<p>Eastman Kodak was once the world's biggest maker of film, but the company didn't survive the market's switch to digital photography. Photo: Rob Homer</p><p>There seems little doubt. Without reinvention, the profitability of most traditional professional services firms will eventually plunge.</p><p>In advanced economies the professional services sector is in the late-mature stage of the life cycle. Demand is no longer growing faster than the economy, buyer power is in undisputed ascendance, many services are perceived as commoditised, labour input costs are still outpacing price increases, and successful substitutes are emerging. This is a recipe for firms' profits to plunge unless they reinvent themselves.</p><p>Professor Clayton Christensen, the world's leading authority on industry disruption and innovation, of Harvard University, was in Australia earlier this month. His message was both chilling and inspiring for all sectors, but especially those in the services sector, where much of the hope for Australia's future prosperity rests. Christensen's analysis shows why professional services firms also need to reinvent themselves and what they can do to achieve this.Innovator's dilemma applies to firms</p><p><a href="http://www.brw.com.au/p/professions/beware_the_fate_of_eastman_kodak_bLpuESoVpia2TW4FsBWUDM">Keep reading...</a></p>