Firms that succeed in the long run always adhere to best practices, invest substantially in R&D, listen to customers, and emphasize profits.
Technology modifications can fundamentally transform conventional business principles. At present, as technology keeps evolving, the capability of a firm to change itself is crucial for ensuring a competitive benefit.
Currently, businesses must accomplish smaller innovation phases and quicker time to market.
They must implement while the prices and margins are taking a hit.
The businesses that can rapidly adapt to varying market situations and take advantage of innovation to steer business are in the perfect position to do well.
The Methods in Which Technology Is Changing Business:
Managers Thing Linearly While Technology Progresses Exponentially
Managers must make decisions expeditiously. Hence, they often bypass logical reasoning, depending on the rules of thumb to overcome any inefficiency in the data.
They use personal know-how to make normal conclusions. However, the existing business environment is very complex.
The driving force behind the transformation is the rising informational content of the products and services. Today, the value is usually developed by a strategy via informationally directed technologies.
According to Ray Kurzweil, Computer Scientist, and Inventor, “all technologies will essentially become information technologies, including energy.”
Scale Benefits Have Reduced
Banks used to be located in huge buildings that reflected size, and control. Conducting business with a megafirm indicated that they would be in business over a long period, and would stand by their commitments.
However, the scenario has changed. Several of the big firms have struggled. Meanwhile, the technology firms such as Google, Facebook and Instagram have become successful in a short period.
Startups can get access to holdings that could previously be accessed only by mega firms. It could be a cloud computing infrastructure, outsourced production, investment from VC’s, very few sectors have any entry barriers.
Business Models Are Not Long Lasting
In the past, a firm’s business model didn’t modify to a large extent. The management practice focused on implementation.
However, at present, as technological phases shorten, scale advantages have vanished. This is resulting in a tactical shift where technological strategy has become vital.
Increasingly, effectiveness is getting automated – robots in manufacturing units to design, pattern recognition systems that automate analytical activities, machine competencies are slowly substituting human competencies.
Change implies paying attention to the existing environment and expeditiously revamping the business operations suitably. Innovation is the key factor. Innovative firms have succeeded in becoming the market leader.
Firms must not get inhibited by technology, but must leverage new technologies to enhance profitability. In the long run, it would steer the expected transformation, thereby enabling firms to secure a market share, improve the customer satisfaction and maintain a competitive advantage.