Where Does Growth Come From? | Clayton Christensen

19 insights saved from this video by @business

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Improving customer-requested attributes may not increase sales when those attributes are disconnected from the job customers need done.
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The same product can serve fundamentally different jobs: commuters want sustained distraction and nourishment, while parents want simple conversation time with a child.
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Selling Toyota's best product this year can eliminate last year's sale. A Prius purchase can replace a Camry purchase.
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Metrics do not merely measure performance. They direct money, time, and energy toward whatever they reward.
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The morning milkshake job made a long, boring commute more engaging while providing something filling to consume slowly while driving.
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Uber disrupted taxis with an asset-light, variable-cost model traditional taxi companies could not economically match.
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Digital Equipment Corporation, Data General, Prime, Wang, Nixdorf, Hewlett-Packard, and Honeywell collapsed together. Managerial incompetence was not the whole explanation.
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Only about 15–25% of initiated product-development projects become financially successful. No wonder innovation gets treated like a crapshoot.
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Changing one application, such as driving, can require simultaneous changes to law, infrastructure, and institutions.
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Economic rebounds increasingly look financial rather than real. People who already have money gain it faster while jobs remain absent.
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An innovation’s business model determines whether it sustains incumbents or disrupts them, more than technological sophistication does.
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Disruption requires a business model incumbents cannot realistically enter from their existing cost structure.
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Markets begin with expensive, complicated products for wealthy customers, then expand toward people with less money and access.
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Customers rarely buy what companies think they sell. Analyze the job arising in a situation, not the customer.
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Efficiency innovation can reduce employment while freeing cash flow, making it vital for survival but insufficient for growth.
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A purpose brand wins when people think of it automatically whenever a specific job arises. IKEA owns rapid apartment furnishing.
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Four innovation types matter: potential products, sustaining innovations, disruptive products, and efficiency innovations.
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Technologies become broadly affordable by targeting simple applications first, then expanding into more complex ones.
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Managers routinely use theories without recognizing them. Their implicit theories can destroy results instead of producing them.

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