[TMC] Why ?

[Robert Nickels]

On 12/8/2014 10:59 AM, Jim Haynes wrote:
>
> It almost seems like the companies that were successful in the vacuum 
> tube
> era were unable to make the switch to solid state. 

Those into business trends may recognize the name Clayton Christensen of 
Harvard Business School, who has put forth a solid explanation of this 
phenomenon across many industries called "The Innovators Dilemma".   In 
essence, he says that the incumbents are so preoccupied by the demands 
of their existing customers and and products (and are investing all 
available resources to those ends) that they fail to take advantage of 
new technologies.   At the same time, potential new competitors who have 
an eye on the same customers DO invest in the "bleeding edge" because 
innovation is their best strategy for penetrating the established 
market. Christensen shows how the new entrant initially underperforms, 
but continues to get better until one day the new approach not only 
equals - but surpasses the value proposition of the incumbent.  Once the 
balance begins to shift, it's usually too late for the originally 
dominant company to catch up.

Things are  never simple but the "Innovators Dilemma" explains how 
disruptive technologies cause established competitors to miss out on new 
innovative ideas and ultimately fail, and I think the theory applies 
very well to what happend to TMC and others in the communications 
industry.    Ironically, the very thing that made them successful in the 
first place (listening to and responding to the needs of their 
customers) - ends up contributing to their demise.

73, Bob W9RAN