Creative destruction: the cost of progress

“Creative destruction” means that new technologies render existing products obsolete. If you don’t engage in creative destruction, your competitors will, ultimately shrinking or destroying the markets for your existing products.

Creative destruction comes at a cost. Sometimes your workers can’t handle the new technologies, and must be replaced. Often the long-term benefits of new technologies come at the expense of the short-term profits from existing products.

However you choose to deal with creative destruction, you can’t ignore it. It is inevitable in many businesses. To remain strong, a company must manage change successfully.

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