Home / Quotes / Quote by Clayton Christensen

Quote by Clayton Christensen

“Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.”

Quote by Clayton Christensen

Author

Clayton Christensen

Clayton M. Christensen is an esteemed professor known for his contributions to the fields of business management and innovation. Born on April 6, 1952, he is a professor at Harvard Business School and the author of 'The Innovator's Dilemma'. more

You May Also Like

“Management has to provide the coordinating mechanism between what the supplier provides and what the user needs in not-good-enough situations where product architecture is consequently interdependent. Management always beats markets when there is not sufficient information.”

Needs Enough Situation Information Products Beats Management Architecture Sufficient Good Enough Mechanism Users Not Good Enough Suppliers Coordinating

Author:Clayton Christensen

“The outsourcing gurus have been driving the theory, and they are saying everybody ought always to do this. But it is really contingent on where you are on the spectrum from "not good enough" to "more than good enough," relative to each tier of the market.”

Has Beens Enough Theory Ought Driving Good Enough Where You Are Relative Spectrum Guru Not Good Enough Outsourcing

Author:Clayton Christensen

“It is when the product is not good enough that proprietary integration gives you a competitive edge. You cannot outsource and be competitively successful in this situation. But at the other end, where standard components assembled in standard ways can yield acceptable performance, you must outsource.”

Way Giving Ends Enough Situation Successful Products Standards Performances Edges Yield Good Enough Acceptable Integration Components Not Good Enough

Author:Clayton Christensen

“When product performance outstrips the ability of customers to use that performance in an industry, the competitive game changes. Under those circumstances you have to decouple components businesses from assembly businesses.”

Use Games Ability Products Industry Circumstances Performances Customers Components Assembly

Author:Clayton Christensen

“Because of the disruption phenomenon - technological progress outstripping the ability of customers to utilize it - the general tendency is for the money to migrate toward the subsystems.”

Ability Progress Customers Tendencies Phenomenon Technological Disruption Technological Progress Migrate

Author:Clayton Christensen

“A lot has been written about the Internet bust. From my point of view, it's quite clear the Internet isn't a category; the Internet is a technological infrastructure that can be deployed to facilitate a disruptive business model or a sustaining business model.”

Has Beens Views Clear Written Internet Models Point Of View Categories Technological Infrastructure Sustaining Facilitate Disruptive Business Models

Author:Clayton Christensen

“When a technology, regardless of how different and difficult it is, sustains the trajectory of performance improvement, my research asserts that the leaders in the prior generation of technology are likely to end up on top of their industry at the end of the transition.”

Different Ends Difficult Leader Technology Generations Industry Research Performances Improvement Transition Trajectory

Author:Clayton Christensen

“Quite often startups were first out of the gate with a sustaining technology. But somehow the leaders got the technology and stayed atop their industries. Sometimes they acquired the startup; sometimes they just developed the technology as a follower and used their muscle and mass to win. But they always won.”

Firsts Sometimes Used Winning Leader Technology Industry Mass Muscles Gates Followers Sustaining

Author:Clayton Christensen

“If the technology is disruptive, on the other hand, the odds are that at the end of the transition, the leaders will have been toppled and new companies will be on top.”

Ifs Has Beens Ends Hands Company Leader Technology Transition Odds Disruptive New Company

Author:Clayton Christensen

“In most instances, biotechnology, though a radically different approach, is a sustaining technology: It's a dramatically improved way of targeting problems that we hadn't been able to solve with the conventional approach of mainstream pharmaceutical companies.”

Way Different Problem Able Company Technology Approach Solve Instance Mainstream Conventional Sustaining Pharmaceutical Different Approach Biotechnology Pharmaceutical Companies

Author:Clayton Christensen