Rating: 
Summary: In Praise of a Disruptive Innovation Theory
Review: The first two chapters of this book are so well thought out and beautifully written that reading them literally made my muscles ache and toes curl. I've never had that strong a reaction to any portion of a business book before.The Innovator's Solution builds on Professor Christensen's landmark book, The Innovator's Dilemma, and explains how managers can overcome the bias he described in the earlier book toward being blindsided by new entrants bringing disruptive technology and products to bear. There's so much good material in The Innovator's Solution that it is hard to fairly summarize it. Let me attempt to give you an overview. The authors point out, based on the studies of others, that few large companies are able to grow faster than average. Worse still for managers, they point out that studies of those few which have grown faster are often contradictory in their findings. Best practices may be nothing more than an accidental reaction to a temporary situation. The authors go on to create a generalized theory of what needs to be done in every situation that a company may face in creating and responding to disruptive technologies and products. It's as though Michael Porter had taken his tomes on competitive advantage and provided a single theory for when to apply what. As such, this is one of the most advanced books for creating management processes for using disruptive technologies and business models to discomfit the competition in profitable ways. Appreciating Figure 2-3 on page 44 is worth the price of the book alone. The authors have created a graphic to explain how markets develop in growth and competitive characteristics. No one who ever sees this graphic depiction will ever think about competitive and development strategies in the same way again. Although the authors use examples from many different industries, the most detailed and compelling examples come from technology based companies and industries. I found the Sony examples particularly interesting for their repeated creation of new markets and business models. The book beautifully elaborates on the thinking processes that companies use to lose competitive advantage . . . and should help many leaders counter these wrong-headed thoughts and instincts. Why, then, does the book have so much theory? As the authors candidly point out at the end, there are few models for what they are proposing. As a result, they have cobbled together a theory from bits and pieces of concepts that appeal to them and seem to fit with one another. Only with experience can we tell how good this theory is. But it's worth understanding and considering. The authors seem to have missed the bulk of the examples of companies that have made continuing business model innovations in the last decade. That appears to be because they relied on the published literature prior to 2003 to find examples, rather than doing their own research from scratch. Since continuing business model innovators are seldom written about by academics and consultants, these are a little hard to find. A large number of such innovators appear in service industries, which are relatively little mentioned in The Innovator's Solution. Surprisingly, many continuing business model innovators in software, semiconductors, computer components and medical testing are missing from the book. I suspect that the proposed theory could have been much improved by considering these cases. I look forward to seeing what the authors have to say in the future as they look at more cases. Without attempting to know if the theories are right or not, I can mention my own subjective reactions. The authors seem to be overly focused on products as compared to business models. It is helpful to use both perspectives as starting points for strategic thinking. Analyzing customer behavior by considering what job customers are trying to do seems to me to be much too simplistic. The most disruptive products, technologies and business models have often created changes in behavior where customers do things for the first time. On the other hand, the points made about how to beat the most powerful competitors, selecting the right target customers, scoping the business correctly, avoiding commoditization, managing strategic development, working with the right sources and amounts of funding, and the role of senior executives struck me as more often on the mark than not based on my own research and experiences. Any of the chapters except chapter 3 would probably make helpful reading for just about anyone. Don't be put off by the authors' emphasis on theory. They are trying to help make you more practical . . . not more abstract. Think of their theory as being like an operating manual for a new product. You may get better results by having clear instructions rather than relying totally on trial and error. I was extremely impressed by the gracious and thorough acknowledgments in the book of the thinking and research of others. Even when the authors point out the extreme weaknesses and limitations of a particular piece of work, they praise the positive aspects of that work in kind and thoughtful ways. I cannot remember the last time I read an academic book that took such a considerate approach. After you finish this book, I suggest that you think through how you can inexpensively create a better and more effective balance between creating the industries of the future and optimizing the businesses of today. Your stakeholders will thank you.
