Disruptive Technology

Disruptive technology: Catching the Wave Section: HBR January-February 1995 One of the nigh consistent patterns in business is the failure of leading companies to proceed at the top of their industries when technologies or trades change. Goodyear and Firestone entered the radial-tire market quite late. decamp let Canon create the small-copier market. Bucyrus-Erie allowed Caterpillar and Deere to take all over the mechanical excavator market. Sears gave way to Wal-Mart. The pattern of failure has been specially striking in the computer industry. IBM dominated the mainframe market exactly missed by years the emergence of minicomputers, which were scientificly much simpler than mainframes. Digital Equipment dominated the minicomputer market with innovations like its VAX architecture but missed the personal-computer market al approximately completely. Apple electronic computer led the world of personal computing and established the shopworn for user-friendly computing but lagged five years nooky the leaders in bringing its portable computer to market. wherefore is it that companies like these invest aggressively-and successfully-in the technologies necessary to retain their current customers but then fail to make certain other technological investments that customers of the future will demand?

Undoubtedly, bureaucracy, arrogance, tired executive blood, silly planning, and short-term investment horizons have all played a role. But a more fundamental reason lies at the heart of the paradox: leading companies succumb to one of the most popular, and valuable, management dogmas. They stay close to their customers. Although most managers like to appreciate they are in control, customers wield extraordinary power in directing a companys investments. Before managers decide to send a technology, develop a product, build a plant, or establish new channels of distribution, they must look to their customers primary: Do their customers want it? How big will the market be? Will the investment be profitable? The... If you want to get going a full essay, order it on our website: Ordercustompaper.com

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