Gary Feldman at Cheskin shares some insights into why innovation can lead to dead ends. This quote sums up the problem becoming a “betamax first mover loser“.
His examples are Tivo (a great innovation) and satellite radio (a paid
version of something you already have). The main difference between the
two is that Tivo doesnt integrate into the TV / Cable experience buying a Tivo requires extra effort while satellite radio is an option at the dealership.
key insight for UX is that its the integrated experience that matters
not just the one specific product we might be working on.