Rating:
Summary: Another win and the other shoe of the dillemma
Review: The innovator's solution helps answer all of the questions raised in Christensen's first book: the innovator's dilemma. The book is well researched -- to be expected. However, what is different is that the explanations are clearer and more business focused. I can apply these concepts and through processes to my work, which is the best thing, one can say about a business book. The chapters on growth and avoiding commoditization are particularly important in today's environment. To be sure that some of the concepts are proposed in an academic way and it takes a while to understand what the "more than good enough" and "less than good enough" concepts. Nevertheless, it works and is worth the time to reflect on what these concepts mean to your business and your future. Disruption is one of the forces in our society and business. It is one that this book explains very well. You do not have to read the first book "dilemma" to understand and get value out of this book, but once you read the "solution", you can gain a greater appreciation of Christensen's earlier works.
Rating:
Summary: Insightful exploration into successful growth
Review: The Innovators Solution is an OUT-OF-THE-BOX thinking manual which gives expression to the disruptive elements of growth and how to deal with them, amongst other issues. The book is well researched and enlightening, and should be read by serious business people. If you are interested in corporate OPTIMIZATION (not just improvement) read Optimal Thinking: How To Be Your Best Self to OPTIMIZE your growth with a team of optimizers. These books are cutting edge innovative solutions for this millenium.
Rating:
Summary: Surpasses "The Innovator's Dilemma"
Review: This book crisply explains the meaning of disruptive innovation
in business. While many of the examples of disruption are
technological innovations, many other examples are
not technological. Nor are the technological examples all
high technology.
The authors go on to explain why companies fail to embrace
disruptive innovation and give some advice for how
companies can change to sustain growth through disruption.
Understand though that the authors admit (or claim) that no
company have managed to sustain innovation through disruption
across two or more CEOs.
Even if you aren't in management, as an employee this
book might be of use in helping you understand why your
company is winning or losing, and what to look for in
a future employer.
Rating:
Summary: Christensen & Raynor hit the mark!
Review: This book is a must for any successful business leader.The authors provide compelling evidence to support their case. They explain how to improve the odds of new product/business success in a seemingly random world. Instead of pointing out the littany of disasters companies suffer without telling us how to avoid them, they supply comprehensive guidance. They also explain why "doing the right thing" is not always so easy. Rather, the available data and logic often supports a course of action that will facilitate competitive entry. An excellent book, well written; I couldn't put it down.
Rating:
Summary: On the right track
Review: This book is an extension of the concepts in Christensen's earlier book "The Innovator's Dilemma" in its attempt to help managers put theory into practice. Though it is advisable to read "The Innovator's Dilemma" before reading this book, Christensen and Raynor have brought out the fundamentals of "Disruptive Innovations" very clearly in the initial chapters, both as a refresher and reinforcement. While the concept of disruptive innovation cuts across industries , the principles of harnessing the power of such disruptions are equally applicable across various disciplines of management. It is here that the book is a clear winner. It provides solution frameworks for design, manufacturing, distribution, organizing and financing of successful strategies of disruption. Companies have been constantly grappling with the problem of managing and sustaining growth. Growth is the agenda point # 1 for CEOs of publicly held companies. Big companies have the capacity to attract the best talent and invest large sums of money in growth opportunities, but bigness creates the problem of "stalling" since innovations that address small markets get eliminated in the resource allocation process. A 5 billion dollar company needs 1 billion dollars in growth while a 50 billion dollar company needs a 10 billion dollar opportunity to achieve the same rate of growth. Simple arithmetic, but a very tough situation. Consider the fact that between 1955 and 1995, of the 172 companies that were on the list of 50 biggest companies, only 5 percent were able to sustain inflation adjusted growth of 6 percent. Even across shorter time spans, the number of companies achieving double digit growth rates is in single digits. Size and success suddenly become liabilities of large companies. Conventional market research techniques fail to unearth the potential for markets that do not exist. Disruptive innovations are targeted at exploiting the markets of products that are "good enough" or are competing against "non consumption". The concept of "hiring products for jobs to do" under the "categorization of circumstances" is bound to generate good debates on how we analyze and size market opportunities. MBA classrooms and corporate boardrooms will be intellectually challenged by this concept and its impact on the resource allocation process. The authors have used the graphical framework of plotting performance trajectories and customer needs to further analyze the implications for product design and supply chain decisions. The distinction between modular and interdependent architectures and inputs for organizational structure emerging from this framework is an example. Soft issues on managerial and leadership capabilities, attitudes of investors towards profitability and growth are also discussed. References at the end of each chapter themselves provide a quick summary of some very interesting theories and findings from other researchers that have been utilized effectively in this book. This book can lead to excellent research in many industry verticals. In the auto industry for example, what would be the trajectories for fuel cell and battery powered vehicles ? What strategies should car manufacturers adopt on outsourcing of components ? Where would the profits of the industry flow ? What should be the profile of managers who would be leading this transition ? You have a choice to exercise. Either read this book or regret later.
