Reddit mentions of Business Innovation and Disruptive Technology: Harnessing the Power of Breakthrough Technology ...for Competitive Advantage

I hear you and agree, at least in part, but from a long term perspective I wonder.

I think of the makers of 8-inch drives. 5 1/4" technology was a relatively expensive technological upgrade that, initially anyway, offered less than already existing 8-inch drives. Add in that the drive maker's primary clients were mainframes and minicomputers, people for whom a few inches space were not important, and it seemed a no-brainer not to 'waste' money to develop a product that would be expensive and didn't satisfy the customer.

Long story short, 5 1/4" drives initially found a very different market (the PC primarily), grew greatly in ability, dropped profoundly in cost, and ended up replacing 8" drives even in large applications. Because they hadn't developed the technology, not a single 8" drive maker was able to survive the transition to 5 1/4" technology.

Much the same thing happened with the change to 3 1/2" drives.

In other words, when making investments for the future a company has to be very careful not to be left in the dust. Even though a technology might not seem like it will be competitive in the near-term, especially to one's target market, there is a real risk that is will take hold somewhere else, grow, and displace your own products.

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