IT Conversations has a fascinating podcast by Clayton Christensen, the Harvard Business School professor and author of the best-selling book The Innovator’s Dilemma. Speaking at the Open Source Business Conference 2004, Christensen explains why well-managed companies with superior products are sometimes beaten by startups with inferior products. The basic reason: if the product is “good enough” for a large group of customers who didn’t have access to that kind of functionality before, the customers will adopt it and stay with it while the product improves rather than go with the expensive, over-engineered alternatives from the industry leaders.
The PC, of course, is the best example of this. But it applies to so many tech innovations: LANs, PDAs, cell phones, open source….When you think of it, none of those products were particularly good at the outset but people loved them because they could do something that they couldn’t have done before. And they stuck with them while they matured.
Listen to the podcast. It’s great.
Well done!
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