Innovating Away From Current Infrastructure Will Never Work...
...Or Is That Beginning to Change?
There’s no money in it!
A major challenge for innovators is trying to disrupt the status quo. Historically, this has been extremely difficult. While things change quickly these days, the capital investments in infrastructure have been a huge obstacle to change. Obviously, who ever owns the infrastructure is going to be done, and they probably won’t sit idly by and simply allow to break them.
Another thing we’ve faced is the cost of moving to a new infrastructure. First, it must built. Then, you need to convince customers or users to adopt the new way of doing things. Then you need to make sure the transition is smooth.
Let’s take a look at some examples.
Nikola Tesla
Nikola Tesla’s groundbreaking work in wireless energy transmission, particularly through his Wardenclyffe Tower project, represented a visionary leap in the early 20th century. Tesla sought to revolutionize the way energy was distributed by transmitting electricity wirelessly over long distances, using the Earth itself as a conductor. His experiments with high-frequency alternating currents and resonant inductive coupling demonstrated the feasibility of short-range wireless power transfer, lighting incandescent bulbs without wires and showing the potential for global energy distribution. Tesla envisioned a world where electricity would be freely available to all, eliminating the need for wires and centralized power stations, thus democratizing access to energy and communication technologies.
The implications of such a technology more than 100 years ago would have been profound. If successful, Tesla’s wireless energy system could have fundamentally altered the trajectory of industrialization and global development. The ability to transmit power without wires would have reduced infrastructure costs, made electricity accessible in remote areas, and potentially mitigated environmental damage by reducing reliance on fossil fuels. Tesla even foresaw applications that resemble modern technologies like the internet and cellular networks, predicting that wireless energy could foster global communication and cooperation. However, his ideas were far ahead of their time, both technologically and conceptually.
Despite Tesla’s brilliance, his ambitious project faced significant financial hurdles. His primary investor, J.P. Morgan, initially supported the Wardenclyffe Tower with $150,000 (equivalent to around $5.49 million today), but when Tesla expanded the scope of the project to include wireless power transmission in addition to communication, Morgan grew skeptical. The financier saw little profit in a system that promised free energy for all and refused to provide additional funding. Without Morgan’s backing and unable to secure further investment from other sources, Tesla’s project stalled. By 1906, construction ceased, and in 1917, the Wardenclyffe Tower was demolished under mysterious circumstances.
The withdrawal of financial support for Tesla’s wireless energy project marked a turning point not only for his career but also for society at large. Had Tesla succeeded in realizing his vision of free wireless energy, it is possible that today’s world would be vastly different—perhaps less reliant on centralized power grids and fossil fuels. Instead, Tesla’s failure to secure continued investment meant that his dream of a global wireless energy network remained unrealized. The world continued on its path toward centralized, profit-driven energy systems that have contributed to environmental degradation and economic inequality.
In retrospect, Tesla’s work on wireless energy transmission remains one of history’s great “what ifs.” While some aspects of his technology have found modern applications—such as in radio communications and short-range wireless charging—his grander vision was never brought to fruition. The abandonment of his project underscores how societal progress can be limited not just by technological challenges but also by financial interests that prioritize profit over public good.
It was a great potential invention, but Tesla wasn’t able to offer Morgan a lucrative business model. He was getting rich off the current infrastructure.
Wireless Telco
The wireless telecommunications industry has been one of the most transformative forces in modern infrastructure, disrupting the traditional wired systems that once dominated communication. By building wireless networks, telecom companies eliminated the need for physical cables to connect users, enabling mobile communication and internet access on an unprecedented scale. This shift allowed for greater flexibility and accessibility, especially in regions where laying extensive physical infrastructure was impractical or too costly. However, despite this technological breakthrough, telecom companies have struggled to develop a truly innovative business model that differentiates them from mere utilities.
One of the key reasons for this failure to innovate lies in the commoditization of their services. As wireless technology became widespread, telecom operators found themselves in an increasingly competitive market where their core offerings—voice, text, and data—became standardized products with little room for differentiation. Over-the-top (OTT) services like WhatsApp and Skype further eroded traditional revenue streams by offering free alternatives to voice calls and messaging, forcing telecoms to rely heavily on data plans as their primary source of income. This commoditization has led to a race to the bottom in pricing, with telecom companies focusing more on cost-cutting and network expansion than on creating new value-added services.
Despite investing billions in infrastructure—such as 5G networks and fiber optic cables—telecom companies have largely failed to capitalize on these advancements with innovative business models. Instead, they continue to sell "lines" of service in the form of data plans and subscriptions, much like they did with wired connections in the past. This reliance on traditional pricing models based on minutes of voice or gigabytes of data has limited their ability to differentiate themselves from competitors. As a result, many telecom operators are at risk of becoming "dumb pipes," merely providing the infrastructure for other companies’ innovative services without capturing significant value themselves.
