Observations from The Innovator’s Dillema by Clayton M. Christensen about why good companies, known for their abilities to execute and innovate, fail:
“Precisely because these firms listened to their customers, invested aggressively in new technologies that would provide their customers more and better products of the sort they wanted, and because they studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.”
He goes on to support a fascinating argument:
“What this implies at a deeper level is that many of what are now widely accepted principles of good management are, in fact, only situationally important. There are times at which it is right not to listen to customers, right to invest in developing lower-performance products that promise lower margins, and right to aggressively pursue small, rather than substantial, markets.”
on Monday, March 25th, 2002 @ 9:58 pm
§ Business