Today’s CRM is Like a Toothbrush

Clayton Christensen, is the famed Harvard professor and creator of the leading theory on disruptive innovation. One of his complementary theories is called Value Chain Evolution (VCE) Theory. In short, the VCE theory states that when a product or service is not yet good enough to meet the needs of mainstream customers, companies need to integrate vertically in order to control the entire production and delivery process. In many cases, these companies are creating new processes or technologies to take a product on the upward trajectory of improvement; and all of this requires tight integration. In this scenario, it’s nearly impossible to manage the complex interaction that would be required with partner companies in order to meet the performance demands of the customer.

As these products or services begin to overshoot the needs of their customers in areas of performance or customization, integration becomes less important. What becomes important is the ability to compete on speed, flexi…