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The neverending rebuttal of "a great idea is enough". It seems to me that having a great idea would help... but I wonder if even that is necessary... I've been
by 6ren 16y ago
The neverending rebuttal of "a great idea is enough".
It seems to me that having a great idea would help... but I wonder if even that is necessary... I've been reading Christensen, on "disruption", and there's the concepts of:
- targeting non-consumption (or non-consuming contexts - e.g. users of phones, but not while mobile)
- asymmetric motivation, where low income or low margins or small markets etc. look great to (poor) you, but a rounding-error to (rich) incumbents. So they don't fight you.
- independent value networks, where you don't tap into any part of the way the incumbents do business. You don't use their suppliers; you don't use their sales channels, you don't target their customers. To use a value network, you have to fit in with it, you have to integrate with; you have to work with it - these means that you must constrain your business in some way. This has two effects: 1. if it's their network, your business will be more similar to theirs, and therefore easier for them to adapt to it, to attack you on your home ground, and co-opt the new market you created; 2. being constrained by some pre-existing way of doing business makes you less adaptable to whatever this new market needs, what the customers need, what the business idea needs. You are hampered from serving it.
- asymmetric skills, which is just the experience you get in making your particular business work. It's the accumulation of engineering problems you solve each day and gradually adapting your approach to suit them and having insights about how to reorganize to deal with them best; it's the accumulation of knowledge about your customers, what they want, how to reach them, what matters to them, what doesn't, along with repeatedly getting that to work. And so on - it's every part of making the business work. The more adapted you are to your customers and needs (and assuming this is different from what your competitors do - see the previous point), the greater a barrier to entry it is. That is, you become the incumbent in this new market, and you have the strengths that come along with that.
So, you might have an idea of a new market, that meets the above characteristics, and it seems that that idea would be valuable: a great idea.
However... I'm starting to think that instead of all that careful reasoning, perhaps you could just say "here's my idea" (meaning an original idea, not a copy), and start doing what a business needs to do: find customers, serve them, improve your product, etc.
Wouldn't all the above points follow automatically, provided you just "did it your way"? And isn't that how so many of today's great companies started?
If this is true (is it? I don't know), then the idea doesn't matter at all, so long as it's yours (original and motivating). Any thoughts on this, esp if you've read Christensen?
- awj 16y ago> esp if you've read Christensen? I haven't, but now kind of want to. Links?
- dangoldin 16y agohttp://www.amazon.com/s/ref=nb_sb_ss_i_0_19?url=search-alias%3Daps&field-keywords=clayton+christensen&x=0&y=0&sprefix=clayton+christensen http://www.amazon.com/s/ref=nb_sb_ss_i_0_19?url=search-alias... The big one is Innovator's Dilemma. I finished that and am up to Innovator's Solution.
- 6ren 16y agoInnovator's Dilemma is definitely the best - it was based on his PhD, it is brilliantly and simply written, and is also supported by actual data. The above terminology is from the 3rd book, after Innovator's Solution, called "Seeing What's Next". Although he's refined and modified his theories with experience in applying them to many real situations, the book is no where near as well written, even includes a constant stream of ridiculous puns (in the aviation chapter), often uses casual language - and doesn't provide any actual data. Also, the second two books are only co-authored by Christensen (who is a Rhodes Scholar btw). That said, something like this may be a better resource: http://en.wikipedia.org/wiki/Disruptive_technology http://en.wikipedia.org/wiki/Disruptive_technology and it's all over the web in general, so googling works. You may also like Moore's "Crossing the Chasm" - the same ideas independently developed at the same time, but a how-to guide, rather than an academic description. He was a marketing guy, who noticed these patterns in how Apple etc succeeded. Andy Grove (for example) agreed with him. This is also a beautifully written book (guy's a PhD of English Lit).
- nextparadigms 16y agoAfter you finish that one, check out Blue Ocean Strategy. It's mostly the same theory but from some different points of view, and applied to many different industries, not just tech. Also Chasm Companion complements these books very well (you may want to read Crossing the Chasm and Inside the Tornado which expand on some of the concepts in Chasm Companion, too). Does anyone else know any other books that fit well with these and have great insights as well?