Just because you're paranoid, doesn't mean they aren't out to get you
By teich on May 23, 2007
It turns out, business is hard. One of the hardest things is knowing who to be worried about. Due to so many external worries, most companies decide to limit the internal competition. "Don't cannibalize our own sales", or "don't release a product that undercuts this other product."
This doesn't work. We're in tech. Tech is an innovation driven industry. As Clayton Christensen points out in "The Innovator's Dilemma", if you wait till the innovative opportunity is large enough it's too late. Will Herman over at 2-speed has a great blog post on this today: Cannibalize yourself.
We should all be looking for ways to put ourselves out of business, every single day. Play both sides of the innovators dilemma - cannibalize yourself on the low end with new innovative products, and use the freed up resources to focus on the high end as well. If you don't, someone else will.