Currently reading: the innovators dilemma

First, disruptive products are simpler and cheaper; they generally promise lower margins, not greater profits. Second, disruptive technologies typically are first commercialized in emerging or insignificant markets. And third, leading firms’ most profitable customers generally don’t want, and indeed initially can’t use, products based on disruptive technologies.

Planning better, working harder, becoming more customer-driven, and taking a longer-term perspective—all exacerbate the problem.