Steve Jobs And Apple Taught Us That

How Could Digital's Collapse Be So Precipitous? It's Because, In Many Ways, Financial Performance Data Is Misleading. As You Move Up To The Top Of The Market, You're Getting Rid Of The Less Profitable Products At The Low End And Adding Business With More Attractive Margins At The High End. The Rate Of Unit Volume Growth Might Be Tapering Off As You Pursue These Smaller Markets, But Your Margins Actually Look Better. So Wall Street Rewards Your Stock Price Until You Hit The Ceiling.

I've Concluded That Getting The Categories Right Is An Absolutely Crucial Step To Building Useful Management Theory, And Unfortunately Too Few Writers Do This. You've Got To Engage In Serious Scholarship, And Then Figure Out How To Write It In A Way That Lots Of People Can Understand.

The Answer Is The Disruptive Innovator, An Outsider, Who Creates A Product Or Service For The Non-existing Consumer In A Non-existing Market For Almost No Profit.

If I Know What To Spec, And I Can Measure It, And There Are No Unpredictable Interdependencies Between What You Do And What I Must Do In Response, Then An Economist Would Say That Is Sufficient Information For A Market To Emerge Between You And Me.

I Was Lucky Enough To Build On The Work Of A Number Of People Who Had Already Run Laps Around This Theory-building Track. The Original Classification Scheme, Years Ago, Distinguished Radical From Incremental Change. The Theory Said That Established Firms Managed Incremental Change Well, But Would Be Expected To Founder When Their Industry Encountered A Radical Change.