Innovation is about changing the way we do things - either doing something known in a new way or creating something entirely new. But innovation can have unexpected consequences for a business and doing what looks to be right in terms of innovation can actually be wrong, with fatal consequences.
What is it that causes businesses to fail even though they are, on the face of it, doing all the right things as far as innovation is concerned? Why can it be dangerous to simply try to leverage the infrastructure that you already have rather than getting into a new area business? Or to go upmarket to pursue more profitable product lines, as GM did when Toyota moved into (and up) the US car market?
Clayton Christensen, Kim B. Clark Professor of Business Administration at the Harvard Business School and world leading authority on disruptive innovation, has named this 'the innovator's dilemma' and he discusses it with Peter Day in this fascinating episode of the BBC's 'Global Business':