The Challenge Today: Changing the Rules of the Game

As the information age takes over from the industrial age and change accelerates, the key challenge for each company is to become the architect of revolution in its industry, leaving other companies to play catch‐up. The author argues that the key competitive advantage for companies intent on winning in the new economy is non‐linear innovation. Companies need to shift from a product‐centric view of innovation to a systemic view of innovation: ie innovation of the business model itself. This article is derived from the last of the 1998 Stockton Lectures, delivered in April.