Disruption and Denial
When the Internet emerged in the mid-1990’s, it seemed clear to me and many others that we were entering a new era of technology, one where our devices and our servers would all be connected, and where data would largely be stored in the cloud. The Internet was essentially a new platform, and a larg
- Source
- SVPG (Marty Cagan)
- Category
- Product Launch & Strategy
- Format
- Article
- Published
- June 15, 2025
Summary
This case study examines the recurring pattern of industry resistance to transformative technologies, drawing parallels between the Internet revolution of the 1990s and today's AI transformation. Marty Cagan, drawing from his experience as VP Platform and Tools at Netscape, identifies two primary objections that emerge during technological paradigm shifts: denial that fundamental changes are needed ("it's just another feature") and security/reliability concerns that justify inaction.
During the Internet era, companies resisted adopting connected product architectures, insisting their waterfall processes remained adequate and citing data security concerns about cloud storage. Today, Cagan observes identical patterns with AI adoption, where organizations claim AI requires no fundamental changes to product development processes and cite concerns about probabilistic solutions, hallucinations, and unpredictable behaviors as reasons to avoid implementation.
The strategic approach involves recognizing that truly transformative technologies require substantial changes to product team topology, roles, and discovery/delivery processes. Companies like Salesforce exemplified success by embracing new enabling technologies before customers fully understood their value, then riding the adoption curve as market understanding matured.
Key takeaways for product managers include: expect and prepare for fundamental process changes when working with transformative technologies rather than treating them as incremental features; develop techniques to mitigate inherent risks of new technologies instead of using them as excuses for inaction; and recognize that competitive advantage often comes from early adoption while others remain in denial, as new entrants will eventually demonstrate superior solutions to customers.