A Quote by Clayton Christensen
Most companies think of disruption as a threat. But disruptive innovations have tremendous growth potential. If incumbent companies can learn how to harness the forces of disruption, they too can improve their ability to create new-growth businesses.
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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. 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.
If a company truly wants to resolve the innovator's dilemma, it does need to be able to create wave after wave of disruptive innovation. And those disruptive innovations will typically grow to the point where they do cause some pain for leading companies. But most disruptive innovations create substantial new growth before they cause that pain.
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.
I advise other companies' CEOs, don't fall into the trap where you go, 'Where's the growth? Where's the growth?' Where's the growth?' They feel a tremendous pressure to grow. Well, sometimes you can't grow. Sometimes you don't want to grow. In certain businesses, growth means you either take on bad clients, excess risk, or too much leverage.
Instead of focusing the traditional planning cycles where companies benchmark their businesses against existing competition, teams need to be developed to foster internal change and disruption. Self-disruption is akin to undergoing major surgery, but you are the one holding the scalpel.
To thrive, all businesses must focus on the art of self-disruption. Rather than wait for the competition to steal your business, every founder and employee needs to be willing to cannibalize their existing revenue streams in order to create new ones. All disruption starts with introspection.
Democracy is disruptive. Around the world, peaceful protesters are being demonised for this, but there is no right in a democratic civil society to be free of disruption. Protesters ideally should read Gandhi and King and dedicate themselves to disciplined, long-term, non-violent disruption of business as usual - especially disruption of traffic.
Disruption is a process, not an event, and innovations can only be disruptive relative to something else.
The concept of disruption is about competitive response; it is not a theory of growth. It's adjacent to growth. But it's not about growth.
Times of crisis, of disruption or constructive change, are not only predictable, but desirable. They mean growth. Taking a new step, uttering a new word, is what people fear most.
Our Government is fostering economic growth in Kitchener, Cambridge and all of the Waterloo Region by investing in our innovative businesses. Today's announcement is a great example of how we are helping high-potential companies bring great ideas to market faster. Helping our entrepreneurs and original thinkers export their products and services to the rest of the world creates jobs, growth and economic prosperity here at home.
Continuing economic growth requires both recruitment of new companies and expansion of existing businesses.
Baidu and Google are great companies, but there are a lot of things you can do outside them. Just as electricity and the Internet transformed the world, I think the rise of modern A.I. technology will create a lot of opportunities both for new startups and for incumbent companies to transform.
The pace of change and the threat of disruption creates tremendous opportunities.
We also need to reduce corporate tax rates. This applies to small, medium and large businesses. At 35 percent, we have the second highest corporate rates in the world. It restricts the growth of small enterprises that need to plow capital back into their businesses and forces companies and jobs to move overseas.
You can invest to create the new growth business while the core business is still growing, because new business units don't need to get big fast. But when the core business stops growing, investing to create new growth businesses becomes impossible.
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