Disruptive Technologies: Catching the Wave
One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technologies or markets change. Why is it that established companies invest aggressively--and successfully--in the technologies necessary to retain their current customers but then fail to make the technological investments that customers of the future will demand? The fundamental reason is that leading companies succumb to one of the most popular, and valuable, management dogmas: they stay close to their customers. To remain at the top of their industries, managers must first be able to spot disruptive technologies. To pursue these technologies, managers must protect them from the processes and incentives that are geared to serving mainstream customers. And the only way to do that is to create organizations that are completely independent of the mainstream business.