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The Innovator's Solution: Creating and Sustaining Successful Growth Hardcover – September 1, 2003

by Clayton M. Christensen (Author), Michael E. Raynor (Author)

4.5 712 ratings

Part of: The Innovator's Dilemma Series (4 books)

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A seminal work by bestselling author Clayton M. Christensen.

In his international bestseller The Innovator's Dilemma, Clayton M. Christensen exposed this crushing paradox behind the failure of many industry leaders: by placing too much focus on pleasing their most profitable customers, these firms actually paved the way for their own demise by ignoring the disruptive technologies that aggressively evolved to displace them. In The Innovator’s Solution, Christensen and coauthor Michael E. Raynor help all companies understand how to become disruptors themselves.

Clay Christensen (author of the award-winning Harvard Business Review article, How Will You Measure Your Life?”) and Raynor not only reveal that innovation is more predictable than most managers have come to believe, they also provide helpful advice on the business decisions crucial to truly disruptive growth. Citing in-depth research and theories tested in hundreds of companies across many industries, the authors identify the processes that create successful innovationand they show managers how to tailor their strategies to the changing circumstances of a dynamic world.

The Innovator’s Solution is an important addition to any innovation library.

Published by Harvard Business Review Press.

From Publishers Weekly

Christensen (The Innovator's Dilemma) analyzes the strategies that allow corporations to successfully grow new businesses and outpace the other players in the marketplace. Christensen's earlier book examined how focusing on profits can destroy even well-run corporations, while this book focuses on companies expanding by being "disruptors" who are able to outpace their entrenched competition. The authors (Christensen is a professor at Harvard Business School and Raynor, a director at Deloitte Research) examine the nine business decisions integral to growth, including product development, organizational structure, financing and key customer base. They cite such companies as IBM, AT&T, Sony, Microsoft and others to illustrate their points. Generally, the writing is clear and specific. For example, in discussing whether a company has the resources necessary for growth, the authors say, "In order to be confident that managers have developed the skills required to succeed at a new assignment, one should examine the sorts of problems they have wrestled with in the past. It is not as important that managers have succeeded with the problem as it is for them to have wrestled with it and developed the skills and intuition for how to meet the challenge successfully the next time around"; they then provide a real-life example of a software company. Similar important strategies give readers insights that they can use in their own workplaces. People looking for quick fixes may find the charts, diagrams and extensive footnotes daunting, but readers familiar with more technical business management tomes will find this one both stimulating and beneficial.
Copyright 2003 Reed Business Information, Inc.

Review

The process of Low End Disruption is beautifully described in Clayton Christensen’s series of books: The Innovator’s Dilemma, The Innovator’s Solution and The Innovator’s DNA. If you haven’t read them, you should. What’s amazing about these books is not only how important their conclusions are but how well researched they are.” TechCrunch

About the Author

Clayton M. Christensen is the Kim B. Clark Professor of Business Administration at Harvard Business School and the author of seven books, including the bestselling The Innovator’s Dilemma and The Innovator’s Solution. He’s also a five-time recipient of the annual McKinsey Award for Harvard Business Review's best article, including 2010’s How Will You Measure Your Life?” Christensen is the cofounder of four companies, including the innovation consulting firm Innosight. In 2011, he was named the world's most influential business thinker in the Thinkers50 ranking. Michael E. Raynor, D.B.A., is a director at Deloitte Research, the thought leadership arm of Deloitte & Touche and Deloitte Consulting.

Part of series

The Innovator's Dilemma Series
Print length

304 pages
Language

English
Publisher

Harvard Business School Press
Publication date

September 1, 2003
Dimensions

6.75 x 1.5 x 9.75 inches
ISBN-10

1578518520
ISBN-13

978-1578518524
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Product details

Publisher ‏ : ‎ Harvard Business School Press; 1st edition (September 1, 2003)
Language ‏ : ‎ English
Hardcover ‏ : ‎ 304 pages
ISBN-10 ‏ : ‎ 1578518520
ISBN-13 ‏ : ‎ 978-1578518524
Item Weight ‏ : ‎ 1.41 pounds
Dimensions ‏ : ‎ 6.75 x 1.5 x 9.75 inches

Best Sellers Rank: #420,259 in Books (See Top 100 in Books)
- #1,084 in Systems & Planning
- #1,229 in Decision-Making & Problem Solving
- #4,386 in Business Management (Books)

