I worked a lot with SGI hardware and IRIX in the 90s and very early 2000s. I ported a lot of code to and from Linux in that time.
I remember trying to explain to SGI reps that while we loved the SGI hardware, Linux on commodity x86 was the increasingly more effective choice for our projects. We wanted to buy SGI x86 boxes but they were pushing NT.
It was very apparent that SGI salesmen knew which way the wind was turning and they were milking the last bits of the commission gravy train.
Even when everyone understands “The Innovator’s Dilemma”, the incentives of salesmen and shareholders can be to optimize for extracting value out of the dying company. If I am a shareholder in a company being out innovated, it might make sense to want them to maximize short term profits while reallocating capital to the innovators instead of trying to improve the dying company.
Seems like issue is a shift from high margin sales representative lead growth to low margin mass where you don’t need sales people to convince you to buy it. Then there is no way to justify the sales team, so they don’t support it. The company is beholden to them, and they sabotage the move to mass market.
That is certainly one case, maybe the most likely. But another case I was involved with involved sales just not understanding the innovation. They could have potentially made just as much or more money with the new thing, but were too comfortable selling the old thing.
I remember trying to explain to SGI reps that while we loved the SGI hardware, Linux on commodity x86 was the increasingly more effective choice for our projects. We wanted to buy SGI x86 boxes but they were pushing NT.
It was very apparent that SGI salesmen knew which way the wind was turning and they were milking the last bits of the commission gravy train.
Even when everyone understands “The Innovator’s Dilemma”, the incentives of salesmen and shareholders can be to optimize for extracting value out of the dying company. If I am a shareholder in a company being out innovated, it might make sense to want them to maximize short term profits while reallocating capital to the innovators instead of trying to improve the dying company.