“The innovator's dilemma” by Clayton Christensen

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Happy Thanksgiving!

I spend hours putting these takeaways together and I honestly hope you learn something cool today too!

Before we get into today's book, a quick thanks to our sponsor…

The author 🖋

Clayton Christensen was a bestselling author, professor at Harvard Business School and a leading authority on the subject of innovation.

His work is considered seminal in the field of innovation and has had a significant impact on business strategy and management, influencing both academic thought and practical approaches in the corporate world.

He passed away in 2020.

Key takeaways 🎓

1. The problem of being big

Big companies often focus on improving their current products because it's more profitable and satisfies their current customer base.

It is a logical decision for them to make, but does also make them vulnerable to missing new ideas.

Which opens the door for small companies to build something big.

2. Why startups can (and do) win

Christensen introduces the concept of “disruptive innovation” where small companies with few resources successfully challenge the established big dogs of the industry.

It usually happens by targeting overlooked segments of the market with simpler, cheaper and more convenient products.

Over time these startups improve their offerings and move upmarket, eventually displacing established competitors.

3. Embrace a culture of experimentation

It’s hard for big companies to change because they've invested resources and built a certain way that works.

But they should also create a culture that encourages experimentation and innovation within the organization, even if the ideas don’t align with their current business model or customer base.

Based on the authors research, that’s the best way to stay ahead.

Closing thoughts 🧠

The book shows why big, successful companies sometimes fail even when they're doing everything right.

This means that new, smaller companies can always come along and disrupt the market by offering something better, faster or cheaper and the big companies can't keep up (which is kind of nice to know).

That’s a wrap!

I’d love to hear your thoughts or book suggestions - just hit reply, I write back to everyone :)

- Monty

P.S. Find this valuable & want to say thanks? I love drinking coffee ☕

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