MAL 34:20 MAL34 | Page 74

INNOVATION Remembering Clayton Christensen, The Father Of Disruptive Innovation By Senorine Wasike “ When I have an interview with my God at the end of my life, He is not going to ask me to show him how high I went in anybody’s organizational chart or how much money I left behind in a bank account…” He is going to say, “Clay, I put you in that circumstance. Now can we talk about the individual people whose lives you have helped become better people…?” Business Quotes These are extracts from a TEDx video by Clayton Christensen, based on one of his books, ‘How will you measure your life?’ On 23rd January 2020, seven years after the video was published, Clayton passed on. This quote reminds me of the interview I watched of former Safaricom CEO Bob Collymore after the launch of Pesalink an interbank money transfer solution by Kenyan banks. When asked if the new service would disrupt the Mpesa bank to mobile transfer service by Safaricom, Collymore confirmed that Mpesa’s core target remains the common mwananchi (bottom of the pyramid) who transacts under Ksh. 70,000. Pesalink had increased interbank transactions to Ksh. 1 million, which still ignored the low end of the market. I have never met Clayton, but his scholarly work has impacted my journey as an innovator and Christian. As an aspiring scholar in the area of strategy and innovation, Clayton’s books and articles have played a key role in building a firm foundation for my doctorate. There is rarely an assignment or discussion I have had without referencing Clayton. In honor of this innovation giant, I have compiled some of my favorite quotes from his many books and articles. May these quotes inspire you to be better at life. “I brought one big question with me to Harvard. Why do smart companies fail? Smart companies fail because they do everything right. They cater to high- profit-margin customers and ignore the low end of the market, where disruptive innovations emerge from.” “Innovation almost always is not successful the first time out. You try something and it doesn't work and it takes confidence to say we haven't failed yet. Ultimately you become commercially successful." Competitiveness is far more about doing what customers value than doing what you think you're good at. How many times do we justify new business opportunities based on existing business lenses? As a result, we force-fit new products or services to consum- ers who do not care. The result is failure. 72 MAL34/20 ISSUE The hardest thing for most firms is to accept failure and stop flogging a dead horse. Research shows that upto 90% of all innovation fail in their first year. Firms that have succeeded in innovation have adopted a post-launch iterative learning process to course-correct and make better the initial product or service concept. “Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group.” Most business leaders agree that a great product or service is anchored on a consumer insight yet a lot of the questions asked by the same businesses may have lots of unconscious bias that affects the outcome. Ethnography is increasingly being adopted as a research method because it overcomes this challenge. “A disruptive innovation is a technologically simple innovation in the form of a product, service, or business model that takes root in a tier of the market that is unattractive to the established leaders in an industry.” This quote reminds me of Uber and Airbnb, companies that targeted markets that were perceived to be unattractive and successfully outcompeted the established pioneers. “Almost always, great new ideas don't emerge from within a single person or function, but at the intersection of functions or people that have never met before.” Embedding a culture of innovation