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The Disruption Dilemma
-Disruption- is a business buzzword that has gotten out of control. Today everything and everyone seem to be characterized as disruptive -- or, if they aren't disruptive yet, it's only a matter of time before they become so. In this book, Joshua Gans cuts through the chatter to focus on disruption in its initial use as a business term, identifying new ways to understand it and suggesting new tools to manage it.
Almost twenty years ago Clayton Christensen popularized the term in his book The Innovator's Dilemma, writing of disruption as a set of risks that established firms face. Since then, few have closely examined his account. Gans does so in this book. He looks at companies that have proven resilient and those that have fallen, and explains why some companies have successfully managed disruption -- Fujifilm and Canon, for example -- and why some like Blockbuster and Encyclopedia Britannica have not. Departing from the conventional wisdom, Gans identifies two kinds of disruption: demand-side, when successful firms focus on their main customers and underestimate market entrants with innovations that target niche demands; and supply-side, when firms focused on developing existing competencies become incapable of developing new ones.
Gans describes the full range of actions business leaders can take to deal with each type of disruption, from -self-disrupting- independent internal units to tightly integrated product development. But therein lies the disruption dilemma: A firm cannot practice both independence and integration at once. Gans shows business leaders how to choose their strategy so their firms can deal with disruption while continuing to innovate.
Almost twenty years ago Clayton Christensen popularized the term in his book The Innovator's Dilemma, writing of disruption as a set of risks that established firms face. Since then, few have closely examined his account. Gans does so in this book. He looks at companies that have proven resilient and those that have fallen, and explains why some companies have successfully managed disruption -- Fujifilm and Canon, for example -- and why some like Blockbuster and Encyclopedia Britannica have not. Departing from the conventional wisdom, Gans identifies two kinds of disruption: demand-side, when successful firms focus on their main customers and underestimate market entrants with innovations that target niche demands; and supply-side, when firms focused on developing existing competencies become incapable of developing new ones.
Gans describes the full range of actions business leaders can take to deal with each type of disruption, from -self-disrupting- independent internal units to tightly integrated product development. But therein lies the disruption dilemma: A firm cannot practice both independence and integration at once. Gans shows business leaders how to choose their strategy so their firms can deal with disruption while continuing to innovate.
176 pages, Hardcover
Published March 18, 2016
About the author
Joshua Gans
32 books17 followersJoshua Gans is a Professor of Strategic Management and holder of the Jeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship at the Rotman School of Management, the University of Toronto (with a cross-appointment in the Department of Economics). Joshua is also Chief Economist of the University of Toronto's Creative Destruction Lab.
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Displaying 1 - 15 of 15 reviews
March 2, 2017
Ouvi pensando que seria sobre as consequências do rompimento econômico na sociedade, mas é muito mais voltado para administração. Um livro sobre como empresas sobrevivem ou não ao rompimento causado por uma mudança de mercado forte (Kodak, IBM, etc.) e o que fazer em uma situação. Não achei ruim, é até bastante completo, mas não é de longe o que eu procurava.
March 1, 2020
A good update on Christenson’s Innovator’s Dilemma with numerous examples from recent history, including an account of how blackberry failed first to respond to the iPhone and then to the iPad.
I struggle to articulate what really makes the distinction between “demand side” and “supply side” disruption, which Gans draws on throughout the book.
But I was left with a sense that the challenge of responding to “disruptive” threats is really just the challenge of responding to any change that requires restructuring the organization.
The other very useful lesson was how Christenson’s recommendation to respond to disruption with a special unit that is walled off from the main organization often doesn’t work and, in many cases, may be exactly the wrong thing to do.
There is no silver bullet.
I struggle to articulate what really makes the distinction between “demand side” and “supply side” disruption, which Gans draws on throughout the book.
But I was left with a sense that the challenge of responding to “disruptive” threats is really just the challenge of responding to any change that requires restructuring the organization.
The other very useful lesson was how Christenson’s recommendation to respond to disruption with a special unit that is walled off from the main organization often doesn’t work and, in many cases, may be exactly the wrong thing to do.
There is no silver bullet.
February 13, 2021
I read this book to write a term paper for my innovation class. The paper was related to disruptive innovations, so I compared the ideas from The Disruption Dilemma with Clayton Christensen’s.
One thing for sure: The author is really confident. He makes really bold statements related to the nature and origin of disruptive innovations. I really liked how he actually build his arguments and criticized Christensen on certain points.
On the negative side, I believe he falls short in the conclusion part, where he had a good chance to persuade readers to believe closer integration strategy can be applied to demand-side disruptions. Yet, he failed to clearly demonstrate how companies can do so.
Overall, it was an eye-opening book, which significantly broadened my horizons. I really appreciate the author’s academic career and his noticeable views on disruption theory.
One thing for sure: The author is really confident. He makes really bold statements related to the nature and origin of disruptive innovations. I really liked how he actually build his arguments and criticized Christensen on certain points.
