Disruption disrupted.

17 06 2014

I never took a course in the history of technology. My dissertation (and very poorly read first book) were about labor relations in the American steel industry. While overdosing on industry trade journals, I quickly realized that how steelworkers labored depended upon how steel was made and that the best way to distinguish what I was writing from the many studies that had come before was to get the technological details right.

This proved to be a terrible strategy. While I’m quite sure that I did indeed get the technological details right, the people who read my manuscript never recognized this since they had all read or written books that got them wrong or never covered them at all. The worst comment I ever got (which, of course, I remember to this day) was “Rees knows nothing about the technology of the steel industry.” I begged to differ, but what could I do about it? Nothing.

I wrote Refrigeration Nation because I enjoyed reading old trade journals to get the details right and because I wanted to examine the technology of an industry that nobody else had written about. Surprisingly, when I picked my second book project that description included the refrigeration industry. Actually, refrigeration is not one technology, but many: ice harvesting equipment, large scale industrial refrigerating machines, electric household refrigerators and others. If you read the book (and I certainly hope you do), you’ll see I spill the most ink writing about the transitions between one technology and another.

These transitions can be painfully slow. Ice harvesting didn’t die until around World War I. The ice man still delivered machine-made ice door-to-door in New York City during the 1950s. Even today, you can still buy what is generally known as “artisan ice” for people who really want their drinks to be special. Perhaps this explains why I’ve always been so suspicious of Clayton Christensen’s theory of “disruptive innovation.” Everything I’ve ever studied that you’d expect to disappear in the blink of an eye when in competition with better technology always managed to hold on for decades.

By now, you’ve probably already read Jill Lepore’s absolutely devastating takedown of disruptive innovation in what I presume is this week’s New Yorker. [It appears rather late in my neck of Colorado. Thank goodness this one is outside the paywall!] If you still haven’t let’s just say that Lepore is unimpressed by the work of her Harvard colleague:

Disruptive innovation as a theory of change is meant to serve both as a chronicle of the past (this has happened) and as a model for the future (it will keep happening). The strength of a prediction made from a model depends on the quality of the historical evidence and on the reliability of the methods used to gather and interpret it. Historical analysis proceeds from certain conditions regarding proof. None of these conditions have been met.

And remember, there’s plenty of excellent evidence for the pace of technological change in countless American industries. You’ve never read an Alfred Chandler takedown because Chandler actually consulted this stuff. Christensen apparently not so much.

Since I don’t have a team of fact checkers at my disposal, I’m just going to concentrate here on the industry Lepore covers that I know best: steel. Here’s Lepore:

In his discussion of the steel industry, in which he argues that established companies were disrupted by the technology of minimilling (melting down scrap metal to make cheaper, lower-quality sheet metal), Christensen writes that U.S. Steel, founded in 1901, lowered the cost of steel production from “nine labor-hours per ton of steel produced in 1980 to just under three hours per ton in 1991,” which he attributes to the company’s “ferociously attacking the size of its workforce, paring it from more than 93,000 in 1980 to fewer than 23,000 in 1991,” in order to point out that even this accomplishment could not stop the coming disruption. Christensen tends to ignore factors that don’t support his theory. Factors having effects on both production and profitability that Christensen does not mention are that, between 1986 and 1987, twenty-two thousand workers at U.S. Steel did not go to work, as part of a labor action, and that U.S. Steel’s workers are unionized and have been for generations, while minimill manufacturers, with their newer workforces, are generally non-union. Christensen’s logic here seems to be that the industry’s labor arrangements can have played no role in U.S. Steel’s struggles—and are not even worth mentioning—because U.S. Steel’s struggles must be a function of its having failed to build minimills. U.S. Steel’s struggles have been and remain grave, but its failure is by no means a matter of historical record. Today, the largest U.S. producer of steel is—U.S. Steel.

Two other factors that Lepore doesn’t mention (which makes me think that Christensen didn’t either) are environmental regulation and foreign competition – the second being the more important of those two to the overall fate of the industry. The success of minimills also required a huge decrease in the price of scrap steel. What these other factors suggest is that any hard and fast rule of technological change will inevitably fall victim to the unpredictability of people. My old advisor used to call this the social system of production, and practically the entire subfield of the history of technology is predicated on this notion rather than Christensen’s brand of technological determinism

For example, if I remember right, Chandler’s last book (I get the titles mixed up) is about the various quirks in the path of industrialization across international borders. In my work, the most important factor determining the speed at which one refrigerating technology transitions to another is its reception by consumers and amazingly enough lots of refrigeration consumers just hate “progress.” Just to namecheck a great book that I happen to be reading right now, in Seeing Underground, Eric Nystrom describes the effect of political factors – especially lawsuits – on the quality of mine maps. In Butte, Montana, at least, the more lawsuits there were the more precious metals they eventually found.

