Tuesday, February 07, 2012

Disruptive innovation...

...Tech powers and a harsh lesson in survival

The other lesson is that strategic choices still count. Simply trying to change course and copy a disruptive new technology is often the wrong path to take. IBM, seeing the threat to its mainframe computing business from the rise of the “client-server” era, threw its full corporate weight behind the PC business in the early-1980s. Yet it was only IBM’s eventual decision to retreat from PCs that signalled it had learnt the strategic lesson: to stick to its high-margin IT business with the addition of software and services.

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