This article reviews a central tension in management-the relationship betwe
en customers and innovation. It explores the contrast between serving and c
reating customers and examines the sometimes uneasy relationship between an
innovation orientation and a customer orientation. From this discussion, t
he article develops a model that provides an inclusive paradigm of the diff
erent strategies that firms have used to resolve the tension and explores t
he dynamics of the change process for several well-known companies. It conc
ludes by developing the managerial implications of the model, with a partic
ular emphasis on how new technology is changing the desirability of alterna
tive strategies.