dual Transformation" with Scott D Anthony and Mark Johnson and "From Resource Allocation to Strategy" with our previous guest Joe Bower. Clark Gilbert, welcome to the show.

We covered the Innovator’s Dilemma with Matthew Christensen in the first part of this series, but we did not cover Chapter 7 of the Innovator’s Dilemma,that chapter Is entitled “Discovering New and Emerging Markets” It opens as follows: “Markets that do not exist cannot be analyzed: Suppliers and customers must discover them together. Not only are the market applications for disruptive technologies unknown at the time of their development, they are unknowable. The strategies and plans that managers formulate for confronting disruptive technological change, therefore, should be plans for learning and discovery rather than plans for execution. This is a crucial point to understand because managers who believe they know a market’s future will plan and invest very differently from those who recognize the uncertainties of a developing market.” You may know those to be the words of Clayton Christensen, but what you may not know is that this concept of discovery-driven growth stems from the work of a very special friend of the Innovation Show, it is an immense pleasure to welcome Rita McGrath.

Topics on this episode:

00:00:00 - Intro and Sponsor

00:02:28 Rita McGrath Welcome

00:04:15 Clayton Christensen Relationship

00:07:35 Discovery-Driven Planning

00:12:05 Client Example of Too Attached to Outcome

00:13:23 Redefining Failure: Failing Fast is Not Always Failing

00:14:04 Example of Varo Bank

00:18:51 KittyHawk Example

00:20:54 The Role of Luck

00:24:51 Honda SuperCub and NonConsumers

00:27:50 Jobs To Be Done and The McLean Hamburger

00:29:51 Origins of Discovery-Driven Planning

00:31:41 Most Mutations in Nature Fail, as do most ideas

00:32:47 Origins of Innovation Thinking From Schumpeter to Today

00:34:08 Discovery-Driven Planning Overview in a Nutshell

00:37:55 Disasters: EuroDisney

00:42:09 Disasters: PolaVision

00:43:15 Organisational Capabilities, Arenas and Kao

00:46:23 Selling an Idea to a CFO/Incumbent Gatekeeper

00:51:06 UPM Example: United Paper Mills Example

00:55:00 R.A.C.E.

We covered the Innovator's Dilemma with Matthew Christensen in the first part of this series, but we did not cover Chapter 7 of the Innovator's Dilemma,that chapter Is entitled "Discovering New and Emerging Markets" It opens as follows:

"Markets that do not exist cannot be analyzed: Suppliers and customers must discover them together. Not only are the market applications for disruptive technologies unknown at the time of their development, they are unknowable. The strategies and plans that managers formulate for confronting disruptive technological change, therefore, should be plans for learning and discovery rather than plans for execution. This is a crucial point to understand because managers who believe they know a market's future will plan and invest very differently from those who recognize the uncertainties of a developing market."

You may know those to be the words of Clayton Christensen, but what you may not know is that this concept of discovery-driven growth stems from the work of a very special friend of the Innovation Show, it is an immense pleasure to welcome Rita McGrath.

Topics Covered on this episode:

00:00:00 - Intro and Sponsor

00:02:28 Rita McGrath Welcome

00:04:15 Clayton Christensen Relationship

00:07:35 Discovery-Driven Planning

00:12:05 Client Example of Too Attached to Outcome

00:13:23 Redefining Failure: Failing Fast is Not Always Failing

00:14:04 Example of Varo Bank

00:18:51 KittyHawk Example

00:20:54 The Role of Luck

00:24:51 Honda SuperCub and NonConsumers

00:27:50 Jobs To Be Done and The McLean Hamburger

00:29:51 Origins of Discovery-Driven Planning

00:31:41 Most Mutations in Nature Fail, as do most ideas

00:32:47 Origins of Innovation Thinking From Schumpeter to Today

00:34:08 Discovery-Driven Planning Overview in a Nutshell

00:37:55 Disasters: EuroDisney

00:42:09 Disasters: PolaVision

00:43:15 Organisational Capabilities, Arenas and Kao

00:46:23 Selling an Idea to a CFO/Incumbent Gatekeeper

00:51:06 UPM Example: United Paper Mills Example

00:55:00 R.A.C.E.

Find Rita here:

https://www.ritamcgrath.com/

Find Valize here:

https://www.valize.com/

In part 2 of our series to honour the work, life and theories of Clayton Christensen, Joseph Bower unpacks that famous HBR article, "Disruptive Technologies: Catching the Wave" This article spawned the book, "The Innovator's Dilemma" Joe Bower s the father of "Resource Allocation theory" included in his 1970 groundbreaking book, Managing the Resource Allocation Process. He has been a leader in general management at Harvard Business School for over five decades where he is the Donald K. David Professor Emeritus. He was Clayton Christensen's doctoral thesis adviser and worked with Clay to develop and stress-test his theories.

Just some of the topics covered in this episode:

• 00:00:00 Intro
• 00:01:46 Managing Resource Allocation
• 00:02:57 Dissertation Supervisor for Clayton Christensen
• 00:04:11 Traits of Great Leaders
• 00:06:19 Resource Allocation
• 00:08:44 Group Decision Making
• 00:26:56 The Human Element of Change
• 00:46:46 Advice for Changemakers and Leaders
• 00:51:25 Getting People to Change Their Mind
• 00:56:29 Final Thoughts on Clayton Christensen

The logical, competent decisions of management that are critical to the success of their companies are also the reasons why they lose their positions of leadership.” How can executives simultaneously do what is right for the near-term health of their established businesses while focusing adequate resources on the disruptive technologies that ultimately could lead to their downfall? The Innovator's Dilemma!!! Clayton Christensen fathered the “theory of disruptive innovation”, but he also fathered wonderful people who have built on his pioneering work.  We are honoured to be joined by one such pioneer. The apple does not fall far from the tree; he is offspring in mind and body and spirit we welcome Co-Founder, CEO, and Managing Partner of Rose Park Advisors, Matt Christensen, welcome to the show.

The logical, competent decisions of management that are critical to the success of their companies are also the reasons why they lose their positions of leadership." How can executives simultaneously do what is right for the near-term health of their established businesses while focusing adequate resources on the disruptive technologies that ultimately could lead to their downfall? The Innovator's Dilemma!!!

Clayton Christensen fathered the "theory of disruptive innovation", but he also fathered wonderful people who have built on his pioneering work. We are honoured to be joined by one such pioneer. The apple does not fall far from the tree; he is offspring in mind and body and spirit we welcome Co-Founder, CEO, and Managing Partner of Rose Park Advisors, Matt Christensen, welcome to the show.