The inability to break out of this commoditization trap has significant implications for both the industry and society. For telecom operators, it means shrinking margins and stagnant growth (CAGR decline) as they compete primarily on price rather than service differentiation. For consumers, it means that while access to wireless communication has become more affordable, there is little innovation in the services provided by these companies. The promise of 5G, for example, has yet to deliver many of the groundbreaking applications that were initially envisioned, such as smart cities or widespread IoT integration.
In summary, while wireless telecoms have successfully disrupted traditional wired infrastructure and expanded global connectivity, they have struggled to develop a sustainable business model that moves beyond selling commoditized services. Their focus on expanding network capacity without corresponding innovation in service offerings has left them vulnerable to competition from tech companies and OTT providers. To avoid becoming mere utilities, telecom operators will need to rethink their strategies by investing in new technologies and partnerships that can provide differentiated services and create more value for both consumers and shareholders.
Others built their empires on top of the Telco utility
Then Apple Showed Us
Apple’s breakthrough with the iPod in 2001 marked a pivotal moment in the consumption of music, fundamentally disrupting the music industry and the infrastructure that supported it. Before the iPod, listening to music was a complex process involving physical media like CDs or tapes, alongside devices like portable CD players or Walkmans. Music libraries were limited by physical storage, and purchasing new music meant visiting record stores. The iPod, combined with iTunes, simplified this process by allowing users to store thousands of songs digitally and purchase music online. This shift not only disrupted the portable music player market but also began dismantling the traditional music distribution infrastructure, as digital downloads replaced physical sales. The convenience of carrying an entire music library in your pocket revolutionized how people consumed music, making it more accessible and personalized.
However, Apple didn’t stop there. Recognizing that smartphones would eventually absorb many of the functions of standalone devices like the iPod, Steve Jobs made a bold decision to disrupt Apple’s own product with the introduction of the iPhone in 2007. The iPhone was not just a phone—it combined a mobile phone, an iPod, and an internet browser into one device, effectively consolidating several previously siloed technologies into a single platform. This move disrupted multiple industries at once: portable music players, digital cameras, GPS devices, and even personal computers to some extent. By allowing users to perform many tasks—such as listening to music, taking photos, browsing the web, and using apps—on one device, Apple transformed the smartphone into a versatile tool for modern life.
The iPhone’s impact went far beyond just combining existing technologies; it also introduced new ways for consumers to get jobs done more efficiently. For example, it disrupted analog solutions like paper maps through GPS navigation apps and replaced physical calendars with digital ones. In addition, it disrupted siloed digital solutions by integrating communication (calls, texts), entertainment (music, video streaming), and productivity (email, browsing) into one seamless experience. Industries such as gaming were also transformed as mobile games became widely accessible on smartphones. Apps like Angry Birds and Pokémon Go created entirely new markets for casual gaming that didn’t require dedicated hardware like consoles or PCs.
Moreover, the iPhone’s creation of an app ecosystem through the App Store enabled third-party developers to innovate on top of Apple’s platform. This led to further disruption across industries—ride-sharing apps like Uber revolutionized transportation, while social media apps like Instagram democratized content creation by turning every user into a potential photographer or influencer[3]. The iPhone essentially became a platform where countless industries could converge and evolve.
In summary, Apple’s ability to first disrupt the music industry with the iPod and then disrupt itself with the iPhone exemplifies its strategy of continuous innovation and reinvention. By consolidating multiple functions into one device and fostering an ecosystem where new solutions could thrive, Apple not only redefined how consumers interacted with technology but also set the stage for future disruptions across various sectors.
Why Did Apple Succeed?
Apple succeeded where Nikola Tesla and wireless telcos did not due to its ability to create a sustainable business model, integrate technologies into a seamless ecosystem, and capitalize on market timing—all while continually disrupting itself to stay ahead of competitors. Although both Tesla and wireless telcos introduced groundbreaking innovations, they faced significant challenges in scaling their ideas into commercially viable, long-term successes.
1. Commercialization and Business Model
One of the key reasons Apple succeeded where Nikola Tesla did not is its ability to commercialize its innovations effectively. Tesla’s visionary work on wireless energy transmission was technologically ahead of its time, but he struggled to secure ongoing financial backing due to the lack of a clear business model. His concept of free, wireless energy for all clashed with the profit-driven motives of investors like J.P. Morgan, who saw no way to monetize such a system. Without sustained funding, Tesla’s Wardenclyffe Tower project was abandoned, and his dream of global wireless energy transmission never materialized.
