The 'Jobs to be Done' Approach to Driving Disruptive Innovation
Akshay Nirmal, Business Consultant, Australia
The theory of disruptive innovation helps companies navigate threats coming in the external environment. However, it fails to explain what companies should do to innovate.
The theory of “Jobs to be Done” can be closely related to the theory of disruption and provides a tool to come up with disruptive strategies. According to Clayton Christensen, when customers buy a product, they hire them to do a job. Understanding jobs to be done can give better insights to companies about which products or services to offer. Furthermore, knowing how a job can be done in a better way can help firms creating a better customer experience. This is where technology comes to the picture.
Let’s look at the following job, which is done better by a disruptive innovation then it was done before:
Customer: I want to enjoy independent travel, stay in affordable accommodations with locals and feel like a local when I travel.
Disruptive innovation: Airbnb
Summary: The theory of disruptive innovation explains whether an innovation will sustain in the market or not. It also gives insights about threats present in the market. The theory of “Jobs to be Done” tells managers of companies how to innovate and what products, services and experience to offer to do a job in a better way or to innovate.
Christensen, C., Hall, T., Dillon, K. and Duncan, D. (2016). Know Your Customers’ “Jobs to Be Done”. Harvard Business Review, (September 2016).
Dillon, K. (2016). What Airbnb Understands About Customers’ “Jobs to Be Done”. Harvard Business Review, (August 2016)..