Christianson’s disruptive technology and the I Ching
Professor’s Christianson’s “Disruptive Technology” is another example of YANG/YIN changes that investors should keep well in mind when choosing their investments. YANG changes are strong changes based on disruptive technologies ushering in new radical changes. Both, management and clients usually resist these YANG changes: management, because they feel threatened by such changes, and clients, because they fear these future waves of change and prefer to ignore them. YANG changes might seem insignificant in the beginning but in the end are very profitable.
YIN changes are superficial changes made up over the same product but in essence they are more of the same. YIN changes might seem as the right changes because they are very much liked by management as well as by the most traditional clients. YIN changes initially are profitable but in the end they lead the corporation to its eventual destruction.
CEOs face a dilemma: whether to support YANG changes and face the anger of traditional clients running the risk of eventually losing market share, or to support YIN changes and please the traditional clients running the risk of losing the corporation. This dilemma becomes more immediate when the corporation holds the number one place in the industry. The CEO runs the risk that pride and arrogance will lead him to support YIN changes and to distance himself from those within the firm who promote the YANG changes.
Bill Gates faced this dilemma, and he almost destroyed Microsoft by failing to resolve it in time. The conflict he faced was between the windows-followers who wanted to make YIN changes to the corporation and the internet-followers who wanted to make YANG changes. To his credit, Gates was able to find a solution to his dilemma by supporting the YANG changes and leading Microsoft to embrace the Internet.
The I CHING recommends the CEO to be true to his own self, to always try and make products cheaper, faster, and better. To push his executives to develop YANG changes. It is better to push future unknown but tremendously profitable products and markets (YANG changes), than to try and maintain an eventually dying product in a mature market not matter how profitable it might be at present (YIN changes). The I CHING would advice the CEO: “Do not seek it.”
