Summary of Clayton M. Christensen, Jerome H. Grossman & Jason Hwang's The Innovator's Prescription

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The term disruptive technology was first introduced into the lexicon of business management in the 15 years since it was coined. It refers to an innovation that makes things simpler and more affordable, and it is used to describe companies like Intel and Wal-Mart.
#2 In the subsequent five chapters, we will build upon the foundation we laid out in this chapter. Chapter 2 explores the technological enablers of disruption in health care. Chapters 3 and 4 show how the business models of hospitals and physicians' practices must change in order to harness the power of disruption.
#3 The disruptive innovation theory explains the process by which complicated, expensive products and services are transformed into simple, affordable ones. It also explains why it is so difficult for the leading companies or institutions in an industry to succeed at disruption.
#4 A disruptive innovation is not a breakthrough improvement. It is not as good as the products and services sold in the original plane of competition, but it is simpler and more affordable, which allows it to draw customers from that plane of competition.

Sujets

• Efficacité professionnel
• Training

Informations

• Publié par: Everest Media LLC
• Date de parution: 26 mars 2022
• Nombre de lectures: 0
• EAN13: 9781669366591
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Clayton M. Christensen and Jerome H. Grossman & Jason Hwang's The Innovator's Prescription
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8 Insights from Chapter 9 Insights from Chapter 10 Insights from Chapter 11
Insights from Chapter 1

#1

The term disruptive technology was first introduced into the lexicon of business management in the 15 years since it was coined. It refers to an innovation that makes things simpler and more affordable, and it is used to describe companies like Intel and Wal-Mart.

#2

In the subsequent five chapters, we will build upon the foundation we laid out in this chapter. Chapter 2 explores the technological enablers of disruption in health care. Chapters 3 and 4 show how the business models of hospitals and physicians' practices must change in order to harness the power of disruption.

#3

The disruptive innovation theory explains the process by which complicated, expensive products and services are transformed into simple, affordable ones. It also explains why it is so difficult for the leading companies or institutions in an industry to succeed at disruption.

#4

A disruptive innovation is not a breakthrough improvement. It is not as good as the products and services sold in the original plane of competition, but it is simpler and more affordable, which allows it to draw customers from that plane of competition.

#5

The only company that was able to successfully sell personal computers was IBM, which for a time became a leader in personal computers by setting up a completely independent business unit in Florida and giving it the freedom to create a unique business model.

#6

Industries that are still extremely complex and expensive to use have not yet been disrupted. This is the case with legal services, higher education, and health care.

#7

A business model is an interdependent system of four components: a value proposition, resources, processes, and a profit formula. The value proposition is the starting point in the creation of any successful business model.

#8

The way in which companies choose to define market segments is a crucial strategic decision, because it influences which products they develop, how they are marketed, and how they are taken to market.

#9

A restaurant chain found that 40 percent of its milkshake sales were made by customers who bought them to do the job of keeping them busy while they drove to work. The milkshake did a better job than any of the competitors.

#10

understanding the jobs that customers are trying to accomplish can help you improve your product. This will help your product stand out from the competition, and grow the market.

#11

The essence of competitive advantage is the ability to integrate your resources, processes, and profit formula in order to do a job that the customer is trying to do. This is why McDonald's can sell a dizzying array of sandwiches, side dishes, salads, drinks, and desserts.

#12

When you help customers do more affordably, conveniently, and effectively, they will pay a premium price and change lots of habits in order to get the job done better and faster. But when your product helps them do a job that they've not been trying to do, selling your product is like an uphill death march through knee-deep mud.

#13

The three levels in the architecture of a job are the job itself, the functional, social, and emotional experiences in purchasing and using the product that are needed to get the job done. Convenience and cost are not jobs, but rather experiences that must be provided to get some, but not all, jobs done well.

#14

The history of innovation is littered with companies that had a disruptive technology within their grasp, but failed to commercialize it successfully because they did not couple it with a disruptive business model.

#15

The only way Nypro could have attacked the growing market for high-variety, low-volume parts was to embed the Novaplast machine within an autonomous business model whose profit formula, processes, and resources were optimized for the disruptive value proposition.