On the negative side, I believe he falls short in the conclusion part, where he had a good chance to persuade readers to believe closer integration strategy can be applied to demand-side disruptions. Yet, he failed to clearly demonstrate how companies can do so.
Overall, it was an eye-opening book, which significantly broadened my horizons. I really appreciate the author’s academic career and his noticeable views on disruption theory.
July 14, 2019
Clay Christensen has more or less monopolized attributable credits on the phenomenon of disruption in business writing. This book restore some important balance. Rebecca Henderson is the unsung hero of this lovely book and she is underrated. Credits to economist Joshua Gans for this noble and needed book.
January 26, 2020
If I have to describe this book is one world I would say ‘business’ of course it’s more than that. But it focus mostly on the business side of the life. Is if you are business student I would recommend this book
August 10, 2020
For those at the c-suite determining how to manage potential disruption to their industry / business. Two stars because I'm not one of them so the information wasn't relevant to decision making.
November 26, 2016
I have read Joshua Gans' various blogs for many years now but never have I read any of his books; until now. The attraction to this book was the popular topic of disruption. Essentially Gans has authored a 'Disruption 2.0' book with an influence from Clayton Christensen's classic book 'The Innovator's Dilemma.' The Disruption Dilemma provides more of a peer reviewed journal approach to the topic of disruption with clear definitions, theories, citations and case studies.
One of the areas of this book I liked was the detailed definition and concept of disruption. It is a term loosely thrown around in the IT industry given the rapid pace of change. Fundamentally, if you do not keep up with change then you're left in the dust! Gans delves into the concept of both supply and demand disruption and illustrates this with many case studies (e.g. Apple, Ford, New York Times etc.). As Henry Ford said years ago …. "if I had asked my customers what they had wanted, they would have said a faster horse."
Suffice to say this is well worth the read if you want to get your head around disruption and what you can do to understand as well as mitigate the risk.
Three key takeaways from the book:
1. Disruption is associated with a new technological opportunity (known as a disruptive event) in which the incumbent may or may not take advantage of it. The failure of not being able to take advantage and not being able to recover is essentially when disruption actually occurs.
2. Disruption theory tells us, at a minimum, that a company doubling down may be a bad idea. By contrast, the replacement effect suggests that 'doubling up' is a hard thing to do.
3. Typically uncertainty occurs over whether an event is, in fact, disruptive, which gives rise to the dilemma facing established firms.
One of the areas of this book I liked was the detailed definition and concept of disruption. It is a term loosely thrown around in the IT industry given the rapid pace of change. Fundamentally, if you do not keep up with change then you're left in the dust! Gans delves into the concept of both supply and demand disruption and illustrates this with many case studies (e.g. Apple, Ford, New York Times etc.). As Henry Ford said years ago …. "if I had asked my customers what they had wanted, they would have said a faster horse."
Suffice to say this is well worth the read if you want to get your head around disruption and what you can do to understand as well as mitigate the risk.
Three key takeaways from the book:
1. Disruption is associated with a new technological opportunity (known as a disruptive event) in which the incumbent may or may not take advantage of it. The failure of not being able to take advantage and not being able to recover is essentially when disruption actually occurs.
2. Disruption theory tells us, at a minimum, that a company doubling down may be a bad idea. By contrast, the replacement effect suggests that 'doubling up' is a hard thing to do.
3. Typically uncertainty occurs over whether an event is, in fact, disruptive, which gives rise to the dilemma facing established firms.
April 10, 2016
This was just an awesome book. Only a few times a year do I find a book that changes the way I think about things - that gives me a new set of mental models with which to try to make sense of the world. And even better when it takes old mental models, ones in this case that were developed through Clayton Christensen's Innovator's Dilemma, breaks them down, and builds more robust and more nuanced ones in their place. I fear that the more nuanced approach of this book, and the less satisfyingly contrarian conclusion as compared to the one offered in Innovator's Dilemma - that the "disruption" dilemma can be managed, but that it is likely much harder than just setting up an autonomous unit that is responsible for disrupting one's self - will give this book less of a devoted following than the Innovator's Dilemma. But for my purposes, this is exactly why I loved it.
One slight critique is that I still don't think I fully understand how to actually implement the recommendation - to create an integrated organization that embeds disruption, and specifically architectural disruption, into the organizational fabric of the organization itself - but maybe a second reading will help clarify this.
Just a great book!
One slight critique is that I still don't think I fully understand how to actually implement the recommendation - to create an integrated organization that embeds disruption, and specifically architectural disruption, into the organizational fabric of the organization itself - but maybe a second reading will help clarify this.
Just a great book!
