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"Disruption" is a business buzzword that has gotten out of control. Today everything and everyone seem to be characterized as disruptive. Almost twenty years ago Clayton Christensen popularized the term in his book The Innovator's Dilemma ; since then, few have closely examined his account. Joshua Gans does so in this book. He looks at companies that have proven resilient and those that have fallen, and explains why some companies have successfully managed disruption while others have not.
Departing from the conventional wisdom, Gans identifies two kinds of disruption : demand-side, when successful firms focus on their main customers and underestimate market entrants with innovations that target niche demands ; and supply-side, when firms focused on developing existing competencies become incapable of developing new ones. Herein lies the disruption dilemma : A firm cannot practice both independence and integration at once.
Gans shows business leaders haw to choose their strategy so their firms can deal with disruption while continuing to innovate.