Why companies can not do radical innovations? Business managers get trapped by their current way of thinking. This is known as the dominant logic trap, where the wisdom of a company does not let new business concept get through the organization. As show in the Figure below, We can visualize this issue by using a funnel. The filter inside the funner represent the current way of thinking. Moreover, this filter is the collective wisdom of managers that stop the adoption of innovative ideas outside the current way of doing business. Furthermore, the arrow outside the funnel represents the service dominant business concept that can not get into the company’s mindset.

Reference: Lüftenegger, E.R., Grefen, P.W.P.J. & Weisleder, C.A. (2012). The service dominant strategy canvas : defining and visualizing a service dominant strategy through the traditional strategic lens.BETA publicatie : working papers No. 383, Eindhoven: Technische Universiteit Eindhoven, 50 pp. (PDF)