Do you still use Yahoo? Do you still remember MySpace? Compaq? Kodak? The cases of startups with superior ideas dethroning well-established incumbents are legion. This is the beauty of “creative destruction” – the term coined by innovation prophet Joseph Schumpeter almost a century ago. Incumbents have to keep innovating, lest they be overtaken by a new, more creative competitor. Arguably, at least in sectors shaped by technical change, entrepreneurial innovation has kept markets competitive far better than antitrust legislation ever could. For decades, creative destruction ensured competitive markets and a constant stream of new innovation. But what if that is no longer the case?
Are the Most Innovative Companies Just the Ones With the Most Data?
We may soon say goodbye to “aha moments.”
February 07, 2018
viktor vasicsek/unsplash
Summary.
The cases of startups with superior ideas dethroning well-established incumbents are legion. This is the beauty of “creative destruction.” Incumbents have to keep innovating, lest they be overtaken by a new, more creative competitor. But what if that is no longer the case? The trouble is that the source of innovation is shifting – from human ingenuity to data-driven machine-learning. If innovation is founded on data rather than human ideas, the firms that benefit are the ones that have access to the most data. Therefore, in many instances, innovation will no longer be a countervailing force to market concentration and scale. Instead, innovation will be a force that furthers them.
New!
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.
Learn More & See All Courses
New!
HBR Learning
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.