There is no single right answer or path forward, but there is one right way to frame the problem.
The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption.
Interpretation
What this quote means
Established companies often struggle to embrace disruptive innovations due to their traditional processes and business models.
This quote by Clayton M. Christensen highlights the difficulty that established firms face when trying to adapt to disruptive innovations. Their existing processes and business models, which have made them successful in the past, can hinder their ability to recognize and effectively compete with new, disruptive technologies or business models. This phenomenon illustrates the inherent challenge for traditional businesses in remaining agile and innovative in a rapidly changing market landscape.
Themes
In practice
Example use cases
In a business seminar discussing the challenges of innovation in established companies.
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Companies, in fact, are specifically organized to under-invest in disruptive innovations! This is one reason why we often suggest that companies set up separate teams or groups to commercialize disruptive innovations. When disruptive innovations have to fight with other innovations for resources, they tend to lose out.
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