Of course, my interest in Christensen comes from his pronouncements about higher education. Lepore does very little with them in her article, but that shouldn’t stop anyone from applying the same logic that I just did here. There is no scientific law of the jungle that fates universities to go entirely online or die off. If people value direct human contact and the educational advantages it brings, they should be willing to pay – or force their governments to pay – for universities to teach in face-to-face settings. Like I wrote in Inside Higher Education a really long time ago now, all this talk about inevitability is just a way to shut down discussion so that the educational traits that we once valued will be abandoned more easily.

The great service that Lepore has performed is to metaphorically take the fight over those values to the source of the attacks against them. Like MacArthur at Inchon, she has landed behind enemy lines and will hopefully force the enemy to pull back and defend ideological territory that they thought they had already conquered. Those of us currently at risk of becoming victims of creative destruction can only hope she succeeds.

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13 responses

17 06 2014
RAB

This puts me in mind of the hoo-ha yesterday over Starbucks’ underwriting employees’ college educations! (That was the headline.) At least on the thread that wound up in my Facebook feed, comments were nothing but rapturous. But according to the actual article, Starbucks will pay for employees to take online degrees from Arizona State. Period. No comments (except of course mine) questioned Starbucks’ selection of one particular school (I imagine they got some kind of bulk-order deal?) or, more seriously, their equation of fully-online degrees with education. My friends are almost all college-educated: would they have jumped for joy at a similar deal for themselves? Do THEY actually equate “education” with passing a number of online courses? I know you do some online teaching, Jonathan, but clearly YOU don’t make that equation…. Anyway, discussion seems to have shut down and inevitability kicked in to turn off my friends’ critical-thinking skills in their rush to applaud….

17 06 2014
Jonathan Rees

Just to be clear: I use online tools in my face-to-face classes. Big difference from teaching entirely online.

17 06 2014
sophylou

I haven’t been following the Starbucks story, but Arizona State is a school whose name gets thrown around a lot at my school as an aspirational model for undergraduate education… the first hit on Google for them is an ad for them being top-ranked by US News & World Report for online undergraduate degrees. The president came and spoke to a big crowd — oh, look, here’s the video: http://vimeo.com/35585254 — and I found it disturbing. I’ve managed to block most of it (I’m not watching that video, thanks!) but I remember being quite anxious about the fact that our president wants us to be another Arizona State.

17 06 2014
RAB

Absolutely.

20 06 2014
Anon

For me the best thing about the interview with Clay Christensen is the very end, when the interviewer catches him out on a rather snide use of “Jill” for Lepore. A beautiful final question, that exposes very simply the towering contempt HBS types have for the rest of the world.

20 06 2014
Historiann

Right on. Clay is such a douche.

20 06 2014
sophylou

Also awesome how he assumes that “Google” is synonymous with “research” and that 15 minutes (did I get that right? I don’t want to read it again. is all she would have needed to spend Googling to get it right.

20 06 2014
25 06 2014
Christensen’s Disruptive Innovation after the Lepore Critique | The Academe Blog

[…] from its own overhype (“Creative Destruction Yada Yada.”)  Jonathan Rees referenced an “absolutely devastating takedown.”  All three were talking about Jill Lepore’s much-discussed New Yorker critique of […]

2 07 2014
Christensen’s Disruptive Innovation after the Lepore Critique ~ Remaking the University | Public Philosophy Journal

[…] from its own overhype (“Creative Destruction Yada Yada.”)  Jonathan Rees referenced an “absolutely devastating takedown.”  All three were talking about Jill Lepore’s much-discussed New Yorker critique of […]

18 07 2014
Is Jill Lepore’s critique of disruption theory really “a criminal act of dishonesty”? | Digital Clarity Group | Consultancy, Research, Events, Technology and Agency Selections, CEM, WCM, CMS, DAM, CRM, E-Commerce, Social Media, Marketing Automation,

[…] Christensen’s dark lapels. Paul Krugman called Lepore’s article “a careful takedown,” while Jonathan Rees, saying to hell with careful, climbed the rhetorical turnbuckle and praised Lepore’s […]

18 07 2014
Is Jill Lepore’s critique of disruption theory really “a criminal act of dishonesty”? | Digital Clarity Group | Consultancy, Research, Events, Technology and Agency Selections, CEM, WCM, CMS, DAM, CRM, E-Commerce, Social Media, Marketing Automation,

[…] Christensen’s dark lapels. Paul Krugman called Lepore’s article “a careful takedown,” while Jonathan Rees, saying to hell with careful, climbed the rhetorical turnbuckle and praised Lepore’s […]

20 07 2014
Disruptive Innovation Gets A Critical Look

[…] hit a nerve as people were quick to jump in on both sides of the debate. (Examples here, here and here.) Her argument isn’t that disruptive innovation doesn’t happen, but that it isn’t a predictor […]

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