The Innovator’s Dilemma
But what if the firm was driven, not by the goal of short-term profitability, but by the goal of continuous innovation in service of finding new ways of delighting customers? The new bottom line of this kind of organization becomes whether the customer is delighted. Conventional financial measures such as maximizing shareholder value are subordinated to the new bottom line. Profit is a result, not a goal. Experimentation and innovation become an integral part of everything the organization does.
Sir Jonathan Ive, Apple’s Senior Vice President of Industrial Design:
April 9, 2012
We are really pleased with our revenues but our goal isn’t to make money. It sounds a little flippant, but it’s the truth. Our goal and what makes us excited is to make great products. If we are successful, people will like them and if we are operationally competent, we will make money.