Business Quote by Clayton Christensen
“Companies, in fact, are specifically organized to under-invest in disruptive innovations! This is one reason why we often suggest that companies set up separate teams or groups to commercialize disruptive innovations. When disruptive innovations have to fight with other innovations for resources, they tend to lose out.”
About This Quote
Source Book: The Innovator's Dilemma, Clayton Christensen, 1997
Companies prioritize existing products, causing under‑investment in disruptive ideas; separate units protect new ventures.
In simple terms: Separate teams protect disruptive ideas.
Key Takeaway
Create autonomous units for breakthrough projects.
Themes
innovation
strategy
disruption
Mood
analytical
strategic
Type
prescriptive
critical
When to use this quote
- R&D labs
- corporate spin‑offs
- venture capital
- strategic planning
Key Concepts
resource allocation
organizational structure
innovation management
Questions to Reflect On
- How can firms balance core business with disruptive projects?
- What governance ensures resource fairness?
A Different Perspective
May create silos that hinder integration of new ideas later.
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