Clayton Christensen

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pages: 374 words: 89,725

A More Beautiful Question: The Power of Inquiry to Spark Breakthrough Ideas by Warren Berger

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3D printing, Airbnb, carbon footprint, Clayton Christensen, clean water, fear of failure, Google X / Alphabet X, Isaac Newton, Jeff Bezos, jimmy wales, Kickstarter, late fees, Lean Startup, Mark Zuckerberg, minimum viable product, new economy, Paul Graham, Peter Thiel, Ray Kurzweil, self-driving car, sharing economy, side project, Silicon Valley, Silicon Valley startup, Stephen Hawking, Steve Jobs, Steven Levy, Thomas L Friedman, Toyota Production System, Watson beat the top human players on Jeopardy!, Y Combinator, Zipcar

On the other hand, that four-year-old may turn out to be an exception; she may be one of the rare people who doesn’t stop questioning, like Bezos and Jobs, or like one of the “master questioners” featured in this book. And if that’s the case, well, that raises questions, too. Why do some keep questioning, while others stop? (Was it something in the genes, in the schools, in the parenting?) And if we look at the questioners versus the nonquestioners, who seems to be coming out ahead? The business world has a kind of love/hate relationship with questioning. The business-innovation guru Clayton Christensen6—himself a master questioner—observes that questioning is seen as “inefficient” by many business leaders, who are so anxious to act, to do, that they often feel they don’t have time to question just what it is they’re doing. And those not in leadership roles frequently perceive (often correctly) that questioning can be hazardous to one’s career: that to raise a hand in the conference room and ask “Why?”

If the question muscle has atrophied by junior high, imagine its condition by the time a student goes to college. Indeed, Rothstein’s downward-sloping question-asking chart continues to plummet right through the college years. University professors I interviewed confirmed a dearth of student questions, even among bright Ivy Leaguers. “For twenty years I’ve been teaching at the Harvard Business School,” professor Clayton Christensen told me. “And I love this place, but the intuition to ask questions, the curiosity, is much less than twenty years ago.” As to the cause: “If all you do as you’re growing up is watch stuff on a screen—or go to school, where they give you the answers—then you don’t develop the instinct for asking questions,” Christensen said. “They don’t know how to ask because it’s never been asked of them.”

40 In studying “master questioners,” Hal Gregersen inquired about their childhoods and found that most had “at least one adult in their lives who encouraged them to ask provocative questions.” The Nobel laureate scientist Isidor Isaac Rabi was one such child; when he came home from school, “while other mothers asked their kids ‘Did you learn anything today?’ [my mother ] would say, ‘Izzy, did you ask a good question today?’” Clayton Christensen thinks parents can help their kids be more inquisitive by posing what if questions “that invite children to think deeply about the world around them.” But Christensen thinks it’s also important to encourage kids to solve problems in a hands-on way, via challenging household tasks and chores. That worked for IDEO cofounder David Kelley. His career as a problem-solving designer was forged in a childhood home where “if the washing machine broke, you went and tried to make a new part to fix it.”


pages: 742 words: 137,937

The Future of the Professions: How Technology Will Transform the Work of Human Experts by Richard Susskind, Daniel Susskind

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23andMe, 3D printing, additive manufacturing, AI winter, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, Andrew Keen, Atul Gawande, Automated Insights, autonomous vehicles, Big bang: deregulation of the City of London, big data - Walmart - Pop Tarts, Bill Joy: nanobots, business process, business process outsourcing, Cass Sunstein, Checklist Manifesto, Clapham omnibus, Clayton Christensen, clean water, cloud computing, commoditize, computer age, Computer Numeric Control, computer vision, conceptual framework, corporate governance, creative destruction, crowdsourcing, Daniel Kahneman / Amos Tversky, death of newspapers, disintermediation, Douglas Hofstadter, en.wikipedia.org, Erik Brynjolfsson, Filter Bubble, Frank Levy and Richard Murnane: The New Division of Labor, full employment, future of work, Google Glasses, Google X / Alphabet X, Hacker Ethic, industrial robot, informal economy, information retrieval, interchangeable parts, Internet of things, Isaac Newton, James Hargreaves, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Khan Academy, knowledge economy, lifelogging, lump of labour, Marshall McLuhan, Metcalfe’s law, Narrative Science, natural language processing, Network effects, optical character recognition, Paul Samuelson, personalized medicine, pre–internet, Ray Kurzweil, Richard Feynman, Richard Feynman, Second Machine Age, self-driving car, semantic web, Shoshana Zuboff, Skype, social web, speech recognition, spinning jenny, strong AI, supply-chain management, telepresence, The Future of Employment, the market place, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, transaction costs, Turing test, Watson beat the top human players on Jeopardy!, young professional

Zola et al. (2000). 3 W. Chan Kim and Renée Mauborgne, Blue Ocean Strategy (2005). 4 Clayton Christensen, The Innovator’s Dilemma (1997). 5 Paul Geroski and Constantinos Markides, Fast Second (2005). 6 Philip Augar, The Death of Gentlemanly Capitalism: The Rise and Fall of London’s Investment Banks (2008). 7 Richard Susskind, Tomorrow’s Lawyers (2013), 19–22. 8 This is an updated version of the distinction between ‘automation’ and ‘innovation’ in Richard Susskind, The Future of Law (1996), 49–50. 9 Richard Susskind, Tomorrow’s Lawyers, The End of Lawyers? (2010), and The Future of Law. 10 See Clayton Christensen, The Innovator’s Dilemma (1997), and Jill Lepore, ‘The Disruption Machine’, New Yorker, 23 June 2014. 11 See e.g. Clayton Christensen and Henry Eyring, The Innovative University (2011). 12 Joseph Schumpeter describes the process of ‘creative destruction’ in Capitalism, Socialism and Democracy (1994), foreshadowing this contemporary literature.

McKenna, The World’s Newest Profession: Management Consulting in the Twentieth Century (2010). 226 Sophie Christie, ‘Tesco Clubcard vs Nectar: Best loyalty schemes’, Telegraph, 30 Aug. 2013 <http://www.telegraph.co.uk> (accessed 8 March 2015). 227 Walter Kiechel, The Lords of Strategy: The Secret Intellectual History of the New Corporate World (2010), 65. 228 See ‘Q1 2014 Revenue up 2.3 percent Crossed the 50,000 Employee Threshold in India’, CapGemini Newsroom, 29 April 2014 <http://www.capgemini.com/investor/press/q1-2014-revenue-up-23-crossed-the-50000-employee-threshold-in-india> (accessed 8 March 2015); Mini Joseph Tejaswi, ‘Accenture to hire aggressively in India’, Times of India, 18 July 2012 <www.timesofindia.indiatimes.com> (accessed 8 March 2015). 229 Clayton Christensen, Dina Wang, and Derek van Bever, ‘Consulting on the Cusp of Disruption’, Harvard Business Review, Oct. 2013 <https://hbr.org> (accessed 8 March 2015). 230 <http://www.deloittemanagedanalytics.com> (accessed 8 March 2015). 231 Clayton Christensen, Dina Wang, and Derek van Bever, ‘Consulting on the Cusp of Disruption’, Harvard Business Review, Oct. 2013 <https://hbr.org> (accessed 8 March 2015). 232 <http://www.behaviouralinsights.co.uk>. 233 Hal R. Varian, ‘Computer Mediated Transactions’, American Economic Review, 100: 2 (2010), 1–10. 234 <http://glg.it>, <http://www.guidepointglobal.com> (accessed 8 March 2015). 235 <http://www.edenmccallum.com>, <http://www.businesstalentgroup.com>, <http://www.castprofessionals.com> (accessed 8 March 2015). 236 <http://www.10eqs.com> (accessed 8 March 2015). 237 <http://www.expert360.com>, <http://www.skillbridge.co>, <http://vumero.com> (accessed 8 March 2015). 238 <http://www.executiveboard.com> (accessed 8 March 2015). 239 ‘Become an Analyst’, Wikistrat <http://www.wikistrat.com/become-an-analyst/> (accessed 8 March 2015). 240 <http://www.kaggle.com> (accessed 8 March 2015). 241 Derrick Harris, ‘Has Ayasdi turned machine learning into a magic bullet?’

In 2014 Associated Press started to use algorithms developed by Automated Insights to computerize the production of several hundred formerly handcrafted earnings reports, producing fifteen times as many as before.218 Forbes now provides similarly for earnings reports and sport, using algorithms developed by Narrative Science.219 The Los Angeles Times uses an algorithm called ‘Quakebot’ (which is currently followed by 95,600 people on Twitter) to monitor the US Geological Survey for earthquake alerts, and automatically to compose articles if an event takes place.220 Users can struggle to tell the difference.221 2.6. Management consulting In 2013 Clayton Christensen claimed, in a Harvard Business Review article, ‘Consulting on the Cusp of Disruption’, that change was ‘inevitable’ in consulting, and that those who had traditionally helped others in management difficulties were themselves ‘being upended’.222 Duff McDonald concluded his book The Firm with the observation that consulting was more ‘hotly contested than it has ever been’.223 Lucy Kellaway suggested in the Financial Times that, ‘fifty years hence, McKinsey won’t exist’.224 Christopher McKenna called the industry ‘the world’s newest profession’, whose status as a profession is ambiguous, and whose future remains uncertain.225 As Christensen notes, the consulting business model has changed little in the past 100 years.


pages: 827 words: 239,762

The Golden Passport: Harvard Business School, the Limits of Capitalism, and the Moral Failure of the MBA Elite by Duff McDonald

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Albert Einstein, barriers to entry, Bayesian statistics, Bernie Madoff, Bob Noyce, Bonfire of the Vanities, business process, butterfly effect, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate raider, corporate social responsibility, creative destruction, deskilling, discounted cash flows, disintermediation, Donald Trump, family office, financial innovation, Frederick Winslow Taylor, full employment, George Gilder, glass ceiling, Gordon Gekko, hiring and firing, income inequality, invisible hand, Jeff Bezos, job-hopping, John von Neumann, Joseph Schumpeter, Kenneth Arrow, London Whale, Long Term Capital Management, market fundamentalism, Menlo Park, new economy, obamacare, oil shock, pattern recognition, performance metric, Peter Thiel, Plutocrats, plutocrats, profit maximization, profit motive, pushing on a string, Ralph Nader, Ralph Waldo Emerson, RAND corporation, random walk, rent-seeking, Ronald Coase, Ronald Reagan, Sand Hill Road, Saturday Night Live, shareholder value, Silicon Valley, Skype, Steve Jobs, survivorship bias, The Nature of the Firm, the scientific method, Thorstein Veblen, union organizing, urban renewal, Vilfredo Pareto, War on Poverty, William Shockley: the traitorous eight, women in the workforce, Y Combinator

As Jerry Useem suggested in a New York Times article, “Business School, Disrupted,” that question resulted in HBS facing what was, in effect, a choice between the ideas of its two most prominent faculty members—Michael Porter and Clayton Christensen. While a number of its closest competitors, including Wharton and Stanford, had begun offering free so-called massive open online courses, or MOOCs, with the goal of reaching as many people as possible, there were questions about whether doing so posed risks to brands that had taken decades to develop. And so, the choice: Were HBS to hew to the ideas of Michael Porter, the mandates of distinctive positioning that underlie much of his work would argue not just for a fee, but a substantial one. On the other hand, were it to hew to the ideas of Clayton Christensen, the mandates of disruption that underlie much of his work would argue for making it cheap and for responding quickly.

They’re conservative by nature, Company Men at heart, and that constrains their ability to truly lead in times of change. “Certain things about modern corporate society are unseemly and suboptimal,” says Gerald, “but HBS could play a role in determining the remedy. We need them to, as the only ones who can really untangle these knots are the ones in power.” He then proposes another way to look at it: “HBS professor Clayton Christensen talks about resources, priorities, and processes. The resources are there. But what about the processes people go through from day one at HBS until they graduate? How are they designed? Intention can have huge effects. As for priorities, we need only look at the people they celebrate and recognize. So what are HBS’s priorities?” As the nation’s most prominent—and largest—business school for the last century, HBS has shaped—and continues to shape—the direction not just of its graduates’ lives, but also those of the organizations they work for and the economy itself.

She certainly had a resume for the gig. A Harvard MBA (’88) and Baker Scholar, Wetlaufer had worked as a reporter at the Miami Herald and the Associated Press, as well as a consultant at Bain & Company. It seemed, for a time, as if they’d finally landed on a keeper. The magazine increased its frequency to ten times a year, cast a wider net for stories, and made some great hires. One notable piece: In 2000, Clayton Christensen and Michael Overdorf’s article, “Meeting the Challenge of Disruptive Change,” thrust Christensen’s theory of disruption into the national conversation. But Wetlaufer’s personal life was unraveling. Married with four children when she joined HBR in 1996, she and her husband divorced in June 2000. After that, it seems, she got lost in the same kind of ethical fog that descends on people involved with HBS all too often.


pages: 292 words: 85,151

Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, and Cheaper Than Yours (And What to Do About It) by Salim Ismail, Yuri van Geest

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23andMe, 3D printing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, bioinformatics, bitcoin, Black Swan, blockchain, Burning Man, business intelligence, business process, call centre, chief data officer, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, cognitive bias, collaborative consumption, collaborative economy, commoditize, corporate social responsibility, cross-subsidies, crowdsourcing, cryptocurrency, dark matter, Dean Kamen, dematerialisation, discounted cash flows, distributed ledger, Edward Snowden, Elon Musk, en.wikipedia.org, ethereum blockchain, Galaxy Zoo, game design, Google Glasses, Google Hangouts, Google X / Alphabet X, gravity well, hiring and firing, Hyperloop, industrial robot, Innovator's Dilemma, intangible asset, Internet of things, Iridium satellite, Isaac Newton, Jeff Bezos, Kevin Kelly, Kickstarter, knowledge worker, Kodak vs Instagram, Law of Accelerating Returns, Lean Startup, life extension, lifelogging, loose coupling, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market design, means of production, minimum viable product, natural language processing, Netflix Prize, Network effects, new economy, Oculus Rift, offshore financial centre, p-value, PageRank, pattern recognition, Paul Graham, peer-to-peer, peer-to-peer model, Peter H. Diamandis: Planetary Resources, Peter Thiel, prediction markets, profit motive, publish or perish, Ray Kurzweil, recommendation engine, RFID, ride hailing / ride sharing, risk tolerance, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Silicon Valley, skunkworks, Skype, smart contracts, Snapchat, social software, software is eating the world, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, subscription business, supply-chain management, TaskRabbit, telepresence, telepresence robot, Tony Hsieh, transaction costs, Tyler Cowen: Great Stagnation, urban planning, WikiLeaks, winner-take-all economy, X Prize, Y Combinator, zero-sum game

We first identified the ExO paradigm as a weak signal in 2009, and noticed over a two-year period that several new organizations were following a specific model. In 2011, futurist Paul Saffo suggested to Salim that he write this book, and we have been seriously researching the ExO model for the last three years. To do so, we: Reviewed sixty classic innovation management books by such authors as John Hagel, Clayton Christensen, Eric Ries, Gary Hamel, Jim Collins, W. Chan Kim, Reid Hoffman and Michael Cusumano. Interviewed C-Level executives from several dozen Fortune 200 companies with our survey and frameworks. Interviewed or researched ninety top entrepreneurs and visionaries including Marc Andreessen, Steve Forbes, Chris Anderson, Michael Milken, Paul Saffo, Philip Rosedale, Arianna Huffington, Tim O’Reilly and Steve Jurvetson.

They haven’t the tools, the attitude or the perspective to do so. What they will do, and what they are built to do, is to keep getting bigger in order to take advantage of economies of scale. Scale—but linear scale—is the raison d’être of the linear organization. John Seely Brown calls this “scalable efficiency” and maintains that it is the paradigm that drives most corporate strategy and corporate architectures. Clayton Christensen immortalized this type of thinking in his business classic, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fall. Most large organizations use what is called a matrix structure. Product management, marketing and sales are often aligned vertically, and support functions such as legal, HR, finance and IT are usually horizontal. So the person handling legal for a product has two reporting lines, one to the head of product, who has revenue accountability, and the other to the head of legal, whose job it is to ensure consistency across numerous products.

Thus, the newspapers that have survived have largely shifted their revenue efforts to their web pages; the albums and CDs of the music industry have atomized to the selectable singles world of MP3 files; and many of today’s bestsellers enjoy most of their profits from e-book sales. Note that today there is a whole category of the media industry—named for the underlying physical media it’s been trying to sell—which is actually made up of information businesses that have now been digitized. We believe the television industry will be the next to fall to the information ax. 3. Disruption is the New Norm In his influential bestseller The Innovator’s Dilemma, Clayton Christensen points out that disruptive innovation rarely comes from the status quo. That is, established industry players are rarely structured or prepared to counter disruption when eventually it appears. The newspaper industry is a perfect example: it sat by for a decade as Craigslist systematically disrupted the classified advertising model. Today, the outsider has all the advantages. With no legacy systems to worry about, as well as the ability to enjoy low overhead and take advantage of the democratization of information and—more important—technology, the newcomer can move quickly and with a minimum of expense.


pages: 94 words: 26,453

The End of Nice: How to Be Human in a World Run by Robots (Kindle Single) by Richard Newton

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3D printing, Black Swan, British Empire, Buckminster Fuller, Clayton Christensen, crowdsourcing, deliberate practice, fear of failure, Filter Bubble, future of work, Google Glasses, Isaac Newton, James Dyson, Jaron Lanier, Jeff Bezos, job automation, Lean Startup, low skilled workers, Mark Zuckerberg, move fast and break things, move fast and break things, Paul Erdős, Paul Graham, recommendation engine, rising living standards, Robert Shiller, Robert Shiller, Silicon Valley, Silicon Valley startup, skunkworks, Steve Ballmer, Steve Jobs, Y Combinator

“But there is also something predictable in the way the fear and apathy encountered at the beginning are accountable for the feelings of elation at the end. These intensities of the creative process can stimulate desires of consistency and control but history affirms that few transformative experiences are generated by regularity.” In organisations the great horror is failure. As the Harvard Professor, Clayton Christensen’s dissection of the Innovator’s Dilemma showed, safe and incremental thinking leads businesses to conspire in their own demise. The bigger a business becomes the more powerfully its culture presses down on riskier decisions and disruptive thinking. The message “Don’t screw up a good thing”, breathes through the air-conditioned corridors, from the walls, the logo, the share options and the annual bonus.

