“The Innovator’s Dilemma” by Christensen

"The Innovator's Dilemma" by Clayton M. Christensen is a book that dives into innovation and disruption. Published in 1997, the book is still relevant today for product managers who want to stay ahead of ever-changing technologies.

The central thesis of the book is that successful companies can become trapped by their own success and fail to innovate, which opens the door for disruptive technologies and startups to enter the market and disrupt the status quo. Christensen argues that established companies are often too focused on their existing products and customers, and fail to see the potential of new technologies and business models that disrupt their industries.

The book is divided into two parts. The first part discusses the challenges of innovation and the concept of disruptive technologies. Christensen argues that disruptive technologies are those that initially have limited performance, but eventually improve to the point where they can replace existing technologies. He provides examples of disruptive technologies, such as the personal computer and digital photography, and discusses the challenges of identifying and investing in these technologies.

The second part of the book focuses on the challenges of managing innovation within established companies. Christensen argues that successful companies are often too focused on their existing products and customers, and fail to see the potential of disruptive technologies. He provides examples of companies that failed to innovate, such as Kodak and DEC, and discusses the challenges of managing the tension between sustaining existing products and investing in new technologies.

One of the key themes of the book is the importance of strategic thinking and long-term planning. Christensen argues that successful companies need to think beyond their existing products and customers, and invest in new technologies and business models that have the potential to disrupt their industries. He also stresses the importance of experimentation and iteration, and provides examples of companies that successfully pivoted their business models to respond to disruptive technologies.

Another important theme is the importance of understanding customer needs and behaviors. Christensen argues that disruptive technologies often start by serving the needs of underserved or non-consumers, and that successful companies need to understand the needs and behaviors of these customers in order to identify and invest in disruptive technologies.

Christensen's focus on the challenges of managing innovation, understanding customer needs, and thinking strategically can give product managers a leg up in identifying which product hypotheses to pursue vs. which to deprioritize.