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July 24, 2009

News & Opinion: Monday Dots Describes Christensen's Disruptive Innovation

By: 800-CEO-READ @ 2:41 PM – Filed under: Innovation & Creativity

Jeff Monday at Monday Dots has focused his latest video on the process of disruptive innovation. Jeff's source material is Harvard Business School Professor Clay Christensen's The Innovator's Dilemma (a 100 Best selection) and The Innovator's Solution. Using his unique dots approach, the video below quickly summarizes Christensen's theories: At the end of the video, Jeff goes even further and suggests an improvement:
While I think this is good solution, I see it as highly reactive. I think an organization should do as Toyota did and implement a clear and hold strategy similar to what the Marines do in their counterinsurgency operations. When competition, demanding customers, and profit mazimazation drive a company to innovate up market, a company should establish an autonomous business unit to move up market much like Toyota did with the creation of Lexus. And even though they were proactive in creating Lexus, sometimes a disruption redifines the market by turning non consumers into customers, forcing an incumbent to be reactive. Ultimately Toyota had to establish Scion to compete with disruptors like Hyundai and Kia.
All of the Monday Dots videos are interesting and worth a look, and in this case, a extremely compelling way to present the original disruptive innovation concepts using a visual, viral medium.