Summary of Clayton M. Christensen, Jerome H. Grossman & Jason Hwang's The Innovator's Prescription

Please note: This is a companion version & not the original book.

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#1 The term disruptive technology was first introduced into the lexicon of business management in the 15 years since it was coined. It refers to an innovation that makes things simpler and more affordable, and it is used to describe companies like Intel and Wal-Mart.

#2 In the subsequent five chapters, we will build upon the foundation we laid out in this chapter. Chapter 2 explores the technological enablers of disruption in health care. Chapters 3 and 4 show how the business models of hospitals and physicians' practices must change in order to harness the power of disruption.

#3 The disruptive innovation theory explains the process by which complicated, expensive products and services are transformed into simple, affordable ones. It also explains why it is so difficult for the leading companies or institutions in an industry to succeed at disruption.

#4 A disruptive innovation is not a breakthrough improvement. It is not as good as the products and services sold in the original plane of competition, but it is simpler and more affordable, which allows it to draw customers from that plane of competition.

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