#16

There are three general types of job-focused business models: solution shops, value-adding process businesses, and facilitated networks. These are fundamentally different institutions, in terms of their purpose, where their capabilities reside, and the formulas by which they make money.

#17

Solution shops are institutions that diagnose and recommend solutions to unstructured problems. They are typically fee-for-service institutions, and their clients are willing to pay high prices for their services.

#18

The second type of business model is the value-adding process, which transforms inputs of resources into outputs of higher value. VAP businesses are not as dependent on the instincts of people as solution shop businesses are, and they can consistently deliver high-quality services and products at lower cost using methods that are less susceptible to variability.

#19

The employees of Toyota, which is the best value-adding process company in the world, follow a standard process religiously in everything they do. They have concluded that doing it the same way every time actually constitutes a controlled experiment by which they test whether doing it that way yields a perfect result.

#20

The third type of business model is facilitated networks, which comprise institutions that operate systems in which customers buy and sell, and deliver and receive things from other participants. The companies that make money in these industries are those that organize, facilitate, and maintain the effective operation of the networks.

#21

Disruptive innovation occurs when one type of business model displaces another. When disruption occurs across different classes of business models, the gains in affordability and accessibility are even more profound than when disruption occurs within the same type of business model.

#22

There are three phases of disruptive business model innovation in health care, which together can reduce costs by between 20 and 60 percent. The first phase entails carving hospitals apart, creating coherent rather than disjointed solution shops, and value-adding process businesses.

#23

The vertical axis on the disruption diagram represents the size of the project being completed by the company receiving the investment. The Bain Capital investment company made small investments in start-ups like Staples, instead of attempting a head-on attack against Kohlberg Kravis Roberts Co.

#24

The internet has been a disruptive technology that has changed the way we live our lives. It has disrupted the networks of voice equipment manufacturers, community colleges, and eBay and PayPal, which facilitate networks.

#25

The following companies are all examples of how a traditional process-based business is being disrupted by a facilitated network. Linux is a computer operating system that is being used in place of Microsoft’s Windows. Second Life is a 3-D virtual world created by its residents, who use tools provided by the network facilitator to create their own animated content and exchange and interact with others. Skype is an in-type disruption of one facilitated network business by another.

#26

The business model innovation framework is used to describe the different types of business models. It typically starts with a value proposition for a product or service that is much more affordable and simpler than those available previously. The disruptive innovators then specify the profit formula required to profitably hit the price envisioned in the value proposition.

#27

The Toyota Production System has been applied to health care, and has shown significant savings. Networks of consumers are the most common examples, but companies can also facilitate B-to-B and B-to-C networks.

#28

The number of vessels should not be the primary determinant of complexity in angioplasty. There is, of course, a correlation between multivessel disease and risk for complications, but from a technical standpoint, a case involving one vessel is no different from one involving four vessels.

#29

Disruptive technologies are already being used in the health care industry, but they are not being used effectively. For example, there are criteria and algorithms for PVOD that help determine when patients should be treated by bypass surgery rather than angioplasty.
Insights from Chapter 2

#1

Disruptive technologies are those that allow the basic problems in an industry to be addressed on a smaller scale, with lower costs, and with less human skill than historically was needed. They come from years of work in corporate research and development labs, or they are licensed or bought.

#2

The process by which an industry transforms the body of knowledge upon which it is built from an art into a science is gradual. In the earliest stages of most industries, the extent of understanding is little more than a collection of observations collected over many generations.

#3

The impact of this progress on our well-being is extraordinary. In the 1950s, wood, metal, paper, rubber, stone, and ceramics were the primary materials available for building and covering things. Today, our lives are made efficient and comfortable by materials whose durability, flexibility, strength, appearance, and cost were inconceivable a generation ago.

#4

The migration of problem solving from a small group to a larger population of less-expensive providers who simply have to follow the rules is a widespread foundational phenomenon that underlies the transformation of industries ranging from animation to architecture to aviation.

#5

Despite the billions of d