The Innovator's Solution: 8 key ideas
The core ideas of The Innovator's Solution, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
Growth can be made predictable
Christensen and Raynor argue that creating new growth businesses need not be pure luck.
Understanding the forces behind innovation helps managers make better decisions. Theory replaces guesswork about what to build.
- IDEA 2 OF 8
Disruption takes two forms
Low-end disruption serves customers who are overserved by existing products, with cheaper, simpler alternatives.
New-market disruption reaches people who previously could not use the product at all. Both start small.
- IDEA 3 OF 8
Customers hire products for jobs
The authors suggest asking what job a customer is trying to get done.
They tell of a fast-food chain that sold more milkshakes once it understood why people bought them in the morning.
- IDEA 4 OF 8
Incumbents rarely fight disruptors
Established companies tend to move upmarket toward their best customers.
Disruptors win because the leaders prefer to leave the lower, less profitable segments to them. Rational choices create blind spots.
- IDEA 5 OF 8
Architecture shifts over time
The authors explain that early in an industry, tightly integrated products win because performance is not yet good enough.
Later, modular designs win as speed and flexibility matter more. The shift is gradual.
- IDEA 6 OF 8
Profits move along the chain
As products become good enough and modular, profits shift to other parts of the value chain.
Managers must anticipate where future profits will come from. Commodities earn less over time.
- IDEA 7 OF 8
Capabilities come from three sources
The authors describe a company's capabilities as resources, processes and values.
They explain why the processes and values that make a firm strong can also prevent it from pursuing disruption.
- IDEA 8 OF 8
Choose the right kind of money
The authors argue new businesses need money that is patient for growth but impatient for profit.
Funding too much growth too early can push ventures in the wrong direction. Profit proves the model.
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