The IMD professor describes how the accelerating pace of technological change puts new pressures on established companies.
Whether we praise its genius or dispute its validity, it’s hard to deny the influence of Clayton Christensen’s theory of disruptive in-novation. In explaining the kinds of technological breakthroughs that enable upstarts to challenge industry incumbents, the Harvard Business School professor’s theory changed the way many organizations develop new products and services.
But what happens when the pace of an industry’s change takes off? This is the situation in which many incumbents now find themselves, says Howard Yu, a professor of strategic management and innovation at IMD Switzerland. As he told strategy+business in a recent interview, supply chains are more fluid and business models more agile in the Internet age. And that has implications for both new entrants and established firms. Yu, who earned his DBA (doctor of business administration) degree at Harvard Business School — where he studied under Christensen — believes that disruptive innovation as a theory is as significant today as it was when it was introduced in the mid-1990s. The theory just needs to change with the times.
Yu began his career in the banking industry in his native Hong Kong. His academic research focuses on understanding what drives sustained growth, and what holds some companies back. He investigates innovation in a variety of industries to identify trends, as well as the emerging technologies that enable them. And he advocates for a more open approach to innovation that encourages leaders to see their problems from someone else’s perspective. Yu is also a prolific writer; his columns have appeared in Forbes, Fortune, and the South China Morning Post, among other publications. In 2015, he was selected by Poets & Quants as one of the top 40 b-school professors under 40.
S+B: Why do you believe that the theory of disruptive innovation needs a refresh?
This story is from the Fall 2017 edition of strategy+business.
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