Companies that are blindsided by changes in their environment or disruptions in their competitive space have one thing in common: Their executives and decision-makers somehow got disconnected from the “edges” of the organization—where small changes start brewing before their implications are obvious to everybody. So too, when a big opportunity is missed or dismissed. Why, for instance, did Microsoft initially miss something like five major shifts in underlying technology as it tried to defend its Windows franchise, and why is it regaining relevance now?