Innovating a 100-year-old product

When I saw last year the "Tweel" by Michelin, I smiled insider for I knew the company had empowered its people to question the status quo of tires.  It reminds me of one of my all-time favorite pieces of philosophy:

"Because its purpose is to create a customer, the business has two (and only two) functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are costs."

-- Peter Drucker, longtime management guru

Michelin says it will take 10-15 years for safety testing and to commercialize.  Or, perhaps they're buying some time because they're uncertain about future revenue streams of repeat tire purchases now that tires that can't go flat any more!

TWEEL
Radical new tire design by Michelin.The next generation of tires, they are airless and are scheduled to be out on the market very soon. Just think of the impact on existing technology: no more air valves, air compressors at gas stations, repair kits, or flat tires!

What's the lesson for you?

Better to innovate and cannibalize your own product line "controllably" than to have competitors drive it without your control.  Do the right thing for the customer (even if it means fewer replacement products to purchase) and you'll garner their goodwill and loyalty.  How can you radically simplify their experience?