Increasingly, he began to realise, every major website was showing him only what it thought he liked, hoping to increase their appeal. And they were doing it invisibly. Our past interests will determine what we are exposed to in the future, leaving less room for the unexpected encounters that spark creativity, innovation, and the democratic exchange of ideas. The chance of anti-order starts to get squeezed. There’s a similarity here with the limitations of traditional business school thinking that Clayton Christensen has warned about in his book The Innovator’s Dilemma. If we rely solely on past data to inform our future direction, then we will be like the giant enterprises who didn’t realise that at the fringes of their world disruptive innovators were planning to revolutionise and consume their markets. As Larry Page said: “Lots of companies don’t succeed over time. What do they fundamentally do wrong?


pages: 202 words: 62,199

Essentialism: The Disciplined Pursuit of Less by Greg McKeown

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Albert Einstein, Clayton Christensen, Daniel Kahneman / Amos Tversky, deliberate practice, double helix, en.wikipedia.org, endowment effect, Isaac Newton, iterative process, Jeff Bezos, Lao Tzu, loss aversion, Mahatma Gandhi, microcredit, minimum viable product, North Sea oil, Peter Thiel, Ralph Waldo Emerson, Richard Thaler, Rosa Parks, side project, Silicon Valley, Silicon Valley startup, sovereign wealth fund, Steve Jobs, Vilfredo Pareto

But what most people don’t realize is that the problem is not just that the boundaries have been blurred; it’s that the boundary of work has edged insidiously into family territory. It is hard to imagine executives in most companies who would be comfortable with employees bringing their children to work on Monday morning, yet they seem to have no problem expecting their employees to come into the office or to work on a project on a Saturday or Sunday. Clayton Christensen, the Harvard business professor and author of The Innovator’s Dilemma, was once asked to make just such a sacrifice. At the time, he was working at a management consulting firm, and one of the partners came to him and told him he needed to come in on Saturday to help work on a project. Clay simply responded: “Oh, I am so sorry. I have made the commitment that every Saturday is a day to be with my wife and children.”

We all have some people in our lives who tend to be higher maintenance for us than others. These are the people who make their problem our problem. They distract us from our purpose. They care only about their own agendas, and if we let them they prevent us from making our highest level of contribution by siphoning our time and energy off to activities that are essential to them, rather than those that are essential to us. So how do we take a page from Jin-Yung and Clayton Christensen and set the kinds of boundaries that will protect us from other people’s agendas? Below are several guidelines for your consideration. DON’T ROB PEOPLE OF THEIR PROBLEMS I am not saying we should never help people. We should serve, and love, and make a difference in the lives of others, of course. But when people make their problem our problem, we aren’t helping them; we’re enabling them.

I wrote about this subject further in a blog post for Harvard Business Review called “The One Thing CEOs Need to Learn from Apple,” April 30, 2012 6. King, third foreword to Ibid., xix. 7. Alan D. Williams, “What Is an Editor?” in Editors on Editing: What Writers Need to Know About What Editors Do, 3rd rev. ed., ed. Gerald Gross (New York: Grove Press, 1993), 6. 14. LIMIT 1. Some minor details changed. 2. Based on a talk Clayton Christensen gave to students at the Stanford Law School in 2013 3. Henry Cloud and John Townsend, Boundaries: When to Say Yes, How to Say No (Grand Rapids, MI: Zondervan, 1992), 29–30. 4. I have found this story cited in several places: for example, Jill Rigby’s Raising Respectful Children in an Unrespectful World (New York: Simon & Schuster, 2006), ch. 6. But I have yet to find an original source for the story and therefore share this only as an anecdote. 15.


pages: 278 words: 83,468

The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries

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3D printing, barriers to entry, call centre, Clayton Christensen, clean water, cloud computing, commoditize, Computer Numeric Control, continuous integration, corporate governance, experimental subject, Frederick Winslow Taylor, Lean Startup, Marc Andreessen, Mark Zuckerberg, Metcalfe’s law, minimum viable product, Network effects, payday loans, Peter Thiel, pets.com, Ponzi scheme, pull request, risk tolerance, selection bias, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, stealth mode startup, Steve Jobs, the scientific method, Toyota Production System, transaction costs

Pivots are a permanent fact of life for any growing business. Even after a company achieves initial success, it must continue to pivot. Those familiar with the technology life cycle ideas of theorists such as Geoffrey Moore know certain later-stage pivots by the names he has given them: the Chasm, the Tornado, the Bowling Alley. Readers of the disruptive innovation literature spearheaded by Harvard’s Clayton Christensen will be familiar with established companies that fail to pivot when they should. The critical skill for managers today is to match those theories to their present situation so that they apply the right advice at the right time. Modern managers cannot have escaped the deluge of recent books calling on them to adapt, change, reinvent, or upend their existing businesses. Many of the works in this category are long on exhortations and short on specifics.

Both can be found here: http://www.runningleanhq.com/ • Sean Murphy on early-stage software startups: http://www.skmurphy.com/blog/ • Brant Cooper’s Market by Numbers: http://market-by-numbers.com/ • Patrick Vlaskovits on technology, customer development, and pricing: http://vlaskovits.com/ • The KISSmetrics Marketing Blog: http://blog.kissmetrics.com/ and Hiten Shah’s http://hitenism.com FURTHER READING Clayton M. Christensen’s The Innovator’s Dilemma and The Innovator’s Solution are classics. In addition, Christensen’s more recent work is also extremely helpful for seeing the theory of disruptive innovation in practice, including The Innovator’s Prescription (about disrupting health care) and Disrupting Class (about education). http://ericri.es/ClaytonChristensen Geoffrey A. Moore’s early work is famous among all entrepreneurs, especially Crossing the Chasm and Inside the Tornado. But he has continued to refine his thinking, and I have found his latest work, Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution, especially useful. http://ericri.es/DealingWithDarwin The Principles of Product Development Flow: Second Generation Lean Product Development by Donald G.

For an up-to-date listing of Lean Startup meetups or to find one near you, see http://​lean-​startup.​meetup.​com or the Lean Startup Wiki: http://​leanstartup.​pbworks.​com/​Meetups. See also Chapter 14, “Join the Movement.” Chapter 1. Start 1. Manufacturing statistics and analysis are drawn from the blog Five Thirty Eight: http://​www.​fivethirtyeight.​com/​2010/​02/​us-​manufacturing-​is-​not-​dead.​html Chapter 2. Define 1. The Innovator’s Dilemma is a classic text by Clayton Christensen about the difficulty established companies have with disruptive innovation. Along with its sequel, The Innovator’s Solution, it lays out specific suggestions for how established companies can create autonomous divisions to pursue startup-like innovation. These specific structural prerequisites are discussed in detail in Chapter 12. 2. For more about SnapTax, see http://​blog.​turbotax.​intuit.​com/​turbotax-​press-​releases/​taxes-​on-​your-​mobile-​phone-​it%E2%80%99s-​a-snap/​01142011​–4865 and http://​mobilized.​allthingsd.​com/​20110204/​exclusive-​intuit-​sees-​more-​than-​350000-​downloads-​for-​snaptax-​its-​smartphone-​tax-​filing-​app/ 3.


pages: 361 words: 81,068

The Internet Is Not the Answer by Andrew Keen

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3D printing, A Declaration of the Independence of Cyberspace, Airbnb, AltaVista, Andrew Keen, augmented reality, Bay Area Rapid Transit, Berlin Wall, bitcoin, Black Swan, Bob Geldof, Burning Man, Cass Sunstein, citizen journalism, Clayton Christensen, clean water, cloud computing, collective bargaining, Colonization of Mars, computer age, connected car, creative destruction, cuban missile crisis, David Brooks, disintermediation, Donald Davies, Downton Abbey, Edward Snowden, Elon Musk, Erik Brynjolfsson, Fall of the Berlin Wall, Filter Bubble, Francis Fukuyama: the end of history, Frank Gehry, Frederick Winslow Taylor, frictionless, full employment, future of work, gig economy, global village, Google bus, Google Glasses, Hacker Ethic, happiness index / gross national happiness, income inequality, index card, informal economy, information trail, Innovator's Dilemma, Internet of things, Isaac Newton, Jaron Lanier, Jeff Bezos, job automation, Joseph Schumpeter, Julian Assange, Kevin Kelly, Kickstarter, Kodak vs Instagram, Lean Startup, libertarian paternalism, lifelogging, Lyft, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Martin Wolf, Metcalfe’s law, move fast and break things, move fast and break things, Nate Silver, Network effects, new economy, Nicholas Carr, nonsequential writing, Norbert Wiener, Norman Mailer, Occupy movement, packet switching, PageRank, Paul Graham, peer-to-peer, peer-to-peer rental, Peter Thiel, Plutocrats, plutocrats, Potemkin village, precariat, pre–internet, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Robert Metcalfe, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Skype, smart cities, Snapchat, social web, South of Market, San Francisco, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, TaskRabbit, Ted Nelson, telemarketer, The Future of Employment, the medium is the message, the new new thing, Thomas L Friedman, Tyler Cowen: Great Stagnation, Uber for X, urban planning, Vannevar Bush, Whole Earth Catalog, WikiLeaks, winner-take-all economy, working poor, Y Combinator

And certainly the Kodak tragedy can be seen, at least in part, as a parable of a once-mighty monopolist, a Google of the industrial age, that couldn’t adapt to the digital revolution. Yes, Kodak failed to become a leader in digital photography, in spite of the fact that the company actually invented the digital camera, back in 1975.54 Yes, Kodak is, in part, a victim of what Harvard Business School professor Clayton Christensen calls, in his influential 2011 book about why businesses fail, The Innovator’s Dilemma,55 the challenge of a once-dominant incumbent having to disrupt its own business model. Yes, a string of myopic executives failed to reinvent Kodak, with the result that a great company that up until the 1990s was often listed among the world’s top five most valuable brands56 has now become synonymous with failure.

Welcome to what Joshua Cooper Ramo, the former executive editor of Time magazine, calls “the age of the unthinkable.” It’s a networked age, Ramo says, in which “conformity to old ideas is lethal”58 and predictability and linearity have been replaced by what he calls an “epidemic” of self-organization where no central leadership is required. This is an age so destructively unthinkable, in fact, that Clayton Christensen’s theory of the “Innovator’s Dilemma,” which suggests an orderly cycle of disruptors, each replacing the previous economic incumbent, now has itself been blown up by an even more disruptive theory of early-twenty-first-century digital capitalism. Christensen’s ideas have themselves been reinvented by the bestselling business writers Larry Downes and Paul F. Nunes, who’ve replaced the “Innovator’s Dilemma” with the much bleaker “Innovator’s Disaster.”

I also got lucky in early 2010 when I recieved a call from my friend Keith Teare, Mike Arrington’s cofounder at TechCrunch, who was setting up the TechCrunchTV network. Keith recommended me to Paul Carr and Jon Orlin at TechCrunchTV, and my show Keen On . . . was the first program on the network, running for four years and including over two hundred interviews with leading Internet thinkers and critics. In particular, I’d like to thank Kurt Andersen, John Borthwick, Stewart Brand, Po Bronson, Erik Brynjolfsson, Nicholas Carr, Clayton Christensen, Ron Conway, Tyler Cowen, Kenneth Cukier, Larry Downes, Tim Draper, Esther Dyson, George Dyson, Walter Isaacson, Tim Ferriss, Michael Fertik, Ze Frank, David Frigstad, James Gleick, Seth Godin, Peter Hirshberg, Reid Hoffman, Ryan Holiday, Brad Horowitz, Jeff Jarvis, Kevin Kelly, David Kirkpatrick, Ray Kurzweil, Jaron Lanier, Robert Levine, Steven Levy, Viktor Mayer-Schönberger, Andrew McAfee, Gavin Newsom, George Packer, Eli Pariser, Andrew Rasiej, Douglas Rushkoff, Chris Schroeder, Tiffany Shlain, Robert Scoble, Dov Seidman, Gary Shapiro, Clay Shirky, Micah Sifry, Martin Sorrell, Tom Standage, Bruce Sterling, Brad Stone, Clive Thompson, Sherry Turkle, Fred Turner, Yossi Vardi, Hans Vestberg, Vivek Wadhwa, and Steve Wozniak for appearing on Keen On . . . and sharing their valuable ideas with me.


pages: 265 words: 70,788

The Wide Lens by Ron Adner

barriers to entry, call centre, Clayton Christensen, inventory management, iterative process, Jeff Bezos, Lean Startup, M-Pesa, minimum viable product, mobile money, new economy, RAND corporation, RFID, smart grid, smart meter, spectrum auction, Steve Ballmer, Steve Jobs, Steven Levy, supply-chain management, Tim Cook: Apple, transaction costs

I am deeply grateful for their contributions, direct and indirect, to my own understanding and to this undertaking. In writing the book I have benefited tremendously from the support, advice, and critical feedback of a host of individuals who gave generously of both their time and their insight: Howard Anderson, Julia Batavia, Diane E. Bilotta, Manish Bhandari, Adam Brandenburger, Colin Blaydon, Michael Brimm, Clayton Christensen, Sarah Cliffe, Rudi Coetzee, Dr. Richard J. Comi, Donald Conway, Richard D’Aveni, Yves Doz, Gregg Fairbrothers, Javier Gimeno, Ronny Golan, Vijay Govindarajan, Lars Guldbaek Karlsen, Morten Hansen, Peter Hanson, Hal Hogan, Natalie Horbachevsky, Bob Howell, Barak Hershkovitz, Chris Huston, Chan Kim, Jim Komsa, Kim LaFontana, Karim R. Lakhani, Raphael La Porta, Dan Levinthal, Julien Lévy, Donna McMahon, Halli Melnitsky, Ashok G.

These values are consistent with more recent surveys as reviewed, for example, in Robert G. Cooper’s Winning at New Products: Creating Value Through Innovation (New York: Basic Books, 2011). 5 72 percent of senior executives: Boston Consulting Group report, “Innovation 2010.” 5 two schools of thought: All great management books consider multiple facets of the problem but focus on different aspects. Insightful exemplars within the customer-focus school are Clayton Christensen’s The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business School Press, 1997); W. Chan Kim and Renée Mauborgne’s Blue Ocean Strategy (Boston: Harvard Business School Press, 2004); Geoffrey Moore’s Crossing the Chasm (New York: HarperBusiness, 1991); George Day’s Market Driven Strategy: Processes for Creating Value (New York: Free Press, 1999); and J.

,” EW.com, May 7, 2001, http://www.ew.com/ew/article/0,108459,00.xhtml. 70 came together to form Digital Cinema Initiatives: Digital Cinema Initiatives LLC, 2011, www.dcimovies.com. 71 “if we left it up to the exhibitor”: Carl DiOrio, “Studios Near D-Day,” Variety, March 25, 2002. 71 “a little longer than people had expected”: Carl DiOrio, “D-Cinema Systems on Hold As Studios Set Standards,” Variety, February 3, 2003. 71 theater owners were unwilling: MKPE Consulting, “Digital Cinema Business.” 72 “have their act together this year, or it’ll fall apart”: David Lieberman, “Digital Film Revolution Poised to Start Rolling,” USA Today, May 18, 2005. 72 “The proportion of financing”: Eric Taub, “Questions of Cost Greet New Digital Projectors,” International Herald Tribune, June 2, 2004. 72 whatever form the financing plan took, it must be industry-wide: Gabriel Snyder, “NATO Takes Digital Stand,” Variety, November 22, 2004. 73 80 percent of the exhibitor’s conversion costs: “The VPF Model,” Arts Alliance Media, http://www.artsalliancemedia.com/vpf/. 74 James Cameron’s 3-D record-breaking sci-fi megahit: Brandon Gray, “‘Avatar’ Claims Highest Gross of All Time,” BoxOffice Mojo.com, February 3, 2010. 74 Toy Story 3 became 2010’s top-grossing picture: David Twiddy, “Theaters Will Add Dimension with Digital Systems Upgrade,” Kansas City Business Journal, March 28, 2010. 74 38 percent of U.S. screens: David Hancock, “Digital Screen Numbers and Forecasts to 2015 Are Finalised,” Screen Digest, January 26, 2011. 74 The costs of digital preservation: A fascinating discussion can be found in The Digital Dilemma: Strategic Issues in Archiving and Accessing Digital Motion Picture Materials, Science and Technology Council of the Academy of Motion Picture Arts and Sciences, 2007. [ CHAPTER 4 ] 84 value chains and supply chains: Classic books on value chains include Michael Porter’s Competitive Advantage (New York: Free Press, 1998) and Charles Fine’s Clockspeed (New York: Perseus Books, 1998). Adam Brandenburger and Barry Nalebuff introduce the role of complementors in Co-opetition (New York: Currency, 1996), and Clayton Christensen discusses the roles of value networks in affecting innovation incentives in The Innovator’s Dilemma (Boston: Harvard Business School Press, 1997). The value blueprint builds on these perspectives, with a focus on designing the most effective configuration to deliver the value proposition. 88 $550 device: “Sony Shows Data Discman,” New York Times, September 13, 1991. 88 The Rocket, developed by NuvoMedia: Martin Arnold, “From Gutenberg to Cyberstories,” New York Times, January 7, 1999. 88 That same year the SoftBook: Peter Lewis, “Taking on New Forms, Electronic Books Turn a Page,” New York Times, July 2, 1998. 88 Gemstar released two models: Ken Feinstein, “RCA REB1100 eBook Review,” CNET.com, February 21, 2001, http://reviews.cnet.com/e-book-readers/rca-reb1100-ebook/4505-3508_7-4744438.xhtml. 89 proof that the electronic book was ready for the mainstream: Doreen Carvajal, “Long Line Online for Stephen King E-Novella,” New York Times, March 16, 2000. 90 Random House’s e-book revenues doubled: Nicholas Bogaty, “eBooks by the Numbers: Open eBook Forum Compiles Industry Growth Stats,” International Digital Publishing Forum, press release, July 22, 2002, http://old.idpf.org/pressroom/pressreleases/ebookstats.htm. 90 “difficult to find, buy and read e-books”: Steven Levy, “The Future of Reading,” Newsweek, November 26, 2007. 90 Paltry content and intense digital rights management: Ginny Parker Woods, “Sony Cracks Open New Book with Reader,” Toronto Star, February 20, 2006. 90 “We’ve been very cautious in launching [the Reader]”: Michael Kanellos, “Sony’s Brave Sir Howard,” CNET.com, January 17, 2007, http://news.cnet.com/Sonys-brave-Sir-Howard/2008-1041_3-6150661.xhtml. 90 almost 20 percent cheaper than the Librié: Sony Librié ebook Review, eReaderGuide.Info, www.ereaderguide.info/sony_librie_ebook_reader_review.htm. 90 10,000 titles available at Connect.com: Edward Baig, “Sony Device Gets E-Book Smart,” USA Today, October 5, 2006. 91 the iPod of the book industry: David Derbyshire, “Electronic BookOpens New Chapter for Readers,” Daily Telegraph, September 28, 2006. 91 much fanfare from the press: Amanda Andrews, “Sony’s Hitting the Books,” Australian, February 28, 2006. 92 lowering publisher confidence: George Cole, “Will the eBook Finally Replace Paper?


pages: 532 words: 139,706

Googled: The End of the World as We Know It by Ken Auletta

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23andMe, AltaVista, Anne Wojcicki, Apple's 1984 Super Bowl advert, bioinformatics, Burning Man, carbon footprint, citizen journalism, Clayton Christensen, cloud computing, Colonization of Mars, commoditize, corporate social responsibility, creative destruction, death of newspapers, disintermediation, don't be evil, facts on the ground, Firefox, Frank Gehry, Google Earth, hypertext link, Innovator's Dilemma, Internet Archive, invention of the telephone, Jeff Bezos, jimmy wales, John Markoff, Kevin Kelly, knowledge worker, Long Term Capital Management, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Network effects, new economy, Nicholas Carr, PageRank, Paul Buchheit, Peter Thiel, Ralph Waldo Emerson, Richard Feynman, Richard Feynman, Sand Hill Road, Saturday Night Live, semantic web, sharing economy, Silicon Valley, Skype, slashdot, social graph, spectrum auction, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, strikebreaker, telemarketer, the scientific method, The Wisdom of Crowds, Upton Sinclair, X Prize, yield management, zero-sum game

Makes Official Complaint to China over Internet Censorship,” Financial Times, June 22, 2009. 331 “What Google should fear”: author interview with Yossi Vardi, February 28, 2008. 331 When Marissa Mayer said: author interview with Mayer, August 21, 2007. 331 “What separates us”: author interview with Stacey Savides Sullivan, August 21, 2007. 331 “are utopians”: author interview with Terry Winograd, September 25, 2007. 332 In the 1990s: an excellent exploration of long-term capital’s demise is contained in Roger Lowenstein’s When Genuis Failed: The Rise and Fall of f Long-Term Capital Management, Random House, 2000. 332 “’Google returned links”: Nat Ives, “Media Giants Want to Top Google Results,” Advertising Age, March 23, 2009. 333 when Eric Schmidt envisioned: Miguel Heft, “Google Ends Its Project for Selling Radio Ads,” New York Times, February 13, 2009. 333 “They have no experience”: author interview with Danny Sullivan, March 20, 2008. 333 “a great company”: author interview with Fred Wilson, January 22, 2008. 333 “Google is like that fourteen-year-old”: author interview with Strauss Zelnick, January 9, 2008. 334 Although Mary Meeker believes Google is a great company: author interview with Mary Meeker, January 23, 2009. 334 “There is nothing about their model”: author interview with Clayton Christensen, April 17, 2009. 335 “There is no end in sight”: author interview with Fred Wilson, January 22, 2008. 335 “to the falsehood that you can grow”: author interview with Clayton Christensen, April 17, 2009. INDEX About.com Abrams, Jonathan AdSense advertising formula Google charges mechanism of revenue sharing Advertising, traditional concerns about Google data collection methods versus Google methods Internet, impact on as marketing companies online ads, increase in outlook for future recession of 2008, impact on spending on ads, increase in Advertising by Google.

