5 Ways That Technology Changes Business & How It Affects You

Business People & TechnologyBusiness men and women are taught to follow traditional business principles. Think linear, listen to the consumer, focus on profits, invest in research and development, and many more components that make up the formula for success. Several leaders who have followed these principles have found their way to being CEO’s and running successful companies. A highly respected Harvard Business School professor by the name of Clayton M. Christensen performed a study on why businesses fail. This study focused on businesses who were once successful. They did all the right things and still failed. Why? Technology is the quick answer to this question. Read more for 5 ways that technology has changed business.

Technology Is Moving At An Exponential Pace

Business decision makers are less rational than most would expect. They face hundreds of decisions a day and speed is important. The human brain takes short cuts and relies on experiences and common sense judgement to fill in the gaps. Today business decisions are evolving into something quite different. Linear decision making is disappearing as information driven technologies are adding more value to processes. As technology moves forward at a rapid pace, the role of the business person will change dramatically

 Size Doesn’t Matter

A huge institution used to signify safety. As the market changes with the introduction of new technologies, many giants fall. As businesses like Kodak die off, others such as Google, Facebook, and Instagram, pop up and become billion dollar companies seemingly overnight. Technology and the rise of the Semantic Economy are at the root of this enormous market shift

Less Barriers To Entry

New businesses can gain access to the same resources that used to only be available to huge corporations. Resources such as infrastructure in the cloud, outsourced IT services, strong new software, crowdsourcing, crowdfunding, and much more are now readily available to anyone. Very few industries still have significant barriers to entry.

Business Models Change Quickly

When industry was king, business models were constant over decades. Now, the way a firm creates and delivers value changes at the same rate as technology. The role of management is changing from focusing to execution to focusing on adaptation.

Experiment More, Plan Less

As the process of change accelerates, technological cycles compress and planning cycles try to keep up. The best solution to this problem is to experiment more and plan less. By the time a company makes a plan, the plan must change. We must be doers, and focus on strategy.

 

Each and every change mentioned above reveals a common theme. That of adaptation as a means of survival. Market changes will always occur, as the rate of change increases so too must the rate of adaptation. Give Halski a call to ensure that your businesses technology infrastructure is able to adapt to change!

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