Technology disruption is today on the agenda of every CEO. Today, businesses must constantly build new technologies and business models. They need to constantly reinvent themselves to keep their place in the market.
However, there are still companies that struggle with technology changes; these firms will eventually disappear from the market as they fail to see the benefits of innovation. The best CEOs are the ones that make technology disruption work for them instead of against them. Artificial Intelligence (AI), machine learning and high-tech software engineering can boost your business in a significant way.
We’ve created this guide to help you shape a new vision for your company and embrace technology disruption.
Assessing Trends and Opportunities
Assessing technology trends is one of the most important tasks in the innovation department. Not only because it saves companies the time they’d invest in non-disruptive technology, but because this way companies don’t miss possible trends for their business.
This process is crucial for companies to find the right technologies to invest in. Assessing tech includes budgeting and studying the costs and possible revenue from implementing that particular technology. According to these statistics, some of the most disrupting technologies today are the Internet of Things, AI and robotics.
Should You Build, Buy or Partner?
When companies perceive a disruptive trend, they start creating strategies to reinvent their business model or implement new technological trends. In response to technological disruption, they should consider whether they should buy, partner or build the technology themselves. This process is long and takes a lot of effort, but the best path to follow will depend on the business model they already have, their budget, and what they’re trying to achieve.
Organic innovation—which means building technology in-house—requires a lot of infrastructure and talent such as Data Scientists, software engineers, and others, depending on what you’re trying to build. Inorganic innovation involves buying technology from outsourcing companies. This is very beneficial for companies that lack internal resources to build the technology themselves.
Another great option is to partner with other tech companies that are already working with the technology that the company needs. Casey Carl, Chief Strategy and Innovation Officer at Target Corp, said something on the topic in a Harvard Business Review: “The better we are at seeing around corners, the more optionality we have around our suite of choices: buy, build, or partner”.
Make Sure Your Team Understands Tech
When implementing new technology or a different business model, companies need to make sure that all employees understand how it works. If employees are not aligned with the company’s new vision, all efforts would be worthless. So it’s important to have a change management team that guides them through the whole process. This will not only help them adapt to the new situation, but it’ll also improve the company’s productivity.
Keep Innovation Teams Focused on the Core Business
If a company is going to invest in new technology, it needs to keep focused on the core business. This means that the innovation team must prioritize the company’s primary business when dealing with innovation. This will ensure that the company’s vision remains regardless of the innovative changes that are implemented.
Mitigate the Legal Risks Associated With Innovation
Innovation must go shoulder-to-shoulder with legal policies and rules. Whether you’re thinking about building the technology tools in-house, or you want to outsource technology, it’s important to do everything by following your country’s innovation rules. This way, you’ll avoid legal problems that may interfere with your business.