And now with wives, and a son born to Brin in early 2009 and Page expecting his first child in the fall of 2009, and with incomprehensible wealth and two huge airplanes more conveniently at their disposal—Brin and Page persuaded NASA to waive its prohibition on private planes parking or using the nearby NASA facility—both young men are in the office less, jumping on their planes to take photographs in Africa, to explore the wilds of Alaska; Page likes to tool around in his Tesla electric car or fly his own helicopter and Brin to spend time building his own kite-powered sailboat. Will their attention wander from Google? Today, Google appears impregnable. But a decade ago so did AOL, and so did the combination of AOL Time Warner. “There is nothing about their model that makes them invulnerable,” Clayton Christensen, Harvard business historian and author of the seminal The Innovators Dilemma, told me. “Think IBM. They had a 70 percent market share of mainframe computers. Then the government decided to challenge them. Then the PC emerged.” Seemingly overnight, computing moved from mainframes to PCs. For a long while, Microsoft seemed unstoppable, he said, only to be diverted by government intervention and the emergence of Linux and open-source software.

The close-up misses how Google has transformed how we gather and use information, given us the equivalent of a personal digital assistant, made government and business and other institutions more transparent, helped people connect, served as a model service provider and employer, made the complex simple, and become an exemplar of the oft-stated but rarely followed maxim, “Trust your customer.” Because it is free, Google will be difficult to assail. No one can predict with certainty where Google and the digital wave is heading, when it will crest, or who it will flatten. If the public or its representatives come to believe Google plays favorites, aims to monopolize knowledge or its customers, invades their privacy, or arrogantly succumbs, in the words of Clayton Christensen, “to the falsehood that you can grow and grow because of network effects,” then it will be more vulnerable. If Google maintains its deposit of public trust—continuing to put users first—and if it stays humble and moves with the swiftness of a fox, it will be difficult to catch. Other companies have profoundly disrupted the business landscape. Think of the Ford automobile or the Intel chip.


pages: 372 words: 89,876

The Connected Company by Dave Gray, Thomas Vander Wal

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A Pattern Language, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, Atul Gawande, Berlin Wall, business process, call centre, Clayton Christensen, commoditize, complexity theory, creative destruction, David Heinemeier Hansson, en.wikipedia.org, factory automation, Googley, index card, industrial cluster, interchangeable parts, inventory management, Jeff Bezos, John Markoff, Kevin Kelly, loose coupling, market design, minimum viable product, more computing power than Apollo, profit maximization, Richard Florida, Ruby on Rails, self-driving car, shareholder value, side project, Silicon Valley, skunkworks, software as a service, South of Market, San Francisco, Steve Jobs, Steven Levy, Stewart Brand, The Wealth of Nations by Adam Smith, Tony Hsieh, Toyota Production System, Vanguard fund, web application, WikiLeaks, Zipcar

I have also had the privilege to receive help and advice from true luminaries, such as Richard Saul Wurman, Saul Kaplan, Kevin Kelly, Jared Spool, Peter Vander Auwera, Dan Roam, Thor Muller, Paul Pangaro, Lane Becker, Peter Morville, Lou Rosenfeld, Nilofer Merchant, John Hagel III, JP Rangaswami, Doc Searls, Stowe Boyd, Jay Cross, Marcia Conner, Ben Cerveny, Chris Brogan, Bob Logan, David Armano, Alex Osterwalder, and Don Norman. Although I don’t know them personally, for the ideas in this book, I owe a deep debt of gratitude to the works of Gary Hamel, Clayton Christensen, Arie de Geus, Ricardo Semler, Eric Beinhocker, Daniel Pink, Richard Florida, Stewart Brand, Bill McKelvey, Stafford Beer, Herbert Simon, John Boyd, and perhaps most of all, Dr. W. Edwards Deming, many of whose groundbreaking ideas are only now being realized. For the access they provided to connected companies and their inner workings, I must thank Ray LaDriere, Kevin Kernan, Michael Bonamassa, Jerry Rudisin, Sunny Gupta, Adrian Cockcroft, Harry Max, Mary Walker, Mark Interrante, Ben Hart, Livia Labate, Sherri Maxson, and Sharif Renno.

While a company serves multiple purposes for different people, as an investment, a place of work, a paycheck, and so on, by far the most important purpose of a company is the job it does for customers. Companies that neglect or forget this fact have lost their way. Purpose Sets the Context for Organizations to Learn Cybernetics pioneer Stafford Beer said, “The purpose of a system is what it does.” The purpose of a company is what it does for customers. Clayton Christensen calls this “the job to be done.” He points out that while technologies and methods change over time, the job doesn’t change that much. For example, the service provided by FedEx—get something from here to there, as quickly as possible, with perfect certainty—is something Julius Caesar could have used. He also notes that while understanding and empathizing with customers can be helpful, it doesn’t have a causal relationship with buying behavior.

Human Sigma: Managing the Employee-Customer Encounter By John Fleming and Jim Asplund, Gallup Press, 2007. In the Plex: How Google Thinks, Works, and Shapes Our Lives By Steven Levy, Simon and Schuster, 2011. Information Rules: A Strategic Guide to the Network Economy By Carl Shapiro and Hal R. Varian, Harvard Business Review Press, 1998. The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail By Clayton Christensen, Harvard Business Review Press, 1997. An Inquiry into the Nature and Causes of the Wealth of Nations By Adam Smith, 1776. Jack: Straight from the Gut By Jack Welch and John A. Byrne, Business Plus, 2001. Just in Time for Today and Tomorrow By Taiichi Ohno and Setsuo Mito, Productivity Press, 1988. The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation By Ikujiro Nonaka and Hirotaka Takeuchi, Oxford University Press, 1995.


pages: 161 words: 44,488

The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology by William Mougayar

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Airbnb, airport security, Albert Einstein, altcoin, Amazon Web Services, bitcoin, Black Swan, blockchain, business process, centralized clearinghouse, Clayton Christensen, cloud computing, cryptocurrency, disintermediation, distributed ledger, Edward Snowden, en.wikipedia.org, ethereum blockchain, fault tolerance, fiat currency, fixed income, global value chain, Innovator's Dilemma, Internet of things, Kevin Kelly, Kickstarter, market clearing, Network effects, new economy, peer-to-peer, peer-to-peer lending, prediction markets, pull request, QR code, ride hailing / ride sharing, Satoshi Nakamoto, sharing economy, smart contracts, social web, software as a service, too big to fail, Turing complete, web application

Just as we continued to scale the Internet 30 years after its invention, we will continue to solve and update the blockchain’s scalability needs. Just as we continued to update automobile safety regulations in ways that were unforeseen during the invention moment, we will continue to update the regulatory requirements around the blockchain over the lifetime of its evolution. NOTES 1. A term popularized in Clayton Christensen’s book (The Innovator’s Dilemma) suggesting that successful companies can put too much emphasis on customers’ current needs, and fail to adopt new technology or business models, https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma. List of U.S. executive branch czars, https://en.wikipedia.org/wiki/List_of_U.S._executive_branch_czars. 2. Source: Author’s sample survey of market leaders, April 2016. 3.

Source: Author’s sample survey of market leaders, April 2016. 3. Java, https://en.wikipedia.org/wiki/Java_%28programming_language%29. 4. IDC Study, http://www.infoq.com/news/2014/01/IDC-software-developers. 5. These are popular programming languages. 6. https://cryptoconsortium.org/ 4 BLOCKCHAIN IN FINANCIAL SERVICES “The worst place to develop a new business model is from within your existing business model.” –CLAYTON CHRISTENSEN FINANCIAL SERVICES INSTITUTIONS will be challenged by how much they are willing to bend their business models to accommodate the weight of the blockchain. Their default position will be to only slightly open the door, expecting to let as many benefits seep in, with the least amount of opening. The challengers (mostly startups) will try to kick that door open as much as possible, expecting to throw the incumbents off balance.


pages: 164 words: 57,068

The Second Curve: Thoughts on Reinventing Society by Charles Handy

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Airbnb, basic income, Bernie Madoff, bitcoin, bonus culture, British Empire, call centre, Clayton Christensen, corporate governance, delayed gratification, Diane Coyle, Edward Snowden, falling living standards, future of work, G4S, greed is good, informal economy, Internet of things, invisible hand, joint-stock company, joint-stock limited liability company, Kickstarter, Kodak vs Instagram, late capitalism, mass immigration, megacity, mittelstand, Occupy movement, payday loans, peer-to-peer lending, Plutocrats, plutocrats, Ponzi scheme, Ronald Coase, shareholder value, sharing economy, Skype, Steve Jobs, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transaction costs, Veblen good, Walter Mischel

Success, however, puts blinkers on us, discourages doubt, reinforces itself. Only in retrospect can we look back and say, ‘That was it, that was the peak, that was when we should have started to think anew.’ Unfortunately, being wise after the event is too late to be useful. First-curve success can blind one to the possibilities of a new technology or a new market, allowing others to seize the initiative. Clayton Christensen of Harvard Business School termed it the problem of disruptive innovation, citing, among many others, the case of Kodak, who ignored the possibilities of digital photography until it was too late. They allowed outsiders to intrude and, in my words, create the new curve instead of them. New technology is offering the chance of those new curves every day. Spotting them and seizing them is the new strategic challenge for education, health and government as well as business.

I can see that requiring MPs to vote by walking through those doors inherited from St Stephen’s Chapel not only means that they have to be present and counted, in person, but also acts as a reminder of why they are there, even if they sometimes don’t know what they are voting on, just following their herd. Some rituals, however, are just nostalgia and eventually become dysfunctional. Manual voting is now one of them. If we want people, particularly the young, to take democracy seriously we have to work with the new ways of communicating. Otherwise we risk going down Clayton Christensen’s technological mudslide on the road to Davy’s Bar. The Scottish referendum in 2014, with an 84 per cent turnout, showed that when it matters to them the voters will come out, come rain, hail or sunshine, but not all elections are so emotive or so compelling – witness the turnout for European elections. One unfortunate outcome of electronic voting might be an increase in popular referenda.


pages: 238 words: 68,914

Where Does It Hurt?: An Entrepreneur's Guide to Fixing Health Care by Jonathan Bush, Stephen Baker

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Affordable Care Act / Obamacare, Atul Gawande, barriers to entry, Clayton Christensen, commoditize, informal economy, inventory management, job automation, knowledge economy, lifelogging, obamacare, personalized medicine, ride hailing / ride sharing, Ronald Reagan, Silicon Valley, Steve Jobs, web application, women in the workforce, working poor

I love to listen to Jonathan talk: His narratives come a mile per minute. His illustrations and metaphors help me envision the problems and their solutions clearly. And he is very, very funny. You will be able to hear Jonathan’s voice as you read this book. It is an easy, insightful, and entertaining read. Jonathan, thank you for writing this book—for what it says and how you say it. Clayton Christensen, Harvard Business School JANUARY 2014 INTRODUCTION It’s a steamy summer night in New Orleans in 1990. I’m twenty-one years old and gunning an ambulance down Bienville Avenue, toward Charity Hospital. My uncle is president of the United States and my cousin will take over the same job in a decade. Big things are expected of me. But I’ve always had trouble succeeding along traditional Bush family lines.

In fact, they can change the world. The entrepreneurs in the audience probably didn’t find this message flattering. But I’m convinced that in health care technology, primitive is where the opportunities lie, and that simple, affordable systems will give birth to the disruption we’re aching for. I didn’t speak too much in my rustic getup. Instead I introduced one of my favorite professors from Harvard Business School, Clayton Christensen, who drove home the point much more eloquently than I did with my pike and loincloth. Clay towered before the gathering, all six foot eight of him. A few years ago, he told us, he had suffered a stroke. It affected the part of his brain that governed speech. So he had to relearn English. He spoke to us a bit more slowly than he used to, choosing his words with care. But this deliberate style made his message resonate even more powerfully.


pages: 240 words: 73,209

The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and Enlightenment by Guy Spier

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Albert Einstein, Atul Gawande, Benoit Mandelbrot, big-box store, Black Swan, Checklist Manifesto, Clayton Christensen, Daniel Kahneman / Amos Tversky, Exxon Valdez, Gordon Gekko, housing crisis, information asymmetry, Isaac Newton, Kenneth Arrow, Long Term Capital Management, Mahatma Gandhi, mandelbrot fractal, NetJets, pattern recognition, pre–internet, random walk, Ronald Reagan, South Sea Bubble, Steve Jobs, winner-take-all economy, young professional, zero-sum game

Here, I want to thank these people who have been instrumental in my education: I have been blessed with many extraordinary teachers and educators, including Peter Sinclair, Vernon Bogdanor, and Tony Courakis, who tutored me in economics and politics; Mary Stokes, John Davies, Hugh Collins, Peter Birks, and Bernard Rudden, who tutored me in law; and Diana Hughes, Charles Stewart, and others who taught me at the City of London Freemen’s School. Richard Nolan, Dick Poorvu, Rawi Abdelal, Clayton Christensen, Boris Groysberg, Len Schlesinger, Jan Hammond, David Joffe, Amar Bhide, Bill Sahlman, and Ray Goldberg are some, but not all, of the brilliant professors I had at Harvard Business School. In my professional life, I have also been tremendously fortunate to have had wonderful teachers and collaborators. John Mihaljevic: I am so grateful that you chose to move to Zurich when you did; I relish your friendship and our squash sessions!

Ramachandran and Sandra Blakeslee Signs of Life: How Complexity Pervades Biology by Ricard Solé and Brian Goodwin Synaptic Self: How Our Brains Become Who We Are by Joseph LeDoux Self-help A Message to Garcia by Elbert Hubbard A Simple Act of Gratitude: How Learning to Say Thank You Changed My Life by John Kralik Acres of Diamonds by Russell Conwell As a Man Thinketh by James Allen Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead by Brené Brown Focusing by Eugene Gendlin Getting the Love You Want: A Guide for Couples by Harville Hendrix Getting Things Done: The Art of Stress-Free Productivity by David Allen How to Win Friends and Influence People by Dale Carnegie How Will You Measure Your Life? by Clayton Christensen, James Allworth, and Karen Dillon Keeping the Love You Find: A Personal Guide by Harville Hendrix Manifest Your Destiny: The Nine Spiritual Principles for Getting Everything You Want by Wayne Dyer Success: Advice for Achieving Your Goals from Remarkably Accomplished People by Jena Pincott Thanks!: How Practicing Gratitude Can Make You Happier by Robert A. Emmons The Go-Getter: A Story That Tells You How to Be One by Peter Kyne The Laws of Lifetime Growth: Always Make Your Future Bigger Than Your Past by Dan Sullivan and Catherine Nomura The Power of Positive Thinking by Norman Vincent Peale The Power of Vulnerability: Teachings on Authenticity, Connection, and Courage by Brené Brown The Road Less Traveled: A New Psychology of Love, Traditional Values and Spiritual Growth by M.


pages: 284 words: 79,265

The Half-Life of Facts: Why Everything We Know Has an Expiration Date by Samuel Arbesman

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Albert Einstein, Alfred Russel Wallace, Amazon Mechanical Turk, Andrew Wiles, bioinformatics, British Empire, Cesare Marchetti: Marchetti’s constant, Chelsea Manning, Clayton Christensen, cognitive bias, cognitive dissonance, conceptual framework, David Brooks, demographic transition, double entry bookkeeping, double helix, Galaxy Zoo, guest worker program, Gödel, Escher, Bach, Ignaz Semmelweis: hand washing, index fund, invention of movable type, Isaac Newton, John Harrison: Longitude, Kevin Kelly, life extension, Marc Andreessen, meta analysis, meta-analysis, Milgram experiment, Nicholas Carr, p-value, Paul Erdős, Pluto: dwarf planet, publication bias, randomized controlled trial, Richard Feynman, Richard Feynman, Rodney Brooks, social graph, social web, text mining, the scientific method, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Tyler Cowen: Great Stagnation

But of course this growth can’t go on forever. Eventually the entire population that might possibly choose to adopt the gadget is reached. The growth slows down as it reaches this carrying capacity, obeying its logistic shape. These curves are also often referred to as S-curves, due to their stretched S-like shapes. This is the term that’s commonly used when discussing innovation adoption. Clayton Christensen, a professor at Harvard Business School, argues that a series of tightly coupled and successive S-curves—each describing the progression and lifetime of a single technology—can be combined sequentially when looking at what each consecutive technology is actually doing (such as transforming information) and together yield a steady and smooth exponential curve, exactly as Magee and Koh found.

“A Functional Approach for Studying Technological Progress: Application to Information Technology.” Technological Forecasting and Social Change 73, no. 9 (2006): 1061–83; Koh, Heebyung, and Christopher L. Magee. “A Functional Approach for Studying Technological Progress: Extension to Energy Technology.” Technological Forecasting and Social Change 75, no. 6 (2008): 735–58. 45 They begin to run out of space: This growth pattern assumes a continuous food supply. 45 Clayton Christensen, a professor at Harvard Business School: Christensen, Clayton M. “Exploring the Limits of the Technology S-Curve. Part I: Component Technologies.” Production and Operations Management 1, no. 4 (1992): 334–57. 46 they found mathematical regularities: More recent research has debated whether these are truly exponential or other fast-growing functions, such as power laws or double exponentials.

