Column 6 · Innovation and New Products · Era 5, Assets and Accountability (2000s)
Radical Innovation
Formulation, content · Landmark · Cluster II, Resources and Orientation
Description
Chandy and Tellis tested the incumbent's curse and found that, contrary to received wisdom, large incumbents have introduced most radical product innovations since World War II.
Managerial Implications
Large incumbents can lead radical innovation, contrary to the incumbent's curse, when they are willing to cannibalize their own successful products. The barrier is organizational, not technical. Managers should ask whether the firm has mechanisms that let new products replace old ones before competitors force the issue: separate units, different metrics, and leaders who are rewarded for the total, not for protecting the legacy.