Rating: 
Summary: Understands the problem but not the solution. Impractical.
Review: This book makes a prescription. It's a pretty simple one. Make sure innovation happens. Hire people to cannibalize the business you are in. Back those people. I will say flatly it is simple-minded. Another strategy is for a company to get in on disruptive technologies by participating in a venture capital pool in their sector. That's an insurance policy, and a win-win all the way around. They can get a look at what is coming at them and so they can make plans for what the future life of their current line is likely to be - invaluable business intelligence. If the competition is really a disrupter, they get the big payoff from their venture capital investment. Heads they win, tails they win. This book has a good description of how things work, but the prescription isn't terribly useful. It indicates just how lacking in real world experience Mr. Raynor is.
Rating: 
Summary: Very good explanation of the solution
Review: This is easier to read than the Innovators Dilemma. There is a more varied range of Product and Industry case studies, which helps to show how broadly this theory can be applied. What I did like is how he covers the footnotes at the end of each Chapter - so if they don't interest you, you can skip over them, but if they do interest you, then you don't have to struggle to the back of the book. I wish more authors & publishers would use that technique. One quibble - given his Economics background, he suggests that having competing phone standards is not wasteful. Only an Economist would say that. A Consumer finds it frustrating. He has the good grace to suggest in a footnote that some readers might take issue with him, and I am one. He belittles the benefit of schoolgirls from Sweden using their phone on vacation in Spain, but I can vouch that being able to readily check on the safety of my teenage daughters when they're in foreign Countries for over 10% of the year is a definite benefit! Given his Economics background - of course there are plenty of graphs, and 99% of them are straight lines - there are no time dependent variances in his world. Also some silly proof-reading slips, such as a "semi-log" graph being described as "semi- long". Probably still worth reading the Innovators Dilemma before reading this one, just to get the theory.
Rating:
Summary: Skip the Dilemma, go straight to the Solution
Review: This is one of the best books on business strategy to be published in a long time. If you haven't read the earlier "Innovator's Dilemma", don't bother, just read this book instead.
One of the most interesting discussions in this book is just the definition of a disruptive innovation. It is not, as one might think, simply something new or technically innovative. More importantly, the disruption is relative to the current state of the business. In fact, the exact same innovation may be disruptive to some businesses, but sustaining for others. For example, online retailing, though technically innovative, is not disruptive to existing catalog retailers -- it is merely a more effecient method of doing business. However, it can be very disruptive to existing "bricks and mortar" businesses.
I particularly like the academic bent to the book. While by no means a textbook, the authors strongly emphasize that you can't just look for trends in business, and try to predict futures based on trends. Rather, you need to create defensible, testable theory based from the trends, and only then can you start to develop a more scientific approach to strategy.
For example, the authors cite popular books which champion opposite theories of vertical intergration. Rather than blithely saying the vertical integration is good or bad, they try to develop a theory for the contexts where this makes sense, or where outsourcing is a better way to operate.
All in all, this book is not the fundamental treatise on strategy that Michael Porter's seminal book is, but it is still a must read for the modern business.
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