Deep Work: Rules for Focused Success in a Distracted World by Cal Newport

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8-hour work day, Albert Einstein, barriers to entry, business climate, Cal Newport, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, David Brooks, David Heinemeier Hansson, deliberate practice, Donald Knuth, Donald Trump, Downton Abbey, en.wikipedia.org, Erik Brynjolfsson, experimental subject, follow your passion, Frank Gehry, informal economy, information retrieval, Internet Archive, Jaron Lanier, knowledge worker, Mark Zuckerberg, Marshall McLuhan, Merlin Mann, Nate Silver, new economy, Nicholas Carr, popular electronics, remote working, Richard Feynman, Richard Feynman, Ruby on Rails, Silicon Valley, Silicon Valley startup, Snapchat, statistical model, the medium is the message, Watson beat the top human players on Jeopardy!, web application, winner-take-all economy, zero-sum game

When it comes to deep work, in other words, consider the use of collaboration when appropriate, as it can push your results to a new level. At the same time, don’t lionize this quest for interaction and positive randomness to the point where it crowds out the unbroken concentration ultimately required to wring something useful out of the swirl of ideas all around us. Execute Like a Business The story has become lore in the world of business consulting. In the mid-1990s, Harvard Business School professor Clayton Christensen received a call from Andy Grove, the CEO and chairman of Intel. Grove had encountered Christensen’s research on disruptive innovation and asked him to fly out to California to discuss the theory’s implications for Intel. On arrival, Christensen walked through the basics of disruption: entrenched companies are often unexpectedly dethroned by start-ups that begin with cheap offerings at the low end of the market, but then, over time, improve their cheap products just enough to begin to steal high-end market share.

A nice summary history of the invention of the transistor can be found in “Transistorized!” at PBS’s website: http://www.pbs.org/transistor/album1/. A more detailed history can be found in Chapter 7 of Walter Isaacson’s 2014 book, The Innovators. New York: Simon and Schuster. Execute Like a Business “How do I do this?”: from pages xix–xx of McChesney, Chris, Sean Covey, and Jim Huling. The 4 Disciplines of Execution. New York: Simon and Schuster, 2004. Clayton Christensen also talks more about his experience with Andy Grove in a July–August 2010 Harvard Business Review article, “How Will You Measure Your Life?” that he later expanded into a book of the same name: http://hbr.org/2010/07/how-will-you-measure-your-life/ar/1. “The more you try to do”: from page 10 of McChesney, Covey, and Huling, The 4 Disciplines of Execution. “If you want to win the war for attention”: Brooks, David.


pages: 380 words: 118,675

The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone

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3D printing, airport security, AltaVista, Amazon Mechanical Turk, Amazon Web Services, bank run, Bernie Madoff, big-box store, Black Swan, book scanning, Brewster Kahle, call centre, centre right, Chuck Templeton: OpenTable, Clayton Christensen, cloud computing, collapse of Lehman Brothers, crowdsourcing, cuban missile crisis, Danny Hillis, Douglas Hofstadter, Elon Musk, facts on the ground, game design, housing crisis, invention of movable type, inventory management, James Dyson, Jeff Bezos, John Markoff, Kevin Kelly, Kodak vs Instagram, late fees, loose coupling, low skilled workers, Maui Hawaii, Menlo Park, Network effects, new economy, optical character recognition, pets.com, Ponzi scheme, quantitative hedge fund, recommendation engine, Renaissance Technologies, RFID, Rodney Brooks, search inside the book, shareholder value, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, Skype, statistical arbitrage, Steve Ballmer, Steve Jobs, Steven Levy, Stewart Brand, Thomas L Friedman, Tony Hsieh, Whole Earth Catalog, why are manhole covers round?, zero-sum game

Bezos was adamant that Kessel could not run both the physical and digital-media businesses at the same time. “If you are running both businesses you will never go after the digital opportunity with tenacity,” he said. By that time, Bezos and his executives had devoured and raptly discussed another book that would significantly affect the company’s strategy: The Innovator’s Dilemma, by Harvard professor Clayton Christensen. Christensen wrote that great companies fail not because they want to avoid disruptive change but because they are reluctant to embrace promising new markets that might undermine their traditional businesses and that do not appear to satisfy their short-term growth requirements. Sears, for example, failed to move from department stores to discount retailing; IBM couldn’t shift from mainframe to minicomputers.

Angry e-mails over the issue one day turned into a heated conversation in Bezos’s office. “We were both passionate and within five minutes we were both mad,” says Wilke, who later conceded that Bezos was right and the short-term pain had been worth it to build the Kindle franchise. Bezos won the argument, of course, but Wilke convinced him to at least make it clearer on the site that Amazon did not actually have any Kindles on hand. Just as Clayton Christensen had predicted in The Innovator’s Dilemma, technological innovation caused wrenching pain to the company and the broader industry. No one was feeling it more than the book publishers. Amazon had spent much of the last two years cajoling and threatening them to embrace its new digital format. But in all those conversations, the company had clearly withheld a crucial detail that Bezos divulged seventeen minutes into the forty-minute launch speech.

Chapter 8: Fiona 1 Calvin Reid, “Authors Guild Shoots Down Rocket eBook Contract,” Publishers Weekly, May 10, 1999. 2 Steve Silberman, “Ex Libris,” Wired, July 1998. 3 Steven Levy, “It’s Time to Turn the Last Page,” Newsweek, December 31, 1999. 4 Jane Spencer and Kara Scannell, “As Fraud Case Unravels, Executive Is at Large,” Wall Street Journal, April 25, 2007. 5 David Pogue, “Trying Again to Make Books Obsolete,” New York Times, October 12, 2006. 6 Jeff Bezos, speech at Lake Forest College, February 26, 1998. 7 Walt Mossberg, “The Way We Read,” Wall Street Journal, June 9, 2008. 8 Mark Leibovich, “Child Prodigy, Online Pioneer,” Washington Post, September 3, 2000. 9 Clayton Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business Review Press, 1997). 10 Jeff Bezos, interview by Charlie Rose, Charlie Rose, PBS, February 26, 2009. 11 David D. Kirkpatrick, “Online Sales of Used Books Draw Protest,” New York Times, April 10, 2002. 12 Graeme Neill, “Sony and Amazon in e-Books Battle,” Bookseller, April 27, 2007. 13 Brad Stone, “Envisioning the Next Chapter for Electronic Books,” New York Times, September 6, 2007. 14 Jeff Bezos, The Oprah Winfrey Show, ABC, October 24, 2008.


pages: 459 words: 103,153

Adapt: Why Success Always Starts With Failure by Tim Harford

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Andrew Wiles, banking crisis, Basel III, Berlin Wall, Bernie Madoff, Black Swan, car-free, carbon footprint, Cass Sunstein, charter city, Clayton Christensen, clean water, cloud computing, cognitive dissonance, complexity theory, corporate governance, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, Dava Sobel, Deep Water Horizon, Deng Xiaoping, double entry bookkeeping, Edmond Halley, en.wikipedia.org, Erik Brynjolfsson, experimental subject, Fall of the Berlin Wall, Fermat's Last Theorem, Firefox, food miles, Gerolamo Cardano, global supply chain, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, Jane Jacobs, Jarndyce and Jarndyce, Jarndyce and Jarndyce, John Harrison: Longitude, knowledge worker, loose coupling, Martin Wolf, mass immigration, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Netflix Prize, New Urbanism, Nick Leeson, PageRank, Piper Alpha, profit motive, Richard Florida, Richard Thaler, rolodex, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, South China Sea, special economic zone, spectrum auction, Steve Jobs, supply-chain management, the market place, The Wisdom of Crowds, too big to fail, trade route, Tyler Cowen: Great Stagnation, web application, X Prize, zero-sum game

There is surely a reason why so few companies have actually emulated W.L. Gore over the past half-century. And yet some business scholars wonder if even the approach of a W.L. Gore or a Google is really radical enough to cope with truly disruptive business ideas. 6 When companies become dinosaurs Guppies breed so quickly that John Endler was able to produce guppy evolution withn months. When Clayton Christensen of Harvard Business School wanted to understand why some apparently capable companies find themselves wiped out by a sudden shift in the competitive landscape, he looked for the economic equivalent of a greenhouse full of guppies. The disk-drive industry was his first port of call: a market in which upstarts frequently seem to usurp the market leaders. As with John Endler’s guppies, what Christensen discovered points to a much wider truth.

Nothing much seems to have come of this yet. Conspiracy theorists may believe that this is because Shell has an evil plan to dominate and disrupt the threat from renewable technologies. I doubt this. If there really is a cost-effective renewable alternative to the eons of energy concentrated into crude oil, it would be very much in Shell’s interests to commercialise it. The explanation is simpler: following Clayton Christensen’s logic, there is simply no reason to expect an oil company to be particularly good at inventing, manufacturing or distributing photovoltaic solar panels. Oil companies are good at very different things: negotiating with African and Middle Eastern governments, complex drilling operations, building and operating refineries and chemical engineering plants, and selling liquid fuels in roadside forecourts.


pages: 484 words: 104,873

Rise of the Robots: Technology and the Threat of a Jobless Future by Martin Ford

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3D printing, additive manufacturing, Affordable Care Act / Obamacare, AI winter, algorithmic trading, Amazon Mechanical Turk, artificial general intelligence, assortative mating, autonomous vehicles, banking crisis, basic income, Baxter: Rethink Robotics, Bernie Madoff, Bill Joy: nanobots, call centre, Capital in the Twenty-First Century by Thomas Piketty, Chris Urmson, Clayton Christensen, clean water, cloud computing, collateralized debt obligation, commoditize, computer age, creative destruction, debt deflation, deskilling, diversified portfolio, Erik Brynjolfsson, factory automation, financial innovation, Flash crash, Fractional reserve banking, Freestyle chess, full employment, Goldman Sachs: Vampire Squid, Gunnar Myrdal, High speed trading, income inequality, indoor plumbing, industrial robot, informal economy, iterative process, Jaron Lanier, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Kenneth Arrow, Khan Academy, knowledge worker, labor-force participation, labour mobility, liquidity trap, low skilled workers, low-wage service sector, Lyft, manufacturing employment, Marc Andreessen, McJob, moral hazard, Narrative Science, Network effects, new economy, Nicholas Carr, Norbert Wiener, obamacare, optical character recognition, passive income, Paul Samuelson, performance metric, Peter Thiel, Plutocrats, plutocrats, post scarcity, precision agriculture, price mechanism, Ray Kurzweil, rent control, rent-seeking, reshoring, RFID, Richard Feynman, Richard Feynman, Rodney Brooks, secular stagnation, self-driving car, Silicon Valley, Silicon Valley startup, single-payer health, software is eating the world, sovereign wealth fund, speech recognition, Spread Networks laid a new fibre optics cable between New York and Chicago, stealth mode startup, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, Steven Pinker, strong AI, Stuxnet, technological singularity, telepresence, telepresence robot, The Bell Curve by Richard Herrnstein and Charles Murray, The Coming Technological Singularity, The Future of Employment, Thomas L Friedman, too big to fail, Tyler Cowen: Great Stagnation, union organizing, Vernor Vinge, very high income, Watson beat the top human players on Jeopardy!, women in the workforce

The number of schools with national reputations, or that might be considered truly elite, is, of course, far smaller. Imagine a future where college students can attend free online courses taught by Harvard or Stanford professors and subsequently receive a credential that would be acceptable to employers or graduate schools. Who, then, would be willing to go into debt in order to pay the tuition at a third- or fourth-tier institution? Clayton Christensen, a professor at Harvard Business School and an expert in disruptive innovation within industries, has predicted that the answer to that question will result in a grim future for thousands of institutions. In a 2013 interview, Christensen said that “15 years from now, half of US universities may be in bankruptcy.”22 Even if most institutions remain solvent, it is easy to imagine dramatically declining enrollments and revenues coupled with massive layoffs of both administrators and faculty.

This information regarding graduation rates is provided by the National Center of Education Statistics, http://nces.ed.gov/fastfacts/display.asp?id=40. 18. Selingo, College Unbound, p. 27. 19. “Senior Administrators Now Officially Outnumber Faculty at the UC” (Reclaim UC blog), September 19, 2011, http://reclaimuc.blogspot.com/2011/09/senior-administrators-now-officially.html. 20. Selingo, College Unbound, p. 28. 21. Ibid. 22. Clayton Christensen interview with Mark Suster at Startup Grind 2013, available at YouTube, http://www.youtube.com/watch?v=KYVdf5xyD8I. 23. William G. Bowen, Matthew M. Chingos, Kelly A. Lack, and Thomas I. Nygren, “Interactive Learning Online at Public Universities: Evidence from Randomized Trials,” Ithaka S+R Research Publication, May 22, 2012, http://www.sr.ithaka.org/research-publications/interactive-learning-online-public-universities-evidence-randomized-trials.


pages: 327 words: 102,322

Losing the Signal: The Spectacular Rise and Fall of BlackBerry by Jacquie McNish, Sean Silcoff

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Albert Einstein, Clayton Christensen, corporate governance, diversified portfolio, indoor plumbing, Iridium satellite, patent troll, QWERTY keyboard, rolodex, Silicon Valley, Silicon Valley startup, skunkworks, Skype, Stephen Hawking, Steve Ballmer, Steve Jobs, the new new thing

His plan was to first see what QNX could do with a tablet. He likened it to giving QNX “training wheels” before taking on the task of overhauling his beloved BlackBerry from the inside—as well as the entire software organization that provided its digital core—to build RIM’s smartphone of the future. “I was basically putting the company through the biggest transformation they had ever experienced,” he says. Lazaridis had a blueprint inspired by Clayton Christensen’s acclaimed 1997 management book, The Innovator’s Dilemma.3 The Harvard professor argued that for established companies to succeed against disruptive competitors, they had to empower small, cloistered teams. These autonomous groups, unsullied by the parent company’s set ways, would develop disruptive technologies of their own and could eventually subsume other parts of the organization. It was tumultuous but necessary to stay at the forefront of innovation.

brandID=21. 15 / FAULT LINES 1 Ben Worthen, “Businesses Add iPads to Their Briefcases,” Wall Street Journal, August 24, 2010. 2 Jobs claimed Adobe “screwed” him by refusing to make a Mac version of Adobe Premiere in 1999 and later attacked Flash, telling biographer Walter Isaacson that it was “a spaghetti-ball piece of technology that has lousy performance and really bad security problems.” Isaacson, Steve Jobs, pp. 514–5. 3 Clayton Christensen, The Innovator’s Dilemma, Boston, Harvard Business Publishing, 1997. 4 BlackBerry turned down interview requests with Dan Dodge for this book. 5 Chloe Albanesius, “Adobe Ditching Mobile Browser Flash Player Development,” PC Magazine, November 9, 2011. 6 RIM’s share of AT&T, which was lower to begin with because of the carrier’s relationship with Apple, dipped to 15 percent in the fourth quarter of 2010, down from 18 percent a year earlier. 7 Mikael Ricknäs, “Samsung Becomes Biggest Smartphone Vendor, as Android’s Market Share Grows,” PC World, November 15, 2011. 8 Paul Christoper Webster and Iain Marlow, “Where the BlackBerry Still Reigns Supreme,” Report on Business Magazine, November 29, 2012. 9 Susana Ferreira and Will Connors, “In These Countries, BlackBerry Is Still King—Of Pop Culture,” Wall Street Journal, September 11, 2012. 10 “BlackBerry Babes,” The Economist, December 8, 2012. 11 “BlackBerry Loses Top Spot to Apple at Home: Corporate Canada,” Bloomberg, March 22, 2012. 12 Zahraa al Khalisi, “BlackBerry ‘Pins’ Are the New Licence Plates,” The National (United Arab Emirates), September 19, 2009; author interview with Patrick Spence, 2014. 13 Sandeep Singh Grewal, “Comeback Vow by Journalist,” Gulf Daily News, September 23, 2010; Yousef, “Blackberries, Breaking News and Bans,” Flipcorp.com, September 25, 2011, www.flipcorp.com/en/read/blog/bahrain-blackberries.blog. 14 This information is based on a statement of defense and counterclaim filed in Canadian Federal Court by Kik Interactive against RIM in April 2011; it was not tested in court.


pages: 102 words: 27,769

Rework by Jason Fried, David Heinemeier Hansson

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call centre, Clayton Christensen, Dean Kamen, Exxon Valdez, fault tolerance, James Dyson, Jeff Bezos, Ralph Nader, risk tolerance, Ruby on Rails, Steve Jobs, Tony Hsieh, Y Combinator

In addition to writing original content, he helped merge the distinctly different writing styles of the coauthors into a focused, cohesive book. He made it look easy, but it wasn’t easy work. Thank you, Matt. We also want to thank our families, our customers, and everyone at 37signals. And here’s a list of some of the people we know, and don’t know, who have inspired us in one way or another: Frank Lloyd Wright Seth Godin Warren Buffett Jamie Larson Clayton Christensen Ralph Nader Jim Coudal Benjamin Franklin Ernest Kim Jeff Bezos Scott Heiferman Antoni Gaudi Carlos Segura Larry David Steve Jobs Dean Kamen Bill Maher Thomas Jefferson Mies van der Rohe Ricardo Semler Christopher Alexander James Dyson Kent Beck Thomas Paine Gerald Weinberg Kathy Sierra Julia Child Marc Hedlund Nicholas Karavites Michael Jordan Richard Bird Jeffrey Zeldman Dieter Rams Judith Sheindlin Ron Paul Timothy Ferriss Copyright © 2010 by 37signals, LLC.


pages: 133 words: 36,528

Peak Car: The Future of Travel by David Metz

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autonomous vehicles, bike sharing scheme, Clayton Christensen, congestion charging, crowdsourcing, David Attenborough, decarbonisation, edge city, Edward Glaeser, Just-in-time delivery, Network effects, Richard Florida, Robert Gordon, Silicon Valley, Skype, urban sprawl, yield management, young professional

My expectation is that driverless cars, to the extent they penetrate the market, will amount to an incremental improvement, not a disruptive innovation—best regarded as robot chauffeurs. One possible application of this technology would be to taxis, if lower fares increased their attraction to passengers (in which case the innovation would be disruptive to taxi drivers). Driverless trains are already with us—for instance on London’s Docklands Light Railway—safe and practical because access to the system is controlled. Clayton Christensen, originator of the concept of disruptive innovation, argued that the electric car might be such a technology. Possibly the electric car will displace vehicles powered by conventional internal combustion engines. Car manufacturers who do not have access to this technology would lose market share, but the battery manufacturers who might make the technological breakthrough would be keen to supply all users.


