The Innovator's Dilemma
Okay, let's pretend that you have a toy that you love to play with every day. It’s your favorite thing in the whole world! But, one day, your friend comes over and they show you a newer and shinier toy that they got. Suddenly, your old toy doesn't seem as cool anymore!
This is what's called the innovator's dilemma. It happens when a company has a successful product or service, but a new and innovative product comes along that makes the old one seem less desirable.
The problem for the company is that they have invested a lot of money and time into their current product, so it's hard to just throw it away and start over with something new. They also don't want to give up the success they've already had with their current product.
But, if they don't start working on a new, better product, eventually their customers might start losing interest and go to another company that has the shiny new toy.
So, companies have to find a way to balance their investment in their current product while also making sure they are keeping an eye out for new ways to innovate and stay relevant. It's not an easy balance to strike, but it's really important for a company's success in the long run.
This is what's called the innovator's dilemma. It happens when a company has a successful product or service, but a new and innovative product comes along that makes the old one seem less desirable.
The problem for the company is that they have invested a lot of money and time into their current product, so it's hard to just throw it away and start over with something new. They also don't want to give up the success they've already had with their current product.
But, if they don't start working on a new, better product, eventually their customers might start losing interest and go to another company that has the shiny new toy.
So, companies have to find a way to balance their investment in their current product while also making sure they are keeping an eye out for new ways to innovate and stay relevant. It's not an easy balance to strike, but it's really important for a company's success in the long run.