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INNOBLOG

the insider's guide to innovation

Thursday, February 28th, 2008

Sony: Winning the DVD Battle But Losing the Innovation War?

Scott D. Anthony

Its often said that generals "fight the last war. They use tactics that worked in the last war and struggle when conditions change in ways that render those tactics ineffective. For example, after years of bloody trench warfare in World War I, France built heavy fortifications along its borders (the "Maginot Line) to prevent a full-on assault. The Germans innovative "blitzkrieg model obviated Frances brute force.

Companies oftentimes run into the same trap. They assume tactics that led to success in the past will lead to success in the future. Even worse, companies can choose the right tactics to win a particular battle, only to find out they have lost the innovation war.

This often happens in disruptive circumstances. Market-leading incumbents can do everything absolutely right, achieve dominance in their core market, and stumble in the face of a disruptive attacker that changes the game through simplicity, convenience, or low prices.

Consider Sonys efforts in the battle for next-generation DVD technology...

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More over at HBSP's Innovation Insights


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