pages: 476 words: 132,042

What Technology Wants by Kevin Kelly

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Albert Einstein, Alfred Russel Wallace, Buckminster Fuller, c2.com, carbon-based life, Cass Sunstein, charter city, Clayton Christensen, cloud computing, computer vision, Danny Hillis, dematerialisation, demographic transition, double entry bookkeeping, Douglas Engelbart, en.wikipedia.org, Exxon Valdez, George Gilder, gravity well, hive mind, Howard Rheingold, interchangeable parts, invention of air conditioning, invention of writing, Isaac Newton, Jaron Lanier, John Conway, John Markoff, John von Neumann, Kevin Kelly, knowledge economy, Lao Tzu, life extension, Louis Daguerre, Marshall McLuhan, megacity, meta analysis, meta-analysis, new economy, off grid, out of africa, performance metric, personalized medicine, phenotype, Picturephone, planetary scale, RAND corporation, random walk, Ray Kurzweil, recommendation engine, refrigerator car, Richard Florida, Rubik’s Cube, Silicon Valley, silicon-based life, Skype, speech recognition, Stephen Hawking, Steve Jobs, Stewart Brand, Ted Kaczynski, the built environment, the scientific method, Thomas Malthus, Vernor Vinge, wealth creators, Whole Earth Catalog, Y2K

Laser Focus World, 42 (2). http://www.laserfocusworld.com/articles/248128. 169 which it passed in 1997: David C. Brock and Gordon E. Moore. (2006) “Understanding Moore’s Law.” Philadelphia: Chemical Heritage Foundation. 169 The Continuum of Kryder’s Law: Data from Clayton Christensen. (1997) The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston: Harvard Business School Press, p. 10. 170 need to “listen to the technology”: (2001) “An Interview with Carver Mead.” American Spectator, 34 (7). http://laputan.blogspot.com/2003_09_21_laputan_archive.html. 170 Compound S Curves: Data from Clayton Christensen. (1997) The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston: Harvard Business School Press, p. 40. 9. Choosing the Inevitable 176 First Glimpse of the Picture Phone: AT&T archival photograph via “Showcasing Technology at the 1964-1965 New York World’s Fair.” http://www.westland.net/ny64fair/map-docs/technolog y.htm. 177 everyone recognized the vision: (2010) “Videophone.”


pages: 550 words: 154,725

The Idea Factory: Bell Labs and the Great Age of American Innovation by Jon Gertner

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Albert Einstein, back-to-the-land, Black Swan, business climate, Claude Shannon: information theory, Clayton Christensen, complexity theory, corporate governance, cuban missile crisis, Edward Thorp, horn antenna, Hush-A-Phone, information retrieval, invention of the telephone, James Watt: steam engine, Karl Jansky, knowledge economy, Leonard Kleinrock, Metcalfe’s law, Nicholas Carr, Norbert Wiener, Picturephone, Richard Feynman, Richard Feynman, Robert Metcalfe, Sand Hill Road, Silicon Valley, Skype, Steve Jobs, Telecommunications Act of 1996, traveling salesman, uranium enrichment, William Shockley: the traitorous eight

They would prefer to invest in incremental improvements, and to have wonderful picnics, and make this quarter’s earnings without strain.” In part, Mayo connects this to the “immense stress” associated with funding research on ideas that may destroy your business if the results make your current product obsolete. Those who study innovation know this as the innovator’s dilemma, a term coined by the Harvard professor Clayton Christensen. “This is a very strong force,” Mayo points out. “It’s in me. And in everybody.” Strangely enough, however, it may not have been in Mervin Kelly or in some of his disciples—perhaps because the monopoly, at least for a time, guaranteed that the phone company’s business would remain sturdy even in the face of drastic technological upheaval. Kelly, for instance, who toiled for decades to improve and perfect the vacuum tube, effectively lobbied for a research program on the transistor that, when it succeeded, rendered his entire previous career in science irrelevant.

With so many uncertainties in the picture no accurate estimate of research and development cost can be had but comparison with other large system developments would suggest a minimum cost of $20,000,000 and a possibility of a considerably higher figure.” The memo also predicted, incorrectly, that the “propaganda value” (i.e., the public relations boost) from a communications satellite would be minimal. 14 The term was coined years after Kelly’s reign, by Harvard professor Clayton Christensen. 15 J. R. Pierce and R. Kompfner, letter to M. J. Kelly, 8 October 1958. In Kompfner’s handwriting at the top it reads: “Copy given to J.R.P. who showed it to W.O.B. Not Sent.” J.R.P. is Pierce; W.O.B. is William (Bill) Baker. AT&T archives. 16 J. R. Pierce and R. Kompfner, “Proposal for Research Toward Satellite Communication,” January 6, 1959. AT&T archives. 17 Hugh L. Dryden, Deputy Administrator, NASA, letter to Mr.


pages: 481 words: 120,693

Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else by Chrystia Freeland

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activist fund / activist shareholder / activist investor, Albert Einstein, algorithmic trading, assortative mating, banking crisis, barriers to entry, Basel III, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Branko Milanovic, Bretton Woods, BRICs, business climate, call centre, carried interest, Cass Sunstein, Clayton Christensen, collapse of Lehman Brothers, commoditize, conceptual framework, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Deng Xiaoping, don't be evil, double helix, energy security, estate planning, experimental subject, financial deregulation, financial innovation, Flash crash, Frank Gehry, Gini coefficient, global village, Goldman Sachs: Vampire Squid, Gordon Gekko, Guggenheim Bilbao, haute couture, high net worth, income inequality, invention of the steam engine, job automation, John Markoff, joint-stock company, Joseph Schumpeter, knowledge economy, knowledge worker, liberation theology, light touch regulation, linear programming, London Whale, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, NetJets, new economy, Occupy movement, open economy, Peter Thiel, place-making, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, postindustrial economy, Potemkin village, profit motive, purchasing power parity, race to the bottom, rent-seeking, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, self-driving car, short selling, Silicon Valley, Silicon Valley startup, Simon Kuznets, Solar eclipse in 1919, sovereign wealth fund, stem cell, Steve Jobs, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tony Hsieh, too big to fail, trade route, trickle-down economics, Tyler Cowen: Great Stagnation, wage slave, Washington Consensus, winner-take-all economy, zero-sum game

Sull calls this “active inertia” and he believes it is the main reason good companies fail: “When the world changes, organizations trapped in active inertia do more of the same. A little faster perhaps or tweaked at the margin, but basically the same old same old. . . . Organizations trapped in active inertia resemble a car with its back wheels stuck in a rut. Managers step on the gas. Rather than escape the rut, they only dig themselves in deeper.” Clayton Christensen, the Harvard Business School professor whose book The Innovator’s Dilemma is the corporate bible on disruptive change, has found that established companies almost always fail when their industries are confronted with disruptive new technologies or markets. And that is not, he argues, because their managers are dumb or lazy. It is because what works in ordinary times is a recipe for disaster in revolutionary ones.

., before the United States House of Representatives Committee on Oversight and Government Reform, October 6, 2008. “I made a mistake” Transcript of House of Representatives Committee on Oversight and Government Reform Hearing on the Role of Federal Regulators, October 23, 2008. “we always assume regime stability” McFaul e-mail to CF, February 22, 2011. “active inertia” Donald Sull, “Why Good Companies Go Bad,” Financial Times, October 3, 2005. “These failed firms” Clayton Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Harvard Business School Press, 1997), p. xv. “vast, silent, connected” W. Brian Arthur, “The Second Economy,” McKinsey Quarterly, October 2011. Facebook’s Mark Zuckerberg Zuckerberg attended Ardsley High School for two years before transferring to Phillips Exeter Academy. “Dopamine, a pleasure-inducing” Ajay Kapur, Niall Macleod, and Narendra Singh, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” Citigroup Global Markets Equity Strategy report, October 16, 2005.


pages: 589 words: 147,053

The Age of Em: Work, Love and Life When Robots Rule the Earth by Robin Hanson

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8-hour work day, artificial general intelligence, augmented reality, Berlin Wall, bitcoin, blockchain, brain emulation, business process, Clayton Christensen, cloud computing, correlation does not imply causation, creative destruction, demographic transition, Erik Brynjolfsson, ethereum blockchain, experimental subject, fault tolerance, financial intermediation, Flynn Effect, hindsight bias, information asymmetry, job automation, job satisfaction, John Markoff, Just-in-time delivery, lone genius, Machinery of Freedom by David Friedman, market design, meta analysis, meta-analysis, Nash equilibrium, new economy, prediction markets, rent control, rent-seeking, reversible computing, risk tolerance, Silicon Valley, smart contracts, statistical model, stem cell, Thomas Malthus, trade route, Turing test, Vernor Vinge

In The Role of Demographics in Occupational Stress and Well Being (Research in Occupational Stress and Well-being, Volume 12), 235–283, edited by Pamela Perrewé, Christopher Rosen, and Jonathon Halbesleben. Emerald Group Publishing Limited. Thomas, Frank, and Ollie Johnston. 1981. The Illusion of Life: Disney Animation. Abbeville Press. Thompson, Ben. 2013. “What Clayton Christensen Got Wrong.” Stratechery blog, September 22. http://stratechery.com/2013/clayton-christensen-got-wrong/. Torelli, Carlos, and Andrew Kaikati. 2009. “Values as Predictors of Judgments and Behaviors: The Role of Abstract and Concrete Mindsets.” Journal of Personality and Social Psychology 96(1): 231–247. Tormala, Zakary, Jayson Jia, and Michael Norton. 2012. “The Preference for Potential.” Journal of Personality and Social Psychology 103(4): 567–583.

The End of Power: From Boardrooms to Battlefields and Churches to States, Why Being in Charge Isn’t What It Used to Be by Moises Naim

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additive manufacturing, barriers to entry, Berlin Wall, bilateral investment treaty, business process, business process outsourcing, call centre, citizen journalism, Clayton Christensen, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, conceptual framework, corporate governance, creative destruction, crony capitalism, deskilling, disintermediation, don't be evil, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, illegal immigration, immigration reform, income inequality, income per capita, intangible asset, intermodal, invisible hand, job-hopping, Joseph Schumpeter, Julian Assange, Kickstarter, liberation theology, Martin Wolf, mega-rich, megacity, Naomi Klein, Nate Silver, new economy, Northern Rock, Occupy movement, open borders, open economy, Peace of Westphalia, Plutocrats, plutocrats, price mechanism, price stability, private military company, profit maximization, Ronald Coase, Ronald Reagan, Silicon Valley, Skype, Steve Jobs, The Nature of the Firm, Thomas Malthus, too big to fail, trade route, transaction costs, Washington Consensus, WikiLeaks, World Values Survey, zero-sum game

Steel illustrate the same process of industrial mutation . . . that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in.”42 The shifts in power that we see all around us—which include and transcend the ascent and demise of business enterprises—are certainly consistent with Schumpeter’s expectations. They are also in line with the insights of Clayton Christensen, a Harvard Business School professor who coined the term disruptive innovation, meaning a change—in technology, service, or product—that creates a new market by relying on a completely new approach. The effects of a disruptive innovation eventually spill over to other related or similar markets and undermine them. The iPad is a good example. Using your cellphone to pay for groceries or to send money to your daughter in another continent are two other good examples.

In pharmaceuticals, outsourcing drug manufacture is a long-standing process, but drug discovery was long closely held. On the other hand, the outsourced drug discovery market has grown faster than overall drug R&D since 2001; it expanded from $2 billion in 2003 to $5.4 billion in 2007 and is estimated to be currently growing at 16 percent per year.45 None of this bodes well for large companies. As the business scholar Clayton Christensen argued in a famous book, The Innovator’s Dilemma , even the very best large companies 154 operate by a set of procedures that make them good at harnessing “sustaining technologies” (the new technologies that help make existing products better) but terrible at identifying and capitalizing on disruptive technologies (the new technologies that usually emerge at the margins of an existing market but eventually stand to remake it).

The Future of Technology by Tom Standage

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air freight, barriers to entry, business process, business process outsourcing, call centre, Clayton Christensen, computer vision, connected car, corporate governance, creative destruction, disintermediation, distributed generation, double helix, experimental economics, full employment, hydrogen economy, industrial robot, informal economy, information asymmetry, interchangeable parts, job satisfaction, labour market flexibility, Marc Andreessen, market design, Menlo Park, millennium bug, moral hazard, natural language processing, Network effects, new economy, Nicholas Carr, optical character recognition, railway mania, rent-seeking, RFID, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, six sigma, Skype, smart grid, software as a service, spectrum auction, speech recognition, stem cell, Steve Ballmer, technology bubble, telemarketer, transcontinental railway, Y2K

“The industry is simply too efficient,” says Eric Schmidt, Google’s chief executive (who seems to have gone quite grey during his mixed performance at his previous job as boss of Novell, a software firm). The it industry also differs from other technology sectors in that its wares become less valuable as they get better, and go from “undershoot” to “overshoot,” to use the terms coined by Clayton Christensen, a professor at Harvard Business School. A technology is in “undershoot” when it is not good enough for most customers, so they are willing to pay a lot for something that is a bit better although not perfect. Conversely, “overshoot” means that a technology is more than sufficient for most uses, and margins sink lower. pcs quickly became a commodity, mainly because ibm outsourced the components for its first venture into this market in the early 1980s, allowing others to clone the machines.

The bitter irony, says Mr Lane, is that Microsoft is one of the least likely companies to make breakthroughs in simplification. “It cannot cannibalise itself,” says Mr Lane. “It faces the dilemma.” The dilemma? These days, whenever anybody in the it industry mentions that word, it is instantly understood to refer to The Innovator’s Dilemma (Harvard Business School Press, 1997), a book by Clayton Christensen, a professor at Harvard Business School, who has since followed it up with a sequel, The Innovator’s Solution (Harvard Business School Press, 2003). In a nutshell, the dilemma is this: firms that succeed in one generation of innovation almost inevitably become hamstrung by their own success and thus doomed to lose out in the next wave of innovation. Just as they “disrupted” the previous era’s leaders, they are in turn disrupted by the pioneers of the next era.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

Airbnb, Albert Einstein, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, labour market flexibility, laissez-faire capitalism, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

If you have a hammer, the whole world looks like a nail. Hence, when financial services expand, business development tends to be pushed out. The BIS economists discovered this in one of their studies, and argued that “productivity tends to grow disproportionally slower in industries with lower asset tangibility.”58 Many others have suggested a similar type of problem. “The emphasis on earnings per share,” argue Harvard’s Clayton Christensen and colleagues, “diverts resources away from investments whose payoff lies beyond the immediate horizon.”59 Another way to put it, and to simplify to an extreme, is that an investor owning a stock for only a few months has little interest in supporting costly investments today that might pay off years in the future. Undoubtedly the capital deepening of a company builds stock value, but not necessarily in the short term – and it is actively discouraged when it erodes the short-term earning capacity of firms.

This is perhaps to be expected; at the least, it makes investment decisions easier, or rather less open to criticism. However, the risk is that ignoring nonquantifiable objectives pushes companies to make the wrong investment choices: that overlooking becomes too mechanical, and that is a particularly acute problem when dealing with investments in innovation. The use of standard quantitative valuation methods, argue Harvard’s “innovation guru” Clayton Christensen and colleagues, “causes managers to underestimate the real returns and benefits of proceeding with investments in innovation.”69 In other words, companies risk failing to accurately predict future cash flows by making incorrect assumptions about the future. But, to make it even more intriguing, myopic companies also become overoptimistic about the not-to-invest scenario when modeling current investments quantitatively.


pages: 176 words: 55,819

The Start-Up of You by Reid Hoffman

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Airbnb, Andy Kessler, Black Swan, business intelligence, Cal Newport, Clayton Christensen, commoditize, David Brooks, Donald Trump, en.wikipedia.org, fear of failure, follow your passion, future of work, game design, Jeff Bezos, job automation, late fees, Marc Andreessen, Mark Zuckerberg, Menlo Park, out of africa, Paul Graham, Peter Thiel, recommendation engine, Richard Bolles, risk tolerance, rolodex, shareholder value, side project, Silicon Valley, Silicon Valley startup, social web, Steve Jobs, Steve Wozniak, Tony Hsieh, transaction costs

ABZ Planning embraces recoverable failure so long as it generates real lessons. Think Two Steps Ahead Planning and adapting means thinking carefully about your future. Lunging at the first well-paid and/or high-status job you come upon may offer immediate gratification, but it won’t get you any closer to building a meaningful career. A goal that can be achieved in a single step is probably not very meaningful—or ambitious. The business professor Clayton Christensen once told graduating students at Harvard Business School, “If you study the root causes of business disasters, over and over you’ll find [a] predisposition toward endeavors that offer immediate gratification.” At the same time, though, don’t do the opposite and think ahead too far in the future. Again, you will change, the world will change, the competition will change. It’s why Plan C, Plan D, or Plan E are not part of this framework.


pages: 138 words: 40,787

The Silent Intelligence: The Internet of Things by Daniel Kellmereit, Daniel Obodovski

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3D printing, Airbnb, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, autonomous vehicles, barriers to entry, business intelligence, call centre, Clayton Christensen, cloud computing, commoditize, connected car, crowdsourcing, data acquisition, en.wikipedia.org, Erik Brynjolfsson, first square of the chessboard, first square of the chessboard / second half of the chessboard, Freestyle chess, Google X / Alphabet X, Internet of things, lifelogging, Metcalfe’s law, Network effects, Paul Graham, Ray Kurzweil, RFID, Robert Metcalfe, self-driving car, Silicon Valley, smart cities, smart grid, software as a service, Steve Jobs, web application, Y Combinator, yield management

(Source: http://www.theatlanticcities.com/authors/anthony-flint/.) 23 SARTRE, Partners Conclude After the SARTRE Project (2012). http://www.sartre-project.eu/en/about/news/Sidor/20120917_1.aspx. 24 Economist Intelligence Unit, Rise of the Machines: Moving from Hype to Reality in the Burgeoning Market for Machine-to-Machine Communication (2012). http://digitalresearch.eiu.com/m2m/report. Chapter 5 USE CASES The use cases capture the goals of the system. To understand a use case, we tell stories. ~ Ivar Jacobson In his book The Innovator’s Dilemma,25 Clayton Christensen uses a fascinating Harvard Business School case called “Hewlett-Packard: The Flight of the Kittyhawk.” The Kittyhawk was the product name of a revolutionary hard disk drive developed by Hewlett-Packard (HP) in the early ’90s. The disk was tiny and had a capacity of 20MB to 40MB, which made the product unique at its time with potential to disrupt one or more industries. Yet the sales volume of the disk was disappointing.


pages: 307 words: 17,123

Behind the cloud: the untold story of how Salesforce.com went from idea to billion-dollar company--and revolutionized an industry by Marc Benioff, Carlye Adler

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Albert Einstein, Apple's 1984 Super Bowl advert, barriers to entry, Bay Area Rapid Transit, business continuity plan, call centre, carbon footprint, Clayton Christensen, cloud computing, corporate social responsibility, crowdsourcing, iterative process, Maui Hawaii, Nicholas Carr, platform as a service, Silicon Valley, software as a service, Steve Ballmer, Steve Jobs

Leveraging the power of trainers has allowed us to have thousands of developers creating new functionality, sharing it in our online marketplace, and enabling us to offer a more comprehensive service to our customers. 253 BEHIND THE CLOUD Think about the partners that might recommend your service and the vendors that might build complementary products; then, do everything you can to strengthen the entire ecosystem that surrounds your company. In doing so, you can turn a handful of disjointed partners into a thriving community of supporters, innovators, and evangelists that will further your success. 254 The Final Play Play #111: Make Everyone Successful A little over a decade ago, Clayton Christensen wrote a book called The Innovator’s Dilemma. It illustrated how a start-up company—by employing innovation that disrupts existing business models—will always beat the established big companies. He cited examples like Intel’s success with the microprocessor and the steel mill Nucor’s hit with its revolutionary way to reuse scrap. The book was loathed by the old-line folks and lauded by the new guys like me.


