Finally I started to write a blog after I register my domain for long time. I thought I need to write something at least keep the blog going.
Recently I completed reading a book named The innovator’s dilemma by by Clayton Christensen. When I first started to read the book, I do not feel it is a very interesting book as it covered harddisk industry and excavator industry. I only felt the book provided me more insight after I read the later chapters.
A quick summary for the book:
- For a mature organization tries to venture into new business(power by disruptive technology), the organization may face tremendous challenges internally without changing the organization structure.
Simple reasons like the following:
1. New business might not provide enough financial value at the beginning phase. New business power by disruptive technology may be a thread to existing business line.
2. Bureaucracy governs the current success but might not be suitable for use disruptive technology - If the mature organization would like to develop product/business by using disruptive technology as an inventor. It is recommended to setup a new autonomous subsidiary and fully responsible for its P/L. This new subsidiary will be less likely affected by the existing policies.
- If a startup company tries to use existing technology as follower and compete with market leaders, the chance of success is very low. However, if the startup company tries to use disruptive technology ad inventor to complete with market leader. The chance of success rate is about 37%. The newly setup company can venture into lower profit market business and slowly enter high end market.
- Even if mature organization adapt the disruptive technology as a follower, the chance of the mature organization to continue to excel is about 60%.
- There is no guarantee for mature organization or startup company to succeed even if they adopt disruptive technology
After I completed reading the book and reflect upon my past experience. I have the following summaries:
- It is very difficult for a mature organization to change business strategy unless there are visionaries has great influence and execution power. For a System Integrator to become product company, it will be very disruptive and the chance of success is very low.
- If I make a guess for future of automotive industry, the new comer from Electric Vehicle may potentially stands out and perform better than traditional automotive companies.
- For personal growth, it is good to always challenge yourself to be out of comfort zone. With proper training and guidance, a person might be able to shift from fixed mindset to growth mindset and achieve great potential.
