Understanding How The Innovator’s Dilemma Affects You: Seeing vs. Reading

Understanding How The Innovator’s Dilemma Affects You: Seeing vs. Reading

Innovation is a driving force in today's rapidly evolving world. It brings new possibilities and opportunities, but it also presents challenges for established players in the market. This is where the concept of the innovator's dilemma comes into play. The innovator's dilemma refers to the difficulty that incumbents face when trying to adapt to disruptive technologies or ideas that threaten their existing business models.

Disruptive innovations have the power to provide access to products or services that were previously only available to a select few. They break down barriers and open up new markets. However, these innovations often come at a lower price point and are initially perceived as less performant compared to their established competitors. This creates deflationary pressures in the market and encourages more users to adopt the new technology.

The incumbent companies, who have a vested interest in protecting their existing business, are dismissive of the new competition. They focus on serving their high-requirement customers and invest in improving their products' features, performance, and functionality. However, as time goes on, the cost disparity between the incumbent and the disruptor becomes apparent to customers. They start to question whether the disruptor's offering is "good enough" to meet their requirements.

This is where the innovator's dilemma truly takes hold. The incumbent companies, instead of cutting costs to compete with the disruptor, double down on their efforts to outperform them. They pour more resources into improving their products, hoping to maintain their market dominance. However, this approach often backfires. The disruptor's technology steadily catches up to the incumbent's offering, and customers begin to "trade down" to the more affordable alternative.

The reason why incumbents struggle to disrupt their own businesses is that true change often comes from outside. They are too entrenched in their existing processes, structures, and mindsets to embrace disruptive ideas. In fact, their best course of action may be to support and fund their successors, rather than trying to compete directly.

Now, let's shift our focus to the concept of "seeing vs. reading." When we resist the use of labels and truly observe our surroundings, we open ourselves up to new possibilities. By unlearning our preconceived notions and being open to new sensations, we gather more information and make new connections.

Creativity, whether in software development or organizing a creative project, requires a balance between focused linear thinking and intuitive perception. It is important to alternate between these two modes of thinking to foster creativity. First, we define the boundaries of our creative playground using logical verbal thinking. Then, we immerse ourselves in gathering information, taking in as much as possible.

Observing our surroundings, whether through observational drawing or simply paying close attention, allows us to tap into the rich information available in the present moment. This heightened perception helps us recognize patterns and make new connections. It strengthens our intuitive thinking and allows new ideas to flourish.

Incorporating these concepts into our daily lives can have a profound impact on our ability to adapt and innovate. Here are three actionable pieces of advice to consider:

• 1. Embrace disruptive technologies: Rather than dismissing or resisting disruptive technologies, take the time to understand their potential impact and explore how they can benefit your business. Look for opportunities to leverage these technologies to reach new markets or improve existing processes.

• 2. Foster a culture of creativity: Encourage your team to embrace both focused linear thinking and intuitive perception. Create an environment that values observation and open-mindedness. Provide opportunities for employees to explore new ideas and experiment with different approaches.

• 3. Stay adaptable: Recognize that change is inevitable and be prepared to adapt. Continuously monitor the market and be open to reevaluating your strategies and business models. Embrace a mindset of continuous learning and improvement.

In conclusion, understanding the innovator's dilemma and the power of observation can greatly impact our ability to adapt and innovate. By embracing disruptive technologies, fostering a culture of creativity, and staying adaptable, we can navigate the challenges of a rapidly changing world and seize new opportunities for growth.