Allocating resources based on growth potential from "summary" of The Innovator's Solution by Clayton Christensen,Michael Raynor
When companies are deciding where to allocate resources, they often make the mistake of investing in the areas that are currently the largest or most profitable. However, this approach overlooks the importance of considering the growth potential of different opportunities. By focusing solely on the present size or profitability of a business unit, companies may miss out on emerging opportunities that have the potential to drive future growth. Instead of simply allocating resources based on current performance, companies should prioritize investments in areas that have the greatest growth potential. This means looking beyond traditional metrics like revenue or profit margins and considering factors such as market trends, customer needs, and technological advancements. By identifying opportunities that are poised for rapid growth, companies can position ...
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