Found this video that on disruptive innovation with Clay Christensen throgh my friend Luis Daniels Twitter. I’m much more interested in theories and models after I finished university than when I went to university. I like drawing up maps that explains ideas to explain them to people and I think it’s much faster to understand a new subject by looking at it as a model. I get super exited when I find theories like this that I like and thats why I would like to share it.
Anyway, disruptive innovation is when a complex and expensive technology can be produced much simpler and cheaper and therefore becomes available to more people – it’s being democratized. One of the most obvious examples is the computer. In the beginning only big companies could have them, and then they only had one. Today we have personal laptops and most recently everyone have access to their own computer through their smart-phone.
Disruptive innovation is a theory for making decisions for the future, but how? When a company that produces one of these products that are very complex and expensive to produce faces competition from upcoming companies, the big company have to decide if they will continue to sell their big product with big margins, or go down to the level of their competitors, producing the more simple product for lower price. Low margins and high volumes VS. high margins and low volumes.
I get the feeling here that when it comes to technology and development, we always move towards a more democratized world, or at least I would like to believe so, where technology and information always finds a way to reach out to more. It’s like a law almost. The development can only move forward. Like Darwin’s evolution theory.
Something else that is interesting that Clay says in the video is that it is better to base decisions on theories than on data. Data is in the past – when you make your decisions based on data it might already be too late. Therefore we need theories to make decisions for the future.
I like this theory because we can see big companies like Intel (watch the video) change their strategy according to it, participating in the development of making technology and information more democratized. Are there more interesting theories like this?