The Disruption Machine

Excerpt:

"In his original research, Christensen established the cutoff for measuring a company’s success or failure as 1989 and explained that “ ‘successful firms’ were arbitrarily defined as those which achieved more than fifty million dollars in revenues in constant 1987 dollars in any single year between 1977 and 1989—even if they subsequently withdrew from the market.” Much of the theory of disruptive innovation rests on this arbitrary definition of success. In fact, Seagate Technology was not felled by disruption. Between 1989 and 1990, its sales doubled, reaching $2.4 billion, “more than all of its U.S. competitors combined,” according to an industry report. In 1997, the year Christensen published “The Innovator’s Dilemma,”

Seagate was the largest company in the disk-drive industry, reporting revenues of nine billion dollars. Last year, Seagate shipped its two-billionth disk drive. Most of the entrant firms celebrated by Christensen as triumphant disrupters, on the other hand, no longer exist, their success having been in some cases brief and in others illusory. (The fleeting nature of their success is, of course, perfectly consistent with his model.)"