Martecs Law
Martec's law states that technology changes exponentially, but organizations change much more slowly (logarithmically). This leaves a huge gap
- Technology progresses very rapidly (See Moore's Law)
- Organizations are slow to change (they change logarithmically)
- The gap between these two grows large over time
- This leaves room for new innovative entrants to rapidly overtake and change an industry using new technology
- This poses a serious risk for existing firms
Example 1 - MP3 Players
- Sony was huge player in personal audio devices in the 80s-early 2000s (cd players, Walkman, etc)
- Sony missed the boat on moving to digital MP3 players (to apple) and lost almost all market share