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• W2729282085 abstract "Competing Against Luck: The Story of Innovation and Customer Choice Clayton M. Christensen, David S. Duncan, Karen Dillon, and Taddy Hall (New York: HarperBusiness 2016) As the CEO of a major company, do you think you are in the business of making products and delivering them to market? Actually, Clayton Christensen says no. Christensen is well known for his comprehensive theory of disruptive innovation; in Competing Against Luck, he focuses on customers and customer needs--the key to success in business, he and his coauthors argue, is to understand what the customer is hiring the company and its product to do. The success of an innovation is not a matter of luck. Rather, it's built on a company's ability to uncover, understand, and organize to deliver on a particular job to be done. Companies survive and grow based on their ability to respond to the causal mechanisms underlying customer choice. This is the central thesis of Competing Against Luck. The authors go on to unpack the fundamental question, why is what causes a customer to purchase and use a particular product or service important? By creating an explanatory framework to answer this question and demonstrating that it is predictive, they add a compelling tool to the innovator's toolbox. The first half of the book elaborates on the theory of the job to be done, which essentially says that when customers buy a product, they are actually buying the execution of a job they need done. The better the execution, the more the customer wants the product. Take the example of a customer who purchases a milkshake. One might think the customer is just buying the milkshake; give him a better shake, one might reason, and he'll buy more milkshakes or pay more for the ones he buys. The milkshake seller might pursue this line of thinking by asking customers, how can we improve our milkshakes so you would buy more and pay a higher price? Should we make it chunkier, more chocolaty, cheaper? This is the wrong question, Christensen contends, because the customer's focus is not on the product, but on the job he or she needs done and the particular experience he or she seeks. In Christensen's example, most milkshakes are sold before 9:00 a.m. to people who come into the restaurant alone, buy a milkshake, and take it with them. After extensive discussions with customers, the team discovers what the milkshake is doing: these morning customers have long, boring rides to work and they want something to keep the commute interesting and keep them from being hungry by the time they get to work. There are, Christensen notes, a lot of other products the customers could have hired to do the job--bananas, donuts, bagels--but those other candidates are not quite right. Bananas are gone too soon, donuts leave crumbs in the car, and bagels are dry and tasteless. The milkshake is perfect for the job to be done: it reduces the tedium of the commute and wards off mid-morning hunger. The competition for the milkshake is not other milkshakes, but other snack food. It is worth noting that not all milkshakes do the same job. Commuters hire a morning milkshake to do a very different job from the one anticipated by the father who buys a milkshake for his son as an after-school treat. …" @default.
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• W2729282085 title "Competing against Luck: The Story of Innovation and Customer Choice" @default.
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