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4.5 712 ratings

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Michael E. Raynor
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Dr. Michael E. Raynor is a director at Deloitte Services LP. In his research and client work he explores corporate strategy, innovation, and growth across a wide variety of industries. Michael is co-author with Professor Clayton M. Christensen of The Innovator's Solution, which was on The Wall Street Journal and The New York Times bestseller lists, and sole author of The Strategy Paradox, named by BloombergBusinessWeek one of the year’s 10 best business books in 2007, and The Innovator's Manifesto, released in 2011, when the Financial Times called Raynor "one of the most articulate and interesting of…strategists.”
His most recent book, The Three Rules: How Exceptional Companies Think, co-authored with Mumtaz Ahmed, provides a rigorous, practical way for companies of all types to dramatically improve their chances of success.
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Clayton M. Christensen
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Full content visible, double tap to read brief content.
Clayton M. Christensen is the Kim B. Clark Professor of Business Administration at the Harvard Business School. In addition to his most recent book, Competing Against Luck, he is the author of nine books, including several New York Times bestsellers — The Innovator's Dilemma, The Innovator's Solution, Disrupting Class, and and most recently How Will You Measure Your Life?. Christensen is the co-founder of Innosight, a growth-strategy consultancy; Rose Park Advisors, an investment firm; and the Christensen Institute, a non-profit think tank. In 2011 and 2013, he was named the world’s most influential business thinker by Thinkers50.
See more on the author's page

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4.5 out of 5

712 global ratings

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ET

Fascinating book that every product marketing professional should read

Reviewed in the United States on May 7, 2009

Verified Purchase

This is turning common marketing and product development wisdom on its head. The basic idea is that you should not follow the masses, go with the flow or to look at previous successes to define your future products and services. Instead look at how people use products and services in their every day life and develop something that will do it better (cheaper, faster, more pleasant).

I loved the airport example about the smart phone...for years we're sold that we need to bring all the office applications onto the berries and PDAs (think Word, Excel, PowerPoint)...your office away from office for all these road warriors. Well it turns out, people don't really care to do office work while on the road. When they have 5-10 minutes to kill at the airport people (when not talking on the phone) like to read the paper, play games, browse through magazines, check sports and stocks online and watch TV. So your competition is not the desktop applications but the newspapers, TV and the entertainment. Voila, need to figure out how to bring that onto the berries/PDA instead of how to cram rich SW apps on the screen.

Another great example was the smoothie cafe. The owners tried all the usual marketing techniques (discounts, different flavors, names) to increase sales to no success. Then they analyzed for a whole week how people use their product. They find out in the morning most people bought a smoothie as a better on-the-go breakfast alternative (coffee was not fulfilling, bananas were messy, doughnuts were less healthy, sandwiches hard to maneuver while driving etc). In the afternoon moms with kids were most of the customers. They bought a smoothie to give a healthier, more fulfilling and cheaper snack to the kids. So the owners adjusted the product to these 2 main uses instead of one universal change across the board.

The book teaches you a new way to look at competition and what you need to innovate against:

Stop looking at your direct competitors to think about innovation (if we had that feature as they did, if we had more widgets, more colors, more sizes...) instead ask yourself if people are not buying this kind of product / service, then what are they doing today to fulfill the need? And so that is your real competition. Sometimes they do nothing in which case you have a virgin territory to explore.

The book warns the change is not easy and in fact is susceptible to lot of push back. There are suggestions and practical examples on how to start implementing this new thinking in the organization.

If anything the book it's a very refreshing look on the strategic planning required to building new products and services. Definitely a great discussion point.

3 people found this helpful

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Denis Benchimol Minev

TOWARD A COMPREHENSIVE THEORY OF DISRUPTION IN ECONOMICS

Reviewed in the United States on April 19, 2005

Verified Purchase

Prof Christensen, in this concise book, aims to develop a theory to explain how disruption occurs (much of which he had already done in Innovator's Dillemma) and how companies can position themselves to defend their markets, exploit opportunities in disrupted markets, and tell the difference between incremental market improvements and disruptions.

Disruption, he describes convincingly, usually occurs at the "bottom" of the market, where new companies compete mainly with non-consumption and powerful incumbents would not mind. The best example I found was used in many different chapter, was that of department stores being moved to high margin clothing by discounters and category killers. The disruptors came in and took the most undesirable parts of the business and built a model to make it economical.

The most brilliant insight, however, I found to be the effect when the disruption is complete, that is, when the original incumbent is driven out of the market. Then margins fall precipitously, since the marginal cost now is at the disruptor rather than the disruptee.

A manager facing a disrupted industry would do well to read this book. In it, there are simple pieces of advice on how a company should organize to gain the agility to implement a disruptive model, even if originating within the incumbent. You will read it and immediately start looking for disruptions all around you, eager to find one that can be exploited. The model developed is very interesting, as the authors spend quite a bit of writing on the underpinnings of the theory. Overall, it is a very useful book, though if you are a practical businessman (rather than one interested in and who finds theories helpful) you will likely not enjoy it. Theorists in business would be the best atrget audience.

