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Quote by Clayton Christensen

“If I know what to spec, and I can measure it, and there are no unpredictable interdependencies between what you do and what I must do in response, then an economist would say that is sufficient information for a market to emerge between you and me.”

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

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“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.”

I Can Three Situation Conditions Information Taught Mets Capitalism Function Absence Partners Sufficient Efficient Taught Us Coordination

Author:Clayton Christensen

“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

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“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.”

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“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

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“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.”

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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.”

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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.”

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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.”

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Author:Clayton Christensen