The Innovator's dilemma revisited. The Home Communication Concept (HCC)

The case described in this article is based on an innovation project at Ericsson Denmark in 1997. The project has been called the home communication concept (HCC), and represents the response of a major ICT manufacturer to the reshaping of the telecom market, paved by Internet technology. The project is described from its start in summer 1997 to the end of 2001. This is a unique case study in more than one respect. The first author followed the project very closely during his employment in a new business development department (BDD) at Ericsson Denmark. Secondly, the study covers all phases and aspects, from inception to field trials. Thirdly, it represents a radical innovation based on a disruptive technology (Internet technology), which transcends the traditional business of the company in question. The paper describes the entire project, and tries to present it within a framework capable of analysing the actual events. In this respect, it not only demonstrates the classical dilemma of management during disruptive technological development, but also illustrates the internal problem of allowing a creative BDD to become 'sectarian’, i.e. blindly believing in itself and suspicious of the rest of the world. Using the framework presented in this paper, several fundamental concerns regarding existing research are identified and discussed. In closing, implications for research and management are addressed.