pages: 381 words: 78,467

100 Plus: How the Coming Age of Longevity Will Change Everything, From Careers and Relationships to Family And by Sonia Arrison

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23andMe, 8-hour work day, Albert Einstein, Anne Wojcicki, artificial general intelligence, attribution theory, Bill Joy: nanobots, bioinformatics, Clayton Christensen, dark matter, East Village, en.wikipedia.org, epigenetics, Frank Gehry, Googley, income per capita, indoor plumbing, Jeff Bezos, Johann Wolfgang von Goethe, Law of Accelerating Returns, life extension, personalized medicine, Peter Thiel, placebo effect, post scarcity, Ray Kurzweil, rolodex, Silicon Valley, Simon Kuznets, Singularitarianism, smart grid, speech recognition, stem cell, Stephen Hawking, Steve Jobs, Steve Wozniak, Steven Levy, Thomas Malthus, upwardly mobile, World Values Survey, X Prize

In fact, as implied earlier, because people will have longer health spans, there will likely be an increase in the amount of time they spend in training at the beginning of their lives as well as throughout their lives. This begs the question of whether educational delivery will change as our lives lengthen and we become more technologically sophisticated. Education likely will expand to offer more personalized instruction. In a recent book titled Disrupting Class, Clayton Christensen and his coauthors make a persuasive case that the future of education will become more tailored to individuals’ learning styles and levels. Whereas one student might learn best from rote memorization, another might be better off learning through an interactive game format or virtual reality system. Christensen sees better computers and software as the platform for providing this individualized training.


pages: 268 words: 75,850

The Formula: How Algorithms Solve All Our Problems-And Create More by Luke Dormehl

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3D printing, algorithmic trading, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, big data - Walmart - Pop Tarts, call centre, Cass Sunstein, Clayton Christensen, commoditize, computer age, death of newspapers, deferred acceptance, Edward Lorenz: Chaos theory, Erik Brynjolfsson, Filter Bubble, Flash crash, Florence Nightingale: pie chart, Frank Levy and Richard Murnane: The New Division of Labor, Google Earth, Google Glasses, High speed trading, Internet Archive, Isaac Newton, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Kevin Kelly, Kodak vs Instagram, lifelogging, Marshall McLuhan, means of production, Nate Silver, natural language processing, Netflix Prize, pattern recognition, price discrimination, recommendation engine, Richard Thaler, Rosa Parks, self-driving car, sentiment analysis, Silicon Valley, Silicon Valley startup, Slavoj Žižek, social graph, speech recognition, Steve Jobs, Steven Levy, Steven Pinker, Stewart Brand, the scientific method, The Signal and the Noise by Nate Silver, upwardly mobile, Wall-E, Watson beat the top human players on Jeopardy!, Y Combinator

“One of the questions our work provokes is what happens to that cadre of folks just out of law school, who don’t have clients yet, who aren’t rainmakers—what are they going to do?” Kelly says, with a twinge of genuine pain in his voice. “In the old days there was tons of stuff around for them. It might not always have been exciting work, but at least it was available. Now guys like us can do a lot of that work just by using the right algorithm.” Divorce by Algorithm Business-management guru Clayton Christensen identifies two types of new technology: “sustaining” and “disruptive” innovations.19 A sustaining technology is something that supports or enhances the way a business or market already operates. A disruptive technology, on the other hand, fundamentally alters the way in which a particular sector functions. An example of the former might be something like the advent of computerized accounting systems, while the arrival of digital cameras (which famously led to the downfall of Kodak) represents the latter.


pages: 302 words: 73,581

Platform Scale: How an Emerging Business Model Helps Startups Build Large Empires With Minimum Investment by Sangeet Paul Choudary

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3D printing, Airbnb, Amazon Web Services, barriers to entry, bitcoin, blockchain, business process, Chuck Templeton: OpenTable, Clayton Christensen, collaborative economy, commoditize, crowdsourcing, cryptocurrency, data acquisition, frictionless, game design, hive mind, Internet of things, invisible hand, Kickstarter, Lean Startup, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, means of production, multi-sided market, Network effects, new economy, Paul Graham, recommendation engine, ride hailing / ride sharing, shareholder value, sharing economy, Silicon Valley, Skype, Snapchat, social graph, social software, software as a service, software is eating the world, Spread Networks laid a new fibre optics cable between New York and Chicago, TaskRabbit, the payments system, too big to fail, transport as a service, two-sided market, Uber and Lyft, Uber for X, Wave and Pay

” — ABC MORNINGS RADIO TALK SHOW, Australian Radio, at the G20 World Summit 2014 “An excellent source for managers to develop platform thinking and stay up-to-date on the dynamics of platform-based markets.” — PROF. FENG ZHU, Professor, Harvard Business School “A forefront researcher into how businesses can better use metadata and current technology.” — 4BC 1116 NEWS TALK, Australian Radio, at the G20 World Summit 2014 “Sangeet is one of the deepest thinkers I know. He has helped countless startups understand and unlock their core value as platform businesses. His work sits next to Clayton Christensen and Geoffrey Moore.” — MENG WONG, Co-founder, JFDI “One of the best innovation strategists in the world and an expert on building platforms. His work is a must-read for entrepreneurs, investors, and innovators worldwide.” — KEVIN DEWALT, Former EIR at NSF and Founder, SoHelpful.Me “Sangeet’s work provides amazing insight into the success and failure of todays business models, a resource that entrepreneurs and innovators cannot afford to ignore


pages: 222 words: 70,132

Move Fast and Break Things: How Facebook, Google, and Amazon Cornered Culture and Undermined Democracy by Jonathan Taplin

1960s counterculture, 3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, American Legislative Exchange Council, Apple's 1984 Super Bowl advert, back-to-the-land, barriers to entry, basic income, battle of ideas, big data - Walmart - Pop Tarts, bitcoin, Brewster Kahle, Buckminster Fuller, Burning Man, Clayton Christensen, commoditize, creative destruction, crony capitalism, crowdsourcing, data is the new oil, David Brooks, David Graeber, don't be evil, Donald Trump, Douglas Engelbart, Douglas Engelbart, Dynabook, Edward Snowden, Elon Musk, equal pay for equal work, Erik Brynjolfsson, future of journalism, future of work, George Akerlof, George Gilder, Google bus, Hacker Ethic, Howard Rheingold, income inequality, informal economy, information asymmetry, information retrieval, Internet Archive, Internet of things, invisible hand, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Joseph Schumpeter, Kevin Kelly, Kickstarter, labor-force participation, life extension, Marc Andreessen, Mark Zuckerberg, Menlo Park, Metcalfe’s law, Mother of all demos, move fast and break things, move fast and break things, natural language processing, Network effects, new economy, Norbert Wiener, offshore financial centre, packet switching, Paul Graham, Peter Thiel, Plutocrats, plutocrats, pre–internet, Ray Kurzweil, recommendation engine, rent-seeking, revision control, Robert Bork, Robert Gordon, Robert Metcalfe, Ronald Reagan, Sand Hill Road, secular stagnation, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, smart grid, Snapchat, software is eating the world, Steve Jobs, Stewart Brand, technoutopianism, The Chicago School, The Market for Lemons, Tim Cook: Apple, trade route, transfer pricing, trickle-down economics, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, We wanted flying cars, instead we got 140 characters, web application, Whole Earth Catalog, winner-take-all economy, women in the workforce, Y Combinator

These enterprises cannot find sufficient opportunities to reinvest their cash because there is already overcapacity in many areas and because they are so productive that they are not creating new jobs and finding new consumers who might buy their products. As former treasury secretary Lawrence Summers has put it, “Lack of demand creates lack of supply.” Instead of making investments that could create new jobs, firms are now using their cash to buy back stock, which only increases economic inequality. 5. The Harvard Business School guru Clayton Christensen (The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail) argues, “Financial markets—and companies themselves—use assessment metrics that make innovations that eliminate jobs more attractive than those that create jobs.” Whereas the return on “efficiency innovations” is relatively quick, the more important “market-creating innovations,” which create entirely new industries that produce jobs, have a long time in which to return the investment.


pages: 319 words: 89,477

The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion by John Hagel Iii, John Seely Brown

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Albert Einstein, Andrew Keen, barriers to entry, Black Swan, business process, call centre, Clayton Christensen, cleantech, cloud computing, commoditize, corporate governance, creative destruction, Elon Musk, en.wikipedia.org, future of work, game design, George Gilder, intangible asset, Isaac Newton, job satisfaction, knowledge economy, knowledge worker, loose coupling, Louis Pasteur, Malcom McLean invented shipping containers, Maui Hawaii, medical residency, Network effects, old-boy network, packet switching, pattern recognition, peer-to-peer, pre–internet, profit motive, recommendation engine, Ronald Coase, shareholder value, Silicon Valley, Skype, smart transportation, software as a service, supply-chain management, The Nature of the Firm, the new new thing, too big to fail, trade liberalization, transaction costs

As we become more comfortable with our ability to achieve our potential at these levels, we will begin to see more and more opportunities to amplify our potential even further by reshaping broader and broader arenas. We will also have more insight into, and experience with, the pull techniques required to pursue shaping strategies. How Shaping Strategies Are Different from Other Strategies Shaping strategies differ significantly from other well-known strategies. Clayton Christensen and Michael Raynor have painted a very compelling picture of the potential to pursue disruptive innovation strategies.9 These strategies can generate enormous wealth for the innovator but, in general, they are different from the strategies we are discussing on two important dimensions. First, they often involve a single company making significant commitments to a disruptive innovation in technology or business design, rather than an individual or group bringing together very large numbers of companies to make complementary investments.


pages: 358 words: 106,729

Fault Lines: How Hidden Fractures Still Threaten the World Economy by Raghuram Rajan

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accounting loophole / creative accounting, Andrei Shleifer, Asian financial crisis, asset-backed security, assortative mating, bank run, barriers to entry, Bernie Madoff, Bretton Woods, business climate, Clayton Christensen, clean water, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency manipulation / currency intervention, diversification, Edward Glaeser, financial innovation, fixed income, floating exchange rates, full employment, global supply chain, Goldman Sachs: Vampire Squid, illegal immigration, implied volatility, income inequality, index fund, interest rate swap, Joseph Schumpeter, Kenneth Rogoff, knowledge worker, labor-force participation, Long Term Capital Management, market bubble, Martin Wolf, medical malpractice, microcredit, money market fund, moral hazard, new economy, Northern Rock, offshore financial centre, open economy, price stability, profit motive, Real Time Gross Settlement, Richard Florida, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, school vouchers, short selling, sovereign wealth fund, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, upwardly mobile, Vanguard fund, women in the workforce, World Values Survey

National Council for Volunteer Organizations and United for a Fair Economy, cited in Alberto Alesina and Edward Glaeser, Fighting Poverty in the US and Europe (Oxford: Oxford University Press, 2004), 45. 10 See, for example, Joe Peek and Eric S. Rosengren, “Unnatural Selection: Perverse Incentives and the Misallocation of Credit in Japan,” American Economic Review 95, no. 4 (September 2005): 1144–66; Takeo Hoshi and Anil Kashyap, Corporate Financing and Governance in Japan: The Road to the Future (Cambridge, MA: MIT Press, 2004). 11 See “A Fork in the Road,” Financial Times, December 11, 2009. 12 See, for example, Clayton Christensen, The Innovator’s Dilemma (New York: Harper Paperbacks, 2003). 13 National Science Foundation, Science and Engineering Indicators, chapter 5, Appendix Table 5–43, National Science Foundation, www.nsf.gov/statistics/seind10/c5/ c5s4.htm, accessed March 10, 2010. 14 Alesina and Glaeser, Fighting Poverty, 19. 15 Talkin’ ’bout My Generation: The Economic Impact of Aging U.S. Baby Boomers, McKinsey Global Institute, Washington, DC, 2008. 16 See, for example, Louis Hartz, The Liberal Tradition in America (San Diego, CA: Harvest HBJ, 1991). 17 Alesina and Glaeser, Fighting Poverty, 197. 18 See Theda Skocpol, Protecting Soldiers and Mothers: The Political Origins of Social Policy in the United States (Cambridge, MA: Belknap Press, 1992), 50. 19 See Raghuram Rajan and Luigi Zingales, Saving Capitalism from the Capitalists (Princeton, NJ: Princeton University Press, 2004). 20 See Alesina and Glaeser, Fighting Poverty. 21 See Jacob S.


pages: 353 words: 91,520

Most Likely to Succeed: Preparing Our Kids for the Innovation Era by Tony Wagner, Ted Dintersmith

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affirmative action, Airbnb, Albert Einstein, Bernie Sanders, Clayton Christensen, creative destruction, David Brooks, en.wikipedia.org, Frederick Winslow Taylor, future of work, immigration reform, income inequality, index card, Jeff Bezos, jimmy wales, Khan Academy, Kickstarter, knowledge economy, knowledge worker, low skilled workers, Lyft, Mark Zuckerberg, means of production, new economy, pattern recognition, Paul Graham, Peter Thiel, Ponzi scheme, pre–internet, school choice, Silicon Valley, Skype, Steven Pinker, TaskRabbit, the scientific method, unpaid internship, Y Combinator

Other priorities—higher rankings, growing enrollment, winning teams, bigger and better facilities, more revenue from sideline businesses, more research grants—have replaced learning as the primary touchstone for decision making.4 Meanwhile, the college “market” is being profoundly disrupted by the availability of free or low-cost online courses and alternate pathways for acquiring job skills, as we’ll see in chapter 7. Business guru Clayton Christensen believes that, because the value proposition for college has declined so radically and the finances of many colleges are so shaky, “15 years from now half of US universities may be in bankruptcy.”5 (We’re a little more optimistic than our friend Clayton. We believe that many will become assisted living homes!) When the two of us went to college decades ago, its combined overall cost (all four years of tuition, room, and board) was generally in line with typical first-year starting salaries.


pages: 330 words: 88,445

The Rise of Superman: Decoding the Science of Ultimate Human Performance by Steven Kotler

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Albert Einstein, Any sufficiently advanced technology is indistinguishable from magic, Clayton Christensen, data acquisition, delayed gratification, deliberate practice, fear of failure, Google Earth, haute couture, impulse control, Isaac Newton, Jeff Bezos, jimmy wales, Kevin Kelly, Lao Tzu, life extension, lifelogging, Maui Hawaii, pattern recognition, Ray Kurzweil, risk tolerance, rolodex, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Steve Jobs, Walter Mischel, X Prize

In 2004, when Barbara Walters interviewed Page and Brin, she asked if the fact that their parents were both college professors was the major reason for their success. Page felt otherwise: “We both went to Montessori schools, and I think it was part of that training of not following rules and orders, and being self-motivated, questioning what’s going on in the world, doing things a little bit differently.” they too found a Montessori connection: Jeffrey Dyer, Hal Gregersen, and Clayton Christensen, “The Innovator’s DNA,” Harvard Business Review, December 2009. 179 “Go back to Roger Bannister’s time”: Mike Gervais, AI, April 2013. 180 “The idea was to develop”: Leslie Sherlin, AI, February 2013. “quantified Self” devices: Lila Battis, “Fitness Trackers Compared!” Men’s Health. See: http://www.menshealth.com/techlust/new-fitness-trackers. 181 Hugh Herr, the head of the biomechatronics: Steven Kotler, “Bionic Man,” Playboy, June 2012.


pages: 347 words: 97,721

Only Humans Need Apply: Winners and Losers in the Age of Smart Machines by Thomas H. Davenport, Julia Kirby

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AI winter, Andy Kessler, artificial general intelligence, asset allocation, Automated Insights, autonomous vehicles, basic income, Baxter: Rethink Robotics, business intelligence, business process, call centre, carbon-based life, Clayton Christensen, clockwork universe, commoditize, conceptual framework, dark matter, David Brooks, deliberate practice, deskilling, digital map, Douglas Engelbart, Edward Lloyd's coffeehouse, Elon Musk, Erik Brynjolfsson, estate planning, fixed income, follow your passion, Frank Levy and Richard Murnane: The New Division of Labor, Freestyle chess, game design, general-purpose programming language, Google Glasses, Hans Lippershey, haute cuisine, income inequality, index fund, industrial robot, information retrieval, intermodal, Internet of things, inventory management, Isaac Newton, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Khan Academy, knowledge worker, labor-force participation, lifelogging, loss aversion, Mark Zuckerberg, Narrative Science, natural language processing, Norbert Wiener, nuclear winter, pattern recognition, performance metric, Peter Thiel, precariat, quantitative trading / quantitative finance, Ray Kurzweil, Richard Feynman, Richard Feynman, risk tolerance, Robert Shiller, Robert Shiller, Rodney Brooks, Second Machine Age, self-driving car, Silicon Valley, six sigma, Skype, speech recognition, spinning jenny, statistical model, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, superintelligent machines, supply-chain management, transaction costs, Tyler Cowen: Great Stagnation, Watson beat the top human players on Jeopardy!, Works Progress Administration, Zipcar

CareerSearch, “Career Advice on How to Become an Insurance Underwriter,” http://www.careersearch.com/careers/real-estate-and-insurance/insurance-underwriter/. 13. Mike Batty and Alice Kroll, “Automated Life Underwriting: A Survey of Life Insurance Utilization of Automated Underwriting Systems,” prepared for the Society of Actuaries, 2009, file:///C:/Users/jkirby/Downloads/research-life-auto-underwriting.pdf. 14. Thomas Arnett, “How Technology Displaces Teachers’ Jobs,” Clayton Christensen Institute for Disruptive Innovation, November 19, 2014, http://www.christenseninstitute.org/how-technology-displaces-teachers-jobs/#sthash.PyjrVrNk.dpuf. 15. David Port, “Reckoning with Robo-Advisors,” LifeHealthPRO, December 31, 2014, http://www.lifehealthpro.com/2014/12/31/reckoning-with-robo-advisors. Chapter 4: Stepping Up 1. “Statement of Ronald J. Cathcart,” Hearing Before the United States Senate Permanent Subcommittee on Investigations of the Committee on Homeland Security and Governmental Affairs, April 13, 2010, https://www.hsgac.senate.gov/downloads/stmt-cathcart-ronald-april-13-2010-psi-fin-crisis-hrg. 2.


pages: 322 words: 88,197

Wonderland: How Play Made the Modern World by Steven Johnson

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Ada Lovelace, Alfred Russel Wallace, Antoine Gombaud: Chevalier de Méré, Berlin Wall, bitcoin, Book of Ingenious Devices, Buckminster Fuller, Claude Shannon: information theory, Clayton Christensen, colonial exploitation, computer age, conceptual framework, crowdsourcing, cuban missile crisis, Drosophila, Edward Thorp, Fellow of the Royal Society, game design, global village, Hedy Lamarr / George Antheil, HyperCard, invention of air conditioning, invention of the printing press, invention of the telegraph, Islamic Golden Age, Jacquard loom, Jacquard loom, Jacques de Vaucanson, James Watt: steam engine, Jane Jacobs, John von Neumann, joint-stock company, Joseph-Marie Jacquard, land value tax, Landlord’s Game, lone genius, mass immigration, megacity, Minecraft, moral panic, Murano, Venice glass, music of the spheres, Necker cube, New Urbanism, Oculus Rift, On the Economy of Machinery and Manufactures, pattern recognition, peer-to-peer, pets.com, placebo effect, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, QWERTY keyboard, Ray Oldenburg, spice trade, spinning jenny, statistical model, Steve Jobs, Steven Pinker, Stewart Brand, supply-chain management, talking drums, the built environment, The Great Good Place, the scientific method, The Structural Transformation of the Public Sphere, trade route, Turing machine, Turing test, Upton Sinclair, urban planning, Victor Gruen, Watson beat the top human players on Jeopardy!, white flight, white picket fence, Whole Earth Catalog, working poor, Wunderkammern

