Technology is a double-edged sword – creating opportunity for many businesses while wreaking havoc for others.
Companies that adapt to the current rapid technological change are forging ever-larger gaps between themselves and their competitors. These forward-looking businesses strategically use technology to innovate, to create more value for prospects and customers, and to differentiate themselves in the marketplace. They’re also using technology to ensure they aren’t commoditized, which is a competitive threat for many companies.
An excellent article from the World Economic Forum, “Digital disruption has only just begun”, declares that we are only at the beginning of “the Fourth Industrial Revolution, characterized not only by mass adoption of digital technologies but by innovations in everything from energy to biosciences.”
All companies, from large corporate entities to small businesses, are affected by these seismic shifts in technology. A particularly noteworthy shift that has dramatically impacted business is the large-scale change in B2B and B2C buying behaviours brought about by the internet.
“New digital business models are the principal reason why just over half of the names of companies on the Fortune 500 have disappeared since the year 2000.”
In my meetings with business owners and executives as co-founder of an online marketing company, discussions invariably include how the internet has changed (and is still changing) the rules of the game. When business owners ask me what the return on investment is for online technologies, my response is that their business will still exist in five years. This may not be strictly true for everyone, but it is a real threat for many.
Digital disruption can seem daunting, but it is also an exciting time. Technology – particularly online marketing technology – offers tremendous opportunities for businesses that are willing to innovate. Online technologies allow these innovative businesses to create more value for customers and prospects, and reduce the cost of delivering products and services.
I can’t think of a more compelling argument for making strategic investments in these readily available technologies!
Innovators Alliance is a peer-to-peer networking group of CEOs committed to driving business growth through innovation. Become a member!
Is your company innovative? Try our Innovator Self-Test. It has only 10 questions and takes less than 2 minutes!
Like this? You might also like: