The Innovator's Dilemma
The Innovator's Dilemma refers to a challenge that successful companies face when new technologies or business models emerge. Often, these companies focus on improving their existing products for current customers, which can make them overlook disruptive innovations that initially serve smaller, less profitable markets. As these new innovations improve, they can eventually attract mainstream customers, causing established companies to lose market share or fail. Essentially, the dilemma highlights how doing everything right as a leader can still lead to failure if you don’t adapt to changes in the market or embrace new ideas.
Additional Insights
-
The Innovator's Dilemma describes a situation where successful companies fail to adopt new technologies or innovations because they focus on their existing profitable products and customers. As they prioritize current success, they overlook emerging trends that may initially seem less profitable but eventually displace their core business. This can lead to their decline as new, disruptive competitors capture the market. Essentially, it's a cautionary tale about how focusing too narrowly on current successes can blind organizations to innovative changes that could redefine their industry.