Uber, disruption and Clayton Christensen

This morning’s Observer column:

Over the decades, “disruptive innovation” evolved into Silicon Valley’s highest aspiration. (It also fitted nicely with the valley’s attachment to Joseph Schumpeter’s idea about capitalism renewing itself in waves of “creative destruction”.) And, as often happens with soi-disant Big Ideas, Christensen’s insight has been debased by overuse. This, of course, does not please the Master, who is offended by ignorant jerks miming profundity by plagiarising his ideas.

Which brings us to an interesting article by Christensen and two of his academic colleagues in the current issue of the Harvard Business Review. It’s entitled “What Is Disruptive Innovation?” and in it the authors explain, in the soothing tones used by great minds when dealing with those of inferior intelligence, the essence of Christensen’s original concept. The article is eminently readable and cogent, but contains nothing new, so one begins to wonder what could be the peg for going over this particular piece of ground. And why now?

And then comes the answer: Uber. Christensen & co are obviously irritated by the valley’s conviction that the car-hailing service is a paradigm of disruptive innovation and so they devote a chunk of their article to arguing that while Uber might be disruptive – in the sense of being intensely annoying to the incumbents of the traditional taxi-cab industry – it is not a disruptive innovation in the Christensen sense…

Read on