In 1975 a Kodak engineer named Steven Sasson built the first working digital camera. Kodak — whose entire business was film and chemistry — saw the threat clearly and decided not to act on it. The patents sat unused. A quarter of a century later, the company that had invented the digital camera went bankrupt because of it.
The principle: Building the thing that will replace your business is not the hard part. Choosing to ship it is. The internal politics of cannibalising your own revenue will kill the right move more reliably than any external competitor.