What do microprocessors, power tools, and air transportation have in common? On the face of it, not much. But dig a little deeper and you’ll find that each of these industries has followed a similar pattern over the past 20 years. Each has a large number of established companies. Each has seen an accelerating pace of product innovation. And each industry has also, unfortunately, seen a decelerating pace of growth.
In response, leading companies in these industries have moved beyond product innovation and redefined the basis of competition. Companies such as ARM Holdings, Hilti, and Qantas have combined new products with new pricing strategies, partnerships, cost models, and a multitude of other changes to their businesses. They have achieved impressive results, and they are not alone.
