philip lelyveld The world of entertainment technology

10Oct/12Off

Clayton Christensen: “Disruptive Innovations Create Jobs, Efficiency Innovations Destroy Them”

One of the biggest problems with the cloud computing era is that the cloud provides such capacity that it can tempt people into developing apps and tools that no one actually needs. Instead, developers need to build for the jobs people are trying to accomplish. The real disruptive power of the cloud, he says, is that it makes it exceedingly easy for SMBs to accomplish their business tasks more affordably and efficiently. This is also the reason that he and many others anticipate modularity taking over the cloud and the industry.

The problem is that the current focus across tech on efficiency is succeeding in destroying jobs for many and creating capital for few: “Disruptive innovations create jobs, whereas efficiency innovations destroy them.” Metrics like IRR and RONA, in the end, funnel profits away from disruptive innovation and distract management from investing in what’s important.

See the full article here: http://techcrunch.com/2012/10/09/clayton-christensen-disruptive-innovations-create-jobs-efficiency-innovations-destroy-them/

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