4 people found this helpful

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Jørgen Tvedt

Excellent input for growth management and margin optimalization

Reviewed in the United States on April 6, 2014

Verified Purchase

The book repeats most everything from the "Dilemma" book and, unless readers want some interesting historical examples, there is no need to read the first.

The most suitable prerequisites and circumstances for hatching successful disruptive businesses are explained in detail. These are suggested as the main route to predictable growth for existing and new companies.

The book is quite repetitive and I suspect it to somewhat oversimplify complex issues, also using a scientific language while offering theories that aren't really proven. However the ideas presented and the clearly structured content convincingly offer the reader insights into margin fluctuations in the value network and the logic of growth.

You quickly get used to the author calling him selves "we", like if the book was actually a scientific publication.

Highly recommended, also if you have already read the "Dilemma" book.

14 people found this helpful

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Paul Simister

An excellent book that makes powerful points about growth through innovation

Reviewed in the United Kingdom on July 18, 2020

Verified Purchase

This book is mainly written about giant companies who need to grow faster than the stock market expects in order to increase the share price.

As such, is this dilemma relevant to the small business market?

The authors acknowledge they have written the book for big, established companies but state that the ideas will apply for start-up entrepreneurs.

The book is based around answering a series of questions.

1) How can we beat our most powerful competitors?
2) What products should we develop?
3) Which initial customers will constitute the most viable foundation upon which to build a successful business?
4) Which activities required to design, produce, sell, and distribute our product should our company do internally, and which should we rely upon our partners and suppliers to provide?
5) How can we be sure that we maintain strong competitive advantages that yield attractive profits?
6) What is the best organizational structure for this venture?
7) How do we get the details of a winning strategy right?
8) Whose investment capital will help us succeed, and whose capital might be the kiss of death?
9) What role should the CEO play in sustaining the growth of the business?

Each is the focus of a chapter along with answers the related questions.

The first of these recaps the lead author's earlier book, The Innovator's Dilemma. This explains why markets are vulnerable to disruptive innovation in the low margin markets and small markets. It is fascinating because the process is remorseless yet seems so logical for incumbents.

The next chapter urges market segmentation based on the job to be done by the customer. In my training, I use an example of the same person making very different choices for a restaurant for a romantic dinner, an important business lunch and a large family celebration. The use situation is often overlooked as people rush to segment by demographics or psychographics.

Ironically, because the book is old, the big example used is the Blackberry device which was later swept to one side by the development of multi-purpose smartphones.

I'm not going into each chapter in this review but I hope I've given you an indication of the scope and insight available from this excellent book.

Are all markets open to disruptive innovation. Clearly technology products like computers and mobile phones are vulnerable. The Internet has undermined retail businesses but also financial services. Office cleaning or painting and decorating haven't yet been disrupted but are robots far away?

The contents is essential both for offensive and defensive reasons. The world won't stand still so you need to understand how you can best protect what you have while also knowing how to develop the next set of products and services.

One irritation is the book describes diagrams in the book, rather than using diagrams to summarise text explanations. If you read the kindle version on a small device, like I do, you will struggle. Sadly this is a common occurrence.

What I particularly like about the book is that it's rooted in cause and effect logic. What is logical leads people in the wrong direction because they don't see the negative aspects and take actions to avoid the inevitable consequences.

This reinforces my belief that executives don't think deeply enough.

The book is written for the corporate market but with some effort it can be transferred to smaller businesses and entrepreneurs who have businesses that may be on either side i.e. they are the disruptors or they face being disrupted.

Paul Simister helps frustrated business owners who are stuck get unstuck.

5 people found this helpful

Prometeo

The innovators solution

Reviewed in Mexico on February 1, 2018

Verified Purchase

Very good anlysis from many disruptirs comapny was showed along the reading of 5his book , but the end looked somehow uncertain - many doubts assaulted me after the epilogue.

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Abhijeet

Compete for new markets/non consumption

Reviewed in India on October 22, 2018

Verified Purchase

Amazing insights for entrepreneurs and managers of the world. The elaborate examples of disruptions across B2B and B2C is thought provoking.

Amazon Kunde

Excellent theory

Reviewed in Germany on March 21, 2018

Verified Purchase

The book contains a great deal of substantive and well-researched theory, supported by data, and yet is reasonably easy to understand. The guidelines, if one wants to call them that, I sufficiently detailed to inform strategic decisions in business.

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Murphy

Five Stars

Reviewed in Canada on December 18, 2016

Verified Purchase

Excellent customer service...excellent book store!

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