Every new technology is a force for “creative destruction.” Yourcompany is more likely to be buried by a new technology than by its
current competitors. Horse-drawn carriage makers were not defeated
by a better horse-drawn carriage but by the horseless carriage. Transistors
hurt the vacuum-tube industry, xerography hurt the carbon
paper business, and the digital camera will hurt the film business. The contraceptive pill, for example, was a factor leading to smaller
families, more working wives, and larger discretionary income—resulting
in higher expenditures on vacation travel, durable goods,
and luxury items.
New technologies will hopefully increase productivity at a greater
rate than their cost. But avoid adding a new technology to an old organization.
This will only result in an expensive old organization.
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