The process happened faster than it did in the days of West End illusion, but the underlying pattern was the same: early experiments, followed by explosive diversity, followed by radical consolidation. The innovation that triumphs at the end of this sequence is often inferior in many ways to its rivals: remember that cinema, for all its advantages, lacked color for its first fifty years, and even in the age of 3-D IMAX, movies lack the 360-degree vista of the Panorama. But cinema was not a classic Clayton Christensen–style disruption where an inferior but cheap new product wipes out a more fully featured but expensive rival. As alluring as the mechanical dancers were at Merlin’s, no one mistook them for genuine human beings. Once you could project images of actual people onto the screen—dancing and gesticulating and emoting, even without color or sound—the appeal of magic-lantern specters dissolved into thin air.


pages: 344 words: 94,332

The 100-Year Life: Living and Working in an Age of Longevity by Lynda Gratton, Andrew Scott

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3D printing, Airbnb, assortative mating, carbon footprint, Clayton Christensen, collapse of Lehman Brothers, creative destruction, crowdsourcing, delayed gratification, diversification, Downton Abbey, Erik Brynjolfsson, falling living standards, financial independence, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, gender pay gap, gig economy, Google Glasses, indoor plumbing, information retrieval, intangible asset, Isaac Newton, job satisfaction, low skilled workers, Lyft, Network effects, New Economic Geography, old age dependency ratio, pattern recognition, pension reform, Peter Thiel, Ray Kurzweil, Richard Florida, Richard Thaler, Second Machine Age, sharing economy, side project, Silicon Valley, smart cities, Stephen Hawking, Steve Jobs, The Future of Employment, women in the workforce, young professional

In order to support those destined to live long lives, the agenda faced by educational institutions is fourfold: how to incorporate new learning technologies and experiential learning; how to break down boundaries between age groups; how to think more deeply about ways to teach creativity, innovation, humanity and empathy; and how to rapidly expand practical specialisms in order to ensure that education wins in its race against technology. It is no surprise therefore that Harvard Business School Professor Clayton Christensen argues that technology makes education ripe for ‘disruptive innovation’, and that this will have a positive impact on lifelong learning. Investments in digital innovations will transform the classroom, with online teaching, MOOCs, digital degrees and certifications with new providers and new entrants. Looking forward, Jane and her cohort will find an ever-increasing array of options for how, what and where they study, and at what price.


pages: 323 words: 90,868

The Wealth of Humans: Work, Power, and Status in the Twenty-First Century by Ryan Avent

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3D printing, Airbnb, American energy revolution, assortative mating, autonomous vehicles, Bakken shale, barriers to entry, basic income, Bernie Sanders, BRICs, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, creative destruction, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, intangible asset, interchangeable parts, Internet of things, inventory management, invisible hand, Jacquard loom, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, Marc Andreessen, mass immigration, means of production, new economy, performance metric, pets.com, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Future of Employment, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, very high income, working-age population

Value in society is increasingly built on ideas, and the firms that do best in this society are those that can manipulate ideas most effectively. The information-processing role of the firm can help us to understand the phenomenon of ‘disruption’, in which older businesses struggle to adapt to powerful new technologies or market opportunities. The notion of a ‘disruptive’ technology was first described in detail by Clayton Christensen, a scholar at Harvard Business School.4 Disruption is one of the most important ideas in business and management to emerge over the last generation. A disruptive innovation, in Christensen’s sense, is one that is initially not very good, in the sense that it does badly on the performance metrics that industry leaders care about, but which then catches on rapidly, wrong-footing older firms and upending the industry.

The End of Accounting and the Path Forward for Investors and Managers (Wiley Finance) by Feng Gu

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active measures, Affordable Care Act / Obamacare, barriers to entry, business process, Claude Shannon: information theory, Clayton Christensen, commoditize, conceptual framework, corporate governance, creative destruction, Daniel Kahneman / Amos Tversky, discounted cash flows, diversified portfolio, double entry bookkeeping, Exxon Valdez, financial innovation, fixed income, hydraulic fracturing, index fund, information asymmetry, intangible asset, inventory management, Joseph Schumpeter, Kenneth Arrow, knowledge economy, moral hazard, new economy, obamacare, quantitative easing, quantitative trading / quantitative finance, QWERTY keyboard, race to the bottom, risk/return, Robert Shiller, Robert Shiller, shareholder value, Steve Jobs, The Great Moderation, value at risk

All respondents to the annual “Business R&D and Innovation Survey,” conducted by the National Science Foundation with the Census Bureau—essentially all US companies conducting R&D—routinely report this classification, along with other important details related to R&D. But you won’t find this important information in financial reports. 9. In 2013, almost 6,500 patent infringement lawsuits were filed in the United States (PricewaterhouseCoopers, 2014 Patent Litigation Study, at www.pwc .com). 10. The classic on disruption: Clayton Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Boston: Harvard Business School Press, 1997). 11. See Internal Control—Integrated Framework, Committee of Sponsoring Organizations of the Treadway Commission, December 2011, at www.ic.coso.org (“Risk assessment also requires management to consider the impact of possible changes in the external environment . . . ” p. 51). 12.


pages: 327 words: 90,542

The Age of Stagnation by Satyajit Das

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9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Albert Einstein, Alfred Russel Wallace, Anton Chekhov, Asian financial crisis, banking crisis, Berlin Wall, bitcoin, Bretton Woods, BRICs, British Empire, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, disintermediation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, happiness index / gross national happiness, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, labour mobility, light touch regulation, liquidity trap, Long Term Capital Management, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, Mikhail Gorbachev, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, passive income, peak oil, peer-to-peer lending, pension reform, Plutocrats, plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Ronald Reagan, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game

Whatever their cultural impact, Facebook, Twitter, and their successors may not have viable long-term economic models. Further underlying the nature of modern innovation, in 2015 Ashley Madison, an online site for people seeking extramarital affairs, announced plans to raise US$200 million to expand the market for adultery. Industrial revolution 3 emphasizes disruptive technologies, a term associated with Harvard professor Clayton Christensen and his influential 1997 book The Innovator's Dilemma. It differentiated between sustainable innovations, which improve products and make valuable changes for a firm's current customers, and disruptive innovations—cheaper, poorer-quality products that initially target less profitable customers so as to undercut existing businesses, with the object of eventually dominating the industry. In a vituperative exchange characteristic of academic cloisters, historian Jill Lepore criticized Christensen's heavily marketed and promoted thesis, arguing that his hand-picked case studies did not support the theory.


pages: 443 words: 98,113

The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay by Guy Standing

3D printing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Bernie Sanders, Big bang: deregulation of the City of London, bilateral investment treaty, Bonfire of the Vanities, Bretton Woods, Capital in the Twenty-First Century by Thomas Piketty, carried interest, cashless society, central bank independence, centre right, Clayton Christensen, collapse of Lehman Brothers, collective bargaining, credit crunch, crony capitalism, crowdsourcing, debt deflation, declining real wages, deindustrialization, Doha Development Round, Donald Trump, Double Irish / Dutch Sandwich, ending welfare as we know it, eurozone crisis, falling living standards, financial deregulation, financial innovation, Firefox, first-past-the-post, future of work, gig economy, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, income inequality, information retrieval, intangible asset, invention of the steam engine, investor state dispute settlement, James Watt: steam engine, job automation, John Maynard Keynes: technological unemployment, labour market flexibility, light touch regulation, Long Term Capital Management, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market clearing, Martin Wolf, means of production, mini-job, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, nudge unit, Occupy movement, offshore financial centre, oil shale / tar sands, open economy, openstreetmap, patent troll, payday loans, peer-to-peer lending, Plutocrats, plutocrats, Ponzi scheme, precariat, quantitative easing, remote working, rent control, rent-seeking, ride hailing / ride sharing, Right to Buy, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, sharing economy, Silicon Valley, Silicon Valley startup, Simon Kuznets, sovereign wealth fund, Stephen Hawking, Steve Ballmer, structural adjustment programs, TaskRabbit, The Chicago School, The Future of Employment, the payments system, Thomas Malthus, Thorstein Veblen, too big to fail, Uber and Lyft, Uber for X, Y Combinator, zero-sum game, Zipcar

Many platforms claim to be part of a new ‘sharing economy’ that is boosting efficiency and incomes through increased utilisation of underused assets. However, they are in fact expanding the scope of commodified labour and the amount of unpaid work-for-labour, as we will see. All bypass the firm as traditionally understood. They are creating ‘platform capitalism’. In a seminal book, The Innovator’s Dilemma, Clayton Christensen argued that innovation was ‘disruptive’ if it had the potential to generate new products or services or to deliver them in radically new ways.3 He and colleagues later claimed that the provision of services through digital platforms did not meet two criteria for disruptive innovation – that the innovation must target the low end of an existing market and mainly draw in non-consumers of existing options.4 But digital platforms surely qualify as disruptive on both counts.


pages: 275 words: 84,980

Before Babylon, Beyond Bitcoin: From Money That We Understand to Money That Understands Us (Perspectives) by David Birch

agricultural Revolution, Airbnb, bank run, banks create money, bitcoin, blockchain, Bretton Woods, British Empire, Broken windows theory, Burning Man, capital controls, cashless society, Clayton Christensen, clockwork universe, creative destruction, credit crunch, cross-subsidies, crowdsourcing, cryptocurrency, David Graeber, dematerialisation, Diane Coyle, distributed ledger, double entry bookkeeping, ethereum blockchain, facts on the ground, fault tolerance, fiat currency, financial exclusion, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, index card, informal economy, Internet of things, invention of the printing press, invention of the telegraph, invention of the telephone, invisible hand, Irish bank strikes, Isaac Newton, Jane Jacobs, Kenneth Rogoff, knowledge economy, Kuwabatake Sanjuro: assassination market, large denomination, M-Pesa, market clearing, market fundamentalism, Marshall McLuhan, Martin Wolf, mobile money, money: store of value / unit of account / medium of exchange, new economy, Northern Rock, Pingit, prediction markets, price stability, QR code, quantitative easing, railway mania, Ralph Waldo Emerson, Real Time Gross Settlement, reserve currency, Satoshi Nakamoto, seigniorage, Silicon Valley, smart contracts, social graph, special drawing rights, technoutopianism, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, wage slave, Washington Consensus, wikimedia commons

Telegrams and telephones By 1884 Western Union was a giant: it was one of only eleven stocks used to create the first Dow Jones Transportation Average in 1884, although I suppose you might argue that its decline began well before that when, in 1876, it turned down the opportunity to buy Bell’s patents on the telephone for $100,000. Bell instead used these patents, which are often called the most valuable patents in history, to set up his own phone company: a company that was grossing a million dollars per annum well before the Dow Jones started. Yet at the time, Western Union management were making the right decision on the basis of the information available to them. As Clayton Christensen points out, it is very difficult for an incumbent to justify investment in new technology when it creates a different business model because it will always earn more in the short term from investing in its core business; competitors have asymmetric motivation (Christensen et al. 2005). And naturally, if the incumbent asks its customers what they want, they will direct the investment in the same direction.


pages: 467 words: 154,960

Trend Following: How Great Traders Make Millions in Up or Down Markets by Michael W. Covel

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Albert Einstein, asset allocation, Atul Gawande, backtesting, beat the dealer, Bernie Madoff, Black Swan, buy low sell high, capital asset pricing model, Clayton Christensen, commodity trading advisor, computerized trading, correlation coefficient, Daniel Kahneman / Amos Tversky, delayed gratification, deliberate practice, diversification, diversified portfolio, Edward Thorp, Elliott wave, Emanuel Derman, Eugene Fama: efficient market hypothesis, Everything should be made as simple as possible, fiat currency, fixed income, game design, hindsight bias, housing crisis, index fund, Isaac Newton, John Meriwether, John Nash: game theory, linear programming, Long Term Capital Management, mandelbrot fractal, margin call, market bubble, market fundamentalism, market microstructure, mental accounting, money market fund, Myron Scholes, Nash equilibrium, new economy, Nick Leeson, Ponzi scheme, prediction markets, random walk, Renaissance Technologies, Richard Feynman, Richard Feynman, risk tolerance, risk-adjusted returns, risk/return, Robert Shiller, Robert Shiller, shareholder value, Sharpe ratio, short selling, South Sea Bubble, Stephen Hawking, survivorship bias, systematic trading, the scientific method, Thomas L Friedman, too big to fail, transaction costs, upwardly mobile, value at risk, Vanguard fund, volatility arbitrage, William of Occam, zero-sum game

And thank you to the following publications and writers who generously allowed me to quote from their work: Sol Waksman and Barclay Managed Futures Report, Futures Magazine, Managed Account Reports, Michael Rulle of Graham Capital Management, and Technical Analysis of Stocks and Commodities Magazine. I am also indebted to the following authors whose works continue to be treasure troves of information and insight: Morton Baratz, Peter Bernstein, Clayton Christensen, Jim Collins, Jay Forrester, Tom Friedman, Gerd Gigerenzer, Daniel Goleman, Stephen Jay Gould, Alan Greenberg, Larry Harris, Robert Koppel, Edwin Lefevere, Michael Lewis, Jesse Livermore, Roger Lowenstein, Acknowledgments Ludwig von Mises, Lois Peltz, Ayn Rand, Jack Schwager, Denise Shekerjian, Robert Shiller, Van Tharp, Edward Thorp, Peter Todd, Brenda Ueland, and Dickson Watts. This book could only have come to fruition with the editorial guidance of Jim Boyd at FT Press, as well as the able assistance and attention to detail of Dennis Higbee.


pages: 629 words: 142,393

The Future of the Internet: And How to Stop It by Jonathan Zittrain

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A Declaration of the Independence of Cyberspace, Amazon Mechanical Turk, Andy Kessler, barriers to entry, book scanning, Brewster Kahle, Burning Man, c2.com, call centre, Cass Sunstein, citizen journalism, Clayton Christensen, clean water, commoditize, corporate governance, Daniel Kahneman / Amos Tversky, distributed generation, en.wikipedia.org, Firefox, game design, Hacker Ethic, Howard Rheingold, Hush-A-Phone, illegal immigration, index card, informal economy, Internet Archive, jimmy wales, John Markoff, license plate recognition, loose coupling, mail merge, national security letter, old-boy network, packet switching, peer-to-peer, Post-materialism, post-materialism, pre–internet, price discrimination, profit maximization, Ralph Nader, RFC: Request For Comment, RFID, Richard Stallman, Richard Thaler, risk tolerance, Robert Bork, Robert X Cringely, SETI@home, Silicon Valley, Skype, slashdot, software patent, Steve Ballmer, Steve Jobs, Ted Nelson, Telecommunications Act of 1996, The Nature of the Firm, The Wisdom of Crowds, web application, wikimedia commons, zero-sum game

Once you reach the top of the hierarchy, you acquire status and benefits that can soon be lost—the nice cars, the home in Brentwood, the private schools…. It doesn’t make sense to jeopardize any of that by adopting a reckless attitude towards new technologies, new markets. Moving slow, and making clear, safe progress is the mantra.23 The puzzle of why big firms exhibit such innovative inertia was placed into a theoretical framework by Clayton Christensen in his pioneering book The Innovator’s Dilemma.24 Christensen found the hard disk drive industry representative. In it, market leaders tended to be very good at quickly and successfully adopting some technological advancements, yet were entirely left behind by upstarts. To explain the discrepancy, he created a taxonomy of “sustaining” and “disruptive” innovations. When technological innovations are consistent with the performance trajectory of established market leaders—that is, when they are a more efficient way of doing what they already do—alert leaders will be quick to develop and utilize such “sustaining” innovations.


pages: 588 words: 131,025

The Patient Will See You Now: The Future of Medicine Is in Your Hands by Eric Topol

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23andMe, 3D printing, Affordable Care Act / Obamacare, Anne Wojcicki, Atul Gawande, augmented reality, bioinformatics, call centre, Clayton Christensen, clean water, cloud computing, commoditize, computer vision, conceptual framework, connected car, correlation does not imply causation, creative destruction, crowdsourcing, dark matter, data acquisition, disintermediation, don't be evil, Edward Snowden, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Firefox, global village, Google Glasses, Google X / Alphabet X, Ignaz Semmelweis: hand washing, information asymmetry, interchangeable parts, Internet of things, Isaac Newton, job automation, Joseph Schumpeter, Julian Assange, Kevin Kelly, license plate recognition, lifelogging, Lyft, Mark Zuckerberg, Marshall McLuhan, meta analysis, meta-analysis, microbiome, Nate Silver, natural language processing, Network effects, Nicholas Carr, obamacare, pattern recognition, personalized medicine, phenotype, placebo effect, RAND corporation, randomized controlled trial, Second Machine Age, self-driving car, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, Snapchat, social graph, speech recognition, stealth mode startup, Steve Jobs, the scientific method, The Signal and the Noise by Nate Silver, The Wealth of Nations by Adam Smith, Turing test, Uber for X, Watson beat the top human players on Jeopardy!, X Prize

—GEORGE HALVORSON, FORMER CEO OF KAISER PERMANENTE1 “The hospital of the future will not be a hospital at all.” —DEBORAH DISANZO, FORMER CEO OF PHILIPS HEALTHCARE2,3 “In a typical hospital, overheads account for 85 to 90 percent of total costs because of the complexity of offering a ‘one size fits none’ offering. It turns out there are three different business models inside a hospital, and those three business models are incompatible.” —CLAYTON CHRISTENSEN When I was training to be a cardiologist in the 1980s at Johns Hopkins, it took three hospital days for a patient to undergo a cardiac catheterization. Each patient was admitted the day before the procedure to have a full evaluation, which consisted of a history and physical, chest X-ray, an electrocardiogram, and the routine laboratories. An intravenous line was placed to give fluid in preparation for the exposure of contrast dye, which can harm the kidneys if a patient is dehydrated.


pages: 418 words: 128,965

The Master Switch: The Rise and Fall of Information Empires by Tim Wu

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accounting loophole / creative accounting, Alfred Russel Wallace, Apple II, barriers to entry, British Empire, Burning Man, Cass Sunstein, Clayton Christensen, commoditize, corporate raider, creative destruction, don't be evil, Douglas Engelbart, Douglas Engelbart, Howard Rheingold, Hush-A-Phone, informal economy, intermodal, Internet Archive, invention of movable type, invention of the telephone, invisible hand, Jane Jacobs, John Markoff, Joseph Schumpeter, Menlo Park, open economy, packet switching, PageRank, profit motive, road to serfdom, Robert Bork, Robert Metcalfe, Ronald Coase, sexual politics, shareholder value, Silicon Valley, Skype, Steve Jobs, Steve Wozniak, Telecommunications Act of 1996, The Chicago School, The Death and Life of Great American Cities, the market place, The Wisdom of Crowds, too big to fail, Upton Sinclair, urban planning, zero-sum game

