CHAPTER ONE

Disruptive Technology: The Power to Predict

What do Amazon, Sony, Swatch, the San Francisco 49ers, and McDonald’s all have in common? The answer is that they are examples of what Harvard professor Clay Christensen has described as “disruptive technologies.” That is, these companies were dramatically innovative ideas that transformed their industries. Amazon rewrote book selling, Sony revolutionized the music business, Swatch upset the watch industry forever, the 49ers brought an innovative strategy that changed professional football, and McDonald’s added a totally new dimension to food service

Despite recent labor-market transformations brought on by global competitiveness, the liquidity crisis, management scandals, and federal government ...

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