Monday, August 8, 2011

Seeing Whats Next: Using the Theories of Innovation to Predict Industry Change by Erik A. Roth - Michael Porter of Innovation

A Framework for Predicting Industry Winners and Losers

Every day, individuals take action based on how they believe innovation will change industries. Yet these beliefs are largely based on guesswork and incomplete data, and lead to costly errors in judgment.

Now, internationally renowned innovation expert Clayton M. Christensen and his research partners Scott D. Anthony and Erik A. Roth present a groundbreaking framework for predicting outcomes in the evolution of any industry. Based on proven theories outlined in Christensens landmark books The Innovators Dilemma and The Innovators Solution, Seeing Whats Next offers a practical, three-part model that helps decision-makers spot the signals of industry change, determine the outcome of competitive battles, and assess whether a firms actions will ensure or threaten future success. Through in-depth case studies of industries from aviation to health care, the authors illustrate the predictive power of innovation theory in action.

A unique, outside-in perspective on industry change, Seeing Whats Next will help executives, analysts, and investors develop invaluable intuition into the future that matters to them.

Michael Porter of Innovation
Just as Michael Porter is the authority on Strategy, Clayton Christensen has become the authority on Innovation. He has not only created a great business theory, he has created an institution that defines our modern understanding of disruptive innovation. The foundations of his business theory are unimpeachable and the illustrations of the theory across industries are appealing to professionals inside and outside the industry alike.

In this book, Christensen's students expand on the theory first proposed in The Innovator's Dilemma to create a framework that can predict whether an innovation might be disruptive (read. has potential to transform an entire industry or create a new one). The impact of understanding and applying this theory is large.

This book maintains the quality level I have come to expect of books published by HBS press, paralleled only by Harper Business. The illustrations in this book include the Telecommunications, Education, Aviation, Semiconductors and Health Care industries. The book dedicates a couple of chapters that are of international interest: Nonmarket Factors and Innovation Overseas. This whets the appetite but does not quench the thirst for more. In the US business environment where global influence is becoming more and more relevant for future growth, it would make sense for a next book in the series focusing entirely on the overseas perspective.

It is hard to pull off a quality job on part three of a sequel without rock-solid grounding. A keen student, I hope to see a lot more come out of Innosight and the institution of Innovation that is Clayton Christensen.

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