Re:BMW CEO to quit after carmaker loses early lead in electrics
by windexh8er on Friday July 05, 2019 @08:14PM
(#20366889)
My Wall Street example isn't misleading. It's very well known and defined and was actually a big component to the write up about the looming Boeing bailout that hit the FP yesterday [0]. It's not about abandoning. It's about prioritizing R&D and futures equally with QoQ and YoY profits. Balancing those two is extremely important for fiscal gain and continuuing to stay relevant in the face of Innovators Dilemma.
[0] https://mattstoller.substack.com/p/the-coming-boeing-bailout
This is presented as shortsightedness, but that's misleading. It's not that the incumbent is willfully ignoring the threat, or choosing not to take a long view, but that they have an existing business which is much larger than the niche being attacked and they have to run that business this quarter and next. If they abandon it, they've just destroyed everything they have anyway.
If it was mere foolishness with an obvious counter, it wouldn't happen over and over again to people who think they know better.
This is not something I thought of, this is something that was explained quite well by the person who, I think, coined the term "disruptive innovation" and whose book I read in college back in the late 90s.