Creating and maximizing the shareholder value, is eventually the goal of any company, and executives must therefore make key decisions regarding the focus and priorities of the company in order to create such a value. As part of this, the executives should constantly look at the company presence - sustaining and expanding the present existing products, while also gazing forward to long term investment by creating new products and new businesses. This balance, between the present and the future, the old and the new, is one of the toughest of all managerial challenges, and it's no surprise that few companies do it well. Almost every company needs at some time to renew itself through the creation of new or even breakthrough products and/or processes, but it shouldn't do so, however, at the expense of its traditional business. Nevertheless, often times, we see companies putting most of their focus on the present, short-term business, rather than on developing new ones. This can put the company at risk to fail in delivering on a value-creating growth strategy and may even have severe outcome and consequences.
Kepten, Avishai, "Focus on the Present, Scarify the Future and Its Consequences" (2008). Engineering and Technology Management Student Projects. 952.