The Innovator’s Dilemna
Book Review by Rakesh Balachandran
Date of Review: 08/03/2010

The book introduces new concepts on innovation and is a good read for anyone interested in understanding how new technologies can not only cause firms to succeed, but also become the death knell of existing market leaders!! The author, Clayton Christensen, draws upon his vast experience in the technology arena(senior leader in Motorola and other reputable firms), to deliver, a sometimes shocking insight, into the disruptive effect innovation can have on an industry.

Just like the introduction of telephones sealed the fate of telegraphy, and missiles that of older artillery techniques, the book opens up a plethora of possibilities and things to watch out for any innovator looking to introduce a new product or service in an already existing market, populated by other players. It also showcases, with vivid examples that the reader can relate to, how some firms have introduced products or services to address a price conscious segment of the market, which possibly would have been ignored by the larger players either due to lower margins or lack of focus.

It sounds a timely warning to all firms to not continue doing the same old things again and again and falling into the age old trap of complacency, allowing competition to steal valuable space in the market, both in terms of market presence and margins. The book urges business leaders to look not only at the market forces of today, but how they need to constantly innovate to stay ahead of the pack. Some companies, including very renowned ones, have found to their peril that they have been ousted from a market which they thought they were kings of. These firms, who have dutifully, done market research, listened to their customers, and invested in incremental innovation in an existing market, have failed to cope with disruptive innovations, targeted at a segment of the market, which they have never addressed due to lower short term potential.

The book uses powerful examples across a wide range of industries ranging from hightech to retailing to drive home the point, that these market segments can be ignored by leading players at their own peril. Refreshing in approach, and lucid in logical analysis, the book is a master class for any business novice in understanding the power of innovation, how sometimes, we need to rethink the way we look at opportunities(yellow balls as we better know them!)