Disruption by Enterprise is not going to happen with cost base management as it is
Here’s the article from The Economist: TWENTY years ago a then obscure academic at Harvard Business School published a career-making article in the Harvard Business Review (HBR), warning established companies that they were in grave danger from being disrupted. Today Clay Christensen is an established company in his own right. He is regularly named as the world’s most influential management guru (his Harvard colleagues affectionately call him Mr Disrupter). He has applied his theory to an ever-wider range of subjects with books such as “Disrupting Class” (on education) and “The Innovator’s Prescription” (on health). He even has his own consulting operation to help him stretch his brand. Businesspeople everywhere treat him as a guide on how to cope with change. But the risk is that by paying too much attention to his theory, they will miss other disruptive threats.This thought is provoked by a new HBR article on the subject, written by Mr Christensen along with Michael Raynor and Rory McDonald. Mr Christensen rightly points out that the word “disruption” is now bandied about so much that it is losing all meaning. The number of newspaper and journal articles using the phrases “disruptive innovation” or “disruptive technology” has gone from practically zero when Mr Christensen coined them to more than 2,000 in 2014. However, he goes too far in arguing that Uber, a taxi-hailing service, is not “genuinely disruptive” because it does not fit his theory of how disrupters break into established markets. Mr Christensen does not have a monopoly on the word disruption, nor a patent on his “disruption theory”: Joseph Schumpeter, for example, produced a rather compelling theory of “creative destruction” long before Mr Christensen was born..