In contrast, Apple excelled at turning technological innovations into profitable products. The iPod disrupted the music industry by simplifying how people consumed music, but it also created a new revenue stream through iTunes, where users could purchase digital music legally and easily. Apple’s business model was clear: sell premium hardware (iPods) and lock users into an ecosystem (iTunes) that generated recurring revenue. Later, with the iPhone, Apple built on this model by creating an even broader ecosystem that included apps, subscriptions, and services like iCloud and Apple Music—all of which contributed to long-term profitability.
Wireless telcos also struggled with business model innovation. While they disrupted traditional wired communication infrastructure by building out wireless networks, they failed to move beyond selling commoditized services like voice minutes or data plans. Unlike Apple, which continuously found new ways to monetize its ecosystem (e.g., App Store, services), telcos remained stuck in a utility-like business model that offered little differentiation.
2. Integration of Technologies
Apple’s success also stems from its ability to integrate multiple technologies into a single platform that provided a seamless user experience. The iPod didn’t just store music; it worked in tandem with iTunes to make purchasing and organizing music simple for users. This integration of hardware and software was key to Apple’s dominance in the music space.
Tesla’s wireless energy transmission concept was similarly ambitious in scope—he envisioned a world where electricity could be transmitted wirelessly across vast distances using the Earth itself as a conductor. However, Tesla lacked the infrastructure or technological means at the time to fully realize this vision on a global scale. His ideas were fragmented without an integrated system that could be easily commercialized or scaled.
Wireless telcos also built impressive infrastructure—wireless networks—but they failed to integrate additional value-added services effectively into their offerings. While they enabled mobile communication, they didn’t create ecosystems that allowed users to seamlessly transition between different tasks (e.g., communication, entertainment, productivity) in the way Apple did with the iPhone.
3. Self-Disruption
A crucial factor in Apple’s success has been its willingness to disrupt itself. After revolutionizing portable music with the iPod, Apple didn’t hesitate to introduce the iPhone—a product that would eventually cannibalize iPod sales but also open up entirely new markets. This self-disruption allowed Apple to stay ahead of competitors and continually evolve its product line while maintaining customer loyalty through its ecosystem.
Tesla’s work on wireless energy was revolutionary but lacked this kind of iterative self-disruption because it never had the chance to scale or evolve commercially before financial constraints halted his projects. His inability to secure ongoing funding meant that his innovations remained largely theoretical rather than practical advancements that could be continuously refined.
Wireless telcos similarly failed to disrupt themselves meaningfully after building out wireless networks. Instead of innovating beyond basic connectivity services (voice calls and data), they allowed tech companies like Apple to take over higher-value areas like mobile apps and content distribution. Apple’s App Store became a platform for innovation across industries—something telcos never developed within their own ecosystems.
4. Market Timing
Apple also benefited from market timing—introducing products when consumers were ready for them and when supporting technologies were mature enough for mass adoption. The iPod arrived when digital music was gaining traction but before piracy had completely eroded the market for legal downloads; similarly, the iPhone launched at a time when mobile internet access was becoming feasible due to advancements in cellular networks.
Tesla’s wireless energy transmission concept was ahead of its time—too advanced for the early 20th century when supporting technologies like power grids and global communication networks were still underdeveloped. His vision required an infrastructure that simply didn’t exist yet, making it difficult for him to gain traction with investors or governments.
Wireless telcos had better timing with their initial disruptions (wireless communication), but they failed to capitalize on subsequent technological shifts as quickly as companies like Apple did with smartphones and apps.
Apple succeeded where Nikola Tesla and wireless telcos did not because it mastered the art of integrating technology into commercially viable ecosystems while continually disrupting itself before competitors could catch up. Tesla’s visionary ideas were too far ahead of their time and lacked a clear business model that could attract sustained investment. Wireless telcos disrupted traditional infrastructure but failed to innovate beyond commoditized services like voice minutes or data plans. In contrast, Apple consistently turned innovation into profit by creating seamless user experiences backed by strong ecosystems and adaptable business models that evolved with market needs.
The digital-first aspect of our new capabilities has dramatically changed what a moat looks like. And, there’s one thing we need to remember, as innovators.
“A true innovation gets the whole job done, not just parts of a job. It should also strive to get multiple jobs done. It should do all of these things on a single platform, and it should do so completely differently so as to eliminate the need for current business models or infrastructure. And more thing, a true innovation will do all of these many things with even fewer features than one of the things it replaces.”
And you can quote me on that!
Have a great weekend
Mike Boysen - www.pjtbd.com
Why fail fast when you can succeed the first time?
Have courage, commit and take action!
JTBD Enthusiasts: https://community.zeropivot.us
Check out my (FREE) JTBD Strategy Stack: https://stack.zeropivot.us/strategy-stack
Get the original JTBD Masterclass at a new low price: https://mc.zeropivot.us/mc-1