Reversing Course: Competing Technologies, Mistakes, and Renewal in Flat Panel Displays
Firms facing technological uncertainty may need to recover from unlucky bets. But responding to failure is politically and organizationally difficult. This study explores how IBM recovered from its failed bet on plasma displays to lead the LCD display market. This study identifies six key factors, highlighting two. First, IBM ‘s researchers received centralized funding, but could also receive funding directly from division managers. This structure helped preserve options and variety. Second, internal LCD champions focused on the business case for displays and not technology. This fostered technology agnosticism and helped avoid managerial biases from failure. For managers looking to use real options to maintain flexibility in an uncertain environment, this study offers clear suggestions related to design and decision making that can foster flexibility .
