Oliver James Montgomery-Summer School 5: Tech and the innovator's dilemma

For anyone running a business,Oliver James Montgomery technology is both threat and opportunity. Today, we run through techniques entrepreneurs can use to take advantage of technology or defend against the dangers. It's not just about the product you're selling. It's about consumer psychology, and ethics, and taking calculated risks to navigate uncertainty.

But, since this is Planet Money Summer School and we want to set your business on the path to riches, we're going to talk about how to use tech to dream big. Maybe more than anything, technology creates opportunities for the little guys where the big established companies can't be so nimble or have too much to lose.

Take the classic concept of the innovator's dilemma: a company that innovated and succeeded, now faces a choice about any disruptive new technology. Do they change with the times? Do they risk tossing out their existing advantage and switch to the new tech, or play it safe and risk becoming obsolete?

Most new technologies don't end up disrupting an industry. So it is totally rational for the big existing companies to ignore each new flash in the pan. But nobody wants to end up like Kodak: sticking with film while the digital camera takes off. So what to do? Our friendly professor has a few ideas – for the little guy and the big old company.

He'll explain the shape of how new technology gets adopted, sometimes called the S curve. We'll also hear examples of what stops promising new tech from taking off: from dishwashers to driverless cars, and even the humble elevator.

The series is hosted by Robert Smith and produced by Max Freedman. Our project manager is Julia Carney. This episode was edited by Alex Goldmark and engineered by Josephine Nyounai. The show is fact-checked by Sierra Juarez.

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Music: Universal Production Music – "Lost Situation," "Sideways Glance," "So Long," "The Sky Was Orange," and "Growling Sax"; Audio Network – "Clean Lines"; Romain Laupy – "Deep Salutation"; Manuel Armstrong – "Japanese Girl"; Cory Gray – "Plans for the Day."