The Business Book

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Godalming, England). More recent
game-changing products in
lighting, energy, transportation,
and healthcare have ensured that
the Siemens name is associated
with quality and innovation.
Leaders like the company’s
founder, Werner von Siemens—
those with the vision and courage
to pursue game-changing
strategies—are, however, all too
rare. It takes great courage to break
from tradition; and charisma and
conviction to lead individuals,
organizations, and entire industries
away from the status quo. Success
is met with reward and celebration;
failure with ridicule and scorn.
For would-be game changers, the
line between fame and infamy is
often thin.

Rewriting the rules
Another company that has changed
the game in its favor, on several
occasions, is Apple. Under the
guidance of its co-founder and
CEO, Steve Jobs, the organization
disrupted the desktop computer

industry, the music industry, the

cell-phone industry, and the tablet-

computer industry.

Apple’s iMac, with its focus

on user-friendly design and

software, made a significant

impact on the personal computer

industry. However, Apple’s first

major game changer was the iPod,

first introduced in 2001. The

product was met with scepticism—

but this, according to Christensen,

is a classic reaction to a game

changer. A product that is accepted

at first glance as a “winner” is

CHANGING THE GAME

unlikely to have shifted the market

very far—true game changers raise

eyebrows and prompt questions.

Interfacing technologies

The iPod was a cross between the

early crop of low-storage MP3

players and the large, hard-drive-

based players that provided several

gigabytes of storage. Amid a sea of

bland competing products, the iPod

stood out thanks to its stylish and

distinctive design. It was small, easy

to use, and came with the promise

of “1,000 songs in your pocket.”

The real disrupter, however, was

the combined power of the iPod

and its software interface, iTunes.

Customers could now access a

huge amount of music from one

place, buy it, download it, and

“sync” music from their computer

to their devices with ease. The

iPod could also be charged while

syncing. The fact that we now

take such features for granted

demonstrates the extent to which

Apple transformed the market

for personal-music devices.

Disruptive innovation refers to
an innovation that transforms the
market. When an existing product
boasts more features or services
than customers require, it may
become too complex or difficult
to use. As the gap between the
existing product’s performance
and customer requirement grows,
it creates a gap in the market
that can be exploited by a new,
“disruptive” product. Over time, the
new product can redefine the market.

You cannot lead

from the crowd.

Margaret Thatcher

UK former Prime Minister (1925–2013)

TIME

PERFORMANCE

Point of overperformance

Overperformance of existing

product creates a gap for a

new, “disruptive” product

Mean performance

demand

Performance demand of

mainstream consumers

Existing company/

product

New “disruptive”

company/product