Market Analysis

The third principle, that markets that don't exist can't be analyzed, reminds managers that assessing the effects of disruptive technologies is often counter-intuitive to good management practice. Many companies require the development of a business case and a business plan for new products. This approach is generally very successful when applied to sustaining technological innovations, because the market is well-known; however, when companies apply this strategy to new, emerging markets resulting from disruptive technologies, they become paralyzed. They are seeking data on markets that do not yet exist. Christensen concludes that businesses can counteract this principle by planning for failure and taking a discovery-based planning approach to disruptive technologies. Managers should not plan on being right all the time and should view their initial strategy as a learning opportunity. As they gather data, managers must be prepared to make revisions to their business plans.

Capabilities and Disabilities

The...
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