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 market 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 customer. Customers wield extraordinary power in directing a company’s investments. But what happens when a new technology emerges that customers reject because it doesn’t address their needs as effectively as a company’s current approach? In an ongoing study of technological change, the authors found that most established companies are consistently ahead of their industries in developing and commercializing new technologies as long as those Read More