Innovation plays a significant role in business continuity and building a competitive advantage. However, many established companies experience difficulty in innovating and responding to market changes. This concept is often referred to as the Innovator’s Dilemma.
Innovator’s Dilemma happens when business leaders fail to develop disruptive innovations because their investments focus heavily on maintaining current generation technologies and meeting the needs of existing customers. They face the risk of losing their companies’ current revenue stream if they reallocate resources from improving existing products to developing new ones. This becomes a long-term problem because it leaves the company vulnerable to competitors that can develop breakthrough products and services that serve different and untapped market segments.