That distance affords a perspective close enough to understand the problem, yet far enough for greater freedom of thought, freedom from, as it were, the cognitive distortion of what is as opposed to what could be. This innovative distance explains why so many of those who turn an industry upside down are outsiders, even outcasts. To understand this point we need grasp the difference between two types of innovation: “sustaining” and “disruptive,” the distinction best described by innovation theorist Clayton Christensen. Sustaining innovations are improvements that make the product better, but do not threaten its market. The disruptive innovation, conversely, threatens to displace a product altogether. It is the difference between the electric typewriter, which improved on the typewriter, and the word processor, which supplanted it.5 Another advantage of the outside inventor is less a matter of the imagination than of his being a disinterested party.


pages: 413 words: 119,587

Machines of Loving Grace: The Quest for Common Ground Between Humans and Robots by John Markoff

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A Declaration of the Independence of Cyberspace, AI winter, airport security, Apple II, artificial general intelligence, Asilomar, augmented reality, autonomous vehicles, basic income, Baxter: Rethink Robotics, Bill Duvall, bioinformatics, Brewster Kahle, Burning Man, call centre, cellular automata, Chris Urmson, Claude Shannon: information theory, Clayton Christensen, clean water, cloud computing, collective bargaining, computer age, computer vision, crowdsourcing, Danny Hillis, DARPA: Urban Challenge, data acquisition, Dean Kamen, deskilling, don't be evil, Douglas Engelbart, Douglas Engelbart, Douglas Hofstadter, Dynabook, Edward Snowden, Elon Musk, Erik Brynjolfsson, factory automation, From Mathematics to the Technologies of Life and Death, future of work, Galaxy Zoo, Google Glasses, Google X / Alphabet X, Grace Hopper, Gunnar Myrdal, Gödel, Escher, Bach, Hacker Ethic, haute couture, hive mind, hypertext link, indoor plumbing, industrial robot, information retrieval, Internet Archive, Internet of things, invention of the wheel, Jacques de Vaucanson, Jaron Lanier, Jeff Bezos, job automation, John Conway, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, knowledge worker, Kodak vs Instagram, labor-force participation, loose coupling, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, medical residency, Menlo Park, Mother of all demos, natural language processing, new economy, Norbert Wiener, PageRank, pattern recognition, pre–internet, RAND corporation, Ray Kurzweil, Richard Stallman, Robert Gordon, Rodney Brooks, Sand Hill Road, Second Machine Age, self-driving car, semantic web, shareholder value, side project, Silicon Valley, Silicon Valley startup, Singularitarianism, skunkworks, Skype, social software, speech recognition, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, strong AI, superintelligent machines, technological singularity, Ted Nelson, telemarketer, telepresence, telepresence robot, Tenerife airport disaster, The Coming Technological Singularity, the medium is the message, Thorstein Veblen, Turing test, Vannevar Bush, Vernor Vinge, Watson beat the top human players on Jeopardy!, Whole Earth Catalog, William Shockley: the traitorous eight, zero-sum game

Like many of the “Singularitarians,” he points to a portfolio of social engineering options for softening the impact. Brynjolfsson and McAfee in The Second Machine Age sketch out a broad set of policy options that have the flavor of a new New Deal, with examples like “teach the children well,” “support our scientists,” “upgrade infrastructure.” Others like Harvard Business School professor Clayton Christensen have argued for focusing on technologies that create rather than destroy jobs (a very clear IA versus AI position). At the same time, while many who believe in accelerating change agonize about its potential impact, others have a more optimistic perspective. In a series of reports issued beginning in 2013, the International Federation of Robotics (IFR), established in 1987 with headquarters in Frankfurt, Germany, self-servingly argued that manufacturing robots actually increased economic activity and therefore, instead of causing unemployment, both directly and indirectly increased the total number of human jobs.


pages: 382 words: 120,064

Bank 3.0: Why Banking Is No Longer Somewhere You Go but Something You Do by Brett King

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3D printing, additive manufacturing, Airbus A320, Albert Einstein, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, asset-backed security, augmented reality, barriers to entry, bitcoin, bounce rate, business intelligence, business process, business process outsourcing, call centre, capital controls, citizen journalism, Clayton Christensen, cloud computing, credit crunch, crowdsourcing, disintermediation, en.wikipedia.org, fixed income, George Gilder, Google Glasses, high net worth, I think there is a world market for maybe five computers, Infrastructure as a Service, invention of the printing press, Jeff Bezos, jimmy wales, London Interbank Offered Rate, M-Pesa, Mark Zuckerberg, mass affluent, Metcalfe’s law, microcredit, mobile money, more computing power than Apollo, Northern Rock, Occupy movement, optical character recognition, peer-to-peer, performance metric, Pingit, platform as a service, QR code, QWERTY keyboard, Ray Kurzweil, recommendation engine, RFID, risk tolerance, Robert Metcalfe, self-driving car, Skype, speech recognition, stem cell, telepresence, Tim Cook: Apple, transaction costs, underbanked, US Airways Flight 1549, web application

So what did you do? You told customers, “Don’t reply to this email because we won’t answer it,” or, when they did email, you just ignored them. This still goes on today. I’m not going to embark on a lengthy discussion around customer service, culture and how you need to build that. There is a plethora of reference works on that subject, including the work of Ron Kaufman (Up Your Service), Micah Solomon, Clayton Christensen, Ken Blanchard, and Gary Vaynerchuk, which are amongst my favourites. However, I will attempt to describe the problem and an organisational fix to the silos that frustrate service and sales within the retail financial services space. “I genuinely believe that any business can create a competitive advantage through giving outstanding customer care.” —Gary Vaynerchuk (@garyvee) This is a great quote.


pages: 309 words: 114,984

The Digital Doctor: Hope, Hype, and Harm at the Dawn of Medicine’s Computer Age by Robert Wachter

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activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, AI winter, Airbnb, Atul Gawande, Captain Sullenberger Hudson, Checklist Manifesto, Chuck Templeton: OpenTable, Clayton Christensen, collapse of Lehman Brothers, computer age, creative destruction, crowdsourcing, deskilling, en.wikipedia.org, Erik Brynjolfsson, everywhere but in the productivity statistics, Firefox, Frank Levy and Richard Murnane: The New Division of Labor, Google Glasses, Ignaz Semmelweis: hand washing, Internet of things, job satisfaction, Joseph Schumpeter, knowledge worker, lifelogging, medical malpractice, medical residency, Menlo Park, minimum viable product, natural language processing, Network effects, Nicholas Carr, obamacare, pattern recognition, peer-to-peer, personalized medicine, pets.com, Productivity paradox, Ralph Nader, RAND corporation, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley startup, six sigma, Skype, Snapchat, software as a service, Steve Jobs, Steven Levy, the payments system, The Wisdom of Crowds, Thomas Bayes, Toyota Production System, Uber for X, US Airways Flight 1549, Watson beat the top human players on Jeopardy!, Yogi Berra

Moreover, watching her work taught me how great journalists operate: how hard you have to dig to get a complex story straight; how crucial it is to be fair without being timid; how important it is to check your ego at the door when receiving feedback (“This is not a PhD thesis!!!” was typical of the notes from Katie I’d find in the margin); how landing a single great quote or fresh insight from an hour-long interview represents a stunning success. For this book and so much more, I owe her everything. Notes Preface xi that long-awaited “disruptive innovation” This concept was described by Clayton Christensen in C. Christensen, The Innovator’s Dilemma: The Revolutionary Book That Will Change the Way You Do Business (Boston: Harvard Business Review Press, 1997). For its relevance to healthcare, see C. M. Christensen, J. H. Grossman, and J. Hwang, The Innovator’s Prescription: A Disruptive Solution for Health Care (New York: McGraw-Hill, 2009). xii I even blog and tweet My blog is Wachter’s World, and it can be found at www.wachtersworld.org.


pages: 424 words: 115,035

How Will Capitalism End? by Wolfgang Streeck

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accounting loophole / creative accounting, Airbnb, basic income, Ben Bernanke: helicopter money, Bretton Woods, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, centre right, Clayton Christensen, collective bargaining, conceptual framework, corporate governance, creative destruction, credit crunch, David Brooks, David Graeber, debt deflation, deglobalization, deindustrialization, en.wikipedia.org, eurozone crisis, failed state, financial deregulation, financial innovation, first-past-the-post, fixed income, full employment, Gini coefficient, global reserve currency, Google Glasses, haute cuisine, income inequality, information asymmetry, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Rogoff, labour market flexibility, labour mobility, late capitalism, liberal capitalism, market bubble, means of production, moral hazard, North Sea oil, offshore financial centre, open borders, pension reform, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, post-industrial society, private sector deleveraging, profit maximization, profit motive, quantitative easing, reserve currency, rising living standards, Robert Gordon, savings glut, secular stagnation, shareholder value, sharing economy, sovereign wealth fund, The Future of Employment, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transaction costs, Uber for X, upwardly mobile, Vilfredo Pareto, winner-take-all economy, Wolfgang Streeck

Merton, ‘The Matthew Effect in Science’, Science, vol. 159, no. 3810, 1968, pp. 56–63. 60And social theory shifts, or drifts, from institutionalism to rational choice, to the extent that it desires to be affirmative, or to biological behaviourism. 61Hans Gerth and C. Wright Mills, Character and Social Structure: The Psychology of Social Institutions, New York: Harcourt, Brace 1953. 62The term was invented by Clayton Christensen (The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, Boston, MA: Harvard Business Review Press 1997) and subsequently became vastly popular among business school academics and managers. For a critical assessment see Jill Lepore, ‘The Disruption Machine: What the gospel of innovation gets wrong’, New Yorker, 23 June 2014. In management discourse, the concept is associated especially with platform firms like Uber, Alibaba, Airbnb and Amazon, which have in common that they have ceased to offer their workers regular employment.


pages: 518 words: 147,036

The Fissured Workplace by David Weil

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accounting loophole / creative accounting, affirmative action, Affordable Care Act / Obamacare, banking crisis, barriers to entry, business process, call centre, Carmen Reinhart, Cass Sunstein, Clayton Christensen, clean water, collective bargaining, commoditize, corporate governance, corporate raider, Corrections Corporation of America, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, declining real wages, employer provided health coverage, Frank Levy and Richard Murnane: The New Division of Labor, George Akerlof, global supply chain, global value chain, hiring and firing, income inequality, information asymmetry, intermodal, inventory management, Jane Jacobs, Kenneth Rogoff, law of one price, loss aversion, low skilled workers, minimum wage unemployment, moral hazard, Network effects, new economy, occupational segregation, Paul Samuelson, performance metric, pre–internet, price discrimination, principal–agent problem, Rana Plaza, Richard Florida, Richard Thaler, Ronald Coase, shareholder value, Silicon Valley, statistical model, Steve Jobs, supply-chain management, The Death and Life of Great American Cities, The Nature of the Firm, transaction costs, ultimatum game, union organizing, women in the workforce, Y2K, yield management

In short, the lawyer is present only to serve the lender’s need for a lawyer to be present to witness the closing, and provides no services or benefits to the borrower. 14. This has long been a practice of law firms who historically would bill work at rates reflective of more specialized staff, but would staff that work with lower-cost (but internally provided) junior lawyers and paralegals. 15. A provocative discussion of the potential impact of LPOs is provided by Bruce MacEwen, drawing on Clayton Christensen’s idea of the innovator’s dilemma (Christensen 2006). See Bruce MacEwen, “Innovators at the Barricades,” Adam Smith, Esq. (blog), July 10, 2010 (available at http://www.adamsmithesq.com/2010/07/innovators_at_the_barricades/, accessed February 18, 2013). 16. This three-level market breakdown appears on a number of law blog analyses of the changing legal market. See, for example, Jordan Furlong, “The Stratified Legal Market and Its Implications,” Law21 (blog), March 25, 2011 (available at http://www.law21.ca/2011/03/the-stratified-legal-market-and-its-implications/, accessed February 12, 2013). 17.


pages: 603 words: 182,781

Aerotropolis by John D. Kasarda, Greg Lindsay

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3D printing, air freight, airline deregulation, airport security, Akira Okazaki, Asian financial crisis, back-to-the-land, barriers to entry, Berlin Wall, big-box store, blood diamonds, borderless world, British Empire, call centre, carbon footprint, Cesare Marchetti: Marchetti’s constant, Clayton Christensen, cleantech, cognitive dissonance, commoditize, conceptual framework, credit crunch, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, deskilling, digital map, edge city, Edward Glaeser, failed state, food miles, Ford paid five dollars a day, Frank Gehry, fudge factor, full employment, future of work, Geoffrey West, Santa Fe Institute, George Gilder, global supply chain, global village, gravity well, Haber-Bosch Process, Hernando de Soto, hive mind, if you build it, they will come, illegal immigration, inflight wifi, intangible asset, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), intermodal, invention of the telephone, inventory management, invisible hand, Jane Jacobs, Jeff Bezos, Kangaroo Route, knowledge worker, kremlinology, labour mobility, Marchetti’s constant, Marshall McLuhan, Masdar, mass immigration, McMansion, megacity, Menlo Park, microcredit, Network effects, New Economic Geography, new economy, New Urbanism, oil shale / tar sands, oil shock, peak oil, Pearl River Delta, Peter Thiel, pets.com, pink-collar, pre–internet, RFID, Richard Florida, Ronald Coase, Ronald Reagan, Rubik’s Cube, savings glut, Seaside, Florida, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, spinning jenny, stem cell, Steve Jobs, supply-chain management, sustainable-tourism, telepresence, the built environment, The Chicago School, The Death and Life of Great American Cities, The Nature of the Firm, thinkpad, Thomas L Friedman, Thomas Malthus, Tony Hsieh, trade route, transcontinental railway, transit-oriented development, traveling salesman, trickle-down economics, upwardly mobile, urban planning, urban renewal, urban sprawl, walkable city, white flight, white picket fence, Yogi Berra, zero-sum game

In a single year, netbooks captured 7 percent of the world’s entire laptop market; the next year they doubled that, as laptops outsold desktops for the first time ever. In Europe, wireless carriers began giving them away for free to lure new customers. Without meaning to, netbooks had paved the way for the PC’s extinction. ASUSTeK didn’t take it upon itself to invent just a new product; they invented a new category. It’s a classic example of the disruptive innovations Clayton Christensen describes in The Innovator’s Dilemma—a cheap, seemingly inferior imitator appears to gut the incumbents’ business models. In this case, their only response was to hire the insurgents to slap their names on the same models. Suddenly, the Taiwanese firms and their mainland factories were dictating terms to the rest of the industry. Netbooks are old hat—tablets are where the action is. By one estimate, tablets will outsell netbooks as early as next year, and desktop computers the year after that, rising to twenty million a year by 2015.


pages: 552 words: 168,518

MacroWikinomics: Rebooting Business and the World by Don Tapscott, Anthony D. Williams

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accounting loophole / creative accounting, airport security, Andrew Keen, augmented reality, Ayatollah Khomeini, barriers to entry, bioinformatics, Bretton Woods, business climate, business process, car-free, carbon footprint, citizen journalism, Clayton Christensen, clean water, Climategate, Climatic Research Unit, cloud computing, collaborative editing, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, commoditize, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, death of newspapers, demographic transition, distributed generation, don't be evil, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, fault tolerance, financial innovation, Galaxy Zoo, game design, global village, Google Earth, Hans Rosling, hive mind, Home mortgage interest deduction, interchangeable parts, Internet of things, invention of movable type, Isaac Newton, James Watt: steam engine, Jaron Lanier, jimmy wales, Joseph Schumpeter, Julian Assange, Kevin Kelly, knowledge economy, knowledge worker, Marc Andreessen, Marshall McLuhan, mass immigration, medical bankruptcy, megacity, mortgage tax deduction, Netflix Prize, new economy, Nicholas Carr, oil shock, old-boy network, online collectivism, open borders, open economy, pattern recognition, peer-to-peer lending, personalized medicine, Ray Kurzweil, RFID, ride hailing / ride sharing, Ronald Reagan, Rubik’s Cube, scientific mainstream, shareholder value, Silicon Valley, Skype, smart grid, smart meter, social graph, social web, software patent, Steve Jobs, text mining, the scientific method, The Wisdom of Crowds, transaction costs, transfer pricing, University of East Anglia, urban sprawl, value at risk, WikiLeaks, X Prize, young professional, Zipcar

Making radical changes in the product’s capabilities, underlying architecture, or associated business models could cannibalize sales or lead to costly realignments of strategy and business infrastructure. It’s as though popular and widely adopted products become ossified, hardened by the inherent incentive to build on their own successes. The result is that entrenched industry players are generally not motivated to develop or deploy disruptive technologies, as Harvard Business School professor Clayton Christensen has pointed out. So success breeds complacency. R&D departments are discouraged from investigating alternative technologies and so channel their resources into refining components, adding new features, or tweaking their existing product architectures. This strategy of marching down a well-defined product road map may pay dividends for some time. But complacency creates enormous vulnerability when disruptive innovations emerge that may threaten the product road map itself.


pages: 602 words: 177,874

Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations by Thomas L. Friedman

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3D printing, additive manufacturing, affirmative action, Airbnb, AltaVista, Amazon Web Services, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Berlin Wall, Bernie Sanders, bitcoin, blockchain, Bob Noyce, business process, call centre, centre right, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, corporate social responsibility, creative destruction, crowdsourcing, David Brooks, demand response, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, Erik Brynjolfsson, failed state, Fall of the Berlin Wall, Ferguson, Missouri, first square of the chessboard / second half of the chessboard, Flash crash, game design, gig economy, global supply chain, illegal immigration, immigration reform, income inequality, indoor plumbing, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the steam engine, inventory management, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, John Markoff, John von Neumann, Khan Academy, Kickstarter, knowledge economy, knowledge worker, land tenure, linear programming, Live Aid, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, mass immigration, Maui Hawaii, Menlo Park, Mikhail Gorbachev, mutually assured destruction, pattern recognition, planetary scale, pull request, Ralph Waldo Emerson, ransomware, Ray Kurzweil, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, South China Sea, Steve Jobs, supercomputer in your pocket, TaskRabbit, Thomas L Friedman, transaction costs, Transnistria, urban decay, urban planning, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y2K, Yogi Berra, zero-sum game

And the only occupations that have shown consistent wage growth since 2000 require both cognitive and social skills … Yet to prepare students for the change in the way we work, the skills that schools teach may need to change. Social skills are rarely emphasized in traditional education. “Machines are automating a whole bunch of these things, so having the softer skills, knowing the human touch and how to complement technology, is critical, and our education system is not set up for that,” said Michael Horn, co-founder of the Clayton Christensen Institute, where he studies education. Miller consulted David Deming, an associate professor of education and economics at Harvard University and author of a new study on this subject. As Miller explained, Deming’s research shows that in the tech industry “it’s the jobs that combine technical and interpersonal skills that are booming, like being a computer scientist working on a group project.”