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Understanding How The Innovator’s Dilemma Affects You

Both Sides of the Table

One of the most influential books of my career is The Innovator’s Dilemma by Clay Christensen. I cannot recommend it enough for people in the technology or media sectors. It should affect how you think if you are an incumbent but also if you’re a startup. Let’s start with the incumbents position in a market.

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The next wave of supply-chain innovation will be driven by startups that help incumbents win

TechCrunch

For years, the prevailing narrative for innovation in supply chain has focused on the disruptors: Upstarts that enter the industry with new technologies and business models to displace incumbents. For these industries, digital enablers, rather than disruptors, constitute the next wave of supply chain innovation.

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How a Little Bit of Fear Breeds Innovation

Entrepreneurs' Organization

Incumbent human processes were cumbersome, laborious, costly, slow and demoralizing. We started with the easiest problem that technology could attempt to solve. LESSON: Technology solves silicon-intensive problems and humans solve judgment-intensive ones. Ultimately, a little bit of fear breeds innovation.

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The Future of Corporate Venture Capital

500

In the decade since the Great Recession, we have seen digital upstarts – taking advantage of disruptive technologies from AI to IoT – reshape the economy and the corporate pecking order. Conventional wisdom dictated that incumbents should focus their innovation efforts on R&D and growing their cash cows while investing in a few startups.

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Why Reed Hastings Should be Applauded for Netflix Split

Both Sides of the Table

Innovator’s Dilemma – In his seminal book, “The Innovator’s Dilemma,&# Clay Christensen talks about why industry leaders almost always fail to act when “disruptive change&# enters their business. Incumbents can’t react. So why on Earth should Netflix split into two businesses?

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Parafin Transforming Delivery of Small Business Financial Services Closes $100M Series C

American Entrepreneurship

Fintech startup Parafin innovatively tackles this challenge through its embedded finance infrastructure used by partners such as DoorDash, Amazon, and others. The technology-driven financing decisions benefit women and minorities who have experienced discrimination in the past when borrowing.

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Here is Why Non-Obvious Startup Ideas Can Yield the Largest Results

Both Sides of the Table

And let’s say this – they use zero technology today and I have yet to meet a single person who loves their self-storage provider. Innovation. Most customers won’t drive more than a few miles to a self storage unit making the incumbents essentially local retail businesses. And they have. Of course they are.