December 30, 2016
We constantly hear about the concept of disruption in business and many examples are cited about markets, industries and sectors that are being disrupted, such as Uber, AirBnB, the whole music industry through Apple Music and streaming services such as Spotify etc. The concept of disruption is rarely analysed or explained beyond these examples which are given. The value of this book from Joshua Gans is that he unpacks the concept and explains how it works. He analyses disruption from a demand side and a supply side perspective. He further explores how companies and organisations may be able to resist disruption. A very interesting book which explores the causes of disruption and which will be useful to readers trying to understand the forces of disruption which are affecting so many areas of life.
June 18, 2016
Anyone who read the Christensen's classic book "Innovator's Dilemma" should also read "Disruption Dilemma". In revisiting the disruption idea, Joshua actually refine the idea and put few good case studies to describe that not all disruptions are the same. Handling and understanding demand side disruption is easier than supply side disruption that require company to re architect not only the product but also the organization. Bottom line this book reiterates is change is eternal, those who have skills to adapt with change win in long terms.
February 6, 2017
If you're only going going to read one book on innovation theory and disruptive innovation, make sure it's this one.
An up-to-date (at the time I am writing this review, early 2017) and balanced view of the role of disruptive innovation and how companies react.
Despite being a relatively short book it manages to brilliantly summarise the other major works on the subject while also drawing its own conclusions.
Recommended.
An up-to-date (at the time I am writing this review, early 2017) and balanced view of the role of disruptive innovation and how companies react.
Despite being a relatively short book it manages to brilliantly summarise the other major works on the subject while also drawing its own conclusions.
Recommended.
September 19, 2017
所以本書雖然有分章節，但閱讀起來依然非常瑣碎，作者不太喜歡廢話，所以文字極為精鍊，加上為了挑戰這個學界的權威概念，只好大量使用商管名詞。這些都讓本書的閱讀變得不是很容易。
作者雖然針對的是 Clayton Christensen 的「破壞性創新」，但用詞平和理性，不會過激，提到 Clayton 看錯的趨勢，也都引經據典告訴你，這是人家 Clayton 自己承認過的。所以這本書事實上獲得 Clayton Christensen 的推薦！
但或許也因為這層顧慮，平和理性說事的書，不那麼精彩激情（人性喜歡看人對罵？XD）。
我買的是 Kobo 版本，根據軟體統計，我讀了 1.8 小時完成，但分 23 次讀，每次平均讀 4.7 分鐘、10.9 頁。是一個幾乎過動的瑣碎閱讀狀態 XD
https://i-chentsai.innovarad.tw/2017/...
作者雖然針對的是 Clayton Christensen 的「破壞性創新」，但用詞平和理性，不會過激，提到 Clayton 看錯的趨勢，也都引經據典告訴你，這是人家 Clayton 自己承認過的。所以這本書事實上獲得 Clayton Christensen 的推薦！
但或許也因為這層顧慮，平和理性說事的書，不那麼精彩激情（人性喜歡看人對罵？XD）。
我買的是 Kobo 版本，根據軟體統計，我讀了 1.8 小時完成，但分 23 次讀，每次平均讀 4.7 分鐘、10.9 頁。是一個幾乎過動的瑣碎閱讀狀態 XD
https://i-chentsai.innovarad.tw/2017/...
September 13, 2018
In many ways this is a companion book to the innovators dilemma. So make sure you have read that to get the most out of it. It has some really good points in regards to a lot of misconceptions around disruption. The format and presentation could be better and more interesting; it's a bit unexciting. Recommended on the basis of the broader insight into disruption, not because of the writing :-D
December 25, 2016
This is a must read for those interested in business innovation. It provides unique insights into disruption and raises many questions about how disruptive business events actually play out. It's a quick read as well.
April 1, 2017
Overall a good book bordering on really good. The only thing that I wasn't too much of a fan of was the fact that it references Clayton Christensen's "The Innovator's Dilemma" as much as it does. It sometimes felt as if this book was more of a counter-argument to Christensen's theories than it was standalone.
However, despite the constant reference to Christensen's theories, the new ideas that were introduced by Gans were good and made sense - it brought new perspectives as to the reasons for disruption. And for what it does, it does it well.
But like the problem many business books have, I sometimes wonder whether or not we were trying to explain the unexplainable, attributing too little to the role of chance, and thinking we have far more control that we really do. Imagine if 80% of disruption were beyond anyone's or any business' control, and that at best whatever actions we took would help with that 20%.
Knowing whether or not Christensen's or Gans' theories were "closer to the truth", then, would not really help that much, would it?
However, despite the constant reference to Christensen's theories, the new ideas that were introduced by Gans were good and made sense - it brought new perspectives as to the reasons for disruption. And for what it does, it does it well.
But like the problem many business books have, I sometimes wonder whether or not we were trying to explain the unexplainable, attributing too little to the role of chance, and thinking we have far more control that we really do. Imagine if 80% of disruption were beyond anyone's or any business' control, and that at best whatever actions we took would help with that 20%.
Knowing whether or not Christensen's or Gans' theories were "closer to the truth", then, would not really help that much, would it?
Displaying 1 - 15 of 15 reviews