There is no single right answer or path forward, but there is one right way to frame the problem.
Companies, in fact, are specifically organized to under-invest in disruptive innovations! This is one reason why we often suggest that companies set up separate teams or groups to commercialize disruptive innovations. When disruptive innovations have to fight with other innovations for resources, they tend to lose out.
Interpretation
What this quote means
Companies often fail to invest in disruptive innovations due to internal competition for resources.
In this quote, Clayton M. Christensen highlights the tendency of established companies to underfund disruptive innovations, which can lead to missed opportunities for growth and market leadership. He suggests that to combat this issue, companies should create dedicated teams to focus on developing and commercializing these innovative ideas without the interference of competing projects, emphasizing the need for a strategic approach to innovation management.
Themes
In practice
Example use cases
In a business seminar discussing innovation strategies, someone might say, 'As Clayton M. Christensen noted, companies often under-invest in disruptive innovations, which is why we must advocate for dedicated teams to nurture these ideas.'
More from Clayton M. Christensen
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The breakthrough innovations come when the tension is greatest and the resources are most limited. That's when people are actually a lot more open to rethinking the fundamental way they do business.
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