The innovation challenges of proactive cannibalisation and discontinuous technology

Abstract

Innovation is central to modern competition and yet many executives are wary of the risks of cannibalisation of their existing product and service sales through inappropriate innovation. However, the impact of discontinuous technological change is fundamental, and the risks to established companies from not innovating to compete with disruptive technologies are substantial. Many of the arguments which tended towards avoiding cannibalisation are increasingly invalid as a basis for strategic decisions. We propose a framework of proactive cannibalisation that responds to changing customer value, as part of the process for building appropriate innovation strategies for the new competitive and technological environment faced by companies. We provide a framework for managers to evaluate the drivers of successful innovations in developing their strategies.

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