Creative destruction is everywhere in the market. No where is it more evident than in technology based businesses. Often we don't comprehend the power of creative destruction. Instead of being in awe of the transforming power of the market, we marvel at the latest PDA application or cell phone ring tone.
There is a great article at USAToday.com highlighting the fact that cell phones have changed and will continue to change the way we live. It is hard to imagine that by 2009, 1 billion cell phones will be sold per year. This growth is not a phenomenon, it is market forces at work.
The challenge in the firm is to drive creative destruction. All companies have the task of continuously innovating to create value for customers. The difference is whether the firm is driving that change, or if they are waiting for the change to occur. Joseph Schumpeter said, "Capital markets reward shareholders of competitive corporations and then rapidly, and with no remorse, forget them when they lose their ability to innovate."
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