HBS Working Knowledge: Innovation: The Innovator's Battle Plan

Great firms can be undone by disruptors who analyze and exploit an incumbent’s strengths and motivations. From Clayton Christensen’s new book Seeing What’s Next.HBS Working Knowledge: Innovation: The Innovator's Battle Plan: "Cramming is like trying to stuff a square peg into a round hole. What signs indicate that cramming is occurring? When companies spend a lot of money fixing product deficiencies, they may be cramming. Large charges or expenses to integrate an acquisition are a good tip-off. Another sign is when companies must convince customers to change their behavior or put up with something they don't seem to want.
For example, Kodak first began to sense that digital imaging might pose a threat to its core business in the mid-1990s. It invested more than $2 billion in research and development. However, it framed the challenge as, 'How do we make digital imaging good enough to serve as a viable replacement to silver halide film in our core market?' By seeking to create high-priced, performance-competitive digital products, Kodak missed much of the disruptive growth driven by inexpensive digital imaging. Kodak eventually established a strong market share after introducing a very low-cost camera, but only after spending $2 billion trying to maximize its cameras' performance.10
The result of asymmetric battles often is the seemingly sudden end of a great firm.
Cramming happens all the time. It is almost never successful. It costs a lot of money and usually ends with disappointing results. Cramming explains why so many disruptive innovations originate from within incumbents but are ultimately commercialized by separate organizations."