The Innovators Solution

Filed in archive Entrepreneurship on January 17, 2005

The nice thing about sitting in an airplane for 12 hours is finding enough time to read a book. My last flight was attended by Clayton Christensen's "The Innovators Solution". I had heard many recommendations for the book but I have been amazed by the clarity and sophistication of Claytons' and Michael E. Raynor's writing.

The book basically is a guide to differentiate sustaining and disruptive technologies and business models. Obviously the disruptive business models are the ones with higher chances to succeed. The authors guide you to spot and prove disruptive business models in the wild. They go on and show which customers are best for your start-up and how to avoid Customization. What I really liked is that the authors not only present a well-though theory but also give answers to very practical questions entrepreneurs or CEO face.

The book also offers very hands-on advice on recruiting, managing explosive growth and evaluating investment sources.

The downside of the book is that it does not focus enough on the message (besides "Go for disruptive business models only") and is targeting business leaders of any kind with the latter chapters.

However the book gives you great insight into how to launch a long-time innovating company and gave me a whole new vocabulary and many insides on how to evaluate a disruptive business model. Most important - "Always be impatient with profitability and be more patient with growth" The other way around can be the killing ground for your business.

I found this book an indispensable guideline for any entrepreneur and investor in young companies. You will feel enlightened.

P.S. And yes I have to admit Clayton paid for my new car :-)