Title:
Cross-Boundary Disruptors: Powerful Inter-Industry Entrepreneurial Change Agents

Authors:
Robert A. Burgelman and Andrew S. Grove

Publisher:
Stanford University Graduate School of Business, Research Paper No. 1978

Date Published:
October 2007

Using Apple Computer’s evolution into a dominant force in the music industry as a model, the authors identify the corporate DNA and market conditions necessary for companies to achieve similar results outside their own core competence, and then apply that model to another industry ripe for disruption: health care. The authors hypothesize that Wal-Mart could do in health care what Apple did in the music industry: force a needed — but painful — restructuring of business models and practices.

Bottom Line:
Cross-boundary disruption requires leaders who can spot opportunities outside their industry, build strategies beyond their core competence, and act entrepreneurially regardless of the size of their company.